A sophisticated compliance engine particularly suited to businesses that want to gain end-to-end control over the calculation, preparation and management of VAT compliance.
Partial Exemption Special Method (PESM) is notoriously complex but it’s also a prime candidate for automation. Automating PESM can give you greater control, reduce costs and mitigate risk, helping ensure you comply with your PESM agreement and don’t miss out on any recoverable input VAT.
Demands under MTD for VAT will increase. Initially the business must meet the digital submission requirements by utilising digital records. This will be followed by the need to implement digital links in 2020. It’s also likely that electronic transaction data may be required further down the line if HMRC follows the lead of other tax authorities in Brazil, Poland and Spain.
Rather than implementing a bridging solution and then a digital linking solution, many are opting for a compliance solution that meets all the MTD for VAT requirements and futureproofs the business against further regulatory change.
Spreadsheets can pose a significant risk to the business with 88% found to contain errors. Auditors commonly flag these documents as a major threat to compliance. Spreadsheets also tend to be owned and managed by a select few individuals, making it difficult to share access in a controlled way.
Data collection can also be challenging as information is held in various forms, sources and systems across different departments and businesses. Substantial time is spent identifying, cleansing and validating data, reducing the time the tax team has to devote to activities such as strategic tax planning.
Bridging solutions and API-enabled spreadsheets cannot automate the processing of complex calculations such as group consolidation, capital goods schemes, reverse charge and partial exemption (standard and special method) so these must be performed manually outside of the process. This increases the risk of error and, should any links be broken, the business becomes non-compliant under phase II requirements and is subject to penalties from HMRC.
What are the options when it comes to implementing digital links? Can and should you use your MTD bridging solution? Are there risks in using spreadsheets? How can you still make amendments and adjustments?
To find the answers to these and other questions, sign up for one of our Demystifying Digital Links webinars.
AlphaVAT gives you total control over the preparation, calculation and management of your VAT return. The solution utilises AlphaLink to retrieve data from existing accounting systems which can then be subjected to various VAT treatments and transactions within the AlphaVAT compliance engine environment prior to submission.
AlphaVAT removes the need for spreadsheets and can handle the most complex VAT calculations. 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, AlphaVAT can also be used to assess VAT recovery rates and adjustments, VAT groups, cross border VAT, and VAT accounting schemes. The AlphaVAT source-to-submission architecture also lends itself to future regulatory demands, such as MTD for corporation tax.
- Automates VAT calculations and treatments, including group consolidations and partial exemptions, preventing manual errors which can be difficult to correct and freeing up the time to focus on value-added tasks
- Facilitates a broad range of common adjustments which cannot be performed within the confines of legacy accounting software
- Minimises risk of error and reduces reliance on spreadsheets
- Digitally links to and can process large volumes of data from all known accountancy software making it ideal for those with complex data environments
- Acts as a single touchpoint for digital audit trails
- Keeps up with regulatory change via in-built tax logic
- Supports end users via a help portal that offers hints, tips, guides, FAQs and training resources
- Obviates need for spreadsheets which can increase the risk of error through the use of digital links
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.
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.
AlphaConnect/AlphaLink can be used in conjunction with AlphaBridge to satisfy all the digital requirements of MTDfV or, when combined with AlphaVAT, can drive the data throughput needed to automate VAT calculations and future Corporation Tax calculations under MTD.