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What is Making Tax Digital?

In 2015, HMRC announced the Making Tax Digital (MTD) initiative along with plans to fully modernise the UK tax systems in order to help to reduce tax errors within the UK.

What is the aim of Making Tax Digital?

The aim of this initiative is to make it simpler for both individuals and businesses to manage their finances through a new online tax system which will allow users to view personalised tax accounts which provides them with relevant and up to date information.

The initiative came into force on 1 April 2019 and now requires all UK VAT payers over the VAT registration threshold (£85,000) to file their VAT returns via HMRC's new digital platform including Microsoft Dynamics GP & Microsoft Dynamics NAV users with versions older than 2016.

Please note: HMRC have provided an extension for businesses to get digital links in place between all parts of their functional compatible software. This means that all businesses now have until their first VAT return period starting on or after 1 April 2021 to put digital links in place. 

HMRC’s new platform ends manual keying-in of VAT return totals, that leaves businesses with the options described further down the page.

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Making Tax Digital with Advantage

If you are a small to medium-sized business looking to ensure that your Dynamics NAV, GP or 365 solutions are Making Tax Digital compliant, we have the following options available.


Option 1: Upgrade your NAV or GP solution

Solution Overview

If you are using Dynamics NAV 2016 or below then you will need to consider upgrading to NAV 2018/Business Central or if you are using a GP 2016 or below then you will need to consider upgrading to version 18.3 to become Making Tax Digital compliant.

Option 2: Cloud Services VAT Submission

Solution Overview

VAT submission is a MTD accredited application for submitting your VAT Returns to HMRC. As an Accounting Application link, Cloud Services VAT Submission receives your VAT returns created in Dynamics GP or ERP solution and allows you through our Portal to submit it to HMRC. The Portal allows for definition of VAT Groups and links them to your VAT Entities.

Please note: The above Making Tax Digital options are subject to change.

If you would like to discuss any of the

Making Tax Digital options

then please get in touch with our Making Tax Digital experts today by filling in the below form.

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