How is Microsoft supporting Making Tax Digital?
You may have already heard of HMRC’s Making Tax Digital initiative for VAT-registered businesses. But did you also know that HMRC has recognised Microsoft Dynamics NAV and 365 Business Central as software products which support Making Tax Digital?
In December, Microsoft released cumulative updates for Microsoft NAV 2015 onwards with new functionality to support Making Tax Digital. We’ve put together a quick guide to explain what these changes mean for you and your business. Let’s start at the beginning…
What is Making Tax Digital?
In short, it’s exactly what it says on the tin. The goal is to minimise avoidable mistakes in tax returns and to help businesses and individuals stay on top of their affairs. The new system will only be mandatory for VAT to begin with, although a live pilot is also being run with Income Tax.
From 1st April 2019, all VAT-registered business with a taxable turnover above the £85,000 threshold will be required to keep digital records and use the new software to submit VAT returns.
What is the Microsoft update?
Among other improvements, the latest set of cumulative updates all include the new “Making tax digital in the British version” regulatory feature in compliance with HMRC’s requirements.
What do you need to do?
If your business meets the above criteria, you’ll need to switch to the new software before the 1st April 2019 deadline.
If you’re currently using Microsoft Dynamics NAV or 365 Business Central, switching over can be a quick and easy process. Contact us so we can confirm whether your current system is compatible with the updates and we can help you with the install.
If your current software predates Microsoft Dynamics NAV 2015, you will need to either upgrade or explore possible workarounds. Again, get in touch with us and our team will be able to talk you through your options and carry out any necessary developments.
April will be here before you know it - so give us a call or send us a message and make sure your organisation is prepared for the change.