Making TAX Digital (MTD) is one step HMRC is taking to become one of the most digitally advanced TAX administrations in the world. This HMRC initiative has been designed to ensure that the UK TAX System is efficient and easier for taxpayers. Making TAX Digital legally comes into effect on the 1st April 2019 for VAT, VAT-registered businesses above the threshold of £85k will be affected by this new law. For those affected:
- HMRC’s online VAT portal will close.
- VAT returns must be submitted through MTD software.
- Businesses must digitally record their VAT transactions and returns.
HMRC’S MAKING TAX DIGITAL – FOUNDATIONS:
- Better use of information: No Duplication of data that HMRC already has or can obtain directly.
- TAX is real-time: HMRC will collect and process information in real-time.
- A single financial account: Making TAX Digital will lead to a comprehensive financial picture in your digital account.
- Interacting digital with customers: Interact directly with HMRC when required.
All VAT registered businesses must keep and preserve certain records and accounts, all data transfers must also be digital (to create a digital journey). All businesses must use compatible software that can connect with HMRC systems through API’s (Application Programming Interface).
HOW ABACO CAN HELP YOU:
Abaco can offer you an SAP Cloud Platform based service which provides end-to-end legal reporting capabilities, with constant adoption of legal changes and independence of the ERP source system. SAP’s advanced Compliance Reporting solution has been verified and authenticated by HMRC and is listed on their Software Supporting MTD for VAT.
FOR SAP ECC
Making TAX Digital (MTD) is one step HMRC is taking to become one of the most digitally advanced TAX administrations in the world. This HMRC initiative has been designed to ensure that the UK TAX System is efficient and easier for taxpayers. Making TAX Digital legally comes into effect on the 1st April 2019 for VAT, VAT-registered businesses above the threshold of £85k will be affected by this new law. For those affected:
- HMRC’s online VAT portal will close.
- VAT returns must be submitted through MTD software.
- Businesses must digitally record their VAT transactions and returns.
CUSTOMERS (AND VERSIONS BELOW SAP S/4HANA 1610):
SAP Localization Hub, advanced compliance reporting service, enables you to generate and submit statutory reports that contain indirect taxes (such as, value-added tax) in accordance with the guidelines defined by the local tax authorities. Statutory reports contain transactional data (aggregated or complete) in a legally defined format. Advanced compliance reporting service enables users to electronically submit these reports to the Government agencies. Full audit trails and traceability which will tie in with your HMRC Digital Tax Account. For VAT registered companies that may be on non-SAP system or required submission through data loaded via excel – covered by the service.
FOR CUSTOMERS ON SAP S/4HANA 1610 ON-WARDS OR SAP S/4HANA CLOUD:
SAP S/4HANA for advanced compliance reporting is a next generation global legal reporting solution that enables digital transformation in the critical area of Compliance Reporting and Monitoring.
Benefits:
- Simplified user experience across reports – SAP Fiori.
- End-to-end reporting capabilities that include: embedded analytics, workflows and audit trails.
- Supports multiple legal formats such as: XML, XBRL, TXT, PDF.
- Compliance with complex and ever-changing legal requirements.
- Natively built in SAP S/4HANA based architecture providing real-time legal reporting.
- User friendly tool enabling ad-hoc creation for customer specific legal reports.
If you would like to discover more about MTD Contact Us Here
