Is QuickBooks Making Tax Digital Compliant?
Yes. Quickbooks is Making Tax Digital compliant and HMRC approved. However, there are different versions and you need to choose the right one.
Here I’ll show you which are the Making Tax Digital compliant versions of Quickbooks to help you decide which one is right for you.
What Are The Requirements of Making Tax Digital
Making Tax Digital is HMRC’s way to digitised all bookkeeping by the self-employed and small businesses.
It will be phased in according to tax status and the first group to be affected are all VAT registered businesses from 1 April 2019.
From 1st April 2019, all VAT registered businesses will need to use an MTD compliant bookkeeping software to calculate and submit your VAT Returns automatically to HMRC.
This is known as Digital Record Keeping.
This means if you add your VAT up either manually from your invoices or with a spreadsheet, then input the figures into a VAT return on the Government Gateway, you’ll need to make some changes.
The Government Gateway method of submitting VAT returns electronically will be scrapped.
For each sales and purchases transaction you’ll need to record:
- Date or Tax Point
- Value of Supply
- Rate of VAT used
By choosing the right version of Quickbooks, when you do your bookkeeping you will be required to enter this information as standard. So that will help you stay compliant.
Which Versions of QuickBooks are Making Tax Digital Compliant?
There are three versions of Quickbooks available in the UK:
- Quickbooks Self-Employed
- Quickbooks Essentials
- Quickbooks Plus
Only Essential and Plus handle VAT, so these two versions of Quickbooks are Making Tax Digital compliant.
Quickbooks Self-Employed is designed with non-VAT registered sole traders in mind, therefore it does not have VAT functionality. So if you are VAT registered this is not the version for you.
Quickbooks Essential v. Quickbooks Plus
Whilst both Quickbooks Essential and Quickbooks Plus are Making Tax Digital Compliant, they are different with Plus being more expensive.
So what is the difference?
Both versions are perfect for small businesses that need to track customer payments, run payroll and management accounts.
However, Quickbooks Plus offers the additional functionality of:
- Creating budgets;
- Purchase orders;
- Project costing.
How To Get Started With Quickbooks
Once you’ve decided between Quickbooks Essential and Quickbooks Plus then you can get started with Quickbooks with up to 50% off here.
Once signed up, you’ll need to get all your business details onto Quickbooks and don’t forget to download the app.