With only ONE DAY LEFT BEFORE MTD IS LIVE you may still have some burning unanswered questions…
MTD is just one of many stages of the transition to cloud. We, at Global Infosys believe that transition to a fully cloud-based software has more pros than cons.
Do I have to start using accounting software?
The truth is you DON’T. You have the option to sign up for an Excel spreadsheet bridging software that enables your company to calculate VAT and keep digital records.
How does a bridging software work?
It will link your excel records for HMRC to accept your VAT returns through their new platform.
Is a bridging software an option for my business?
All businesses can use the bridging software as long as they are VAT registered. For some businesses, a bridging software solution may be a quick fix for the time being. This is just a temporary solution as HMRC’s ambition is to become one of the most digitally advanced tax administration in the world.
Some reasons why companies don’t want to switch to MTD software:
- Feel more comfortable and experienced using Excel
- Don’t want to move to an expensive package
- Have a non – API enabled software leaving no time to migrate
- Have not got enough resources to manage the migration or do the work
What are the advantages of migrating to an MTD compliant software?
- MTD software will give you an opportunity for real-time data and for more efficient reporting
- Allows accountants to have information from their clients in advance – before the filing deadline which will give more time to properly asses the data and address the client with the relevant information.
- Streamline processes
- Time – saving
- Potentially increase revenue for accountants
Everyone is currently having similar issues, so use this time and opportunity to plan ahead rather than delay your transition process!
See below most Frequently Asked Questions:
- Will HMRC be offering a solution via their website?
HMRC’s current plan is that it will not provide solutions for MTD.
- What if my client’s income drops below £85k? Can I go back to manual filing?
Once businesses have transited to the MTD system; they cannot go back to manual filling options unless deregistered from VAT.
- Will my business have to comply with ‘Digital Record Keeping’?
Only those businesses who have registered for MTD have an obligation to file a VAT return (VAT-registered companies with a turnover over the threshold) are required to keep them digitally. For all other businesses, it is not currently compulsory but worth keeping them digital to plan ahead.
- How do we digitally link source data for a VAT group where each member entity has different source systems?
MTD is not stopping the internal process and how the data is being consolidated. However, when a VAT return is prepared it should be digital and must be submitted using fully digital or bridging software.