Making Tax Digital (MTD) requires organisations to digitalise their tax processes. This started with MTD for VAT from April 2019 and a second mandation phase will require the implementation of digital links from April 2021. Our MTD Compliance Suite prepares tax and finance functions to meet the demands of MTD now and into the future and removes the risks associated with spreadsheet-based processes.
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.
Organisations will be required to implement digital links in the second mandation phase from 1 April 2021. At the same time, the soft landing period will come to an end. Our MTD Compliance Suite has been specifically designed to meet the challenges of digitalisation. The suite helps businesses evolve to meet the changing mandatory requirements, establishing digital links and a digital bridge, to create an automated end-to-end and fully compliant process.
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 April 2021.
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 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.