With MTD software becoming more and more common, lots of businesses are starting to wonder whether it’s time to invest. But if you’re not clear on what making tax digital means for you or how software can help you comply with new regulations, then you might be hesitating to jump in. But the longer you wait, the greater your risk will be of not complying with the law. This blog will help to clear a few things up.
Will MTD make things more difficult for businesses?
It’s understandable that you might be worried about MTD, but it’s actually designed to make things easier for businesses. In the beginning, there will definitely be an adjustment period, especially if you’ve never used any kind of accounting software before. But once you get to grips with your new system, completing your tax return will be easier than ever. The whole process will be much more efficient, meaning you have to spend less time sorting out your accounts as well as worrying less about mistakes.
Is software essential for MTD compliance?
The short answer to this is yes, but that doesn’t mean that any software will do. The program you pick must be compliant with MTD regulations because otherwise, you run the risk of paying the wrong amount of money at the end of the tax year. You’re putting complete trust in the software you pick, as it will calculate both your VAT and income tax automatically so you won’t even have to lift a finger. This is why it’s so important to choose a reputable provider that specifically lists MTD compliance as one of the software’s features.
What happens if I don’t set up my software on time?
While there will be a transitional period for most companies to set up their software if you fail to put steps in place before the deadline you could be at risk of receiving fines. Because the online tax return system is changing, at some point you won’t be able to complete your return if you haven’t upgraded your own internal software. This can put you in a whole lot of trouble, so it’s best to prepare in advance.
How can I go about finding the right software for me?
Finding MTD software couldn’t be easier, but finding the right one will take a little bit of time and research. You can get started by using a search engine or reaching out to your network to ask for recommendations. Make sure you read the information on the website you’re looking at carefully and pay attention to whether the software is up-to-date with MTD regulations. If you’re struggling to find this information, reach out to the providers of the software or choose a different company entirely. You don’t want to have any doubts, especially if you’re going to be paying a subscription for a fixed number of months.
MTD might seem overwhelming right now, but in time you’ll be grateful for how easy it makes doing your taxes.