What are the deadlines?
As the marketing about MTD reaches fever pitch, it’s easy to lose sight of what you actually need and when
The HMRC imposed deadlines are as follows:
By 1st April 2019
- Keep digital records (IFS does this within it’s Tax Ledger module)
- Submit VAT returns using MTD compatible software
It’s important to note that these two requirements don’t need to be from the same application. You can use IFS for digital records, and purchase a simple MTD software package that allows you to copy and paste the tax return data into it. This is the most cost effective way to proceed
However, this changes in 2020. By 31st March 2020, you must have a digital link between the digital records system, and the package that transmits the data to HMRC. From that date forward, copy and paste no longer works and you therefore may need to upgrade software that worked for the 2019 deadline
Our MTD solution for IFS meets the 2020 requirements today, so there is only one software application needed, one installation and one training session to be ready for 2019 and 2020 requirements
So, which application do you choose? All of the packages for IFS on offer are very similar, and it’s not very helpful that we all claim ours is the best, most secure, future proof and cost effective.
We think the following questions are key to ensuring you pick the right application for your company
- Is the application listed on the HMRC website as compatible?
- Is the supplier the author of all the software, so that you have one bill, maintenance contract and one person to contact in the event of potential issues?
Of course, the answer to both these questions, for our application, is Yes. But it’s also Yes for one of our competitors
So the final decision will more than likely come down to two things: trust and price
We can all compete on price, it’s just a case of price matching until we get to the lowest point. However, having trust that your supplier can deliver is much more important and shouldn’t be forgotten when selecting a software package that will ensure your VAT returns are submitted correctly and on time.
We hope that our past experience, and customer success stories, can help influence your decision