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FreeAgent takes next leap in Making Tax Digital compliance
FreeAgent, the pioneering cloud accounting software provider, has taken the next major step in its mission to help small business owners navigate the UK’s forthcoming digital tax legislation.
The company, whose award-winning software is used by freelancers, small businesses and accountants, has been named among the first handful of providers on HMRC’s pilot for Making Tax Digital (MTD) for VAT.
The new legislation will require VAT-registered businesses to keep digital tax records and make submissions using software to HMRC from next April. It is the first stage of the government’s wider Making Tax Digital agenda, which aims to fully digitise tax reporting for all UK businesses over the coming years.
FreeAgent has already been named on HMRC’s list of suppliers ready to support MTD for VAT, and has been working closely with HMRC to ensure its software provides the best possible experience for small businesses and accountants who will be submitting VAT returns under MTD. Going forward, any test VAT submissions under the new legislation will be completed through HMRC’s pilot, rather than via private testing.
Ed Molyneux, CEO and co-founder of FreeAgent, said: “We’re delighted to be one of the first software companies on HMRC’s pilot for MTD for VAT. It’s a key recognition for our software as we prepare to support small businesses, contractors and their accountants through the forthcoming legislation.
“FreeAgent has supported digital VAT submissions since 2010, so Making Tax Digital is a natural fit for us. We’re now looking forward to working with HMRC to help shape MTD and to ensure that this brave new world of digital tax is as simple as possible for our users.”
Customers signing up to make VAT submissions through the public beta will ensure that they are best placed to manage the switchover once the new legislation officially comes into effect from April 2019.
FreeAgent has also created a suite of useful resources for freelancers and small business owners who are looking for more information about Making Tax Digital and how the new legislation will affect them. Check it out at: https://www.freeagent.com/guides/making-tax-digital/
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