If you are a Dynamics GP customer of ours or even if you are not & are using our MTD partner’s Cloud Services VAT Submission product for MTD, we wanted to inform you about some recent announcements that HMRC have released that could impact on the way that you submit your VAT returns.
The dates have now been confirmed for when businesses will need to have their ‘Direct Digital Accounting Application Links’ in place between their corresponding software programs for submitting their VAT return entry.
So how can you submit your VAT return to HMRC?
There are two ways of doing this through our MTD partner’s Cloud Services you can do this by a ‘Direct Digital Accounting Application Link’ from Microsoft Dynamics GP and ‘Bridging’ via Excel/CSV. The recent announcements made by HMRC means that you can’t upload and submit your VAT return to HMRC from an Excel or CSV file through our MTD partner’s Cloud Services VAT Submission product through the ‘Bridging’ method. Originally this ‘Bridging’ process was implemented by HMRC for the first year of mandation as a somewhat ‘soft landing period’ to give businesses time to install the appropriate digital accounting application links and software which is now needed. Our MTD partner’s Cloud Services ‘Direct Digital Accounting Application Link’ to Dynamics GP will have to be used from now on in.
What are the key dates and deadlines for MTD?
You will find these below and what needs to be done:
- VAT period starting on or after 1st April 2019 – you will have until your first VAT return period beginning on or after 1st April 2020 to get these digital links into place.
- VAT period starting on or after 1st October 2019 – you will have until your first VAT return period beginning on or after 1st October 2020 to get these digital links into place.
The above dates largely depend on what type of sector or industry you operate in. For all the information that you need regarding the key dates and deadlines for your business please visit HMRC directly.
So what actions can be taken for MTD in Dynamics GP?
You will find that our MTD partner’s Cloud Services VAT Submission product can submit VAT returns as a ‘Digital Accounting Application Link’ to HMRC via Dynamics GP. In order to be able to complete this, you need to be using Dynamics GP 2015 or above and have VAT Daybook setup. All transactions with a VAT implication will need to be posted with a Tax Detail ID which also includes General Ledger Journals. If you have any questions or queries regarding how to get this setup correctly please contact your designated account manager (if you are an existing customer), get in touch with us directly via our online contact form or by calling us on 020 3004 4600.
If you don’t use Dynamics GP as your core accounting software, your software will need to have a ‘Direct Digital Accounting Application Link’ in place to allow you to submit your VAT return to HMRC. Please contact your accounting software provider to make sure you have the relevant updates in place to comply with HMRC’s new requirements.