As events this week have demonstrated, one of the most intriguing aspects of Making Tax Digital is that the topic continues to evolve and develop. Because of this, no one (least of all software developers!) can rest on their laurels and no practice can yet say that they understand all the implications of MTD and how it will affect the way they service their clients.
New details about Making Tax Digital emerge almost daily, whether it’s the further clarification by HMRC on the use of spreadsheets as a valid means of capturing digital data, or the details now emerging about the naming of the end-of-period submission. It feels as if just keeping up to date with MTD news has become a full-time job.
I’m very lucky to be working with a great team of specialists who are dedicated to Making Tax Digital and to the overall goal of digitalising the tax process. It’s their role to continually uncover and analyse these new developments so we can build the right tools for our customers, supporting the end-to-end service that professional firms want to provide their digital tax clients.
Although Making Tax Digital has been removed from this week’s Finance Bill, this doesn’t mean that HMRC has scrapped Making Tax Digital altogether. It would be foolish to think we no longer need to keep on top of this topic because there’s a chance that MTD will be delayed or even shelved. Wolters Kluwer will continue to work hard on Making Tax Digital, on the assumption that digitisation is the future of tax and accounting and our technology will deliver this for you.
At Wolters Kluwer we really see the software as a given. As far as we’re concerned, there are new tools and features that are mandatory and which practices have to have in order to support their clients, just as we add the latest compliance functionality to our software each year.
Whatever software supplier you use, the compliance needs of making tax digital must be catered for in the context of your software. For example, your bookkeeping software should give you the ability to quarterly report data to HMRC, since this is an accounting function. However if you use more than just bookkeeping software – such as an integrated suite like CCH Central – then MTD features would need to be much more extensive.
In future blog articles we’ll explore the steps that all professional practices will need to take in order to prepare for Making Tax Digital. Articles will be organised into three main themes:
- Preparing – Preparing for Making Tax Digital
- Engaging – Engaging your clients in Making Tax Digital
- Ready – Getting ready for the ‘go live’ of Making Tax Digital
Of course we’ll also be keeping an eye open for any more MTD news and we’ll share our analysis and commentary with you in the Wolters Kluwer blog.