Well Ahead of HMRC Deadline
From April 2019 businesses above the VAT threshold will be expected to keep their records digitally and provide quarterly updates to the HMRC for their VAT. Law firms that have LAWFUSION as their business system will be able to file their VAT returns straight to HMRC via LAWFUSION. The LAWFUSION development team has been working closely with HMRC for some time on this and have demonstrated their ‘Making Tax Digital’ functionality to HMRC and it has passed their checks.
HMRC started piloting (16-10-18) to allow public beta testing which meant law firms could start digitally filing their VAT returns early, i.e. well before the April deadline. The LAWFUSION software has been MTD-ready since September 2018, but at that point Select Legal had to join an HMRC queue of suppliers to have their prototype checked in order to become a recognised HMRC VAT software supplier before the software enhancements could be released. The LAWFUSION MTD software passed HMRC checks in December 2018 and Team LAWFUSION has been helping law firms submit their VAT returns digitally ever since.
Michael Penny, Solicitor, Ormrods Solicitors & Advocates Ltd (LAWFUSION user since 2013) said,“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.”
The members of Team LAWFUSION that have been working on the new MTD functionality published a useful article (15-2-19) entitled “What Law Firms Need To Know About Making Tax Digital’.
Making Tax Digital is all part of HMRC working towards its ambition to become one of the most digitally advanced tax administration systems in the world. They announced their plans back in 2016 setting out their key aims.
For more information about LAWFUSION’s ‘Making Tax Digital’ functionality or any other aspect of LAWFUSION – please call 01482 567601 or book a demonstration here.