Making Tax Digital for VAT

The Making Tax Digital for VAT took effect on 1st April, 2019 and impacts a large proportion of VAT-registered businesses. Here we'll take you through what you need to know and how you can use your Dynamics NAV or Dynamics 365 Business Central system to comply!

Pondering man on MTD with Dynamics NAV / 365 Business Central page

First off - will it affect me?

If your organisation is a VAT-registered business with a taxable turnover above the VAT threshold (i.e a turnover above £85,000) then you are required to use the Making Tax Digital service to keep records digitally and use software to submit your VAT returns. 

The exception to this is for a small minority of HMRC customers who fall into one of the following categories: trusts, ‘not for profit’ organisations that are not set up as a company VAT divisions, VAT groups, those public sector entities required to provide additional information on their VAT return (government departments, NHS Trust), local authorities, public corporations, traders based overseas, those required to make payment on account and annual accounting scheme users. The deferral will apply to around 3.5% of mandated customers. For these customers, HMRC will be delaying mandation until 1 October 2019 to ensure there is sufficient time for testing the service with them in the pilot before they are mandated to join.

Can I do this through my Dynamics NAV / 365 Business Central system?

In short, yes. HMRC is maintaining a list of software products that support Making Tax Digital and Dynamics 365 Business Central and Dynamics NAV are on that list. This means that the HMRC has been presented with a demo of the solutions and has confirmed tests integrating Dynamics NAV and Dynamics 365 Business Central to their APIs.

Talking you through the options

If you are on either Dynamics 2018 and Dynamics 365 Business Central then your system already has all the necessary MTD functionality included. (Hurrah!) If you are on an earlier version of Dynamics NAV (i.e prior to Dynamics NAV 2018) you will need to decide on your preferred route to become compliant. 

Check out this video which talks you through the various solutions we offer to help with this. We also cover what the MTD requirements are, the HMRC's MTD roll-out timeline and clarify what exactly a 'Digital Link' is!

Use the MTD Excel Bridge!

The MTD Excel Bridge is an excellent, quick and cost-effective way for you to become MTD compliant and can be used with all versions of Dynamics NAV and Dynamics 365 Business Central.

It allows you to install an Excel add-in, giving you the ability to transmit your VAT Returns to HMRC directly from Excel. In order to be fully MTD compliant you need to be able to get your VAT information into Excel in an automated way - we recommend that you use Jet Reports to achieve this automation. Our MTD Excel Bridge add-in has inbuilt integration with Jet Reports to make this even easier for you. (If you don’t have Jet Reports then you’ll need to find an alternative mechanism to pull the relevant data into Excel).

How much does it cost?

£300 per organisation per year. You can purchase it via our online shop here

What versions of Dynamics NAV, Dynamics 365 Business Central, Excel & Jet will it work with?

- All versions of Dynamics NAV and Dynamics 365 Business Central
- Excel version 2013 or later
- Works with Jet Reports (but not Jet Basic - which is the free version).

VAT Statements

In order for the MTD Excel Bridge to work you will need to have VAT Statements in your Dynamics NAV | 365 Business Central system set up correctly and be using them.  We offer financial consultancy if you need help with setting up your VAT Statements.

Accessing the MTD Excel Bridge

You can purchase the MTD Excel Bridge though our online shop or via your account manager. Once purchased we will email you the MTD Excel Bridge file which will include instructions for install and use.

Watch how the Excel Bridge works