If your business uses Dynamics 365 Business Central, you are already well placed to meet compliance standards and fulfil regulatory demands. However, from time-to-time, the government introduces new initiatives, which mean you need to make sure that your software is updated and ready to deal with the new challenges it brings. Making Tax Digital (MTD) is one such change, and Dynamics 365 Business Central can support you throughout the process.
Making Tax Digital is a UK-wide change implemented by Her Majesty's Revenue and Customs (HMRC) which will eventually impact on businesses and individuals alike. The aim is to make the tax collection system digitally advanced and become more effective and efficient. There will be a phased roll-out, with MTD affecting people who have VAT obligations first.
HMRC will require UK VAT-registered companies to keep records digitally and to submit electronic summary VAT Returns using software from 1 April 2019. The latest updates make exceptions for some people, whose deadline has been extended until 1 October 2019.
The delay will apply to those who are registered as a charity rather than a limited company, a business activity that is a trust, and those who are part of a Group VAT registration. Other exceptions for a minority of VAT-registered businesses with complex requirements also apply.
As well as keeping up with updated information from HRMC, it is essential that business owners and IT professionals make sure that they are also using current versions and patches on their software.
For Dynamics 365 Business Central users, Microsoft is supporting the MTD program by working to ensure that supported UK versions of the suite comply with the new initiatives. Submitting VAT reports electronically is already supported on the Dynamics NAV 2018, 2017, 2016 and 2015 versions and, as the new requirements set out by HMRC become clearer, more changes will be made. Microsoft is having an ongoing dialogue with HMRC and UK advisory groups to make sure this happens on the correct time frame.
The first phase of MTD will only apply to those who are VAT registered but eventually, other businesses, self-employed people, and anyone who needs to fill in an income tax return will be affected. It will represent one of the biggest shake-ups of the UK's tax collection services for many years and will present challenges for anyone who is unprepared.
Help and support
Microsoft has generic deployment instructions on its support pages online, and the functionality of Dynamics 365 Business Central updates will be sure to deal with new compliance issues as they evolve.
But, if you would like to know more about what you need to do to ensure that your business doesn't fall foul of MTD regulations, our proactive and responsive software support staff can provide you with all the information and reassurance you need. Contact GCC today for further details.