Businesses need clarity on MTD compliant software

The Association of Taxation Technicians is urging software houses and HMRC to identify Making Tax Digital (MTD) compliant software packages so that businesses can make an informed decision on which to use.

Businesses above the VAT threshold will be required to keep their records digitally and provide HMRC with quarterly updates from the beginning of their first VAT quarter starting on or after 1 April 2019.

Businesses with an accounting period that spans their first MTD VAT quarter will have to ensure they have suitable software in place at the start of that accounting period – likely to be before April 2019 – or risk having to change software mid-year. This would give them only five months to select and integrate a new package if their current one was not MTD compliant. Yvette Nunn co-chair of ATT’s technical steering group said: ‘It would be a major headache for businesses...