IMS Making Tax Digital Portal

IBMi Making Tax Digital Bridging Application – accepted and ratified by HMRC March 2019.

The IMS MTD solution will automate the submission of VAT returns (with ongoing development for other tax submissions) from System 21. The customer has a chance to review the figures before final submission. The system has been developed by IMS, is hosted and managed by IMS as part of our support program that we have excelled in, in over 25 years of business growth. The solution is based on using data from the System 21 VAT module.

Making Tax Digital (MTD)

Making Tax Digital (MTD) is an HMRC initiative that will revolutionise the UK tax system and ultimately bring an end to self-assessment.

The primary aim of Making Tax Digital is to make tax administration more effective, efficient, and easier for taxpayers through the implementation of a fully digitalised tax system by 2020, whilst also reducing submission errors along with HMRC’s overheads for managing tax affairs.

The first major change is that ANY VAT Return after the 1st April 2019 will need to be submitted electronically. This does not mean simply inputting into the current HMRC portal but will involve uploading digitally into a new portal using an API. There are very strict rules for this and they prohibit the option to change the data manually i.e. all data collation and reporting MUST be done digitally.

Businesses and organisations will be required to use a functionally compatible software product to submit their returns to HMRC. The software will use HMRC’s API (Application Program Interface) platform to submit information to HMRC. The current HMRC online tax return services will be withdrawn for those within the scope of the MTD rules.

Following the implementation of MTD for VAT, MTD for income tax (for the self-employed and those with income from property) and MTD for corporation tax are expected to follow, so this ‘digital transformation’ will be part of the tax submission fabric going forward and everybody should be prepared. IMS can help.

IMS is a registered developer, recognised and sanctioned by HMRC, so this along with our expertise in System 21 finance applications, makes us the natural partner for the new world of Digital Tax Transmission.

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