Businesses in the UK were expecting the launch of phase II of making Tax Digital. But with the increase in COVID-19 and the disturbance it has to the health & businesses worldwide, it has made HMRC postpone the requirement of digital links, which otherwise would be introduced with the launch of Phase – II of Making Tax Digital links to 1st April 2020.
Earlier all MTD businesses (except those who were in deferral group earlier and to whom MTD phase I was applicable w.e.f. October 2019) whose VAT return cycle was to begin on or after 1st April 2020, had to digitally link all their functional compatible software and ERPs before filing VAT return through MTD compliant software. But with this extension till April 2021 they have got some relief. This has given them enough time to digitally link all their software and automate their entire VAT journey.
What to do During the Extension?
Well, now is the time that all MTD businesses can choose the right MTD compatible software provider that can digitally link all their software and ERP to make them compliant. Be prepared with the stringent rules that will come in for digital links and how business must have their VAT returns uploaded. There will be penalties for being non-compliant. Since you already have the time, start your process right away.
How to Choose the Right VAT Automation Partner?
When you are choosing a VAT Automation partner there are many things you need to consider other than cost, though the cost will be the prime concern for many.
Your automation partner should be well acquainted with MTD laws & regulations. Their software should allow seamless integration with your existing MTD software and any other software used by the business. It should be able to manage extraction, calculation, adjustment, filling, reporting, etc. VAT return data without any hassle.
It should be able to have a digital audit trail so it can easily trace any broken links in between. This trail will be important to confirm compliance with the mandate of digital links. If the digital links are in place, chances of receiving broken data or links are rare. It is best to have a dedicated software compliance engine as the right VAT automation solution so you can implement necessary changes in an environment that is safe & secure. It allows you to keep a trace of any changes made to check for broken links.
Why Choose R7VAT as your VAT Automation Partner for Digital Links?
R7VAT is an HMRC recognized solution that is flexible and reliable for your VAT returns. If you want to be MTD compliant and be all ready for the MTD Phase II then R7VAT is the best choice as it is capable of digitally linking all your systems. It is your one-stop solution for being MTD compliant. To know more about us and the solutions we can provide you can get in touch with our experts on firstname.lastname@example.org or simply give us a call on +44-20-8099-1653