If you are VAT registered and love using spreadsheets, then you may be worried about how the upcoming changes of HMRC Making Tax Digital will affect you.
Spreadsheets have been the subject of much discussion when it has come to Making Tax Digital.
HMRC initially rejected their use for Making Tax Digital, after much pressure, made a U-turn and issued new rules around their use.
HMRC have confirmed that spreadsheets are acceptable if you use a ‘Bridging Software‘.
What is a MTD Bridging Software
A bridging software is a plugin that works with Excel and transmits figures from your spreadsheet straight to HMRC via an API connection.
This is perfect if you operate under special VAT Schemes like the Second Hand Goods Scheme.
Again, any Bridging Software just like any bookkeeping software you choose must be Making Tax Digital Compliant. So check out my list of HMRC Compliant Software to help you make the right decision.