FREE Making Tax Digital for VAT Bridging Software
Many VAT registered businesses, with a turnover in excess of £85,000, are starting to realise the impact that the new Making Tax Digital for VAT rules are having on their bookkeeping and accounting.
Unfortunately there is much incorrect, misleading and false information being shared about Making Tax Digital; much from some who really ought to know better including accountants and software suppliers.
Many (incorrectly) are claiming that you need a Cloud Accountancy System to comply and if you choose to use a simple and cost effective Bridging Software Solution to meet your obligations then this will not be suitable past April 2020. This advice is plain WRONG. Unfortunately some less than scrupulous or ill-informed suppliers and accountants have just got their facts wrong!
Bridging software is a piece of software that links your system or spreadsheet to the new HMRC VAT system (Gateway). It merely bridges the gap between you and HMRC and makes you Making Tax Digital ready.
Bridging software is cheap, easy to implement, straight forward to set up and totally compliant with the new Making Tax Digital for VAT rules.
Despite what some are saying, Bridging Software is a VALID solution to Making Tax Digital for VAT both now and into the future; at least until the time HMRC change any requirements.
Currently there are 89 Bridging Software solutions for Making Tax Digital for VAT listed on the HMRC web site (click here). This number continues to rise.
More importantly there is a FREE Bridging Software solution available – so complying with Making Tax Digital for VAT need not cost you a penny.
The free software (thank you to Mr Paul Lewis of BBC Breakfast and Radio Four Money Box for bringing this to my attention) is called Portico and comes from an IT company called Open Answers Limited.
Find it at https://vat.portico.openanswers.co.uk/
I have spoken with Ian Bellia from Open Answers Limited and he explained that as an IT company who have to file their own VAT returns they put together this very simple and straight forward to use solution to ensure that they were compliant with the new rules.
Feeling as strongly as I do about the HMRC Making Tax Digital for VAT Vanity Project, Ian told me that as a business they felt passionate about preventing other business owners incurring unnecessary costs in order to comply with new red tape rules that provided no benefit whatsoever to the business owners. So they made their software available to others to use entirely FREE.
They will not spam you with sales emails and promise not to lock you in or impose future charges. They do not capture any data. You merely grant them one time permission to file the data with HMRC for each VAT return; something that takes moments to do once you’ve registered with HMRC (which won’t take moments as their systems seem to be experiencing technical issues!). This means that you can duck out of the software use at any time.
So impressed by all of this that I have promised Ian that I will file my first Making Tax Digital for VAT return under the new rules using Portico. I’ll report back when I’ve done that. So watch this space.
Portico – a name to remember if you want a FREE Making Tax Digital for VAT software solution that is easy to use, set up and won’t cost you a penny!
Making Tax Digital Reminder
If you are registered for VAT with a turnover in excess of £85,000 then you fall within the Making Tax Digital for VAT new reporting regime.
In reality this means that VAT returns starting on or after 1st April 2019 will be submitted under the new rules as follows:
- By 7th August 2019 for VAT quarter to 30th June 2019
- By 7th September 2019 for VAT quarter to 31st July 2019
- By 7th October 2019 for VAT quarter to 31st August 2019
Read more about Making Tax Digital for VAT – click here