Making Tax Digital (MTD) represents a significant change in the way a business maintains its transactions. The implications of this HMRC initiative has the potential to significantly impact both accountants and their clients.
We understand everyone’s recordkeeping habits are different, but rest assured IRIS has you covered. Irrespective of the source data delivered by the client, be it online bookkeeping software, Excel or even a bag full of receipts, IRIS has a solution.
At IRIS we want to make MTD as easy and as seamless as possible for our users. To achieve this, we have added this new digital way of reporting into the existing products and workflows.
MTD – we’re ready, are you?
IRIS believes in delivering new compliance legislation as early as possible, allowing you time to get your practice and clients prepared and on board.
IRIS customers can already access HMRC records allowing for confirmation of client data from HMRC, submit quarterly and year-end confirmation of trading, and land property data. MTD for VAT is covered by both our bookkeeping product Kashflow and our bridging solution IRIS VAT Filer.
- Pre-population of client data in Personal Tax from HMRC.
- Quarterly filing of trading and land & property.
- Annual filing of trading and land & property.
- Quarterly VAT filing to new HMRC VAT portal.
HMRC’s system for MTD for VAT is now live
Most VAT registered businesses with a taxable turnover above £85,000 must follow the rules for Making Tax Digital for VAT.
Businesses using the VAT GIANT service cannot currently sign up for Making Tax Digital yet. HMRC will contact these businesses direct to let them know when this changes.
Businesses must follow the new MTD rules from the first VAT Return period starting on or after 1 April 2019, unless they are exempt.
The new MTD rules:
- Keep digital records
- Sign up to MTD
- Submit VAT returns using compatible software
Businesses with a taxable turnover under £85,000, do not have to follow the new MTD rules, but they can choose to.
HMRC Making Tax Digital Video guides:
HMRC have published the following information and guidance:
- Use software to submit your VAT Returns – A guide for businesses, outlining who can sign up to the MTD for VAT pilot.
- Agents: use software to submit VAT Returns – A guide for agents, outlining how agents and their clients can sign up for the MTD for VAT pilot.
- Find software suppliers for sending VAT Returns and Income Tax updates – Details of which software packages support the Making Tax Digital pilots.
How IRIS is helping SMEs
Get ahead of the changes in tax by managing your accounts online today. Join the 70,000 KashFlow users who already create quotes and fully customisable invoices, balance their books and keep track of their business spend, all through digital software.
Try KashFlow today with a FREE 14-day trial and get ready for the digital revolution.
With IRIS there are three simple steps to MTD compliance:
1. Capture client records
2. Finalise the details
Import the records directly into IRIS using IRIS Connector. Client records stored in KashFlow, Xero, QuickBooks and FreeAgent can be imported seamlessly.
3. Submit to HMRC
Once finalised your clients approves the final accounts and Tax returns using IRIS OpenSpace, ready for you to submit to HMRC.
MTD from IRIS is simple, straightforward and effortless
Capture Client Records
Capturing client records can be a challenge, however IRIS has a solution for every scenario.
Clients using a bookkeeping solution? Import the trial balance directly into IRIS Accounts Production using IRIS Connector. We support KashFlow, Xero, QuickBooks and FreeAgent. See how easy it is to use IRIS Connector.
Records kept in Excel? Import directly into IRIS Accounts Production.
Clients maintaining paper records? IRIS Snap is the answer. Clients snap their receipts, IRIS processes them and you import to IRIS Accounts Production. See how IRIS Snap revolutionises clients record keeping: IRIS Snap.
Finalise the details
Once the trial balance is in IRIS Accounts Production you can create final accounts, determine tax computations and finalise the tax position.
For Personal Tax clients you can access the data HMRC holds on your clients. The information automatically populates into IRIS providing significant time saving on data entry, see this video for more details.
Once finalised the details can be shared with your clients to approve using IRIS OpenSpace. This short video demonstrates the process.
Submit to HMRC
IRIS users can now make quarterly MTD filings for trading and land & property, make final year-end submissions or complete a traditional tax return.
With its Autumn 2018 release IRIS enables quarterly VAT submissions to the new HMRC VAT portal. Read how Rowleys Accountants is using IRIS to make MTD submissions.