Marsland Nash can guide you on which software will work best for you, contact us for a chat on how it may affect you and your business. We also have useful HMRC links you can click on for more information on Making Tax Digital
1st April 2019 sees the mandatory start of Making Tax Digital and you will need software that lets you submit VAT returns and keep records of sales and purchases. You must have the right software before you sign up. You may already use software to keep records so it’s important to ask your provider if it’s compatible with Making Tax Digital.
- 'Bridging software’ is HMRC’s description of the digital tool that can take information from other applications, for example, a spreadsheet or an in-house record keeping system, and lets the user send the required information digitally to HMRC in the correct format.
- Compatible software is a software product or set of software products that between them support the MTD obligations of keeping digital records and exchanging data digitally with HMRC through the MTD service. If more than one application is being used, data that flows between those applications must also be exchanged digitally.
- Digital records can be kept in a range of compatible digital formats. They do not all have to be held in the same place or on one piece of software. For example, a spreadsheet can be a component of digital record keeping provided the product that consolidates records, or summary records from the spreadsheet, can exchange data digitally with HMRC.
- HMRC will give businesses until 31 March 2020 to make sure there are digital links between software products. Before that date, cut and paste will be an acceptable way to transfer information. The exception to this is where return information is to be transferred to a software product enabled for an Application Programming Interface (an API provides a secure link between software and HMRC) and designed to submit the 9-box VAT return (such as bridging software). In those circumstances the transfer of information must only be digital.