making tax digital software

what product are you using?

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What product ar forum members using?

I use taxcalc for tax returns etc, and they seem to have a product called cash book, but it does not seem to be HMRC approved. In fact the list of approved software providers is very limited, only 4 from what i see.

Any thoughts appreciated.

 

Replies (20)

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By ireallyshouldknowthisbut
16th Jul 2018 12:25

Excel for small clients, and Xero/QB/a.other for clients big enough for cloud stuff. Couple are on VT too.

Its all digital.

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Replying to ireallyshouldknowthisbut:
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By ShayaG
06th Sep 2018 14:15

How are you linking Excel to HMRC's servers? Digital, despite the etymological link, is explictly defined in this context to prohibit typing numbers with digits.

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By Karina.Harley
16th Jul 2018 12:43

Hi Northernman,

Full disclosure - I'm the Marketing Lead at Clear Books.

There are two lists of MTD software suppliers.
1. VAT 2019 deadline (18 suppliers)
2. Self Assessment 2020 deadline (4 suppliers).

We expect the second list to grow over the next year because most companies will have focused on the more immediate MTD requirements.

We're delighted to be on the VAT list already. You can see the list here: https://www.gov.uk/government/publications/software-suppliers-supporting...

Give us a shout if you want any more detail!

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By Matrix
16th Jul 2018 13:00

For clients who are already on the cloud, no changes will be necessary. For clients not on the cloud I will use VT.

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Replying to Matrix:
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By Karina.Harley
16th Jul 2018 13:18

Hi Matrix,

VT have announced they will will not be MTD compliant;
https://www.accountingweb.co.uk/tech/practice-software/vt-ceases-develop...

As per my disclosure above, I'm the Marketing Lead at Clear Books. I suggest you look at software listed by HMRC as tested and recognised. Many, (like Clear Books) will offer free migration of your clients from VT to MTD compliant software.

Karina

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Replying to Karina.Harley:
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By Matrix
16th Jul 2018 13:24

I know but since it has been discussed so many times in the last few months on here I didn't spell out that I will be using bridging software to submit.

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Replying to Matrix:
By ireallyshouldknowthisbut
16th Jul 2018 13:36

Indeed Matrix, the scaremongering from software sales people is very tiring, especially with respect to "proper" MTD which just keeps on getting kicked down the line.

VAT is a standalone sticking plaster to the project.

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Replying to Karina.Harley:
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By vtsoftware
06th Sep 2018 11:26

Yes, Karina, but VT Transaction+ and VT Cash Book both already have an export feature to MTD bridging software applications. We will be publishing a list of VT compatible bridging software applications at www.vtsoftware.co.uk/mtd in the next few days.

Philip Hodgson
VT Software

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By In a Daze
16th Jul 2018 15:04

We mainly use Xero and Reckon One for our accounts production we use BTC as has a two way integration with above.

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Tornado
By Tornado
16th Jul 2018 16:50

I wonder what accounting package
Xero use and is it MTD compliant?

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Replying to Tornado:
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By david.bransbury
23rd Aug 2018 18:11

I believe they use Xero in the UK but the NZ parent company does not as it too large .....

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By Briar
16th Jul 2018 18:31

Will MTD actually happen? I have my doubts and am therefore not spending much time on it.

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Replying to Briar:
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By david.bransbury
23rd Aug 2018 18:21

Which part

MTD for VAT - yes. The HMRC are talking to 150 software suppliers and there now 40 on the disclosed list.

MTD for Businesses - 2020 at the earliest, I expect that if you are already doing MTD for VAT then I would expect they would be first batch and no one else

Others parts of MTD are already happening such as P60 info direct into your tax return software. Not perfect and has helped occasionally.

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By Josie Murby
23rd Aug 2018 13:28

PwC offer a HMRC approved solution in the way of bridging software for use in Excel. For further information email: [email protected]

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Replying to Josie Murby:
Tornado
By Tornado
06th Sep 2018 12:33

Hello Josie

The vast majority of my clients who are registered for VAT are eligible for Cash Accounting which is a virtually foolproof method of accounting for VAT. Those that are not able to use Cash Accounting (due to turnover) have other commercial and bespoke software, some of which has been used for decades, but they seem to be arranging for the software to be updated or amended to comply with MTD for VAT at considerable cost in some cases.

The Cash Accounting group falls into two types, those that complete the bespoke Excel cash book (that I have given to them) and send the file to me each month for checking and sending back and those that provide us with all source documents and we write up the Cash Book from those entries. In both cases, the Excel Cash Books are programmed to extract all necessary data for the VAT Returns and display the figures in a dedicated table at the end of each month or quarter. (We have some monthly Returns to do).

It is then an easy matter to type from the Cash Book summary into the HMRC VAT Portal and so the job gets done easily and accurately.

I do not intend to change any of this for MTD for VAT as I believe my clients already keep clear accurate digital records, and have done for years.

Even one visiting VAT inspector who came to my office a few years back for a six hour or eight hour inspection of one of my client's records appeared at my office door after one and a half hours and announced that he was leaving. The reason he gave was that in twenty years he had never seen a better set of accounting records.

Moving on to MTD for VAT, therefore, I am assuming that all that needs to be done is for a Cash Book and bridging software to be loaded in the computer at the same time and the bridging software, having been told where the information it requires is stored (cell numbers), will pick up the totals and transmit that information to HMRC.

At the moment, the monthly/quarterly summaries are shown at the end of each month. I think it would be fairly easy to add a special set of cells that the bridging software accesses every time but the information in those cells can be adjusted to match the period. (e.g. if it August then add Cells 34, 67 and 89 together (in proper format of course))

So Josie, is this what the PwC software does or it is more complex than this?

EDIT : Perhaps there are other suppliers of Bridging Software who could comment.

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Replying to Tornado:
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By Josie Murby
02nd Oct 2018 14:03

Hi Tornado,

Thanks for taking the time to respond, it's useful to see your current processes.

PwC have developed a range of MTD compliant tools (approved by HMRC) to help, small, medium and large businesses. The excel e-file tool is specifically designed as a cost effective method to help companies remain compliant for MTD.

We'd be happy to discuss the tool's capability with you - please email the above email address, or alternatively, send me a personal message.

Kind regards,
Josie

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Replying to Josie Murby:
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By janet.gee
06th Sep 2018 15:12

I have tried e-mailing using the e-mail address quoted, but it is bouncing. ??? Is there another contact address please?

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Replying to janet.gee:
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By Josie Murby
03rd Oct 2018 09:12

Hi Janet,

I have sent you a personal message!

Thanks,
Josie

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By tom123
23rd Aug 2018 14:29

I am doing nothing, on the assumption the whole thing will tank.

In the event that it goes ahead, I will buy whatever bridging software I can, and plug the 8 figures in it.

No plans to spend many thousands 'upgrading' my ERP system for this pointless exercise.

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By Michelle@BHIOM
06th Sep 2018 11:04

Quickbooks online; they are holding seminars at various UK locations. I've registered for the October session in Liverpool. This is best for small companies/self employed/sole traders

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