Making Tax Digital (MTD) requires organisations to digitalise their tax processes, starting with MTD for VAT (MTDfV). Our MTD Compliance Suite not only prepares the tax function to meet the demands of MTD now but also into the future.
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.
MTD will see the mandatory digitalisation of the tax process starting with VAT with other regulations, such as Corporation Tax, set to follow. Effective as of April 2019, businesses and their agents exceeding the £85,000 threshold are required to maintain digital records and digitally submit returns. They can no longer access HMRC’s online portal and must use MTD compatible software to process returns and access business tax account data. The next hurdle will see digital links made mandatory from 2020, automating the exchange of data between software applications.
Organisations with more complex VAT needs will need to comply by 1 October 2019 for digital submissions and October 2020 for the digital links requirement. The deferral affects VAT groups and divisions, businesses trading with the EU, those based overseas, businesses that submit annually, make payments on account, use the flat rate scheme or are newly registered for VAT. In addition, certain public sector bodies that use the GIANT service (ie NHS trusts and government departments) will be given extra time.
Our MTD Compliance Suite has been specifically designed to meet the short and long-term changes wrought by digitalisation. The MTD Compliance Suite helps the business evolve to meet the changing mandatory requirements, establishing a digital bridge and digital links, and uses automation to reduce dependency on manual processes as well as offering innovative data management features.
A four-step journey to compliance first sees a digital “bridge” created between the current method of VAT calculation and the submission to HMRC. Secondly, digital links are used to capture data from sources such as nominal ledgers and across multiple types of accounting systems, generating a central pool of compliance data for future MTD requirements. Thirdly, an advanced VAT compliance solution capable of handling complex VAT calculations with audit trail and diagnostics reduces the need for spreadsheets. Finally, when harnessed to a tax computation engine, these provide an MTD-compliant pathway to Corporation Tax.
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.
- Low impact and easily deployable, avoiding the need for costly systems integration
- Maintains access to business tax account data and tracks obligations, payments and liabilities
- Provides digital links compliance and can process large volumes of data from accountancy software making it ideal for those with complex data environments
- Unifies data to provide a single touchpoint for digital audit trails
- Eradicates the need for spreadsheets which auditors warn increase the risk of error
- Automates VAT calculations and treatments, including group consolidations and partial exemptions, preventing manual errors and frees up 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
- Provides access rights for increased security
- Uses in-built tax logic to ensure it is up-to-date with current regulations, keeping the business compliant
- Provides clear line of sight to meet future MTD requirements with processes that can be utilised for near or real-time reporting or MTD for Corporation Tax
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.
AlphaVAT is an advanced VAT compliance engine that provides complete end-to-end control over the calculation, preparation and management of returns. The solution removes the need for spreadsheets and can handle the most complex VAT calculations.
AlphaVAT 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.