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Making Tax Digital – VAT Accounting Law Firms

Making Tax Digital – VAT Accounting For Law Firms

LAWFUSION’s MTD Functionality Is Recognised By HMRC

As part of the HMRC’s drive to become one of the of the most digitally advanced tax adminstrations in the world, the ‘Making Tax Digital’ programme is making fundamental changes to the way the tax system in this country works. As part of HMRC’s plans VAT-registered law firms with a taxable turnover above the VAT threshold are now required to use the Making Tax Digital service to keep records digitally and use software to submit their VAT Returns. This came into force on 1 April 2019, and Select Legal Systems Limited, the authors of LAWFUSION, worked closely with HMRC and law firms in the run up to this deadline to ensure the software delivered the relevant functionality well ahead of the deadline.

Black topped glass light bulb hanging in front of black background with central element with "VAT" as part of element glowing brightly in hues of yellow and amber

Key Features

Digital VAT Submissions

LAWFUSION is fully ‘Making Tax Digital’ (MTD) Ready. Law firms that have chosen LAWFUSION as their practice management software system are able to file their VAT returns straight to HMRC direct from their LAWFUSION legal practice management software system.

Ahead Of The Game

When it comes to key changes such as the MTD VAT Accounting functionality that was required for HMRC’s 1st April 2019 deadline, Team LAWFUSION pride themselves in being ahead of the game. They worked closely with HMRC and their law firm clients to get everything ready early. The company passed all HMRC checks in December 2018 to become a HMRC Recognised MTD Software Supplier and Team LAWFUSION has been helping law firms to submit the VAT returns digitally ever since.

Michael Penny, Solicitor, Ormrods Solicitors & Advocates Ltd said (January 2019),“We were the first law firm to submit our VAT return for Making Tax Digital directly from LAWFUSION to HMRC and it all went very smoothly. The LAWFUSION Support Team were very good, as always , guiding us through the process. Firstly they organised our software upgrade, they talked us through the HMRC pilot sign up and then with a couple of clicks in LAWFUSION our VAT Return was generated, it popped up in front of us and all we had to do was check it, confirm we were happy with the figures and click submit. It couldn’t have been easier. With the new VAT Journals functionality in LAWFUSION too, managing VAT has never been more straightforward.”

Checking Your Figures

Firms need to check their VAT return thoroughly before ticking the HMRC box confirming their figures are correct. LAWFUSION is designed to make this process easy to manage.

VAT Journals

There are times when firms need to change the VAT liability on a VAT return without entering an invoice, receipt or a bank transaction for a vareity of reasons. VAT Adjustment Journals functionality is available in LAWFUSION to make the management of VAT easier for law firms.

EC VAT Accounting

Users of LAWFUSION also have the means to record transactions (sales / purchases) to / from parties within EC (European Commission) member states.

Guidance

There is an HMRC web page here that explains very clearly all the rules, stipulations and exemptions for Making Tax Digital for VAT Submissions. It explains about the functional compatible software required and the necessary digital links law firms will need too.

Case Studies / Relevant News

Video Case Study

One of the UK’s largest providers of Legal Aid

“With the introduction of LAWFUSION and its billing wizards our fee earners are now able to bill their own work and it’s been great because they take more commercial responsibility for their work.”

Rupert Hawke, Managing Director, Cartwright King

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