Minor software providers sign up to Making Tax Digital pilot
With less than a year until the rollout of Making Tax Digital for VAT reporting becomes mandatory, HMRC has signed up two more software providers for the income tax pilot
16 May 2018
The latest software houses to sign up are Absolute Accounting Software and Forbes Computer Systems, who will both provide paid software reporting tools for agents and businesses, for digital record keeping, updates to HMRC and tax estimates from HMRC based on provided updates.
So far none of the major providers to the SMB market like Xero, Sage or Intuit QuickBooks have signed up to the Making Tax Digital software providers' list.
An HMRC spokesperson told Accountancy: ‘HMRC is working with the software industry to help them to bring a wide range of MTD products to market. Over 100 developers have registered an interest in doing so. HMRC expects some of the largest software providers to have products on the market for when we launch the VAT public beta later in the summer.’
There are now four software providers on the official HMRC list, although Rhino will only be available for sole practitioners and small businesses, not for agents’ use. This software will be available on a free one month trial and then a paid monthly subscription licence.
All companies with turnover above £85,000 VAT registration threshold will have to report quarterly using the Making Tax Digital system from 1 April 2019.
Currently HMRC is running pilots but to participate testers need to have a software package that can send regular income tax updates to HMRC. The same requirements are in place for agents signing up to the pilot on behalf of clients.
Despite HMRC claims that there would be some free software for submitting Making Tax Digital for VAT, all the software providers currently signed up to the system will be charging annual fees.
Although HMRC provides this list, it stresses that it 'doesn’t recommend or endorse any one product or software supplier and isn’t responsible for any problems you have with software'.
HMRC software providers for Making Tax Digital for income tax, updated 16/05/18
Report by Sara White