If you are a business owner undoubtedly you will know about the Government’s Making Tax Digital initiative. The aim of it is to make it easier for people and businesses to get their tax right, and help the UK to become one of the most digitally advanced tax administrations in the world. The new system promises to make tax admin more effective, efficient and easier to get right.
ERP software helps manage and analyse processes across the business, and this includes finances and accounting. Instead of time intensive data entry on to spreadsheets, ERP solutions can complete and submit VAT returns digitally, whilst complying with Making Tax Digital rules. ERP software allows full visibility of data across the business, stored centrally in one place and it can revolutionize your accounts.
ERP solutions mitigate the risk of human error and it keeps data stored in a secure way.
Making Tax Digital (MTD) came in to effect in 2019 but there was a 12 month soft-landing period which meant businesses could still use spreadsheets and manual processes to calculate figures if they wanted to. However, from April 2020 this will no longer be the case, which means no more copy and pasting across, or manual data entry. Also from this point, MTD starts applying to all VAT registered businesses, income tax and corporate tax.
This mean by April 2020, your tax administration tasks should all be fully digital.
A digital link will be needed to transfer information across systems to complete tax returns. If you are using an older Microsoft Dynamics system, i.e. over five years old, or you haven’t been upgraded to MTD on your current system, then this is likely to affect you, so it may be time to reach out to a Microsoft partner.
As well as creating VAT reports, the Business Central VAT extension can communicate with HMRC. For example, it is able to:
If you would like to find out more about how an ERP solution can transform your accounting and tax return obligations, contact us on 01952 897 010 or email info@etacsolutions.co.uk.
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etac Solutions are long established suppliers of Microsoft Dynamics NAV and now provide Microsoft Dynamics 365 Business Central as part of our ERP services. We pride ourselves in taking a different approach in order to craft the most appropriate solutions for our customers. We are a technology partner who can integrate, implement and then support your ERP solution at every step.