The MTD soft landing period has ended – what now?
Following the extension of the soft landing period for Making Tax Digital, it ended 31 March. So, what do you need to do now to help your clients be compliant?
Make sure there is a ‘digital link’
Now VAT records need to be kept digitally, including invoices. VAT Returns also need to be filed using a digital link to HMRC using electronic software. Copy and pasted data will no longer be accepted. If you miss the deadline to submit a return, there are penalties of a 12 month surcharge period.
This could mean some changes to your way of working, or switching your clients’ accounting software to one that is MTD compatible.
What about bridging software?
While bridging software has become a common solution to Making Tax Digital. But, there are lots of downsides to choosing this route. Using spreadsheets to do accounting is time consuming. Your client’s data isn’t as secure as an encrypted software, and there’s a risk of losing your hard work if something goes wrong. Plus, you will need to receive and store physical receipts as proof of expenses.
Using an accounting software instead means all documentation can be stored online. This should be encrypted, and have regular backups to ensure the data is safe.
What if your clients aren’t compliant?
There has been a lot of hesitation around Making Tax Digital, especially for smaller businesses. So, if you have a client who hasn’t already registered, now is the time to get them to so you can avoid any penalties.
If they take some convincing, let them know the benefits that can come with moving to a digital solution. They can see benefits for their business beyond being compliant if they use an integrated accounting solution. For example, invoicing and expenses in the same software as their VAT Return will help them keep the records they need, while offering a simple solution to their everyday business needs.
There doesn’t have to be extra cost to have a digital link. Bokio accounting software is MTD compatible, and has lots of useful features for you and your clients.
Benefits for you and your practice
While changing your workflow or switching your clients to a new software can seem like a hassle, there are benefits for you too.
Choosing a software that lets you submit an automated VAT Return helps you save time. With an automated VAT Return there is no need for bridging software. In Bokio, submitting VAT Returns for Making Tax Digital is simple. Just do your client’s accounting in Bokio, connect their account to HMRC, generate the VAT Return, check it and then submit it to HMRC.
By choosing an automated software you can make your workflow easier. Bank feeds, receipt capture apps and integrated features like invoicing and expenses mean you have all the information you need to get the job done quickly.
Bokio is a great solution to submit VAT Returns. Here’s what you can do with Bokio:
- Automated VAT Returns and reporting generated from bookkeeping
- Submit MTD VAT Returns in just a few clicks
- Bank feeds, bulk recording, bookkeeping templates
- Integrated invoicing software to create, send, track and record unlimited invoices
- Manage expenses in the same place as accounting
Bokio is a simple way to collaborate with your clients on their accounting. Our automated features streamline your process so you can spend more time offering high value advisory services.
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We're changing the world of accounting forever. Bokio is a smart solution that helps small businesses and sole traders grow their company and profits. Powered by AI, we will help you do your bookkeeping, create, send and track invoices, and file your VAT return - all for free.