Lincoln, England and Fort Worth, Tex. — ECi Software Solutions, a leader in cloud-based business management solutions, today announced its new Making Tax Digital (MTD) portal for submitting VAT returns through the company’s Horizon® office supplies software and Progress® business management software. This new portal and ECi’s MTD software compatibility – which have been recognized by Her Majesty’s Revenue and Customs (HMRC) – will enable all ECi U.K. customers to more easily comply with the government’s Making Tax Digital for VAT initiative.
The Making Tax Digital for VAT initiative – which was first introduced in September 2017 – went into effect April 1, 2019. It requires that all businesses with a turnover above the VAT threshold of £85,000 keep digital records for VAT purposes only and provide their VAT return information to HMRC through MTD functional compatible software. To make this transition easier on customers, ECi has made their cloud software MTD-compatible and created an online portal that will support legacy customers with on-premise solutions. As a result, the company’s software is now able to:
- Keep records in a digital form as required by the regulations
- Preserve digital records in a digital form as required by the regulations
- Create a VAT return from the digital records held in functional compatible software and provide HMRC with this information digitally
- Provide HMRC with VAT data on a voluntary basis
- Receive information from HMRC via the API platform in relation to a relevant entity’s compliance with obligations under the regulations
“ECi has been very proactive in sharing information with their customers about the preparations for Making Tax Digital for VAT, which has given us the confidence that we will be ready,” said Jackie Meachen, financial controller at Heatons Office Solutions Limited – a Horizon customer.
“Making Tax Digital for VAT is an important U.K. government initiative that has caused worry for a vast majority of our U.K. customer base,” said Dan Noble, product manager, ECi. “However, according to a recent study, applying digital solutions will enable small businesses with ten or more employees to earn an annual productivity gain of £18,000. That’s why we’ve ensured our software is MTD-compatible and HMRC-recognized and will continue to update our offerings to help customers keep pace with evolving regulations.”