<img src="https://secure.leadforensics.com/133892.png" alt="" style="display:none;">

Making Tax Digital (MTD) is a UK Government initiative to help streamline HMRC returns. It will be compulsory for all VAT registered businesses which means it applies to all our Microsoft Dynamics ERP customers in SME and Enterprise.

As of April 2019, businesses will need to:

  1. Keep digital records (for VAT purposes only)
  2. Provide VAT return information to HMRC through Making Tax Digital compatible software

This piece is mainly aimed at existing Microsoft Dynamics users. If you are not currently using Microsoft Dynamics, please be assured that the versions you will evaluate are all compliant. To find out more about the capabilities of Dynamics ERP please contact us.

For all supported versions of Microsoft Dynamics (be that AX, NAV or 365 Finance & Operations), Microsoft is committed to “enable customers to be compliant”. This means that the functionality will be available in the relevant versions; it’s down to the customer to work with their partner to test and train.

The great news is that Dynamics ERP users are already at least half way there!

Remember the two parts to the requirements:

  1. Keeping digital records. Dynamics ERP already does this for all transactions posted in the system (VAT Ledger Entries)
  2. Return via MTD compatible software. This is the link to the GovTalk portal; for compliant version, this will be a simple click of a button (or via workflow / scheduled job!) on your ERP menu and it all fires off

If you’re on a supported version it’s not a big jump. The solutions already support electronic VAT submission and UK formats. Microsoft is working closely with HMRC to make sure the solutions are ready for the April 2019 deadline. HMRC has committed to ensuring the solution is well bedded in and proven with VAT before extending to other returns; Microsoft Dynamics is already in good shape for when this is extended to VIES and Intrastat.

UK businesses have been expecting this for some time. The delays have been HMRC's own technology and last year’s delay due to the general election. Most businesses are now eager to get on with it as one less thing to worry about!New call-to-action

Topics

Discuss this post

Recommended posts

Natasha Ednan-Laperouse tragically passed away in 2016 after suffering an allergic reaction from eating a shop purchased sandwich. Following this, a new law, Natasha’s Law, will be introduced in October 2021 which requires full ingredients labelling on all foods. Let’s discuss the implications of Natasha’s Law for food businesses. 
The world will never be the same as before COVID-19 paralyzed the world. In the future, we will talk about a before and an after corona. Many of the trends which were in their rising before the crisis have speeded up. And especially four megatrends have taken off.
The world has changed forever. The businesses that recognise this and adapt quickly to the new norm will become the household names of the future. As effective leaders, we have no choice but to seek the opportunities among the challenges. In this post we examine how to combine a process for managing rapid change with the right tech and your trump card – the untapped knowledge within your people.
Once you’ve attained GDPR compliance, the journey is far from over. Ongoing improvement of your data governance processes needs to be a key focus for organisations to continue to demonstrate a responsible approach and maintain brand confidence.
As many of us wind down for the festive season, now is a great time to think about the maintenance of the systems your business relies on, and get organised for next year. Next year, we see new trends emerging including Evergreen updates for Microsoft Dynamics 365, so use the end of the year to ensure you are prepared for changes to come.