Editor | 31 July 2018
FreeAgent, Making Tax Digital, HMRC, VAT,

FreeAgent gets Making Tax Digital Approval from HMRC

Freelancer and micro business accountancy software provider FreeAgent has been backed by HMRC to support the new Making Tax Digital (MTD) initiative for VAT.

FreeAgent is one of just a few accounting software companies to be included on the list of HMRC’s approved suppliers for VAT.

More than 130 software suppliers have told HMRC that they are interested in providing MTD software for VAT. After prototype testing of the software, only 22 suppliers have so far been approved by the taxman.

Xero, a cloud accountancy solution aimed at larger businesses, has also been included on the list of HMRC’s approved suppliers.

New MTD legislation will require all VAT-registered businesses to keep digital tax records and make quarterly updates to HMRC from next April.

It is the first stage of the government’s wider MTD proposals, which aim to digitise tax reporting for all UK businesses in the next few years.

FreeAgent has worked closely with HMRC to ensure that their software meets the requirements laid out by the taxman.

Ed Molyneux, co-founder of FreeAgent, said: “We’re delighted to be on HMRC’s list of MTD-ready suppliers. It’s a key recognition for our software as we prepare to support freelancers, micro-businesses and their accountants through the forthcoming MTD for VAT legislation.

“Ever since we started FreeAgent, we’ve been committed to helping business owners manage their tax & finances digitally. We’ve supported digital VAT submissions since 2010 and 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.”

Miles Grady, director of CloudAccountant.co.uk said: “Digital VAT submissions is just the first stage of the new Making Tax Digital legislation, with the rest of the requirements approaching fast.

“Using cloud accountancy software like FreeAgent and Xero is the quickest and easiest way for businesses to keep regular digital accounts.”

 For more information please call 0808 281 0303 or email team@cloudaccountant.co.uk