ICAEW.com works better with JavaScript enabled.

Continue reading

Software for MTD

During the introduction of Making Tax Digital (MTD), ICAEW is sharing the latest information about the software that taxpayers and agents will need to keep digital records and to submit information to HMRC.

From April 2019, VAT registered businesses with taxable turnover above the VAT threshold will need to acquire a suitable commercial software product or appoint an agent to submit their VAT returns to HMRC on their behalf. Some businesses with the necessary skills will register with HMRC as software developers themselves and will develop their own bespoke software solutions, but these will be the exceptions.

It will be a requirement to keep digital records;  these can be maintained in more than one program or software product. The use of spreadsheets, either to record individual transactions or as part of a suite of software and spreadsheets is permitted. However, the spreadsheet will need to be either API enabled or used in combination with an MTD compatible software product so that data can be sent to and received from HMRC systems. Where the records are maintained in more than one program or product there must be digital links between each of the pieces of software.