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MTD for VAT came into effect for all business in the UK with a turnover of £85,000 in April 2019. Very soon a number of businesses or VAT-registered concerns will join in the tax submissions procedure through its software.
MTD for VAT is a mandated way of sending VAT returns to HMRC. Only approved software can be used and any attempts to use established systems like Sage, Lotus, Excel, Quick Books or Xero will not be acceptable.
Tax returns must be sent back to the government’s revenue departments using MTD for VAT software. This software has been cleared and approved by HMRC and in many instances it has helped to build software with firms, so that the right piece of kit is compatible.
On 1 October, 2019 many new firms, organisations and entities will come on board and be mandated into the program. Organisations that do not work for a profit, overseas businesses trading under UK VAT rules, charities and annual account scheme participants.
The representation of ongoing concerns and establishments is estimated to encompass nearly 4 per cent of all VAT registrations in the UK.
The Important Features of the Software for VAT
The first thing to be made clear is that the MTD for VAT software is not difficult to use. It is highly intuitive, assists with timely reminders and has seen no major problems from the bulk of those businesses who came on board back in April 2019.
If you currently use conventional software to submit your VAT returns then your business will most likely to have made use of Microsoft Excel spreadsheets, Xero, Sage, Quick Books or a .CSV file that migrates seamlessly.
This practice will come to an end. Eventually, for all. However, the immediate concern for businesses that have used these conventional software templates for VAT submissions is: how does the business migrate to the new and approved MTD for VAT from the old conventional templates?
One of the most important features of MTD for VAT software is that is can easily support all major accounting software and migrate seamlessly. Some businesses have chosen to run the old systems parallel with MTD for VAT in the first few months of going live. This practice is largely unnecessary.
Safety and security are important features in VAT software. At MTD for VAT Software Systems you can use its hub to secure UK servers and work over a very strong encryption.
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