Questions and Answers
Is my software Making Tax Digital-compliant?
I use some bookkeeping software. I think Making Tax Digital is going to apply to me. How do I go about checking if my software is Making Tax Digital-compliant?
Making Tax Digital for VAT applies to VAT-registered businesses with taxable turnover in excess of £85,000. For VAT periods starting on or after 1st April 2019, mandated businesses will be required to record transactions digitally and file their VAT returns using functional compatible software. Inputting the figures directly into the Government Gateway will no longer be an option for those forced to comply with Making Tax Digital.
Some software houses are writing to their customer base to let them know whether their software is compliant or not. But it sounds as though yours hasn’t been in touch.
Otherwise, HM Revenue & Customs has developed a tool for you to search for compatible software, which is available here. They’ve also produced a list of which software houses they’re currently working with, but aren’t quite ready.
Much of the software has different versions, so if you’re still not sure, you should contact your software house directly and get in writing from them whether your particular product is compliant.
TaxAssist Accountants uses software that is Making Tax Digital-compliant and we have bridging software available for spreadsheet users. Please contact us to find our more information.
Date published 1 Mar 2019
This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.
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