The HMRC’s ambition is to become one of the most digitally advanced tax administrations in the world, and to do so they have introduced Making Tax Digital.
The introduction of Making Tax Digital will fundamentally change the way the tax system works – transforming tax administration so that it is more effective and efficient, and makes it easier for taxpayers to get their tax right.
The main focuses of the initiative are digital record-keeping, digital links (source data to final figures) and digital submissions to HMRC.
The first stage of Making Tax Digital started on 1st April 2019 and involves VAT.
All VAT-registered businesses with a taxable turnover above the VAT threshold (£85,000) and whose tax quarter begins 1st April 2019 onwards, must comply with these new regulations and keep records digitally and use HMRC compatible software to submit their VAT returns.
Customers who have signed up to Microsoft Dynamics 365 for Finance and Operations and AX2012 R3 will be provided with an inclusive upgrade as part of the release 7.3 which is now available. However, those on Microsoft Dynamics AX (older versions) will no longer be supported and will need to upgrade for Making Tax Digital.
Here at Seaton Partners we are now fully compliant and have helped customers ensure they have met the needs of HMRC to prevent penalty notices.
If you require any support with regards to your Microsoft Dynamics 365 solution and Making Tax Digital for VAT, then please contact the team today.