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Making Tax Digital – Preparing for the changes on 1st April 2019

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All Tax records must now be kept digitally from 1st April 2019

Key Dates

1st April 2019 – Businesses with a turnover in excess of £85,000 must submit VAT returns using HMRC approved digital links from their software.

1st October 2019 – Businesses who have received an extension must submit VAT returns using digital links from their software.

1st April 2020 – Soft Landing Period Ends – During the soft landing period certain adjustments can be made in bridging software prior to submission to HMRC

1st October 2020 – Soft Landing Period Ends for businesses with extensions – During the soft landing period certain adjustments can be made in bridging software prior to submission to HMRC

What is meant by digital links?

A digital link is where your software interfaces with the HMRC system. All figures should be taken from your computer system without any intervention. Bridging software that interfaces between your computer system and HMRC can be used, but the link between you computer system and the bridging software must be electronic, therefore maintaining a digital link between your computer system and HMRC. Some overtyping can be made in the bridging software during the Soft Landing Period.

Is Dynamics NAV/Business Central Compliant?

Microsoft Business Central is compliant, whilst NAV is dependent on which version of NAV you are operating.

NAV2015, NAV2016, NAV2017 and NAV2018

You have 2 options

  1. Update to the latest Cumulative Update which will make your NAV system MTD compliant.
  2. Interface with some bridging software that can submit the claim electronically to HMRC.

NAV 2013R2 and Earlier

There is not a cumulative update available to add this functionality therefore your options are as follows.

  1. Upgrade to NAV2018 (Available until 31st March 2019)
  2. Upgrade to Microsoft Dynamics 365 Business Central
  3. Interface with bridging software that can submit the claim electronically to HMRC for the soft landing period.

What other steps might I need to take?

You must ensure that VAT reporting is fully implemented in your NAV system and carry out tests to ensure that it is working as expected.

How can Prodware help?

Prodware can assist you in the following areas to become MTD compliant

  • Work with you to ensure your VAT Reporting is fully implemented and working.
  • Apply the latest Cumulative Update required for you to be compliant
  • Upgrade your NAV system to NAV2018 (available until 31st March)
  • Upgrade your NAV system to Business Central

Please feel free to contact us to discuss your options in further detail with us on 0161 705 6000 or email us at info@prodware.co.uk r

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