One of the most important decisions you will have to make in preparation for MTD will be to choose the right software.
However, with the wide range of solutions available in the market, how can you make your decision? To help you, we have prepared a short guide on the characteristics that you should be looking for in an MTD solution:
To make sure your software is MTD compliant, you should check if it is one of the government approved software suppliers for MTD (we’re one of them). To be part of the list, vendors need to prove they have HMRC-recognised iXBRL tagging and that they are able to submit directly to HMRC and Companies House.
In-built development and updates
1 April 2019 is the start for MTD, but all the business taxes will be incorporated at different stages. You will need software that can change with the requirements of HMRC and update quickly to reflect all the new changes that are likely to happen during the process. Look for a vendor who’s in regular contact with HMRC and whose software offers all future updates included in the price.
With MTD your clients will need to get used to new processes. To make it easier for them (and ultimately for you) your software should make it easy for your clients to provide the information you need to prepare and file returns.
Look for a system that provides a real-time expenses management (for example, with an app that lets them take a photo of the receipt on their phone) and that can issue invoices, reminders and receipts.