With the new Making Tax Digital initiative soon to implemented organisations will have to rethink the way they approach their tax with Microsoft pledging to add functionality to Microsoft GP to comply with this new legislation that comes into play from April 2019.
Microsoft have announced that they will release functionality that complies with the MTD for GP2016 and GP2018 although it is not yet clear what that will be or when it will be released. Microsoft are in conversation directly with HMRC to ensure that the functionality they add is compliant as well as being released in the time for when the legislation becomes active. However, because there will only be functionality to Dynamics GP2016 and GP2018 for GP users those that have any previous Microsoft Dynamics GP will need to begin to start to think about upgrading.
You can find a more detailed break down of what the Making Tax Digital requirements are here and some additional preparation tips for Dynamics NAV users. Operating from the next tax year there will be a few benefits that the Making Tax Digital will bring to businesses.
Digital tax accounts for all will mean that customers can see the information that HMRC holds and will be able to check that the details are accurate. With this HMRC will use the information you give to tailor the service according to the businesses and customers needs.
Customers will not have to wait until the end of the year to know how much tax they need to pay and have real time access to their taxes with HMRC collecting and processing the information as quickly as possible to help prevent errors.
You will be able to have a single view of your finances with a picture of liabilities and entitlements in one place with a change that means by 2020 customers will be able to see their digital account which, much like online banking will show your tax affairs. In addition to this you will be able to gain digital support via web chat and secure messaging.
This brings with it a number of benefits to the business including more regular taxa data submissions every 3 months which allows businesses to keep on top of things with no year-end surprises.
This means Making Tax Digital will require submission via compatible accounting software. If you are currently on an earlier version of Dynamics GP from before 2016 it may be time to consider upgrading in order to become Making Tax Digital compliant. Make sure you consider your position with Making Tax Digital long before the April 2019 deadline.
*Disclaimer* Advantage is an ERP, CRM and Managed Services IT firm, not a law firm. The information provided here is for general guidance purposes only. It should not be taken, nor is it intended as, legal advice. Please make sure you conduct your own investigation into Making Tax Digital and where appropriate seek out the advice of a legal professional.
To find out more about how Advantage can help your business implement either a more recent version of Microsoft Dynamics GP or a newer Dynamics NAV version or a Microsoft Dynamics 365 Business Central solution please get in touch with Advantage today.
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