Why do law firms need MTD-compatible software?
UK law firms handling VAT obligations must comply with the government's Making Tax Digital (MTD) initiative by using compatible software to keep digital records and file tax returns directly with HMRC.
How does MTD affect VAT reporting for law firms?
Law firms must use MTD-compatible software to maintain digital VAT records and submit returns digitally, instead of relying on manual or paper-based processes.
Is MTD compliance mandatory for all law firms?
MTD is mandatory for VAT-registered law firms with an annual turnover above £90,000. Firms under this threshold can voluntarily register for VAT.
How does MTD-compatible software help with compliance?
Making Tax Digital software ensures law firms meet HMRC’s digital record-keeping rules, minimises errors in VAT returns, and provides audit trails for compliance checks.
What happens if a law firm doesn’t comply with MTD requirements?
Non-compliance can result in penalties from HMRC, including fines for late or incorrect VAT submissions.
How does Lawsyst's MTD software improve efficiency for law firms?
MTD software automates VAT calculations, reduces manual data entry, and ensures accurate tax filings, allowing law firms to focus more on legal work instead of administrative tasks.
Can MTD software help law firms reduce tax errors?
Yes. By automating tax calculations and ensuring real-time data entry, MTD software minimises human error and helps law firms avoid penalties from HMRC for incorrect tax filings.
How does Lawsyst's software enhance my financial visibility?
With Lawsyst, law firms gain real-time access to financial insights, helping them monitor cash flow, track VAT liabilities, and make informed business decisions.
Will MTD software save my firm money?
Yes, by reducing accounting costs, preventing tax penalties, and streamlining compliance, our MTD-ready software can lead to significant cost savings for law firms.
How else can Lawsyst help my firm stay compliant?
Lawsyst offers a range of trust accounting, client invoicing, and expense tracking tools, ensuring broader financial compliance in line with legal industry regulations.