1st April 2019 saw the launch of Making Tax Digital (MTD) for VAT, which standardised VAT returns across British businesses. Six months after the changes were brought in, we take a look at the uses and advantages of MTD “bridging software” such as CCH OneClick in practice.
MTD for VAT now requires all businesses with a taxable turnover above the £85,000 threshold to keep digital VAT records and submit their monthly, quarterly or annual VAT returns digitally to HMRC, via compliant software. Prior to 1st April, we and our clients utilised a range of systems for bookkeeping and VAT returns – from manual systems and spreadsheets to software that did not comply with HMRC’s MTD requirements.
Used by our firm for our VAT clients’ record-keeping and returns, CCH OneClick is an example of end-to-end bridging software between a business’s former record-keeping system and HMRC. OneClick works by automatically populating HMRC with spreadsheet data, which removes the need for manual numerical data entry and the resulting risk of human error.
VAT submissions can be monitored by accountants and clients alike, and information about due – and overdue – payments and VAT returns can also be accessed. Additional features such as VAT filing, Income Tax functionality, Quarterly Reporting and Digital Tax Account are also incorporated. Essentially, CCH OneClick allows the user to maintain the majority of their previous or existing VAT processes.
Ricky Guerriero, Finance Director of G. and M. J. Crouch & Son Ltd., says: “Newby Castleman provides a range of services for our group of companies, including audit, accounts preparation, preparation of tax returns and general tax advice. Newby Castleman proactively approached us to offer support with using our existing Sage 50 Accounts software alongside HMRC in order to comply with the MTD requirements and the integration project was led by their IT Manager, Tony Hyde.
“We’ve used OneClick for two VAT returns so far – G. & M.J. Crouch & Son Ltd.’s return and that of our parent company, Crouch Corporate Ltd – and we’ve found it user-friendly and straightforward, primarily thanks to the user guide provided by Tony which makes the submissions extremely simple.”
Our Senior IT Manager Tony Hyde explains: “CCH OneClick is incredibly clear and easy for both us and our clients to use. By minimising the amount of data entered manually, it brings greater accuracy and reliability to the record-keeping and return processes. We anticipate that our clients will continue to adapt smoothly to MTD for VAT with the help of bridging software such as OneClick.”
For further information, please call our Leicester branch on 0116 254 9262 or our Loughborough branch on 01509 263500.