Bridging software remains compliant after the soft-landing period for Making Tax Digital for VAT ends in April 2021. The soft-landing period was extended to reduce the pressure of the Coronavirus pandemic on businesses, but at this time HMRC has not announced a further extension. So, what do you need to know about compliance after the soft-landing period?
1. Bridging software remains compliant
HMRC confirms that bridging software remains compliant after the April 2021. That means that if you’re our customer, you will not have to look for alternative software to complete your VAT returns under Making Tax Digital rules.
2. Bridging software saves your business money
MTDfVAT allows you to continue using your existing digital record-keeping solution, whether that’s bookkeeping software or Excel spreadsheets. The key rule for digital VAT returns is that the data is not intervened with manually between your records and the return submitted to HMRC. Bridging software provides that link without any need to invest in unnecessary upgrades to other systems.
3. Digital links mean fewer errors
When you use bridging software to create your VAT return, you remove the risk of errors that could result in fines as you aren’t manually transferring any figures or data between systems. Your digital records are pulled into the VAT return using MTDfVAT and then transferred directly to HMRC from our online portal.
4. Cloud-based flexibility
As MTDfVAT is accessed via your browser, you can be confident that you will be able to complete Making Tax Digital VAT returns on-time – regardless of where you’re physically based. That means if you must work from home, you will always be able to meet your filing deadlines.
5. MTDfVAT for small businesses
For small businesses that must join MTD for VAT by April 2022, bridging software provides the ideal solution to signing up early and ensuring your processes are ready. You can minimise the cost of digitalisation with MTDfVAT and take advantage of the benefits without risking non-compliance after your soft-landing period ends.
Due to renew?
It’s easy to renew your MTDfVAT licence. Simply visit our purchase page and checkout using the email address you used when you signed up for our software. We’ll also email you a month before your renewal is due so you know when your licence ends.
New to bridging software?
MTDfVAT saves many businesses money every year on their Making Tax Digital for VAT returns. While HMRC estimated the initial cost to a business of signing up to be around £200, MTDfVAT is just £50 plus VAT per year. That makes it an affordable way to remain compliant after the soft-landing period ends.