Over the last few years, British business owners and taxpayers have been getting used to the idea of a changing tax system. For years, the cumbersome and error-stricken present system has been in need of change. And that change is just around the corner: it is known as Making Tax Digital. For VAT-compatible businesses, you are likely already dealing with and using this system. If you are not, the new changes are not expected to come into place for everyone immediately. Make no mistake, though; Making Tax Digital is coming. How, then can you prepare?
Making sure you have MTD compatible software
The first problem is that many popular accountancy systems are not making the migration over to MTD. This means that the system you have used for years might no longer be accessible for you. That is going to be very annoying – especially if you are now needing to pay MTD for VAT fees. If this is the case, then might we recommend that you take a look at how you can make MTD for VAT work for you rather than against you?
To do that, we recommend that you take a look at any suitable MTD compatible software that you have. This will make it a bit easier for you to make some intelligent choices on what kind of software package you want to start using. Take a look around at the various options, and you should find it easier to start making some choices with regards to what MTD for VAT software choice is going to be most suited to you.
Don’t, though, presume that you can ignore MTD for VAT. It’s coming, and you will have to start using a software platform that is fully compatible. Otherwise, you will have some issues filing your taxes in the future. Put simply, you will not be able to file your taxes as you do at present unless you have a very clear and particular exception from the government. These, though, are set to be quite rare and only for the most extensive circumstances.
You need MTD software to make sure you can manage your accounts
The problem for a lot of people is that they do not realise just how important MTD for VAT software is going to be. There is a huge clamour for making sure that you can pick up software that is easy to use, powerful, and offers the features that you need. The problem is that many business owners are not aware of the features they require.
We recommend speaking with your tax advisor, and then making a decision with them about what MTD for VAT software package is likely to be most suited to your needs. There will be a time when the decision has to be made for, and the more preparation and planning that you can do now, the more likely it is going to benefit you in the long-term.