Best Software Options for the Adoption of Making Tax Digital
Making Tax Digital (MTD) for VAT means if your VAT-registered business is above the £85k threshold, you’ll need to start keeping records and submitting VAT returns digitally. That means you’ll need compatible software, but where do you start when it comes to efficient, effective and affordable accounting and tax software?
We take a look at three of the best options on the market to ensure you’re MTD compliant!
A Quick Look at QuickBooks
There’s a reason why QuickBooks is such a popular choice when it comes to accounting software – it makes life easier! QuickBooks supports bridging software for Making Tax Digital, ideal if you’re using bespoke software and want to continue recording your VAT using a spreadsheet. It’s also easy to migrate your accounts to QuickBooks for automatic tracking and calculation of VAT. Then your VAT returns are automatically submitted to HMRC, ensuring you’re fully compliant with Making Tax Digital.
QuickBooks is designed as an all-in-one solution for your business tax and accounting needs. It’s quick and easy to transition from other software to QuickBooks and their support team are on hand to help with migration – in fact, they offer 24/7 support. You can choose from a range of subscription levels starting at £18/month (£9/month for the first three months).
Regardless of the level of subscription you choose, you’ll be MTD ready! QuickBooks lets you snap and store receipts, send and track invoices, download bank transactions, manage expense reports and more. There’s even a free mobile app, so you can access your figures on the go.
Can Sage Save the Day?
If you’ve ever worked in accounts, you’ll know Sage has been around for a long time. Their cloud accounting software, Sage Business Cloud, is fast becoming a popular choice. Sage has been working with HMRC for many years so you can be sure you’re fully compliant with MTD when you choose their software.
They offer 24/7 webchat and phone support, as well as a mobile app, so you can access your data from any device. Sage is pretty simple to set up and use, allowing for real-time collaboration, as well as offering payroll support and enhanced security. New users can enjoy a 30-day free trial, with subscriptions starting at £10 + VAT a month, ideal for sole traders and micro-businesses.
Xero to Hero
When it comes to an all-in-one package for your accounting needs, look no further than Xero to get your books done, fast! Xero lets you send invoices and reminders, import bank transactions, manage payroll and invite your accountant to access your figures. With a mobile app, Xero can be used anywhere (on any device) and all new users get a free trial. Subscriptions start from £10 a month and go up to £27.50 a month for the premium subscription. Every level of subscription lets you submit VAT to HMRC for Making Tax Digital.
Because Xero has been working with HMRC for over three years to ensure businesses are supported with regards to MTD, you know you’ll be on track to meet your obligations. Xero also offers bridging software, so if you’re using bespoke software that’s not compatible with MTD for VAT, they can help. What’s more, they’re hosting a series of live webinars until June 2019, designed to help businesses get set up with MTD and get up to speed with Xero.
If you’d like to give Xero a go, get in touch with NECL. We can help you get started, implementing Xero for your business and showing you how to use all its different features. To find out more, contact us today.
