S&W Sessions are a regular series of thought provoking hot topic webinars that are relevant to your business.
Making Tax Digital is fast approaching and with many businesses still unprepared now is the time to make sure your business is fully ready for MTD. Join this webinar with a live Q&A to answer all of your questions on MTD.
The webinar will touch upon the following:
- A brief recap on what MTD is and who is affected
- Digital record keeping and submission of VAT returns – Learn from TaxSystems how AlphaVAT could benefit your business
- Key takeaways
- How can we help?
Who should view the webinar
The webinar is applicable to all VAT registered businesses, with turnover above the VAT registration threshold (currently £85,000) and is aimed at those responsible for ensuring compliance with MTD for VAT.
Overview
What is Making Tax Digital (MTD)?
- Step towards 'real time' reporting
- Reduces scope for manual intervention and human error
3 key elements
- Digital record keeping
- Digital audit trail
- Submission of VAT returns using through an API
Changes under MTD
What will change?
- VAT returns compiled by pulling data from digital records
- VAT returns sent to HMRC via API-enabled products and not through VAT portal
- Option to submit supplementary data
What won't change
- 9 Box VAT return
- VAT return frequency
- VAT payment deadlines
- Eligibility for VAT Special Schemes
When will this impact you?
- VAT return periods starting on, or after, 1 April 2019 for VAT registered businesses with a taxable turnover above the VAT threshold (£85k p.a.)
- Delayed implementation until 1 October 2019 for:
- VAT groups/ divisions
- Businesses making payments on account
- Businesses established overseas
- Voluntary for the 'smaller' VAT registered businesses
- Limited exemptions
1. Digital record keeping
- Business name
- Principal place of business address
- VAT registration number
- Any VAT accounting schemes used
- Regarding supplies:
- Time of supply
- Value of supply (net)
- Rate of VAT charge
- Regarding supplies received:
- Time of supply
- Value of the supply
- Amount of input tax that will be claimed
- All other VAT account data
2. Digital audit trail
- Links between software packages in the VAT return compliance process must be digital
- Examples:
- Import/ export
- Linking software
- NOT manual entry or copy/ paste
3. API submissions
- Submission of VAT return must be made via an API enabled piece of software
- The HMRC online portal will not be available where MTD is mandatory
- If current systems are not currently MTD compliant, new software will be required:
- Bridging software?
- Separate VAT software?
Soft landing: 2019 vs 2020
- Links between packages/interfaces must be digital. However...
- For certain digital links, there will be a one year soft landing until April 2020
- More time to update legacy systems and consolidate multiple packages
- HMRC will not apply record-keeping penalties in certain circumstances
Therefore, the key requirement for April/ October 2019 is the submission via an API
What do you need to do?
S&W VAT compliance clients
- We will be ready to submit your VAT return compliantly by April 2019
S&W 'advisory' clients/ Other businesses
- Workshops & training
- Impact assessments and gap analysis
- Outsourcing
- Implementing appropriate software solutions
- Use MTD as an opportunity
AlphaVAT roadmap
Current release
Demo entity
- End to end MTD
- Submission process simulation
Payments and Liabilities
- View details of payments and/or liabilities held by HMRC
31st January 2019
Core Calculation engine
- VAT legislation builds begins
Organisational management
- Allows you to create a "contents tree" structure to replicate the structure of your business to aid grouping of your entities
Branding
- Supporting standard branding requirements:
- Logo
- URL
- Alphabridge portal log in
29th March 2019
Main Legislation Release
- Extensive coverage of UK VAT legislation including Special Partial Exemption
User roles
- In addition to admin, we plan to support additional user types: Standard user and Internal sign off
User access controls
- Controlling what a user can access in the Organisational structure "contents tree".
4 points to takeaway
- Am i impacted?
- Are my current systems/ processes compatible?
- Realise wider benefits/ efficiencies
- Speak to S&W/ Tax Systems
Register for the next S&W Session
