AlphaConnect can link data from over 300 proprietary accounting systems. It requires minimal integration with a typical deployment taking 20 minutes. AlphaLink has been developed for bespoke accounting systems. Similar to AlphaConnect, it facilitates data extraction by creating digital links from local/network folders.
Under Making Tax Digital for VAT, digital links will need to be implemented by April 2020 or October 2020 for those with complex VAT affairs. These dates signal the end of the soft landing period at which point businesses can no longer use cut/copy and paste or any manual data entry processes. Digital links must be in place resulting in a fully auditable digital end-to-end process from source-to-submission.
A digital link is defined as an electronic or digital transfer, or exchange of data, between software programs, products or applications by HMRC. Yet there remains some confusion in the marketplace with vendors interpreting this differently. This could potentially put businesses at risk of non-compliance. It’s critical that the solution selected provides the capability to interface with numerous disparate systems.
AlphaLink takes the strictest interpretation of ‘digitally linked’ and offers support for all digital data sources. The solution encompasses most commercially available accountancy software packages and has the capability to support bespoke data sources, creating digital links between all the software systems that comprise the functional compatible software, in accordance with HMRC requirements.
AlphaLink enables you to digitally link to software products, programs and applications in order to automatically source data for the VAT calculation which is then submitted using either AlphaBridge or the AlphaVAT compliance engine.
AlphaLink is available in two versions. AlphaLink Connect provides those with proprietary accountancy and ERP systems with access to over 300 API connectors to ensure data is extracted and made available to complete the return. AlphaLink Collect provides support for those with bespoke or complex requirements with data sources outside the scope of the AlphaLink library of connectors.
The data extraction performed by AlphaLink makes it ideally suited to automate all tax data collection processes. Data is consolidated from a variety of sources without manual intervention so that quality is assured, creating a pool of reliable data that is ready to use. This means the requisite data is always available for VAT and form the foundation for future MTD tax requirements.
Having a ready-made pool of data also protects the business against potential changes in legislation leading to an increase in the level of data granularity. In the future, HMRC may decide to extend reporting obligations under MTD for VAT to include the provision of electronic transaction data (in keeping with tax authorities in Spain and Brazil) and it’s a given that MTD will be extended to corporation tax and income tax from 2021.
AlphaLink puts in place the mechanisms needed for these computations. The data can be easily accessed and passed to the AlphaVAT compliance engine where calculations are performed and the return prepared.
Cloud-based application hosted in Microsoft Azure
Server-to-server connectors for all major CSPs allows entities to aggregate data
Bank of 300+ connectors for on premise accountancy systems
Encrypts data to ensure data integrity
Sources data from sales ledger, purchase ledger and other financial data
Imports data automatically to AlphaVAT compliance engine via the AlphaLink API
Provides the digital link solution for MTD
Requires minimal change to existing processes
Fully automates the process for the collection and transfer of data
Reduces risk of error and reputational risk
Easily integrates with existing processes and IT architecture requiring minimal change management
Easy to deploy (typically 20 minutes) and maintain with assistance provided by a dedicated product support team
Creates a data pool that can be used not only for VAT calculations but also corporation tax calculations expected to be digitalised under MTD from 2021
Providing the digital link between existing VAT calculations and return submissions, AlphaBridge uses the supplied API software to integrate with HMRC systems and exchange data via a secure portal.
Information is collated or linked from source systems or spreadsheets into an Excel template which acts as an interface for uploading the 9-box amounts to the cloud before submission.
AlphaBridge enables both present and historic data views of obligations, liabilities and payments.
AlphaVAT is an advanced VAT compliance engine that provides complete end-to-end control over the calculation, preparation and management of returns. The solution can reduce spreadsheet dependency and risks or remove the need for them completely.
AlphaVAT can handle VAT calculations ranging from MTD digital link requirements to more complex group consolidation, capital goods schemes, reverse charge and partial exemption (standard and special method). The solution includes robust tax logic, secure access control, comprehensive audit trail and legislative help, providing advanced guidance for teams to calculate and submit MTD-compliant tax returns.
In addition to calculating core domestic VAT, it can also be used to assess VAT recovery rates and adjustments, VAT groups, cross border VAT, and VAT accounting schemes.