Making Tax Digital (MTD) is a UK Government initiative to help streamline HMRC returns. It will be compulsory for all VAT registered businesses which means it applies to all our Microsoft Dynamics ERP customers in SME and Enterprise.
As of April 2019, businesses will need to:
- Keep digital records (for VAT purposes only)
- Provide VAT return information to HMRC through Making Tax Digital compatible software
This piece is mainly aimed at existing Microsoft Dynamics users. If you are not currently using Microsoft Dynamics, please be assured that the versions you will evaluate are all compliant. To find out more about the capabilities of Dynamics ERP please contact us.
For all supported versions of Microsoft Dynamics (be that AX, NAV or 365 Finance & Operations), Microsoft is committed to “enable customers to be compliant”. This means that the functionality will be available in the relevant versions; it’s down to the customer to work with their partner to test and train.
The great news is that Dynamics ERP users are already at least half way there!
Remember the two parts to the requirements:
- Keeping digital records. Dynamics ERP already does this for all transactions posted in the system (VAT Ledger Entries)
- Return via MTD compatible software. This is the link to the GovTalk portal; for compliant version this will be a simple click of a button (or via workflow / scheduled job!) on your ERP menu and it all fires off
If you’re on a supported version it’s not a big jump. The solutions already support electronic VAT submission and UK formats. Microsoft is working closely with HMRC to make sure the solutions are ready for the April 2019 deadline. HMRC has committed to ensuring the solution is well bedded in and proven with VAT before extending to other returns; Microsoft Dynamics is already in good shape for when this is extended to VIES and Intrastat.
UK businesses have been expecting this for some time. The delays have been HMRCs own technology and last year’s delay due to the general election. Most businesses are now eager to get on with it as one less thing to worry about!
So what should you do?
- Check if your version is currently supported and that you are enrolled in a valid Microsoft Maintenance Plan (if yes, go ahead to 2a!)
- Plan for one of the following:
- Service Pack Deployment: Implement, test and train.
- Upgrade to Supported Version: the most involved option but this could be the incentive you need to get back on supported version track.
- Custom “service pack”: register interest with us, stating solution and version. We can supply custom objects for most unsupported versions covered by a valid Microsoft Maintenance Plan. Allow for “fitting” service as well as the usual implement, test and train.
- Custom services: if you don’t fit any of the above, we may still be able to help so please do contact.
Whether you are an existing Columbus customer or not, we can work with you to advise on the state of your current licence, version and maintenance plan, and the best route forward to achieve compliance for April 2019.
If you are considering upgrade as an option, you do need to act now. The 14 months until April 2019 is not long in regards to planning, mobilising and implementing your upgrade.
Do you need more information on MTD or Microsoft Dynamics?