Making Tax Digital is the largest shake-up the Indirect Tax industry has seen in over a decade. From April 2019, 1.2m businesses in the UK must submit their VAT filing via HMRC’s API, rather than manually keying in data online. Holding digital records for VAT filings, in a functionally compatible data repository, also becomes mandatory.
A full audit trail, showing that all information is “digitally linked” from source to report is another key requirement. (For more background, read “Are You Ready to Make Tax Digital?”). So, how can businesses tackle MTD?
For many businesses, VAT reporting hasn’t changed for years, with operations based predominantly on Excel. Data is extracted, manipulated, cleansed, added up and adjusted – often all in an untracked Excel environment.
Tackling this with “bridging software” simply adds another step to the process; bolting on an API submission mechanism to satisfy the HMRC mandate. However, with Arkk there is an opportunity to use Making Tax Digital to significantly transform your VAT process, and more.
Typically, businesses face these common difficulties in relation to their VAT returns:
VAT is an arduous and time-consuming task.
Manual data input and revisions are prone to human error.
Where multiple contributors are involved the risk of error increases.
Reviews and potential fines from HMRC are a concern.
Constant time pressures of repeating this process every quarter.
These challenges can not only be addressed by adopting Arkk’s solution but through our platform we open up new opportunities to drive greater efficiency within your business.
Arkk Solutions is a recognised HMRC supplier for Making Tax Digital, meaning our platform allows you to submit via the API simply and quickly. But this is just the beginning…
Making Tax Digital represents the start of HMRC’s journey to become “one of the most digitally advanced tax administrations in the world.” That’s why our platform offers significantly more functionality to transform VAT returns into a totally digital process, end to end.
The days of manually checking a sample of invoices are over. Standard checks on the Arkk platform will automatically look for duplicate invoices or rows of data lacking information. The platform also features machine learning algorithms which interrogate every line-item of data, searching for patterns. The platform will flag any inconsistencies, allowing your VAT team to investigate. Best of all, the platform learns over time, so the fix and verification step will become faster and more accurate after every reporting period.
Showing a ‘digital link’ between the raw data and your final submission is vital for Making Tax Digital compliance. Our platform tracks every change made to your returns, producing a full digital audit trail. You can link to your existing ERP system, and work within Excel, safe in the knowledge that every step is digitally logged on the platform.
Need to update Partial Exemptions or make industry-specific adjustments? No problem. Make changes within your templates and examine our Value Inspector to see a breakdown of all adjustments, all tracked with a digital record. You can add or remove as many steps to the Arkk platform as you need, creating a bespoke process to fit your needs. We’re also preparing for HMRC’s Corporation Tax branch of MTD reporting in 2020, so as their digital requirements grow, so does our platform.
Making Tax Digital is an opportunity to evolve your VAT process. Arkk’s platform helps you comply with HMRC’s current mandate, and easily adopt new requirements in the future. Getting ahead of the curve and creating your own digital VAT process now will ultimately benefit your entire Tax function, with streamlined processes and significant time savings.
No more tackling multiple versions of files or unverified changes between documents. Arkk’s platform automatically creates an ongoing draft of the final return. Involve multiple contributors and make adjustments with everyone working on the latest version. The live timeline showing what stage the report is at, and who is next to contribute to the return, gives full visibility and control over your submission.
We know it can add up to days, or sometimes even weeks, for your VAT team to fix, verify and make VAT return adjustments. With Arkk’s machine learning capabilities flagging any inconsistencies, this will save your team significant time, allowing them to focus on more value-added work.
Backed by machine learning checking every item of data, rather than just a sample, your return will be less-prone to errors and more accurate than ever before.
With Arkk’s solution, clients can expect to enjoy the benefits offered by the latest SaaS technology. Unlike clunky legacy software, our SaaS platform won’t create a burden on your IT department. Our clean interface offers step-by-step instructions that make using the platform plain sailing.
Alongside the platform’s user-friendly design, our ‘dashlets’ show comparisons between prior returns for fast and accurate data analysis.
We’ve worked with HMRC since 2009 supporting hundreds of clients with their iXBRL filings. Through our internal tax and regulatory experts, we’re the first to hear about HMRC updates, future mandates and changes to reporting requirements. This constantly shapes our product development and helps us keep clients informed about the latest from HMRC. You’ll also benefit from our highly-acclaimed UK-based support team, who are ready to set you up and guide you through designing your VAT return.
What are the top concerns facing Indirect Tax Managers ahead of this year's implementation of MTD?
In part II, we explore how Indirect Tax Directors can champion efficiencies in financial reporting, beyond Making Tax Digital.
Just as HMRC are Making Tax Digital, it's time to bring tax software into the 21st century.
How HMRC's new mandate offers an opportunity to go beyond submitting a spreadsheet (whilst still working in Excel).
Arkk Solutions is proud to announce that we’re officially listed as an HMRC vendor for Making Tax Digital.
We look at Machine Learning and how ones of 2018's most popular buzzwords will work hand-in-hand with HMRC's digital journey.
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"Accountability and traceability mean everything in the new reporting world of MTD."
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We take a look at how uni's are using the extra time to create a more streamlined process for VAT submissions.
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