Businesses, from sole trader to corporate giants, who are VAT registered are now becoming more aware of the HMRC’s new Making Tax Digital scheme. Whilst businesses, for many years, have been used to logging in to the HMRC’s own website to submit the figures to complete their tax return, the HMRC now expects the information to be supplied through accounting software or bridging software. Ringwood based KFA Connect Ltd, an IT Software Solutions company, has created the HMRC recognised bridging software, Magic Tax, to provide a free-to-use solution for businesses who either do not use an IT accounting system or their existing IT solution is not MTD compliant, as Richard Austin, the New Business Director explains.
“I felt that it was wrong that Making Tax Digital has come to market so quickly and that as a result, many businesses are just not prepared to submit their VAT using an accounting solution. Our solution is completely free of charge to use and we hope, that when people find it user-friendly, will voluntarily make a donation to Marie Curie via our JustGiving link, as a gesture of their appreciation. It is our way of giving some goodwill from our own success back into the community.”
Magic Tax will not retain any of the spreadsheet figures and will not need to process payments to HMRC, so there can be no leak of information or security issues. The emphasis of keeping Magic Tax simple meant that KFA Connect’s team have included a link to the HMRC’s Making Tax Digital registration page and they have even supplied downloadable spreadsheets that will help first-time users to adopt as templates.
“Anyone can use Magic Tax, so we are hoping that those who do not have an accounting solution in place already will make use of the system and that accountants will also use Magic Tax to provide the service to their own clients,” said Richard Austin.
KFA Connect estimate that they could have produced an official bridging software for the HMRC as a commercial project for a one-off cost of £55,000.
For information visit www.magictax.co.uk https://www.kfa.co.uk/
Photo Caption: Richard Austin with the Magic Tax welcome screen.