In our recent series of MTD webinars, we've looked at a whole host of topics relating to HMRC's newest mandate. With the effects of COVID-19 still rippling throughout the world, we want to make sure that you know the latest MTD information.
Our most recent webinar hosted with Grant Thorton and HMRC titled 'MTD Made Practical' covered what has and hasn't changed with MTD, but predominately focussed on digital links. What does and doesn't constitute a digital link and making sure your processes are compliant.
The presenters of the webinar were as follows:
HMRC - Verna Gellvear
Grant Thornton - Alex Baulf
ARKK - Adam Dyer & Stephen Tucker
We've compiled all the highlights from the webinar below. If you'd like to view the full webinar slides, they're at the bottom of the article.
Fun facts:
From a poll we conducted during the webinar ARKK found that:
Almost half (48%) of attendees are underway with their digital links journey
29% are already ready for the mandate
55% were still learning about digital links
These stats are very revealing. It's great to see that 29% of attendees are ready for the new mandate, however, 55% were still learning about digital links and 48% were underway with their digital links journey. Due to COVID-19, MTD phase 2 has been pushed back to April 2021, but what if this didn't happen? If our group of attendees is a reflection of businesses in general, almost half were unlikely to be ready for the mandate launch.
Digital links - Does my process need to change?
To quote Alex Baulf from Grant Thronton “A digital link is an electronic or digital transfer, or exchange of data, between software programs, products or applications”
The drive for MTD is largely to bring the UK's tax submissions on par with the rest of Europe's. In many countries, digital submissions are now the norm and reporting can be done more frequently. In Hungry for example, invoice submissions are almost immediate.
Grant Thornton presented a section of the webinar on digital links and explained what needs to be done to ensure organisations are compliant. All mandated firms will already be doing their 9-box submissions via at least an API, however, it's the digital recording keeping which is fundamental for phase 2.
Whether your process needs to change or not is really down to the systems your company uses and the way that you currently prepare, compile and submit your VAT. It seems obvious but remember that Ctrl+C and Ctrl+V will not be sufficient, neither will be re-entering data.
The road to MTD phase 2 compliance is relatively simple with the right tax solution such as ARKK's for:sight platform. If you'd like to find out more about for:sight and what benefits it can make to your business, click here.
