From 1 April 2019 Making Tax Digital (MTD) became mandatory for all UK businesses with sales above the VAT threshold (currently £85,000). Small businesses now need to digitally record accurate and legible VAT records. Gone are the days of a paper ledger and annual submissions of accounts. Presently, it is only VAT returns that are to be digitalised, but eventually income tax and corporation tax will be too.
The aim of HMRC’s MTD scheme is to simplify tax for businesses. By going digital there is no longer any manual intervention, so inaccuracies are reduced. Photos of receipts can be taken, the data captured and converted into a purchase order or receipt and then stored within the software. This allows VAT, income and expenditure figures to be collated and stored electronically. Once the information has been inputted, it is sent to HMRC via a direct link. This information is now live and current, making for a more accurate and streamlined process that saves having to remember what happened a year or more ago.
What the arrival of this new MTD programme means for businesses is that whilst it will make accounting more accurate and easier to manage for all concerned, you will now need an MTD compatible accounting software. Enter Sage…
How can Sage Help?
As a comprehensive software that provides a complete account processing package, Sage is one of the UK’s most popular accounting programmes. In fact, Sage is used by many businesses worldwide. You will, however, need to learn how to use the software so, here at NILC we offer the two most popular Sage courses.
Sage 50 Accounts
Sage 50 Accounts is the same as Sage 50cloud accounts (Sage 50c) but the latter has added cloud and mobile features. As a business solution, Sage 50 is a detailed software that can deal with a business of up to 50 people. This software combines the power and productivity of a trusted desktop solution with secure online access. Integrated with Microsoft Office 365, Sage 50c allows access on any device, anywhere in the world to apps such as Microsoft Outlook, Microsoft Word, Microsoft Excel and Microsoft PowerPoint (to name but a few). As such, this software gives a complete view of business finance at a glance and means that budgets can be managed with one monthly payment.
Sage One is almost a stripped-down version of Sage 50. It is a stand-alone cloud-based desktop solution by which means data can be shared with other users in the office. It is ideal for a single user or small business of about 10 people. However, this database cannot be accessed remotely.
So, with the arrival of HMRC’s new MTD programme there has never been a better time to update your accounting and bookkeeping skills and Sage is the ideal package. Becoming certified in Sage proves your proficiency in the software and is ideal for anyone with a desire to work for a small to medium business (SME). For more information on our Sage training courses, look out for my next post ‘Sage Accounts or Sage Payroll; Which Training Course is best for me?’.
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All quoted prices are exclusive of VAT for consumers who pay no VAT or can recover VAT. The current rate of VAT is 20% for consumers that are required to pay VAT. All course bookings are subject to availability.