Eighteen software programs are currently ready to support Making Tax Digital for VAT, with over 100 more companies hoping to develop products
Eighteen software providers are ready to support the initial stages of the rollout of the Making Tax Digital for VAT programme, with over 100 more interested in developing tools to be compatible with HMRC’s systems.
As part of the tax agency’s Making Tax Digital transformation programme, from 1 April 2019, any business with an annual turnover in excess of the VAT registration threshold of £85,000 will be required to keep digital records and submit their VAT returns digitally. This process will require companies to use software that is compatible with HMRC’s Making Tax Digital platforms.
HMRC said that upwards of 130 software firms have expressed an interest in developing VAT return tools to work with Making Tax Digital. More than 35 of these have indicated that they intend to have a product ready for upcoming public beta pilots that will take place with a small group of businesses in the coming weeks.
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Currently, 18 providers are ready for this pilot phase, having both demonstrated a working prototype to HMRC and tested it in the department’s test environment.
Those companies are Accu-Man, Ajaacts, BTCSoftware, Bx, Clear Books, DTracks, eFileReadt, Farmplan, Go Simple Software, Intuit QuickBooks, IRIS, Liquid Accounts, PwC, Quickfile Accounting Software, Sage, Simplif-HQ, Tax Optimiser, and Xero.
More firms are likely to be added to this list in due course, according to HMRC.
Businesses who already use a software tool for their VAT returns are advised to check with their supplier if they intend to make their products compatible with Making Tax Digital.
An invitation-only private beta pilot of Making Tax Digital for VAT took place earlier this year. The upcoming pilots will be open for companies to volunteer to take part.