Preparing for Making Tax Digital – with WinAccs

Frequently asked questions for customers already using WinAccs

What is Making Tax Digital?
Making Tax Digital will change the way your business updates the HMRC regarding your company taxes. The first of these changes will come into play in April 2019 with Making Tax Digital for VAT. From April 2019, VAT-registered businesses (those companies with their turnover over the VAT threshold, which is currently £85,000) will be required to digitally submit their tax records to HMRC. They will no longer be able to do this via HMRC’s Government Gateway website.
What does MTD mean for my business?
If you are VAT registered then you will need to move to digital record keeping (i.e. use software to record all your VAT invoices and receipts). If you are not VAT registered then digital record keeping is optional for now. If you are VAT registered and do not yet use software to record your VAT information (invoices to customers and from suppliers) you need to start planning for Making Tax Digital. The new implementation date is 1 April 2019. Speak to one of our advisors today about a free trial of WinAccs. If you are already using WinAccs then you are in good hands our software will be fully compliant with the new MTD requirements and will continue to support you in your new obligations under MTD.
What will I need to do?
Don’t be put off by this change, take Making Tax Digital as an opportunity. This is your chance to streamline your accounting and business management. Keeping records and filing tax digitally gives you the chance to update your processes, check your income, expenses and profit and potentially make better business decisions as a result. Essentially all you need to do is record your taxable records and submit your VAT returns through MTD-compatible software – like WinAccs. Using WinAccs already? Compact software is very pleased to confirm that at no extra charge to existing customers, with WinAccs you’ll have everything you need in one place to be ready for the Making Tax Digital (MTD) deadline on April 1st 2019. Courtesy of Compact Software you will soon be able to upgrade your registration to include your MTD VAT Module completely free of charge.  Then you will be able to submit your VAT figures via WinAccs directly to the HMRC MTD service. Watch this space for public release of WinAccs v7.08 which will include all these MTD new features.
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.