As a business owner in the UK, the changing face of the tax system can be quite a confusing process to follow along with. The UK has frequently made changes to the tax system, but none quite so large as the new ‘Making Tax Digital’ system – a complete reformation of UK tax planning. However, this will mean changes in quite a lot of ways: including the software systems that you use for meeting MTD demands. So, what should you be looking out for when you wish to choose the most suitable software?
One thing that is going to become very important in your choice is picking software that is flexible and capable of being used as you need. Does it still have the features that you need for each part of your business? Is the software suitable for businesses that are part of the industry that you are? These kind of things matter, and should definitely be considered moving forward.
Don’t pick inflexible software purely as it is MTD compliant.
MTD is not quite rolled out for everyone yet – many people who are yet to fall under the VAT threshold are not yet part of MTD. However, that will change: and when it does, you need a system that is suited to everyone. Make sure you pick a MTD compatible package that is going to be suited to your needs, as well as being capable of providing you with features that are suited to the type of business that you operate.
You also want to use a system that does a lot to support you and help you to learn the ways of the new system. If you feel like your present software is not user-friendly, make sure you pick MTD software that is much easier to use.
A lot of people find MTD-compliant software easier to use than normal accountancy software. That being said, make sure they have a robust support system to make sure any flaws can be worked through.
MTD software should also be fully integrated with the best and most popular platforms such as Sage and Microsoft Excel. If you wish to do still do most of the work that you need for your books through these systems, then you should have the means of importing it back into your new MTD software. If your software package does not offer this, keep looking for one that provides this worthwhile and useful feature.
Lastly, make sure that you pick a software package suited to your needs. If you are running a large-scale business, you might need something with more power and features. One thing that you might want to do is take a look at the pricing of your system at present, as you could be paying too much for MTD software when more affordable options are out there.
Keep these factors in mind, and you should find it easier to pick out an affordable MTD-compliant system to start using. Now, when the transition happens in full, you will be suitably prepared.