The cost of Making Tax Digital for VAT
For businesses needing to use digital accounting software for the first time, there are a number of providers that will offer this on a subscription basis with packages tailored to your company’s size and/or structure.
Sage offers businesses more than a one-size-fits-all solution—and can help you get ready for MTD for VAT, as well as any other regulations in the future.
HMRC has given an estimate that the costs average at approximately £280 per business across the period of transition. This does not, however, consider long-term efficiency gains from MTD:
On average, a small-or-medium-size business can save 27.6 days a year by using digital accounting software in comparison to using manual methods, giving precious time back to focus on growing the business.
Our research shows SMEs that use digital accounting software can make an estimated saving of £17,000 per annum. Digital accounting software can decrease your admin time, leaving you with more money to reinvest in your businesses
Prevention of late filing and errors
By automating submission, MTD will help businesses manage their tax affairs by alerting them before payment is due and keeping them on top of their tax liability. This will prevent overdue payments from piling up and reduces the chance of error and incurring penalties.