Making Tax Digital for Accountants


What is Making Tax Digital?

Making Tax Digital – or MTD as it’s often called – is HMRC’s move to bring UK tax into the digital age. If you file taxes for your clients, you will soon be required to do it in an MTD-compliant way, using accounting software. It means you’ll no longer be able to submit manually through the HMRC gateway.

Although MTD will eventually cover all tax, it’s being rolled out in phases.

The first phase affects 2.3 million UK VAT registered business whose turnover exceeds the VAT registration threshold of £85,000 (excluding VAT)
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Where are we in the process?

How HMRC plans to phase in MTD gradually.
April 2018
MTD pilot scheme
From April 2019
HMRC requires you to submit VAT returns online. This means you will no longer be able to submit manually through the HMRC online portal.
From 2020
Businesses may be asked to keep digital records and update HMRC quarterly for other taxes.

Why use outsourcing services for MTD

QXAS is an established provider of outsourcing services for UK accountants in practice. Over 275 accountants use us adopt technology faster and process compliance jobs. With QXAS, data is processes securely as we are the 1st outsourcing company to be GDPR compliant via the BS 10012:2017 framework. Accountants benefit from our ability to:



Technology adoption
Supporting accountants adapt their technology to ensure that the transition to the new digital system is smooth. If you outsource your MTD work to QXAS, you will be able to position your firm as a cloud accounting expert, without having to do the work yourselves.
Keeping your clients compliant
We will be submitting your clients’ VAT returns correct right from the start. You will always have the confidence that you have one of the leading outsourcing company behind you.
Helping your practice grow
We are proud of the outsourcing services we provide, but even prouder that we can make our client’s business more profitable. We work with accounting firms of all sizes, so you don’t have to worry about hiring more people in-house to adjust to the change. QXAS provides flexible resources: it grows with your practice, and meets all your needs on the way.
Data migration services
If you are seeking to migrate your clients from a legacy desktop package to an online cloud package, we can help. As an outsourcing service provider of choice for 275+ UK accounting clients, we have moved countless years of bookkeeping, accounting and tax data from one desktop package into another as well as from the desktop to the cloud.
We can help you move to QBO, FreeAgent, KashFlow, or Xero, or any other preferred cloud accounting software. Just send us a message letting us know what you need transitioned and one of our team members will get back to you.

With a dedicated team of 250+ accountants, our team is prepared for the challenges ahead, and can offer you expertise and experience with cloud accounting software to help you prepare for MTD today.

FAQs


It remains unclear whether or not HMRC will provide free software, however this looks increasingly unlikely. In any case, free software is unlikely to be maintained or have the benefits which commercial software provides.
HMRC will consider spreadsheets an acceptable form of recording information, but bridging software will be required to connect to HMRC’s systems via an Application Programming Interface (API). HMRC are not issuing a standard format or API meaning a third party would be required to develop this.
No, the submission to HMRC will still only be the 9 summary boxes on the VAT return. The detailed transaction data will not be submitted to HMRC.

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