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.
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 below options.
Webinars and Other Useful Resources
Making Tax Digital for Dynamics GP
View our on demand our webinar where we take you through Microsoft's GP service pack update that will help businesses using Dynamics GP versions 2016 or above to work towards MTD compliance.
Making Tax Digital for Business Central & Dynamics NAV
View our on demand webinar where we take you through Microsoft's update for MTD compliance for Business Central or Dynamics NAV versions 2015 or above & demonstrate how it works.
How to setup MTD for VAT in Dynamics GP
Find out the instructions on how to setup Making Tax Digital for VAT in Dynamics GP versions 2016 or above to help you work towards becoming Making Tax Digital compliant and getting yourself ready.
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: Microsoft Update||Option 2: Upgrade your NAV or GP solution|
If you are currently using Dynamics 365 Business Central, Dynamics GP versions 2016 or above or NAV versions 2015 or above then Microsoft have released an update for this.
If you are using a Dynamics NAV version below 2015 or GP version below 2016 then you will need to consider upgrading to 2016 to become Making Tax Digital compliant.
We also have the following option available to help you become MTD compliant:
|Option 3: Cloud Services VAT Submission|
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 above then please get in touch with our Making Tax Digital experts today by filling in the below form.