Making Tax Digital (MTD) is a government plan to digitise UK tax for the future.
HMRC have an ambition to become one of the most digitally advanced tax administrations in the world. To do this, businesses need to change their accounting process to be completely digital, including the calculation and submission of VAT returns to HMRC. This is a transformation for businesses as well as HMRC, with the aim of the tax process becoming:
more effective
more efficient
easier for taxpayers to get their tax right
HMRC are aware that this is a big change for businesses and as such are allowed a ‘soft landing’ approach for the tax year 2019/20. This means that the ‘digital link’ from system to system does not have to be fully connected and use of copying and pasting information is acceptable.
Further information on ‘Making Tax Digital’ can be found by Clicking Here
Recognised by HMRC as a MTD-compliant platform, CODAS provides an upload function to submit VAT returns using this ‘soft landing’ approach allowing CODAS users to continue to work out VAT return figures externally from the system.
Fully Integrated Platform
From tax year 2020/21, the ‘soft landing’ approach will no longer be a viable option and a fully digital solution must be used to store VAT information, calculate VAT returns and make VAT submissions to HMRC.
CDS are providing a replacement to the ‘soft landing’ approach with a new fully integrated VAT return tool in CODAS. This tool has been developed to allow the business to:
Recognise VAT numbers for use with submissions
Retrieve VAT obligations from HMRC
Scan for transactions within a specific obligation period
View sales/purchase ledger vs nominal ledger
Review figures, add journal entries using a calculation screen
View a transaction drill down
Automatically scan for pre-payments/credit balances
Apply % VAT validation checks prior to submission
Submit VAT returns to HMRC
View VAT liabilities & payments
