HMRC’s ‘Making Tax Digital’ (MTD) initiative will affect any VAT registered businesses (over the £85,000 threshold) when it is implemented in April 2019. This means that you need to take action now to make sure your business is ready.
First announced in 2015, HMRC plans to reform and fully modernise the UK tax system. They plan to make it easier for individuals and businesses to manage their financials by introducing a new online tax system, providing users with a personalised tax account containing relevant, up-to-date information.
Businesses will be required to:
Keep digital records for VAT purposes
Provide VAT return information to HMRC through Making Tax Digital compatible software, not through the HMRC online portal.
Having made the software ready several months ago, Microsoft officially became an approved supplier of Making Tax Digital at the end of October, and Dynamics NAV and Business Central Customers must adopt this by 1st April 2019.
For Businesses looking for Making Tax Digital Compliant Software:
Any organisations either looking for a new software solution to make themselves MTD compliant, or looking to change system entirely, we have a solution for you.
At Azzure IT, we have created and developed our own unique Azzure Making Tax Digital App, which allows organisations to export their tax and upload it to HMRC directly through the app. So if your business is looking for an easy to use application to make sure you are compliant, get in touch at email@example.com
And for those organisations looking to fully change system to take full advantage of the Making Tax Digital benefits associated with a Microsoft Dynamics solution, you will need to:
Making Tax Digital will be added to the December update, so this will be automatically applied to your tenant as part of the update process.
Dynamics NAV 2015 – Dynamics NAV 2018
Making Tax Digital will be added to the Dynamics NAV cumulative update (CU) due out around the end of December. This will mean that we need to plan how and when this CU update is applied to your system.
Dynamics NAV 2009 – Dynamics NAV 2013
Unfortunately these products will not have an update made available for Making Tax Digital. We therefore need to review the options available and choose the best one with you. These options include:
Moving to a later version of Dynamics NAV that has Making Tax Digital update
Moving to Business Central
An alternative Azzure solution that will allow you to remain on your current version but will send the tax returns using a different method.
In addition to the options detailed above, Azzure IT also has an alternative solution for all of our customers, to save you having to update to the latest CU or upgrade from old versions of NAV in the short term.
Please contact your Account Manager to discuss the options and then we can advise you which is the best solution to meet your current and future needs.
Frequently asked questions:
Q: What is Microsoft doing to ensure that Customers using one of the above solutions are compliant when Making Tax Digital is enforced by HMRC in the UK?
A: Microsoft has been engaged in dialogue with HMRC and advisory groups in the UK over many months, so they could ensure their software supports Making Tax Digital in a way that works for UK Businesses.
Q: We are using Microsoft Dynamics 365 Business Central Cloud. Will this Cloud solution enable us to be compliant with Making Tax Digital?
A: Yes. That is one of the benefits of using a Cloud service like Microsoft Dynamics 365 Business Central.
Q: We currently have no accounting software. Can Azzure IT help us with a Microsoft solution?
A: Yes. Whether you have previously managed your business finances in Excel or other bookkeeping tools, you can benefit from a Microsoft Dynamics 365 Business Central Cloud solution.
If you have any questions regarding how you can Make Tax Digital, please don’t hesitate to contact your Account Manager or a member of our Sales Team: firstname.lastname@example.org to discuss the Microsoft Dynamics options
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