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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.

MTD for VAT

Page last updated

21 September 2018

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. 

Choosing software

How an organisation approaches the selection of MTD compatible software will depend on their existing level of technology maturity and their business model. For example, an organisation that makes use of very little technology may well wish to consider spreadsheet bridging software – an application that will be able to extract the contents of a spreadsheet and uploaded it to HMRC. It is also worth considering the long-term future of an organisation. It is fair to say that the rate of change in technology and business has never been faster. That rate of change will only ever increase. As a result, all organisations will need to consider how they will remain competitive in the future. A case could, therefore, be made to invest in a more comprehensive application that could fulfil the needs of an organisation in the future.

Organisations that are already making extensive use of information technology will need to ensure that their software supplier is going to provide MTD compatible versions of the applications that they may use. In these cases the existing and future requirements of an organisation will need to be considered. In recent years we have seen a number of major changes to UK legislation; for example GDPR, auto-enrolment, open banking and MTD.  In many cases it may well be easier and cost effective for an organisation to choose an application that resides, or is at least connected, to the “cloud”.  Applications that are hosted on the internet (in the cloud) are able to make connections with other digital services and as a result provide increased functionality and flexibility.

To help an organisation choose software the Business Application Software Developers Association (BASDA) have created a free guide to help you select business software.;

MTD software providers

Table last updated: 16 October 2018

In this section you will find the details of software providers who have shown a working prototype MTD application to HMRC. The table can be used during the process of selecting MTD software. It is essential that you check with your current software provider to understand if they are going to be providing MTD compatible software.

We have created a table that details what each supplier has to offer. 

Note the words “full range” are used to describe when a software application provides a broad range of accounting services. The range of services provided by each application may not be identical.

 

Supplier Functions MTD tax Firm size Market Desktop/cloud Comments
aaaDataX Excel bridging VAT All All Cloud
AbraTax Excel bridging VAT  All All Cloud
Absolute Accounting Software Ltd
Excel bridging VAT,
Income tax
All All Desktop API enabled Excel spreadsheet
Accentra Primo Umbrella
Full range VAT SME Recruitment & Contracting Industry Desktop
Accounting Office Software Ltd
Full range VAT All Food sales and supply / manufacturing Desktop
AccountsPortal
Full range VAT All All Cloud
Advanced Computer Software Group Ltd Full range VAT All All Cloud  
Anagram Systems ERP – Stock control VAT SME Retail, wholesalers, jewellery, marine, timber, medical, chemical Desktop  
Arkk Solutions Process automation tool, full suite VAT, with Corporation Tax on our development roadmap for the HMRC go-live in 2020 Mid-cap firms through to larger FTSEs, as well as top 50 accountancy practices All Cloud The MTD Platform can be customised to our clients’ processes
Avalara Excel bridging VAT All All Desktop Free solution
Bridge Squared Return submission VAT All All Desktop
BTCSoftware Tax, account production, practice management
VAT 
 All  All Cloud for MTD, some
modules available on desktop
Integrates with VT software
Bx 
(Free, also paid plans avilable)
Invoicing, expenses  VAT
 All All Cloud Cloud based spreadsheet bridge
Capium Limited Full range VAT All All Cloud  
Cirrostratus - Exedra 
(Low cost some business free)
Spreadsheet bridging
VAT  All  All
Cloud Cloud based spreadsheet bridge
Clear Books plc
Full range with bridging capabilities VAT All All Cloud  
COINS Full range Unknown SME Construction Cloud  
Croft Computer Systems Accounting VAT Golf club Golf club Desktop  
DC Software Excel bridging VAT All All Desktop  
Deloitte LLP
Full range VAT Large Enterprise Cloud Bespoke solutions
DTracks Limited
iXBRL filing VAT All All Cloud  
eFileReady  iXBRL filing, File upload bridging  VAT All All Cloud Cloud based XML/CSV
bridging software
Essentia Global Services  VAT returns VAT All All Cloud  
Exel Computer Systems PLC
ERP VAT All Aerospace, automotive engineering Cloud
EY LLP
Full range VAT Large Enterprise Cloud Bespoke solutions
Farmplan
Accounts, Payroll, VAT
VAT  Small Farming Desktop (TBC)  
FinanSys Solutions Ltd
Full range (SunSystems partner) VAT All All Desktop and cloud  
Forbes Computer Systems
Full range VAT, 
Income tax
SME All Desktop  
FreeAgent
Full range VAT All All Cloud  
GoSimple Software
Bookkeeping
VAT All All Cloud  
Grant Thornton UK LLP
Excel bridging add-on
VAT All All Desktop  
Hartigan Software
Excel bridging VAT All All Desktop  
Integrity Software
Full range VAT All Construction Desktop  
Intuit – QuickBooks
Full range VAT  Small All Cloud  
IRIS Full range  VAT, 
Income tax
All All Cloud  
KAI Consulting Full range Unknown All TV & film
production
Cloud or desktop  
KPMG LLP (UK)
Excel bridging
VAT  Large  Enterprise Cloud Cloud-based spreadsheet bridge
Landmark Systems Ltd
Accounting
VAT
Farming Cloud  
Liquid Accounts
Accounting VAT All All Cloud Bespoke solutions
MAM Software Ltd
ERP VAT All Motor trade Cloud
Motor Trade Technologies Ltd
Full range VAT Small Motor trade Desktop  
My Digital Accounts
Accounting, payroll, CRM
VAT All All Cloud  
Neilson James Technology
Excel bridging VAT Small All Desktop Import from VT Transaction+
or VT Cash Book
PwC
Excel bridging
VAT Large Enterprise Desktop API enabled Excel spreadsheet
Quickfile Accounting
Full range  VAT All All Cloud  
Rialtas Business Solutions Full range VAT Town and Parish Councils Town and Parish Councils Desktop  
Rhino Record keeping,
updates to and from HMRC
Income tax SME All Cloud  
Road Tech Computer Systems Ltd ERP VAT All Road haulage Cloud  
Ryan VAT VAT Large All Desktop Enterprise ERP solutions
Sage (UK) Ltd
Full range VAT All All Cloud and desktop  
SAP
Unknown Unknown Large Enterprise Cloud and desktop Enterprise ERP solutions
SDA Logic
Full range Unknown All All Unknown Ready-made and
bespoke solutions
Simplifi-HQ Ltd
Unknown
Unknown Unknown All Unknown  
Tax Automation Ltd
Capital reporting, Accounting automation, VAT
VAT Large Enterprise Desktop Bespoke solutions 
TaxCalc (Acorah Software Products Ltd)
Full range VAT All All Cloud  
Tax Optimiser 
(Free, restrictions apply)
VAT  VAT Small All Cloud Cloud-based spreadsheet bridge
Taxate Excel bridging and
integration with
QuickBooks and Xero
VAT All All Clould  
Tax Systems plc Accounting automation, VAT
VAT  Large
All Cloud  
Thomson Reuters – ONESOURCE
Full range VAT All All Cloud  
Thomson Reuters – Onvio
Full range VAT Large All  Cloud  
Tyresoft Ltd
ERP platform with accounting functionality VAT SME Automotive Cloud  
Vertex Global Tax Solutions
VAT returns VAT All All Cloud  
Vital Code Ltd
(Free solution)
Excel bridging VAT All All Cloud Cloud-based Excel add-in
VT Software
Not implementing MTD directly,
but data can be exported to bridging
software for upload to HMRC
N/A N/A N/A N/A See entries for BTCSoftware
and Neilson James Technology
Wolters Kluwer (CCH)
Full range VAT Large All Cloud  
Xero
Full range VAT All All Cloud  
Zoho Books
Full range
(Part of a broad office productivity  suite)
Unknown
All All Cloud  

Cyber security

The value of company, staff and client data cannot be under estimated. As a result data protection has never been more important. Use the links below to find out more as to how an organisation can protect its data assets from cyber threats and in turn improve its business resiliency.

Useful resources