HMRC are making the move to get all businesses to file their accounts via third party software on a quarterly basis.

The first businesses affected by this are VAT registered businesses with turnover over the VAT registration threshold. They will need to file quarterly VAT returns via third party software from April 2019. The business books and records must be kept digitally.

The old government gateway will be closed to businesses that fall within the above so you may need to change how you file your VAT returns. If you use accounting software you will need to check that it is compatible with MTD and possibly upgrade to the latest version.

If you do not currently use software (i.e. you use Excel or a manual cashbook), please speak to us to discuss your best way forward. There are a number of products out there that will do the job – we recommend Xero – a cloud based package that can incorporate an automatic bank feed (so that all your bank transactions are automatically brought into the software). You can also use it to create invoices and run customer and supplier ledgers. If you’d like to try it out, please speak to Henry or David.