Depending on which version of Sage software you are currently running, continuing on your current Sage product may mean that from April 2019 you will be unable to submit VAT returns through the HMRC gateway or software and will need to find another solution to ensure you are compliant. As of this summer, Sage solutions will be updated to be MTD compatible with support options ranging from simple help to in-depth training so that the switch isn’t too overwhelming. If you currently submit your VAT returns through Sage software then MTD compliance could simply mean installing the latest update.
Why is Making Tax Digital happening?
- HMRC loses over £8 billion every year due to avoidable taxpayer mistakes.
- A modern tax system, based on digital technology will make it easier for businesses to get their tax right.
- Reducing the amount of avoidable errors will also reduce the cost, uncertainty and worry that businesses face when HMRC is forced to intervene to put things right.
- A more efficient VAT return process will be less disruptive to businesses in the long run.
- Millions of businesses are already banking, paying bills, and interacting online.