The UK Government’s initiative - Making Tax Digital (MTD) - aims to simplify and transform the tax system. It affects how businesses and individuals maintain their accounting and tax records and how they transact and communicate with HM Revenue and Customs (HMRC).
Making Tax Digital for VAT comes into effect from April 1, 2019 and is applicable to individuals and businesses with a turnover above the VAT threshold. Currently, most businesses submit their VAT returns manually by typing numbers into the HMRC portal. Taxpayers can now no longer submit VAT through this mode.
If your organisation uses a Microsoft Dynamics product, then the process is a lot easier. Supported Microsoft Dynamics solutions are compatible with the Making Tax Digital for VAT API. The API retrieves information from HMRC about your organisation’s compliance with obligations under the regulations. The API also enables you to share business financial data and VAT returns for the reporting period to HMRC to fulfil your obligations.
In addition, the API gives you access to:
While the APIs provided by Microsoft make this process a lot easier for the supported versions, there are scenarios where you may require more than just connecting your Dynamics installation to HMRC via the API. Instances such as not receiving the latest hotfixes, or not being on a supported version, or having work-arounds in your tax setups, can result in issues.
We have developed a process to make this progression easier. Within this offering, our Team has ensured that you will be provided with: