VAT-registered businesses with a taxable turnover above the VAT threshold are now required to use the Making Tax Digital (MTD) service to keep records digitally and use software to submit their VAT returns for VAT periods that started on or after 1 April 2019.
At M+A Partners, the main MTD compliant systems we work with are:
- Desktop systems such as Sage50 (confusingly now called Sage50cloud Accounts) and Farmplan.
- Cloud systems such as Quickbooks Online (QBO) and Xero.
Traditional software installed on Windows PCs
- Sage50 is long established in the UK as a popular accounting system. It follows traditional bookkeeping methods. Now only available on monthly subscription with typical costs ranging from £10 to £125 per month. Existing users will need to upgrade to the latest version.
- Farmplan has worked closely with clients in the agricultural sector for many years and were early in their preparations for MTD. Monthly costs start around £15.
Allow access from different devices and locations and can often automate part of the bookkeeping process.
Each system has its merits and will suit different clients.
- QBO is straightforward and a good introduction to cloud accounting.
- We find Xero to be a little more flexible in some cases, for example with easy exports to Excel or pdf and better integration with other apps.
Monthly charges are typically £11 for QBO (the plus level) and £20 for Xero standard.
Both systems can be set up to import transactions from your bank – with many banks this can be automated, saving considerably on manual data entry.
Many of our clients also use Receipt Bank which for an extra £10 per month will extract the information from purchase invoices, either by scanning or capturing a photo on a smartphone. This can save even more data entry by posting directly into either QBO or Xero.
There are also some useful videos on our YouTube channel – click here.
Contact our Business Services team to discuss the best way to get you set up on a system that works for you.
Call David Talbot or Gary Brown on 01603 227600