Making Tax Digital (MTD) Software Solutions

From April 2019 VAT returns must be submitted to HMRC by means of a compatible software solution communicating digitally via HMRC’s API platform.  This means that businesses will be unable to submit manual records after that date and will need to acquire a suitable commercial software product or appoint an agent to submit their VAT returns to HMRC on their behalf. Whilst many businesses may already use some form of software to maintain their VAT records they will need to ensure that their software meets HMRC’s new requirements.  In many cases this will mean the need to source or upgrade software that supports MTD for VAT.

BASDA is sharing the latest information about the providers and software solutions that are compliant with all HMRC requirements and will enable you to keep digital records and to submit information to HMRC.

Choosing software

How an organisation approaches the selection of MTD compatible software will depend on their existing level of technology maturity and their business requirements.  To help choose the right MTD for VAT software solution BASDA has created a free guide to help you select business software. This guide is aimed at accountants in practice and micro/small businesses.  It provides guidance to these firms and their advisors when they are seeking to procure business software to ensure they are MTD for VAT ready.

Click here to download this guide

MTD software providers

HMRC are working with a large number of software suppliers. Many of these suppliers have already demonstrated prototype applications to HMRC. Details of software providers who have MTD for VAT software products available today can be found here:

Definitions:

Software Provider: The name of the company or product as listed by HMRC.  Note that some companies have multiple products and only some may be enabled for MTD VAT and some providers have business names which differ from their product brand names, which are shown in brackets.  

BASDA Member: BASDA members collaborate through various Specialist Interest Groups and Working parties to continuously develop industry standards and processes that give customers assurance as well as a business advantage.

Status of Software for MTD for VAT: Software indicated as available now has already been recognised by HMRC as being ready to submit VAT Returns.  Software indicated as in development has not yet reached that stage but the supplier has indicated their intention to provide a solution.

Bridging Software: Bridging software will submit VAT Returns to HMRC using data imported from spreadsheets or other software.  Transactions are not recorded in the software.  The requirement to keep digital records will need to be satisfied by other software.

Digital Record Keeping & Submissions: Accounting software which keeps the necessary digital records and submits VAT Returns to HMRC can fulfil all your MTD VAT requirements in a single package.

Agents/Business: Some software is designed for businesses to use themselves.  Other software is intended for use by accountancy firms or other agents submitting VAT returns for multiple clients.  Some are equally suitable for both.

Firm Size: This gives an indication of the size of business or accountancy practice for which the software is most suitable.

Industry: Some software is designed for use in particular industries.  Other software is suitable for use in a wide range of industries.  If your industry is not listed then look at entries marked “All”.

Business Summary: These additional details are provided by each BASDA Member to help you choose appropriate software.

BASDA Code of Conduct Signatory: Introduced for members, the BASDA Code of Practice is designed to set quality standards for best practice in the development and supply of business software.  Click on the link for more details.

Legal Disclaimer

BASDA has created this part of our website to provide information that has been made available to us by third-parties. BASDA has used its best endeavours to ensure it is as correct at the time of publishing as it can be. If you are aware of any inaccuracies in the information displayed, please contact BASDA at info@basda.org.

If you are considering selecting software to use then we recommend that you follow the information provided at https://www.basda.org/bsg.

To better understand our policy on the information provided on the BASDA website please review our full legal disclaimer that can be found at https://www.basda.org/legal-disclaimer/