The government announced at the end of 2022 that their Making Tax Digital (MTD) scheme for income tax would be delayed until 2026. However, VAT-registered businesses must already be signed up with the MTD scheme, with all returns now submitted digitally. Here we look at the scheme in more detail so you can see how prepared your business really is.

What is Making Tax Digital for VAT?

Making Tax Digital is a government scheme designed to get small businesses to complete and return digital records.

The aim is to reduce the number of errors made with paper returns, making it easier to manage tax-related affairs, which can help businesses to become more efficient and aid their growth.

When did Making Tax Digital for VAT start?

Making Tax Digital for VAT started on April 1st, 2019, meaning that VAT-registered businesses with a turnover in excess of £85,000 had to start using the system.

The scheme was expanded on April 1st, 2022 to include all VAT-registered businesses, regardless of their turnover.

On November 1st, 2022, the final phase was introduced to ensure that all VAT-registered businesses use MTD compatible software, with all relevant records maintained with an MTD account.

Does Business Central support Making Tax Digital?

Microsoft Dynamics 365 Business Central is fully approved for Making Tax Digital, making it easy to manage and submit your VAT returns through the system:

  •       VAT visibility

Through the ‘VAT Return Periods’ section, Microsoft Dynamics 365 Business Central you can keep up to date with your current VAT obligations, including which period to report and when.

  •       VAT reminders

You’ll be reminded when well in advance of the VAT return date, so you’ll never have to worry about missing the deadline.

  •       Simplified submission process

Once the VAT return has been created, Dynamics 365 Business Centra will calculate all the details for the report for you to review before submission.

  •       VAT liabilities and payments

You can also use APIs that link into Business Central to retrieve your VAT liabilities. View them within the platform to get a real-time view of your current VAT payment status.

Microsoft Dynamics 365 Business Central allows you to centralise critical business data into a single platform, making it easier to manage multiple departments as you grow. By integrating your accounts information it simplifies the end of year process, automatically calculating VAT liabilities and making the submission process far less stressful.

Get started with Microsoft Dynamics 365 Business Central today

The D365experts team is waiting to hear from you today to discuss your needs in more detail. We have a long track record of working with businesses in a variety of sectors, enabling them to enjoy the many benefits Microsoft Dynamics 365 Business Central has to offer. Get in touch for an introductory chat or to book a free demo and we’ll be happy to help.