A Less Disruptive Solution

Over the last few months Springboard IT have been getting feedback from accountants and businesses about Making Tax Digital (MTD) for VAT. As a result we are pleased to be able to offer bridging software that helps accountants and businesses get ready for MTD as seamlessly as possible.

We are recognised by HMRC to build links to the new VAT Gateway and want to offer clients a cost effective alternative to expensive upgrades or disruptive transition.

Bridging software that we have built, in the form of an Excel Addin that can be used to make existing spreadsheets become compliant because this methodology is fully accepted by HMRC.

This supports existing versions of Quickbooks Desktop or older versions of Sage to be MTD Compliant, as well as the standard spreadsheet, plus much more

The Addin can also be used that to support existing software to be MTD compliant. Older versions of Quickbooks Desktop and Sage Line 50 and 200, Microsoft Nav and SAP, for instance. This is all available at a simple cost of £75/year for each VAT Number being submitting to HMRC. (Price excludes VAT)

The solution requires a machine running Windows 7 or above with Excel 2007 or above installed on it.

If you want to get a quick idea of how the application works the getting started guide gives you a good idea of how simple it is. Click Here

Our help system including video helpers is Here

Our Making Tax Digital Bridging Solution can be used with any of these, new or older versions so you dont need to be forced to upgrade:

Excel
Quickbooks
SAP (ERP 6.0, HANA)
Microsoft Nav
Sage 50 (tested back to Version 2008*)
Sage 200
Microsoft AX Dynamics
CSVs exported from third party software
Custom (Bespoke) Software
Plus Many More…

We also have built in features, which include:

• Knowing which VAT Returns are due
• Keeping a history of the VAT Returns that have been filed
• Calculating how much VAT is due
• Posting VAT Returns in real time.
• Viewing Payments

The new VAT reporting rules being introduced in April 2019 may sound scary and you might be told that you have to go onto a new accounting system to be able comply. This is not necessarily the case.

A simple software bridge may be all your business needs to be ready for HMRC’s new VAT rules.

What is Bridging Software?

Bridging software is a piece of software that links your system or spreadsheet to the new HMRC VAT system (Gateway). It merely bridges the gap between you and HMRC and makes you Making Tax Digital ready.

From April 2019, all VAT reporting for businesses with a turnover above £85,000 (the current VAT threshold) will have to report their VAT return information into the HMRC’s new online system. The widely used method of going to the HMRC website and filling in the figures on their screen will no longer be available.

In reality that means the following timetable:

• By 7^th June 2019 for VAT monthly.
• By 7^th August 2019 for VAT quarter to 30^th June 2019
• By 7^th September 2019 for VAT quarter to 31^st July 2019
• By 7^th October 2019 for VAT quarter to 31^st August 2019

The rules for complying with the new VAT reporting regulations apply simple quite generalised compliance criteria. The legislation retains what is currently in place with regards to keeping and preserving records. The legislation additionally provides for keeping and preserving digitally some designatory data (business name, VAT registration number etc.) and totals for information relating to each VAT account.

So existing systems that are currently compliant with the regulations regarding keeping and preserving of records should still be compliant. All that needs to be added is a solution for keeping and preserving totals relating to each VAT account and using those totals to electronically send the values for the existing 9 boxes directly to the VAT Gateway.

Springboard IT (UK) Ltd are recognised by the HMRC to build links to the Governement Automated Gateways including the VAT reporting gateway.

This allows them to work with businesses to build simple MTD compliant solutions where the existing system already complies with the current record keeping and preservation regulations. They can collect the totals from those systems electronically (possibly using existing reports), store and preserve the VAT account information and transfer it electronically (without amendment) to the VAT Gateway.

At one end of the scale this might be a less risky approach for businesses facing significant projects to update and change current systems to comply, or at the other end of the scale it may allow businesses that have simple solutions (Spreadsheets for instance) that work perfectly well and already keep and preserve VAT information as required by current legislation to continue using them with a simple bolt on.

Springboard IT (UK) Ltd firmly believes a similar approach will be taken for the next step which comes into force in 2020 although those regulations and systems are not yet fully defined. The next step covers the collection and transmission of accounting information quarterly. They expect to extend their VAT solutions to comply with those regulations.

Reference:

https://www.gov.uk/government/consultations/making-tax-digital-reforms-affecting-businesses/making-tax-digital-for-vat-legislation-overview#annex1