MAKING TAX DIGITAL FOR VAT

Making Tax Digital applies to UK businesses exceeding the £85,000 threshold. It is a mandatory requirement to create and submit a digital VAT return via HMRC’s API and from 1 April 2021 digital links must be implemented to create an end-to-end digital process.

WHAT IS A DIGITAL LINK?

How should you interpret the term ‘digital link’? What does it mean in practice? Matt Lewis explains

DIGITAL LINKS: A GUIDE TO MTD IN 2021

Read our report to discover the pros and cons of the four compliance options put forward by HMRC and how to get the most out of digital links mandate.

DEMYSTIFYING DIGITAL LINKS WEBINAR

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.

CHALLENGES AND OPPORTUNITIES

MTD is part of a global regulatory drive which is streamlining the tax process and increasing transparency to create consistent revenue streams. HMRC’s ambition is to become one of the most digitally advanced tax administrations in the world and its direction of travel could well see the introduction of concepts such as electronic invoicing and quarterly reporting for corporation tax in the future. MTD will therefore demand more data and require processes that can support granular reporting and audit.

 

Compliance workloads are increasing as a result, forcing businesses to adopt technological solutions to automate manual processes. Under MTD we’ve already seen the introduction of software to digitally submit VAT returns and from 2021 the digital links requirement will see this tax regime become a fully digital end-to-end process. How the business chooses to comply with the digital links mandation will affect their digital readiness with respect to further regulatory change under MTD.

BOOK A DEMONSTRATION

If you would like to have a one-to-one demonstration of our MTD for VAT compliance solution, call us or email us with your requirements.

FUTUREPROOF COMPLIANCE

AlphaVAT is a dedicated cloud-based compliance engine that provides you with complete control over the preparation, calculation and management of the VAT return. Discover how – through the implementation of digital links from digital records, the automation of calculations and the delivery of digital submissions – you can become fully compliant with MTD for VAT.

DIGITAL LINKS: YOUR OPTIONS

The second mandation under MTD will require the implementation of digital links. These will create a digitalised process from digital records all the way through to the digital submission process. We look at the options available to achieve compliance and weigh up the positives and negatives.

EXPERTS IN COMPLIANCE

Tax Systems customers make up 43 percent of the FTSE 100 and 23 of the top 25 accountancy firms. We have been working with HMRC for over 25 years on tax compliance and are a recognised supplier for MTD for VAT. We believe there needs to be a gradual transition to meet evolving compliance demands and have developed a four step process that benefits and futureproofs the business.