If your business is not already filing MTD VAT Returns and is VAT registered, regardless of whether your turnover is over or under £85,000, it will be become mandatory to file these directly with compatible software.
So what is MTDfV? In short, if your business is VAT registered, it will need to file VAT returns directly from MTD compatible software. Within the software, there should be a digital record of daily takings, business expenses and ideally (although not essential) the business bank account transactions. If you would like to trial the new system before 1 April 2022, or would prefer to have all of your financial years VAT returns on the same system, you can sign up for MTDfV earlier if you wish.
Which software? The choice is yours, however, after many years of using software, we have found for many businesses, Xero is straight forward, using non-accounting terms and users learn to love it, having financial reports at the touch of a button – no more adding up manually! Others are available, such as Sage, Quickbooks & Free Agent, to name but three. The cost of Xero is currently either £12 + VAT or £26 + VAT per month, depending on your needs, with Sage & Quickbooks of a similar price. If you have a Business Current Account with Natwest, RBS or Ulster Bank, then Free Agent should be free of charge. If you have staff, Payroll can be added to most software (at additional monthly cost).
Can we help? Yes. If you need assistance with setting up any software, want to look at the different software available, or need help with the entry of day to day transactions, or need informal training on the software of your choice, then we are here to help. As an alternative, we can also do the VAT data entry and return submissions for you. Whatever help you need, just contact us and we will be happy to help in whatever way we can.
All this may sound daunting at first, however, for many of the businesses we have already helped onto software, they are now finding that they can submit VAT returns with ease.
If you want to discuss your own needs, contact one of the team who will be able to help or contact 01228 534371 or firstname.lastname@example.org