For the sole practitioner accountant and their clients
For those who are not aware Making Tax Digital for VAT (MTD for VAT) will be introduced for VAT quarters starting from 1st April 2019.
Just like GDPR a swell of seminars and so on is building educating us on the subject. Nothing wrong with that.
For those who know me and appreciate my cynical side which I have cultivated over a number of years I am spectacularly failing to see what all the fuss is about!
The solution is simple ….. there are two options.
Existing Cloud System will do it
If you and your clients are using existing Cloud Accounting systems then the supplier of the system will be building a new interface to HMRC for VAT.
You will have to go through the set up to the new interface – a one off task. Yes that’s a pain but once it’s done then it’s back to business as usual. Just file the VAT returns as normal.
Don’t ask me why they changed the interface that they already have and was working well …. I’m likely to get into conspiracy theories to justify the £980m project budget!
Bridging Software will do it
Simply put Bridging Software takes figures from another system or from manual input and pumps them through to HMRC via an API (application programming interface – a fancy word for a piece of software that maps things).
It’s like one of those cheap mobile phone charging cables that charges all phones regardless of version or make through one wire with lots of ends! An essential tool in a technology world without standardisation.
Free Bridging Software
So far I have found two free Bridging Software Solutions.
Alvara MTD Filer – https://www.avalara.com/simplify/en/avalara-mtd-filer.html
Tax Optimiser – https://www.taxoptimiser.co.uk/Features/MTDVAT
I have briefly spoken to Mark O’Grady from Tax Optimiser about his solution.
He shared his (less than 2 minutes to watch) You Tube video on how to set things up – click to watch.
It looks really easy to set up and use.
He explained his pricing:
FREE for up to 20 organisations
£10 / month for 21 to 100 organisations
£30 / month for over 100 organisations
That means filing a VAT return after 1st April 2019 should not incur huge additional costs for the client or the accountant.
As accountants ….
- Let’s not make Making Tax Digital for VAT complicated
- We can lead the way by showing clients the solution to what HMRC are demanding without an increased financial burden on their business
The full list of software supporting MTD for VAT can be found at GOV.uk – click here