Making Tax Digital is a Her Majesty's Revenue and Customs (HMRC) introducing a mandatory electronic filing of VAT (tax) returns by business by using an application that supports their application programming interface (API). VAT records must be maintained and submitted digitally after April 2019. HMRC are encouraging software developers to engage with them to create applications to interoperate with their APIs HMRC Blog - Digital Relationship Management – A new era in 3rd party software collaboration. Xero and other software companies have been working on the private Beta of the APIs for some time, but what about Microsoft?
HRMC - Overview of Making Tax Digital
Dynamics GP, SMB products and Making Tax Digital VAT submission MTD
Microsoft Dynamics products AX, NAV, 365 Finance & Operations will all enable customers to be compliant, the details of how is yet to become clear, perhaps bridging software?
Microsoft Dynamics community- Are you using our accounting software Dynamics NAV or Dynamics 365 Business Central and worried about compliance with Making Tax Digital?
Did you know the Microsoft SMB ERP products also include Dynamics GP too? -Dynamics GP already allows VAT to be recorded electronically and even has the VAT daybook functionally. You would think it not too great a leap to create a little helper application that could pluck the records from the database and submit them via the HMRC web API. It is disappointing that in April 2018 all we have from Microsoft is this page for users of GP.
that points to the suggestion list for new features for GP…
Suggestion: GP needs VAT electronic filing to be compliant with Making Tax Digital initiative
So one may think from this that there are no plans in action at the moment for it to be supported, on the other hand you could take the view this is Microsoft acknowledging the requirement, perhaps Terry may well have had her ear bent by the UK Dynamics partners thus creating this page? Admittedly it is a year away and the MS developers can work quite quickly when they need to. Also to be fair this product suggestion site is the funnel through which new features/requirements should be captured, so perhaps it is in hand?
However it would be nice to know soon if UK customers need to find another 3rd party bridging software to the HMRC APIs soon so we can start answering our Finance Directors and Controllers questions about what the plan is for 2019 (and yes that question sparked this blog post).
What is amusing is that HMRC have announced that spreadsheets are acceptable when used with bridging software to the APIs – heaven knows what accountants would do without them!
“Businesses will be able to continue to use spreadsheets for record keeping, but they must ensure that their spreadsheet meets the necessary requirements of Making Tax Digital for Businesses. This is likely to involve combining the spreadsheet with software.”
Accounting web- Spreadsheets for Making Tax Digital – The universal language of accounting
I will update this post if there are further developments over the year.