Is Sage 50 Accounts MTD Compliant – Maxing Tax Digital
Is Sage 50 Accounts MTD Compliant?
HMRC are making a radical change to the way tax is submitted. Making Tax Digital (MTD) is an HMRC initiative to modernise the tax system and will require businesses to use accounting software to submit tax returns digitally rather than via the online self-input portal we are all used to. Starting with VAT, from the 01st April 2019 businesses will no longer be able to use the government gateway to submit their VAT returns instead they must use compliant accounting software applications.
Sage 50 Accounts is one of the most widely used accounting software applications in the UK, but there is confusing advice as to what versions are compliant with MTD, and Sage are not helping this confusion as they are pushing customers to upgrade to Sage 50 Cloud Accounts subscription in order to be on compliant software. However, there are options for businesses with perpetual licences who don’t want to change to Sage’s subscription only model.
So what Sage versions are compliant with Making Tax Digital?
Sage 50 Cloud Accounts – Sage50c Accounts
This is Sage’s subscription only model and is the only option available direct from Sage. If you talk to Sage they will encourage you to move to this model.
If you are on the latest updates, v24.2 or above, then this is MTD compatible and you will be able to submit your VAT returns direct to HMRC using Sage.
Sage 50 Accounts – Perpetual licence – Version 24.x
Businesses on perpetual licences can buy a MTD module subscription to add on to their perpetual licence. The MTD module requires Sage 50 Accounts to be on version 24.
The MTD module is only available on subscription and the RRP is £300 + VAT per year – contact us for pricing as we will beat that – You won’t be able to buy the MTD module direct from Sage though, you will need to go through a reseller who has stock.
Sage 50 Accounts – Perpetual licence – Version 23 or below
You will need to upgrade to version 24 (however we can still supply perpetual licenses rather than subscription) in order to be able to submit your VAT returns using Sage to HMRC from the 01st April 2019.
To emphasise this, from April 01st 2019, if you are VAT registered i.e. your turnover is over £85,000 then your VAT return has to be made using accounting software that is MTD compliant. So if you use Sage and are VAT registered then you will need to be on version 24. But, you don’t need to upgrade to the subscription only model, you can still buy perpetual licences through certain resellers including Your Office Anywhere.
Contact us for prices for perpetual licences for version 24 plus the MTD module.
Also contact us if you would like pricing for subscription licences for Sage 50 Cloud Accounts
Sage 50 Accounts with Sage Cover Extra
Sage Cover Extra is an added support package that includes upgrades for businesses on perpetual licences for Sage 50 Accounts. However, although this “feels” like a subscription model, it isn’t and it doesn’t included the MTD module as part of the Sage Cover Extra pricing, you will need to pay extra for the MTD subscription.
Contact us for pricing for the MTD module.
Although upgrades are included as part of Sage Cover Extra, you may not have upgraded to version 24 yet. This will need to be done before installing the MTD module.
Many businesses prefer using perpetual licences for their software. In many cases there is no need to constantly upgrade to the latest version. Of course software companies, including Sage, would prefer their customers to be on a subscription model as it improves revenue and cash flow. They also don’t want to support and maintain older versions of their software. So new initiatives like Making Tax Digital will generally require customers to be on supported versions of software.
In this particular case while Sage will use this as a way to encourage you to move to their subscription only Sage 50 cloud Accounts model it is still possible to stay on a perpetual licence and just subscribe to the MTD module.
Get in Touch
Your Office Anywhere provide hosted remote desktop services and have been hosting Sage 50 Accounts for many years. In particular we help customers who, for various reasons, struggle with Sage Cloud or Sage Drive. In these situations a hosted remote desktop will provide a secure, stable alternative. Either visit our Sage accounts page to find out more or speak to one of our technical sales consultants by clicking the button below.