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SmartWorld Making Tax Digital App

May 17, 2019

SmartWorld Making Tax Digital App

SmartWorld Making Tax Digital App Process Flow

SmartWorld Making Tax Digital App

Making Tax Digital

Making Tax Digital is a key part of the government’s plans to make it easier for individuals and businesses to get their tax right and keep on top of their affairs.

HMRC’s ambition is to become one of the most digitally advanced tax administrations in the world. Making Tax Digital is making fundamental changes to the way the tax system works – transforming tax administration so that it is more effective, efficient and easier for taxpayers to get their tax correct.

Making Tax Digital for VAT

The HMRC has taken a major step forward in this ambition with the introduction of Making Tax Digital for VAT.

VAT-registered businesses with a taxable turnover above the VAT threshold are now required to use the Making Tax Digital service to keep records digitally and use software to submit their VAT returns for VAT periods that started on or after 1 April 2019.

Making Tax Digital – Getting it Right First Time

The majority of customers want to get their tax right but the latest tax gap figures show that too many find this hard, with avoidable mistakes costing the Exchequer over £9 billion a year. The improved accuracy that digital records provide, along with the help built into many software products and the fact that information is sent directly to HMRC from the digital records, avoiding transposition errors, will reduce the amount of tax lost to these avoidable errors.

The primary legislation for Making Tax Digital relating to VAT and Income Tax is contained in the Finance (No.2) Act 2017, providing certainty about the broad framework in which Making Tax Digital will operate, with secondary legislation for VAT laid in February 2018, coming into force from April 2019.

We’ve published a VAT Notice which explains the rules for Making Tax Digital for VAT and about the digital information that must be kept.

We have also published a communication pack which supports our partnership working arrangements with stakeholders, who can use the contents to inform their own communications activity and key messages for their clients, customers or members.

SmartWorld Making tax Digital App
SmartWorld Making tax Digital App


Making Tax Digital for ISB Global Customers

A range of ISB Global customers have different versions of SAP Business One and Waste & Recycling One. The objective of the SmartWorld Making Tax Digital App for existing customers is to be compliant with the VAT Return requirements and include future Making Tax Digital initiatives scheduled, irrespective of SAP Business One, Waste & Recycling One versions.

Making Tax Digital introduces digital record-keeping for VAT-registered businesses. Those that are above the VAT threshold will be mandated to use this service from April 2019. Those that are below the threshold can use this service voluntarily. HMRC customers (and their agents) will use digital record-keeping software to interact directly with our systems via the MTD APIs.

The MTD VAT API allows software to supply business financial data to HMRC, so that clients can fulfil their obligations.

For more background on the VAT API, see the MTDfB VAT Guide for Vendors.

Making Tax Digital for Everyone

Additionally, if an organisation is looking for simple to use Making Tax Digital App to integrate to their existing accounting, financial or ERP software, irrespective of vendor, ISB Global can help.