Following on from our recent white paper for accountancy professionals – How to Prepare Your Practice for Making Tax Digital (MTD) – the BTCSoftware Team has put together another handy guide to help accountants prepare their clients for Making Tax Digital.
Helping clients prepare for MTD
This month sees the Beta testing of MTD by HMRC starting with a selected group. The first businesses (those who have profits chargeable to Income Tax and pay Class 4 National Insurance contributions (NICs) and turnovers in excess of the VAT threshold) are due to commence their MTD compliance in April 2018.
What form MTD will take is still unclear, but it will happen. The move to make all businesses maintain digital accounting records will prove more of a burden to some. For some accountancy practice client businesses MTD will be a major change to their operations and approach. They will turn to their accounting and tax advisers to guide them very carefully through the process.
Accountancy professionals can help ease the size and scale of the MTD learning curve, by alerting clients to MTD now and helping them prepare whilst there’s still time.
Insight from the latest developments
At BTCSoftware we are working very closely with HMRC to road-test the MTD technology as it is created. The minute HMRC releases an API (a necessary function, protocol or procedure to enable software to submit information and interact with businesses’ MTD digital accounts) we immediately write, test and blend it seamlessly into our tax and accounting software. This ensures that our software solutions are MTD compliant as HMRC’s new digital tax systems evolve.
There are, however, numerous APIs still to be rolled out by HMRC but that shouldn’t stop accountants helping their clients prepare for digital accounting and quarterly submissions of digital summaries of their clients’ income and expenditure to The Treasury.
If you need help preparing your clients for MTD, contact our friendly UK-based team on tel. 0345 241 5030 or email: firstname.lastname@example.org .