What is Making Tax Digital?
The Making Tax Digital initiative from HMRC came into effect on 1st April 2019 as part of plans to make the UK tax system modern, easier to use for businesses and more efficient. Making Tax Digital legislation requires all VAT registered businesses with a turnover above £85,000 (the VAT threshold) to report VAT electronically. As part of the initiative, businesses are required to keep electronic records and submit their VAT report electronically via a portal on HMRC.
If you don’t currently use accounting software, or your software is not compatible with the requirements for Making Tax Digital, this is where we can help you.
Making Tax Digital with Microsoft Dynamics
If you are running Dynamics NAV 2015+ or Dynamics 365 Business Central you don’t need to worry too much as these versions provide the functionality required to be compliant. However, if you are running an earlier version of Dynamics NAV, Making Tax Digital is not supported and some extra steps are required to make your system compliant.
Direct submission to HMRC from Dynamics NAV or 365 Business Central.
Reminders of upcoming obligations to ensure deadlines are not missed.
Visibility into obligations, which period should be reported and when.
View VAT liabilities and an overview of your payment status with HMRC.
Solutions for Pre-NAV 2015
If you are running a version of Dynamics NAV prior to 2015, Making Tax Digital is not supported by your system. However, there are a number of solutions available from Brookland Solutions to make your business compliant.
- Upgrade to Dynamics NAV 2018 or Dynamics 365 Business Central
- Brookland Solutions software add-on
- Cut and paste (‘soft landing’ period to 31st March 2020)
We advise either considering an upgrade to the latest version of Dynamics NAV or Dynamics 365 Business Central or implementing our software add-on to make your system fully compliant. Our software add-on is designed to meet all the legislation requirements, save you time and be non-disruptive to your current system.
If you have any questions or need support please contact us on 01372 282640.
Are you reporting your VAT electronically for a business with Group Registration? Brookland Solutions have created a specialist VAT consolidation process for Group Making Tax Digital.