Overview of MTD
Since HMRC introduced Making Tax Digital (MTD) for VAT.. businesses that are VAT registered and don’t meet the criteria for exemption, must follow the MTD rules. These rules cover the processing, storing and submitting of VAT information. In particular information such as sales, purchases etc. must follow a Digital Journey. This means all transfers from the source system to the accounting system must be digital, with no manual steps.
The Problem of Creating a Digital Journey
With many different electronic transaction systems, such as Amazon, eBay and Paypal, all creating data in their own formats. And a variety of accounting systems like Xero, Freeagent and Sage, all with their own data import requirements. There is a real issue of getting our clients’ information from one system to another without processing data by hand.
Business software like Excel can be used to manipulate the data as long as there are only digital steps involved. This tends to require specialist programming knowledge for the creation and use of macros.
The Connectivity Solution
In order to solve this connectivity problem, we use SolveXia. With SolveXia we can automate the processing of our clients’ transaction data into a format to import into their accounting system.
SolveXia is a digital platform we use to create processes that duplicate the manual steps necessary to reformat data. Steps such as: moving columns into the required order; adding formulae to calculate values; or selectively copying transactions based on date.
And one of the big benefits is that our staff don’t need to be programmers to create, maintain and run the processes.
The Next Step
For more information on the processing rules for MTD check out this VAT notice
Read our more in-depth case study, at Solvexia.
And if you’re starting out on your own MTD for VAT digital journey, drop us an email.