Making Tax Digital (MTD) has been a hot topic over the last year and throughout 2018 you’ll have noticed news stories and communications coming from ourselves to ensure our clients are prepared for this new government initiative.
Now in to 2019, and with the 1st April implementation date looming, we’re going to take a look at MTD from a slightly different angle (and give you the chance below to download a really useful guide!).
By now you know that MTD is something that will affect your business and which you need to align your systems and processes with. However, rather than looking at it as an initiative forcing your business to go through the motions or make changes that you’d rather not have to, is it actually time to view MTD as an opportunity – specifically in relation to your digital transformation?
This has been a really interesting question for ourselves here at DCS with MTD being the finance issue of the moment – helping our customers get their systems ‘MTD-ready’ has been an area of focus for us over the lat 18 months – and supporting the digital transformation efforts of the SMEs we work with being a primary business objective and specialism of ours.
Digital transformation is a high-profile issue in the technology media right now and businesses, more than ever, are focusing on how digital technologies can support them in streamlining processes and making efficiency gains. With this being of such huge interest, our partners at Sage have recently published a guide to MTD suggesting that it could be just the catalyst needed by some businesses to kick start their digital transformation strategy.
Tax is, of course, a critical area of responsibility for the finance department of any business. What Sage ask is whether, through bringing business systems up to date in order to handle the changes around MTD, it makes sense for these organisations to extend this review across the technology platforms that underpin their business processes.
Indeed, in the guide Making Tax Digital – Drive digital transformation through financial compliance, Sage note the views of one tax director at a top 4 accounting firm who sees two types of client. Those who just want to get through the MTD challenge and those who want to leverage it for greater benefit.
When it comes to the latter they note: “…this is the opportunity they’re looking for. To not only look at VAT processes, but the entire end-to-end tax operating model. They’re looking to standardise, get more out of technology, and more for their investment.”
If you’re currently considering your approach to MTD and your business’s own digital transformation then we’d wager it’s likely the second camp you’ll want to find yourself in. To discover more about how to approach this you can download the full guide by completing the form below:
Since May 2018, DCS have been communicating the forthcoming changes to HMRC VAT submission (otherwise known as Making Tax Digital, or MTD).
To-date, we have sent numerous communications regarding this important change and how it will impact on your use of Sage 200. With the deadline fast approaching, we thought it best to remind those who are yet to take action, to act now.
Making Tax Digital for VAT
We are reaching out once again as the ‘clock is ticking’ and action must be taken before the date of your first VAT submission following 1st April 2019*.
Essentially, there are two possible pathways to achieve MTD compliance – you can either upgrade to Sage 200c (2018) or, depending on your existing version of Sage 200, you may be able to purchase the standalone MTD submission module.
What to do now
It is imperative that you open communications with us on this important legislative topic if you have not yet committed to one of the options above. Failure to do so will result in none compliance, and consequent penalties.
Please contact Gary McKnight (email@example.com) at your earliest convenience so that we may begin the process and ensure compliance before the deadline.
*A small number of VAT-registered businesses with more complex requirements are exempt from this. Until 1st October 2019. Full details can be found here.