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 2020 (or 1 October 2020 for deferred businesses) digital links must be implemented to create an end-to-end digital process.
How should you interpret the term ‘digital link’? What does it mean in practice? Matt Lewis explains
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.
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.
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 2020 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.
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.
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.
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.
What are your thoughts on your MTD for VAT journey so far?
As we are now entering into Phase 2, this is your chance to participate in our MTD Snap Poll, in association with Taxation, and enter a draw to win £50 of Amazon vouchers!
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.
We have developed the MTD Compliance Suite comprising four modules which is specifically designed to allow businesses to meet the challenges of MTD for VAT.
Uses digital records and the HMRC API to create a digital VAT return in compliance with requirements for 2019.
Implements digital links between digital records and the submission software in compliance with requirements for 2020.
Manages complex VAT requirements (e.g. large volumes of reports) for VAT groups and partial exemption.
See below for more information on optimising data collection, automation of your processes, and guidance on selecting your MTD for VAT solution.
Andy Dancer, CTO, unveils how regulatory demands coupled with business process automation are reshaping the tax function
Rob Ogilvie explores the effects digitalisation could have on Partial Exemption Special Method (PESM)
Alastair Sharp looks at the pros and cons of the four approaches to MTD for VAT phase 2 compliance.
There’s much confusion over MTD for VAT Phase 2. Matt Lewis explains what you can and can’t do.
Read our report on Attitudes and Approaches to Making Tax Digital, produced in conjunction with Accountancy Age, to prepare for the future of tax.
Lloyd Bristow showcases how AlphaVAT, our MTD for VAT solution, enables compliance by meeting 2019 and 2020 requirements.
80% of businesses currently rely upon them for tax purposes. But are they still the best tool for the job?
Did you know spreadsheets can put the business at risk? Alastair Sharp summarises the dangers and how to overcome them.