get-ready-for-making-tax-digital

Get Ready for Making Tax Digital

ASSOCIATION OF CERTIFIED DIGITAL ACCOUNTANTS (ACDA) have developed qualifications for Making Tax Digital solution for assistance into the preparation of your accounting practice and get clients prepared for HMRC’s VAT changes. You can access our advice and marketing materials to help you in MTD.

ACDA qualifications are internationally recognised, meeting the needs of employers, government and learners, both now and in the future for the purpose of the digitisation of accounts. ACDA qualifications equip learners with real work scenarios for all accounting practices including digital accountancy & the MTD.

Making Tax Digital Solution include training, education, guides, product comparisons and a client segregation pattern Included to help your accounting practice on account of MTD compliance for your Clients.

Making Tax Digital is one of the biggest transformations to tax legislation by HMRC. ACDA is participating in the closed model for VAT and already have accountants successfully submitting VAT returns to the MTD portal. So ACDA is compliant and here to assist and train you for HMRC Scheme for Making Tax Digital.

Essence of MTD

ACDA identified that the essence of HMRC’s Making Tax Digital is that any data that informs your taxes, in any way, must be recorded and stored in commercial software. Here’s what some are referring to as the “digital journey” within MTD. It outlines three main requirements of compliance.

  • All data must be recorded digitally.
  • Transfer of data from one system to another must be done digitally.
  • Submission of tax return to HMRC must be done via HMRC’s API.

Compliance of the Law

MTD requires at least one system and there are really only three ways of complying with the law:

  • Run a system under your control that enables you to capture all the information you need for a VAT return and submit it to MTD from your system.
  • Use a system to capture all the necessary information and send it to the system used by your accountant or bookkeeper, then they send it to MTD.
  • Send copies of all of your paperwork to your accountant or bookkeeper and they key it into their system and submit to MTD from there. This may come with a higher price tag and has the maximum danger of accountants being unable to cope.

ACDA enable you to kill two birds with one stone as businesses that do not use a computer system to manage their business will find big benefits if they start to do so. MTD could be the reason for adopting such a system but the benefits might be the reason for being pleased about the initiative. Benefits realised should be:

  • Much less time spent on paperwork.
  • More control: a better view of finances, what’s owing etc.
  • Replacing bits of paper everywhere with a single system where everything can be easily found.
  • Providing clients with a more professional impression.

However, like everything, software introduces costs, problems and issues, most of which can be addressed or reduced:

  • The new software might not fit the business – that’s why it’s important to spend time checking out the software including trying it for yourself, seeing demos and talking to other customers.
  • You may need a lot of hand holding while getting to know the software so it’s vital your supplier is both available and willing.
  • The important point to consider is that a system can be implemented to make it easier to submit data to the accountant as an alternative to posting paperwork with the attendant inefficiency and expense.