Making Tax Digital is a new scheme from HRMC to help business owners submit tax calculations, avoid errors and keep on top of their accounts. It comes into effect on 1st April 2019, so we’ve prepared a number of solutions that will help our customers be compliant.
If you want to find out more please click here to read our summary of Making Tax Digital.
Each of the solutions described below utilises the VAT Statement functionality in Dynamics NAV. If you are not already using this, please feel free to call us and we can train your accounts team on how to set this up and run it. Call us on 0330 088 2515.
Microsoft have included the facility to submit electronic VAT returns to HMRC in their latest versions (Dynamics NAV 2018 and Dynamics 365 Business Central). As a result, both are compliant with current MTD requirements.
To learn about the differences between Dynamics NAV and Dynamics 365 Business Central click here to read our blog post on this topic.
For older supported versions, from Dynamics NAV 2015 onwards, the required functionality is available within the Cumulative Updates that Microsoft create. However, this involves going through a full Cumulative Update merge and test process.
Alternatively, we also provide an add-on solution for Microsoft Dynamics NAV to specifically meet the electronic VAT submission requirements of MTD, which will likely save you time and avoid disruption.
You may like to consider a full upgrade to the latest Dynamics products. For a marginally higher investment you will get latest functionality without much more disruption than a Cumulative Update.
Older ‘Classic’ Versions
Versions that pre-date Dynamics NAV 2015 (Dynamics NAV 2013 R2 and earlier) have a different interface (now known as ‘Classic’) and are not compatible with the new solutions (either Microsoft’s option or the add-on from CBIZ). As these are now out of mainstream support by Microsoft other options need to be considered. These are:
- Upgrade to Dynamics NAV 2018 or Dynamics 365 Business Central
You can upgrade to the latest (and in our view, greatest) version and use the standard electronic VAT submission functionality. Upgrades can be a long process, but there is time to consider this, as the introduction of MTD applies to the April – June 2019 VAT quarter submission.
- Subscription to Dynamics 365 Business Central for VAT Submissions Only
We have written an export that can be used from Classic to populate the correct tables and allow for submission via Dynamics 365 Business Central. To ensure that records remain auditable, we have made a few enhancements to both sides, to ensure that you can trace back VAT entries that have been electronically submitted to HMRC.
- Third Party App Export
HMRC allow the use of third party apps to submit the VAT return, and we can create a bespoke export from your Classic (or Dynamics NAV 2013 RTC) installation that matches the requirements of your third-party app. Alternatively, you can connect to the VAT entries table via a reporting solution of your choice and extract the required entries yourself.
- Cut & Paste
For the ‘soft landing’ period (to 31st March 2020), you can copy the figures from your VAT statement in Dynamics NAV to your third party application of choice.
We believe that an upgrade to Dynamics NAV 2018 (or maybe even the forthcoming Dynamics NAV 2019) would offer the best benefits to your business and users.
If you have not seen the capabilities and new user interface of Dynamics NAV 2018, please call us on 0330 088 2515 and we would be happy to talk through your options.
The above information provided on this webpage is general guidance and highlights specific points from HMRC and other sources. Please refer to the Making Tax Digital for VAT Notice for full details and/or seek legal advice as required.