Preparing for Making Tax Digital – with WinAccs
Frequently asked questions for customers already using WinAccs
What is Making Tax Digital?
What does MTD mean for my business?
What will I need to do?
Do I have to do everything digitally?
You must keep certain information – such as VAT-related transactions – in digital form. HMRC’s MTD rules state that all VAT registered businesses must “keep and preserve” their income and outgoings within “functional compatible software”. Therefore you need to start recording and storing your financial records using software or apps and be able to send this financial data to HMRC using HMRC-recognised software or apps (i.e that’s software that can link to HMRC’s API platform).
I have some records in Excel. Can I keep using these?
Essentially yes. It is possible to use software which will allow you to ‘bridge’ programmes like Excel (which are not MTD compatible themselves) with HMRC’s platform. However this can get complicated and using one solution such as WinAccs may be easier.
I have some paper records. Can I keep using these?
With some very limited exceptions, each and every transaction must be recorded electronically. Taking totals from paper records and recording those totals electronically does not meet the requirements of MTD. Records would have to be entered entry by entry into software which is likely to be very inefficient whilst using software such as WinAccs sooner may be easier.