We can now reveal that the much-anticipated announcement has finally been confirmed – Microsoft Dynamics NAV has been approved for Making Tax Digital (MTD), the UK government’s scheme that aims to simplify tax. With lots of uncertainty previously surrounding the subject, the HMRC has provided clarity that both Dynamics NAV and Dynamics 365 Business Central will support MTD, giving NAV users a huge sigh of relief.
What is MTD?
The new government initiative MTD, hopes to modernise the way that businesses and individuals administrate their tax. The transition aims to streamline the tax procedure, helping to create an effective solution that reduces human error and enables taxes to be managed much more efficiently.
For more information on MTD, read our blog.
What does this mean?
For NAV users
You might already be keeping your records digitally if you’re a current NAV user. Versions 2015 and beyond are included in this approval, so if you’re using older versions of NAV, now might be the time to upgrade, ensuring an easier pathway to meeting MTD requirements and experiencing the latest Dynamics NAV has to offer. However, we are working towards a compliant solution for pre-2015 versions of NAV, and we’ll be posting updates on that shortly.
For businesses using Dynamics NAV 2018 and Dynamics 365 Business Central, users will be glad to know compatibility already exists for submitting VAT returns electronically through the GovTalk service.
For non-NAV users
If you not already using NAV, MTD offers the perfect opportunity to see how Microsoft Dynamics could help your business digitise tax. NAV makes the switchover simple, VAT obligations become easier to submit with one-click automated functions and system-generated reminders, meaning no errors in reporting or late submissions.
What about other types of tax?
The HMRC is easing us into MTD with VAT-only submissions from businesses until the scheme has been proven to work. Over the coming months however, processes to digitise other forms of tax will soon begin.
With the deadline of April 2019 fast-approaching, there’s no reason to delay simplifying your business taxes. Wave goodbye to overflowing filing cabinets and see how Dynamics NAV can help your business make a smooth transition to MTD by contacting us. In the meantime, to learn more about Making Tax Digital click here.
Posted by Geoff Undrell on
13 November 2018 at 12:00 AM
Start calling the shots with Business Central...