Almost three million businesses, spanning different sectors, have been affected by the introduction of the MTD (Making Tax Digital) initiative of the UK government. With a view to become the most digitally advanced tax administrations in the world, it involves using accounting software and the digital medium to file for tax returns. Through this, the UK government aims to make the tax payment process effortless, efficient and more effective.
The introduction of the MTD initiative makes it evident that the UK government is doing all it can to encourage businesses to think ‘digital-first’. Tax is a key area of this. The MTD for income tax was deferred until April 2020, and therefore the focus has now shifted to MTD for VAT reporting and this has begun as early as last month – April 2019. It has been made mandatory for VAT-registered businesses with a taxable turnover above the VAT threshold, to maintain digital records and submit their VAT returns online, using compatible software.
This has provided an opportunity for businesses, individuals, the self-employed and start-ups to let go of legacy accounting/filing methods and find a cloud-based accounting system that will help ease the stress of financial reporting, compliance and accounting as well as improve productivity when used properly.
DataTracks always strives to help filers to stay ahead of the curve with respect to compliance reporting. As MTD changes the way businesses and accountants in the UK do their taxes, DataTracks has developed a turn-key software that ensures all businesses are supported through this transition.
DataTracks’ Oxbow, a brand-new MTD for VAT solution, helps in ensuring compliance with the initiative, by offering a seamless digital tax filing journey. This intuitive reporting solution brings to the table, a host of features that makes the digital migration of accounting and reporting, undemanding and hassle-free.
It has the ability to integrate with legacy accounting methods, at the click of a button.
If comfortable with existing spreadsheets, a simple import function allows for VAT data to be collated and made ready for review and submission without the need for manual entry.
Can be accessed on-the-go with cloud hosting. No pre-installation and manual updates required.
Agents can manage multiple clients with a clear dashboard that prompts due dates and submission status for each. Retrieving past MTD filing information is also easy.
Multi-user system with nested accessibility allows for increased efficiency through a division of specialized tasks.
Allows to keep in close contact with clients with seamless notifications and exchange of data to enhance the experience, whilst also allowing for client approval of the VAT data before reporting to HMRC.
Can directly connect with the HMRC system to check liabilities and obligations and to pay taxes, hindrance.
The reporting solution has been designed to ensure that the workload on an agent or an individual is at the minimum. With the software hosted on the cloud, all filers need is the excel file and internet browser to complete their return.
From the house of a Global Regulatory Reporting and Compliance company that comes with over 14 years of experience assisting over 15,000 enterprises globally, Oxbow is one of the most cost-competitive software among many that have been developed to ease the transition process.
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