BTCSoftware joined the Making Tax Digital for VAT scheme as a developer very early on, with the goal of supporting accountants throughout the transition. That means we’ve learned a lot on this journey with you over the last three years! Take a look at what you need to know to be ready for the April 2022 mandation of small businesses into the MTD for VAT scheme.
Give your clients a choice
Even though smaller businesses have less money to spend with you, the time taken to process their VAT returns each quarter is roughly comparable to your SMEs – with a handful of exceptions.
Not only that, small businesses may run as a side-project for someone with a regular PAYE role or another, larger company. That presents a challenge!
Why? Because you may find yourself spending more time overall supporting these less-profitable clients in their transition to VAT.
Alongside our sibling brand, MTDfVAT, BTCSoftware provides you and your clients with choice.
So if your clients are confident in looking after their own record-keeping and quarterly returns, point them to MTDfVAT.co.uk where they can buy a simple, effective MTD for VAT online submission licence.
Or make your client work affordable with BTCHub, with multiple user access for your team, integrations with both modern and legacy bookkeeping software and Excel bridging. You’ll benefit from a flexible tool that lets you cater to all of your clients from just £275 (+ VAT) per year. Learn more here.
Giving clients a choice means less stress for you.
Be clear, be concise, communicate
We know this one’s often repeated. That’s because it’s valuable (and a little bit because the author is in the business of communicating with you!)
Be clear in what you’re telling clients. They’re not tax experts – that’s why they pay you – so make sure that you use plain language. Consider sending links to HMRC’s resources, which are usually written for general understanding, but avoid sending clients to read full policy papers.
Be concise by only sharing the core ideas which clients need to understand, whether that’s the basics of MTD for VAT or information on your pricing and availability. You wouldn’t meet a prospective client to discuss services and then send them your full rates matrix instead of a proposal right?
But overall, communication is key over the next few months. If you’re not talking, they’re not listening!
Restate the basics
On the topic of being clear and concise, there’s never any harm in restating the basics as time starts to dwindle.
We’ve created a useful mini-guide to MTD for VAT, especially for your small business clients. Get it here.
Get flexible software
Head to our Making Tax Digital page for more on BTCHub.
Or call us on 0345 241 5030
