What is Making Tax Digital?
Making Tax Digital (MTD) for VAT reporting started in April 2019 and introduced significant new rules impacting how the majority of companies submit their returns. MTD for VAT focuses on three key requirements:
Digital record keeping – storing all transactions in electronic form
Digital links – have a digital link between final numbers and source data
Digital submissions - all submissions must be made using appropriate software via HMRC’s new gateway
I already file quarterly, does this apply to me?
Yes, it does. From April 2019, MTD became mandatory for all businesses above the VAT-threshold. This means you’re required to keep digital records as well as file your VAT digitally to HMRC every three months through compliant accounting software. You also need to check that the information that HMRC holds on your business is accurate.
Access Dimensions and Financials customers already meet the requirements for keeping digital records. You now need to take steps to ensure you are filing digitally through your Access software.
What is Access Digital Tax?
Access has created Access Digital Tax, an application delivered through Access Workspace that connects directly to Access Dimensions and Access Financials to surface real-time data for submission to HMRC.
Delivered through Access Workspace, connected through Access Data Hub – Access Digital Tax seamlessly connects to supported versions of Access Dimensions and Financials.
Your VAT data – Access Digital tax retrieves relevant data from Access Dimensions or Financials – ready for your review and submission to HMRC. Authorised users can easily submit your data to HMRC at the click of a button.
Your VAT obligations – Access Digital Tax will connect to your digital account with HMRC and notify you of upcoming VAT obligations – including how much and when payment is due.
Instant Access to your digital account – Access Digital Tax provides you with instant access to your Business Tax Account as well as a breakdown of previous payments made – so you can handle your VAT returns easily and efficiently.
What you need to do
If you don't already have Access Digital Tax, talk to your Account Manager now to get started.