Since HMRC first introduced its Making Tax Digital scheme, bridging software for MTD has become ever more relevant for small businesses’ tax compliance. However, with new technology comes a certain level of inevitable misunderstanding or even scepticism. In this article, we will debunk our top seven myths surrounding VAT bridging software for MTD. Can it really be as good as it sounds? The answer, quite plausibly, is yes!
Myth 1: MTD bridging software is too expensive for small businesses
The first myth concerns cost: many business-owners assume that MTD bridging software for VAT will be expensive. This perhaps stems from the fact that bridging software can provide huge convenience for the user – so of course it must cost an arm and a leg… But it doesn’t!
In fact, MTD bridging software provides an extremely affordable solution for small business, beginning as low as a mere £8/month. HMRC-recognised MTD providers such as AbraTax even offer free trials to get you started!
Myth 2: MTD bridging software is difficult to use
The reality behind bridging software is that it’s the simplest and quickest option out there! By making use of your pre-existing Excel records, you can submit your VAT Returns in just three easy steps:
- Download our VAT bridging Excel template
- Digitally link nine boxes from your Excel sheet
- Re-upload the file to AbraTax for submission
Using MTD VAT bridging software is super simple because your financial data stay within Excel. Unlike other options, it requires no liaising with accountants and there’s no need to learn how to use any new bookkeeping software.
Myth 3: MTD bridging software is unnecessary if you already use bookkeeping software
Not true! In fact, if you are already using Excel as your go-to bookkeeping software, then MTD bridging software could be essential for your VAT Returns. This is because Microsoft Excel is not inherently MTD-compatible: it doesn’t link up directly with HMRC’s MTD system.
In order to keep your digital bookkeeping MTD-compliant, HMRC-recognised software such as AbraTax helps you to “bridge” the gap between your spreadsheet and the online MTD for VAT system. As such, bridging software might be a key tool for your business today.
Myth 4: MTD bridging software is not data-secure
On the contrary: one of the key benefits of MTD bridging software is that you only need to upload minimal data. When it’s time for your VAT Return, bridging software for MTD needs you to link only seven Excel cells from your spreadsheet (with two additional cells automatically generated for you). The rest of your business’s financial data remains safe and sound on your computer.
This system is by far the most privacy-centred in comparison to paying for bookkeeping software or an accountant, which will require you to transfer a mass of financial data (in all its detail) to a third party. HMRC-recognised MTD bridging services such as AbraTax are designed to prioritise your data security, employing all relevant GDPR/DPA steps to facilitate seamless integration with HMRC.
Myth 5: MTD bridging software is only suitable for large businesses
The reality is that businesses of all sizes can benefit from bridging software, as it streamlines your VAT Return submissions and reduces the risk of error. Furthermore, it’s a completely scalable technology, meaning that trusted VAT bridging software providers like AbraTax can offer flexible and tiered services, depending on your business’s requirements.
Myth 6: MTD bridging software doesn't offer any additional benefits beyond VAT compliance
Wrong! At AbraTax, we pride ourselves on going the extra mile. Although our service provides a super-fast solution for submitting your VAT Returns, it also provides benefits such as an instant confirmation of your VAT Return (with a receipt ID straight from HMRC).
By logging into your personalised user dashboard, you can also access essential data such as your VAT Return history and due dates, as well as the ability to view or export your VAT Returns data. Furthermore, you can set up multiple VAT registrations (and users) to keep easy track of your tax obligations.
Myth 7: MTD bridging software requires long-term commitment
At AbraTax, we are confident that you will be more than satisfied with our service. This is because we offer a guaranteed low-cost and convenient service for your business. Beginning from only £8 per month, you can take care of your VAT Return obligations today.
However, we also understand that new customers might want to “try before they buy”. For this reason, we offer a free trial, where you get to submit a VAT Return to HMRC with us at no cost. (You don’t even need to submit debit or credit card details!)
Once you have tried our simple service, you can sign up on a monthly basis with no long-term commitment: we’re happy to keep supporting you for as long as you’re happy with our service. If circumstances change, you're free to cancel your subscription at any time.
Conclusion
Despite common myths, it turns out that MTD bridging software is simply as good as it sounds. Compared with bespoke bookkeeping software packages or hiring an accountant, bridging software for MTD (VAT) offers huge long-term savings and a data-secure alternative. With no long-term commitment needed, it can also drastically improve your business’s financial efficiency, saving heaps of time as well as money.
With our free trial, you can even submit your first VAT Return for free! Excel bridging software for MTD has never been so easy, so why not give it a try today?
