Advanced strides forward to support Making Tax Digital
Published Monday, September 10, 2018 8:54 AM by Jon Wrennall, Chief Technology Officer, Advanced
Advanced works with HMRC on digital transformation of tax system
Advanced is working with HMRC to support the success of Making Tax Digital (MTD), a key part of the government’s plans for the digital transformation of the tax system. Advanced’s innovative new Business Tax Portal will make it easier and more efficient for individuals, businesses and charities to get their tax right, helping them to automate the new online processing requirements, saving both time and eradicating errors.
Each year the government loses out on an estimated £9bn in unpaid taxes resulting from errors, while the overall tax gap is a staggering £34bn. Advanced will provide UK businesses with a solution which will assist their compliance with the new MTD requirements that come into effect from the 1st April 2019.
Advanced’s Business Tax Portal will bring benefits in five key areas:
- Accuracy - reducing opportunities for error or miscalculations
- Productivity - automation removes laborious manual entry of VAT forms
- Collaboration - access to VAT information in a central repository
- Efficiency - faster, simpler process to record and file tax returns
- Transparency - with the opportunity for monthly tax updates
“Being recognised by HMRC as a supplier supporting Making Tax Digital for VAT through the delivery of our Business Tax Portal is a clear example of how Advanced is supporting British businesses with digital innovation. Our solution ensures that the new process, which could be regarded as complex, is made simple and efficient. We’re delighted to be working with HMRC to provide new and existing customers with an automated approach, which will not only assist their compliance with MTD but make the process quicker, more accurate, easier and more transparent.”
From 1 April 2019, VAT-registered businesses and not-for-profit organisations, including charities, operating above the threshold of £85,000 will have to keep digital records and submit VAT returns using compatible software. To get ready for MTD, businesses will therefore need to use software that complies with HMRC systems to keep and maintain digital records according to MTD regulations; digitally send VAT returns containing/alongside information held within the software; provide VAT data to HMRC; and access information sent by HMRC via an API platform.