Making Tax Digital (MTD) for VAT will be live from 1 April 2019. It will require VAT registered businesses with taxable turnover above the VAT registration threshold to keep records in digital form and file their VAT returns using software.
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