Making Tax Digital and Sage 200
Making Tax Digital is HMRC’s move to digitise tax, and our goal is to help you get it right
What is Making Tax Digital?
Making Tax Digital (MTD) is a legal requirement for VAT registered business in the UK. This change has been driven by the HMRC to increase efficiency, decrease the margin of error and migrate users over to a digital based tax system; this marks the end of the annual tax return - hooray! This change will only affect VAT registered business with a turnover of 85k or more and isn’t being enforced until April 2019.
After this deadline, you will no longer be able to submit your returns manually via the HMRC Gateway – so this change is unfortunately unavoidable.
Our team here at itas can help you migrate through this change and advise you on the best route for your business, to ensure you remain compliant and avoid any nasty penalties.
Luckily, Sage understands that not all customers will be in a position to upgrade before April 2019. Therefore, they have created a new Submission Module to provide customers on previous versions the ability to comply with the mandate without upgrading in the short term.
Find out how we can help you with MTD
How do I become MTD Compliant?
Invest in a digital account system
itas can advise you on the most suitable software to meet your business needs, implementation and continued support along the way, to ensure your transition is smooth with minimal disruption.
Sage have updated Sage 200cloud
This will allow all users to be able to submit early from August through HMRC’s new portal
Update to the latest version of Sage 200cloud – Spring release
All versions of Sage 200cloud – released from April 2018 onwards – will be compatible with the HMRC software
Purchase the Sage MTD submissions module
Add-on to your existing version, giving you more time to migrate to the latest version when ready
All versions of Sage 200cloud - released from April 2018 onwards will be compatible with the HMRC software
If you do not migrate to a digital system by the deadline, this will incur an additional £2,500 MTD services charge/penalty per year and will be enforced by the UK Government.