Quite simply – you can cut your VAT information from Sage (eg: versions 23,24 &25) and then paste it into simple, inexpensive software that will do the rest regarding returning information compliantly to HMRC
HMRC announced earlier this month that after all the furore of the last 12 months businesses have until 2020 to make sure they have a ‘digital link’ in place to return their VAT. This digital link is required to satisfy legislative requirements at HMRC.
This latest announcement confirms that there will be a ‘soft landing’ for businesses so they can simplify the use of a bridging API (and there is list of them on the HMRC website)by merely cutting and pasting VAT information directly into it without having to complete the digital link by exporting from accounting software to an Excel spreadsheet and then linking that to the bridging API.
This is good news for businesses who can not return VAT directly from their software at the moment and who may need some time to brush up on Excel skills.
If you are on a perpetual licence of Sage (you own it rather than subscribe to it, version 23, version 24, version 25) there is no immediate need to feel pressure to upgrade your Sage 50 Accounts. You can only upgrade your version of Sage Accounts by moving to Sage Subscription which without doubt increases the overhead you are accustomed to paying to use Sage Accounts 50 Professional for your business. You will not be able to return VAT directly from perpetual versions of Sage but for 12 months following your first VAT return after 1st April 2019 you will be able to simply cut and paste information from your Sage version into the bridging API you have chosen to use.
Thought for the Day
If you are going to have to start paying monthly for accounting software it makes sense does it not to review the market place and make sure that the accounting or manufacturing software you are paying monthly for to use is in fact the very best one available to meet your needs.