From April 2019, MTD will finally be in full effect as it becomes compulsory for all VAT-registered businesses to keep their VAT records and make their submissions and payments digitally using MTD-compatible software.
A step forward for open market availability
QuickBooks, the industry’s leading online accounting software, has recently completed a beta test and cleared a VAT submission through its software.
Before QuickBooks had submitted their first MTD VAT submission to HMRC, there was widespread concern on how accessible and straightforward the process would be – even whether it would be possible as the whole MTD project has been derailed many times by software compatibility issues.
A recent survey by the British Chambers of Commerce found that a “widespread lack of awareness among business communities about the switch to a new digitised system”. Of the 1,100 businesses that responded to their survey, 24% of firms weren’t aware of MTD or its fast approaching tax regime. These worrying findings also revealed that just one in four businesses had plans to get ready for MTD in time for its rollout date in 2019.
However, QuickBooks’ involvement may help to clear up any confusion surrounding the upcoming changes to the tax regime. The online accounting software is widely used among businesses and news of QuickBooks submitting their first MTD VAT return could help spread awareness of the coming changes to a business community confused by its introduction and the new requirements that it brings.
QuickBooks’s upcoming plans
The Vice President and Managing Director of Intuit Europe, Dominic Allon, said “There has been a lot of talk about Making Tax Digital but with the official roll-out fast approaching it’s crucial that we offer a simple, fast solution to help accountants (and their clients) file their taxes digitally.
“We’ve been working closely with HMRC, taking part in workshops, insight sharing sessions and hackathons to ensure the product is developed in line with the VAT requirements set by HMRC, and to make life easier for our customers.”
QuickBooks has revealed plans to work closely with the UK government, small businesses, and accountants in the coming months to help deliver the best experience for businesses that will need to file their taxes digitally as of April 2019.
QuickBooks currently has several customers participating in their beta MTD service and those customers are being strongly encouraged to give feedback. QuickBooks hopes that this trial can help them to refine the MTD compatibility of their software and to deliver the best possible user experience of filing VAT returns digitally through their service.
Clients who aren’t trialling QuickBooks’s beta MTD programme but who want to shouldn’t worry. QuickBooks has said that they will be adding more customers to the programme eventually.
Do you need help?
Every VAT-registered business needs to understand what MTD is, how it affects their firm’s financial record-keeping and what to do when a VAT return is due after April 2019.
Here at Sunny Accounting, we are experts in MTD and we have extensive knowledge and experience helping client to use QuickBooks – indeed, we offer a free subscription to QuickBooks to all of our customers. If you’re one of the many business owners who are quite sure yet what MTD is or if you do know about it but you aren’t sure what you need to do to adapt, we can help.
Contact Sunny Accounting on 01623 559 362 or email us on [email protected] for help and support on VAT in the MTD era.
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