Staying compliant with HMRC is just another hurdle business owners have to face, and without the right tools it can be quite a confusing topic. This is where Sage comes in, allowing you to easily calculate and submit tax returns easily and with the addition of built-in Making Tax Digital (MTD) compliance life just became easier! Let’s have a deeper look at how Sage can help you stay HMRC-compliant.
Managing employee payroll can be quite a headache, but with Sage 50 payroll software this can drastically reduce the time spent each month on payslips. Calculations, tax deductions and payments can all be automated, making Sage 50 payroll the perfect software solution for SMEs needing a straightforward way to manage their payroll processes.
Simply input your employees’ details into the software (including hours worked and salary information), and Sage calculates the accurate amount to be paid to each employee – factoring in taxes, deductions and overtime as necessary. Once everything is calculated, you can even use Sage 50 payroll to process the payments directly to your employees through direct deposit, or generate printed checks.
As well as managing the employee side, Sage 200 can be used to easily submit your VAT return to HMRC, ensuring that you stay compliant. The one thing to note is that you must set your currency within Sage to Pound Sterling, you must be enrolled with HMRC (with a username and password), and to process the VAT payment you need to install the Sage 200 e-banking component and linked this to the bank account you wish to pay your VAT from.
All you need to do is follow the steps below with Sage 200 Standard to set up your VAT submissions, and hey presto it will all be completed!
Now, if you have Sage 200 Professional, the steps are ever so slightly different:
As Sage is a recognised MTD software, keeping digital records has never been easier. Data is pulled in automatically with live bank feeds and AutoEntry, and with connected banking transactions these are automatically matched to invoices, payments and purchases. Not only helping to save your business time, but also helping to improve accuracy too.
Another great feature of Sage is the insightful reporting it offers businesses. At a glance, you can check cash flow, aged debtors and forecast how your business finances look. With the ability to easily keep track of your financial records, you will have an accurate audit trail which may come in useful if HMRC decides to audit your accounts!
Tax rules change on a regular basis, and this can be hard to keep on top of when you are focusing on other areas of your business. Thresholds are regularly changing, and what was compliant last tax year may not be the same a year on.
Luckily, Sage keeps on top of this so there is one less thing for you to worry about. With regular software updates, you can rest assured that you are always working towards the latest HMRC regulations. Even small changes like a new National Insurance rate are adjusted automatically within Sage to make sure your accounts reflect this.
If you would like more information on how Sage can help your business stay HMRC compliant, get in touch with the experts at Reality Solutions today.
*This article contains general information in order to assist all of our customers and is meant for guidance only – there are no guarantees that the information we provide will be suitable for your particular needs. If you require specific assistance, we recommend that you seek professional guidance on your individual circumstances. Reality Solutions are in no way responsible for any loss or damage arising from any information contained within our articles.