The requirement for digital VAT returns becomes effective from April 2019 and many of our clients have been in touch to discuss the kind of digital tax software they'll need to comply with the new regulations. If you submit VAT returns, you'll probably need to start submitting them digitally from April, and even though HMRC are offering a "soft landing" for businesses to make the switch a little easier, you will only have a year to achieve full digital VAT compliance.
Our Recommendations For Digital Tax Software
There are lots of software packages on the market that meet HMRC requirements for digital VAT returns or capable of enabling bridging between spreadsheets, software packages and the HMRC digital platform. You'll find them all listed on the government website.
Some of the software packages we recommend include:
Xero tends to be the package we recommend most highly and is discussed in more detail here.
One of the principal reasons we like Xero so much is because it's a totally cloud-based accounts package, which makes it easy to share data with our clients. What's more, Xero has an intuitive interface that is clear and user-friendly. It's an affordable software solution and is listed in the HMRC's Making Tax Digital (MTD) software approval schedule.
Another major advantage offered by Xero is that it links in with Receipt Bank to provide users with an advanced, automated invoice processing system. In addition, extraction of PDF data is remarkably easy with Xero, as users simply need to upload a file, and all data will be extracted and saved into the Xero platform. This can be an extremely cost-effective and error-free solution for larger businesses, where PDFs are a major feature in day-to-day operations. It's simple to upload a PDF detailing hundreds of separate transactions and once these Xero transactions are loaded into the system, they are linked to the appropriate PDF reference. This makes it easier to extract data from PDFs for analysis or research at a later date.
You can find out more about the benefits of Xero accounting software on their website. Alternatively, don't hesitate to get in touch with the experts at David Howard to discuss your accounts software requirements in detail and we'll give you an unbiased opinion on the best way to handle your legal obligations to submit digital VAT returns.