Making Tax Digital is here.. but do you need more time from HMRC? Could Xero be your software solution?

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Any data transfer within your accounting system must now be digitial! But do you need longer to set up your software so it is MTD ready?

Read our latest article below to find out more, and learn why Xero cloud-accounting software is our no.1 choice for clients.

How it works with HMRC if you think you need an extension

For VAT periods starting on or after 1st April 2020 (or 1st October 2020 for deferred businesses) your accounting systems must use digital links for any transfer or exchange of data between software programs, products or applications used as functional compatible software. That is the end of the current 12 month “soft landing” extension.

Businesses with complex or legacy IT systems may require a longer period to put digital links in place. These businesses can apply to HMRC for additional time to put the required digital links in place. If your business qualifies then the additional time will be granted as a specific direction from HMRC.

If, for example, your company purchases another business it may take additional time to digitally link different software applications or packages to meet the MTD legal obligations. HMRC will consider an application to extend the digital link deadline longer than the “soft landing” period.  That would mean the businesses would continue to be able to “cut and paste” during the extension period.

Why Xero cloud-accounting software for MTD?

Xero has been working with closely with HMRC to deliver MTD and is registered on the government’s MTD software suppliers list. Xero has been participating in HMRC’s MTD for VAT pilot since July 2018, successfully submitting live VAT returns using the beta version of Xero’s MTD functionality. So, with one click of a button you can submit your returns in a way that is fully-compliant with the new MTD regulations.

If you're still using spreadsheets for your accounting, it a good time make the move to Xero now. We can help you understand how Xero can automate your accounting processes in a way that is compliant with MTD.

How Xero will streamline your accounting:

  • Working in the cloud allows secure access to your accounts from anywhere at any time, so you can easily keep track of your finances
  • Connect your bank account to Xero for automatic, live feeds saving you time on data entry and providing a real-time view of transactions as they are processed
  • Real-time, customised management account reporting showing a true reflection of the current business performance 
  • Bank reconciliations made easy through automated matching
  • Send invoices, reminders and sales quotes online
  • Manage bills, purchases and expenses
  • Log fixed assets
  • Submit VAT returns knowing they are MTD compliant

Questions?

Our Xero-certified team can deliver the best cloud-based accounting software solution for your business. RWB is a Xero Platinum Partner and has grown to become the first independent Xero Platinum Champion in Nottinghamshire, so we're in the perfect position to offer you the support you need to start utilising  this invaluable software. 

To make sure your business is MTD compliant, book your free 30-minute consultation with Nick Bonnello today on 0115 964 8860 or email nickb@rwbca.co.uk to find out how we can help you in other areas of your business.

The views provided in this article are for general information purposes only. Nothing in this article represents advice of any nature whatsoever. Accordingly, RWB CA Limited does not accept any liability or responsibility for the information contained in this article or any decision or other action that may be taken in reliance upon the information contained within it. RWB CA Limited accepts no responsibility for any errors of fact or opinion and assumes no obligation to provide you with any changes to its assumptions.  

Tags: Cloud Accounting Financial planning Making Tax Digital Taxation Xero Tax advice Tax planning P11d Business advice VAT MTD HMRC

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