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Sage Upgrade for MTD (Making Tax Digital) for VAT

Posted on 17th January 2018 - What's trending?

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Another Sage Upgrade – do I need this one?

If you are a Sage 50 user working on version 23 or below, you are likely to be contacted by Sage letting you know that from Spring next year the only version of Sage that will be compliant for VAT filing will be Sage v24 and that you need to upgrade.

What is changing with VAT?

From April 2019 HMRC are closing the VAT portal (the ability to file VAT returns using the website) – all returns will need to be filed directly from within your accounting software. HMRC are calling this ‘Making Tax Digital’ (MDT) for VAT. Version 24 of Sage 50 will be the only version compatible with the new HRMC requirements.

I already file my returns from within Sage

Currently you can file your VAT return on the HMRC website or directly from within Sage 50.

HMRC are making changes to their website in Spring 2018 ready for MDT for VAT (which goes live in April 2019). Once these change take place the only version of Sage 50 that will link to the HMRC website will be version 24 – Sage are not making changes to their links to the HMRC website on older versions of Sage – only on the latest version (version 24).

Do I have to upgrade now? April 2019 is ages away

No – you could continue to file your VAT returns on the HMRC website until 2019. If you file your VAT directly within Sage 50 currently and use an older version of Sage, then you can either upgrade or otherwise file via the HMRC website from Spring 2018.

BUT you will have to upgrade before April 2019 or you won’t be able to file your VAT returns at all in 2019.

Any reason to upgrade early?

Sage will want you to upgrade – so there may be some good upgrade offers available – especially for users on very old versions of the software. The upgrades obviously will contain other features as well as the new VAT links. Upgrading now also means you know you are compliant for MTD for VAT already.

As with all accounting software, it makes sense to check every now and then that you are using the right software for your business. If you think Cloud based software may be more suitable for your business or you would like a no obligation look at some of the software changes that have come about in the last few years, including live bank feeds straight into your software, automated credit control and the ability to claim expenses on your phone then please get in touch by emailing 


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