This is particularly the case if you are operating on Sage 50 Version 23 or below, since Sage will not be making these compatible for Making Tax Digital.
In this article, our Head of Outsourcing, David Sharp answers some frequently asked questions regarding Sage and Making Tax Digital.
When are the changes happening?
HMRC has announced that they will be making changes to their website in Spring 2018 ready for the implementation of Making Tax Digital for all VAT registered entities/companies in April 2019.
Which versions of Sage are affected?
We understand that Sage 50 Version 24 and Sage One will both be compatible for these Making Tax Digital changes. However, Sage 50 versions 23 and below will not meet the new requirements.
I use an older version of Sage, how will this affect me?
Since Sage will not be changing the links to the HMRC website on older versions of Sage – once these changes take place, only the latest version (Version 24) will be able to link to HMRC.
Therefore, from Spring 2018, if you currently file your VAT directly within Sage 50 (and use an older version of Sage), then you can either upgrade or continue to file via the HMRC website until 2019. However, you will need to upgrade before April 2019 or you won’t be able to file your VAT returns from April 2019 at all.
When should I upgrade from my old version of Sage?
In view of the above, it is advisable to consider upgrading as soon as possible, but there may be other benefits to upgrading sooner rather than later. Sage is encouraging users to upgrade, so there may be some good upgrade offers available. Plus, you may also benefit from other features included in the newest version that you don’t currently have.
Should I consider moving to another software entirely?
It is always worthwhile to periodically check that you are using the most suitable accounting software for your business. With recent developments in cloud accounting perhaps you would benefit by moving to a different software provider or package, taking advantage of features such as live bank feeds into your software, automated credit control or CRM integration.
Find out more
Whether you’re looking to upgrade your version of Sage or move your bookkeeping to the software, our Sage accountants specialise in helping you take full advantage of all the features and applications you need to improve your business’ accounting function. Learn more about our service by visiting our dedicated Sage accountants page.
Specialising in the construction sector, David is an advisor to large joint venture projects and residential / commercial developers.