Making Tax Digital – choosing the right software for you and your practice
HMRC has embarked on a massive project – Making Tax Digital (MTD) – to insist that most businesses, including self-employed dentists and corporate dental businesses, keep their accounting records using computer software. The aim is that the software will automatically update HMRC with relevant data on their business income and expenses on a quarterly basis.
As this draws ever closer, more software providers are engaging with HMRC to test their software for functional compliance with rules of MTD. HMRC has recently published a list of suppliers who are currently working on pilot schemes for the digitalisation of tax recording systems. You can find this list on their website.
While this list continues to grow, it is an important reminder that we should not become complacent. Just because you are using some form of accounting software, does not mean it will be MTD compliant.
All businesses, over the coming months will need to assess their current record-keeping methods to ensure that they are meeting the requirements of HMRC’s MTD initiative. Should you find that your current software package is not on this list, you may need to consider adjusting your future arrangements.
This may be a convenient opportunity to review your current record-keeping procedure, to establish if it is best suited to your business going forward. We are in discussions with a variety of software providers and are involved in Beta testing for MTD so are best placed to advise you on this matter and can make recommendations for improvements.
If you would like to discuss your accounting software and/or processes to ensure your MTD compliance then do not hesitate to contact our dedicated team who can offer expertise and support on your transition to Making Tax Digital.