Making Tax Digital with Sage Enterprise Management
July 2017 saw HM Revenue and Customs (HMRC) announcing Making Tax Digital (MTD) which is due to come into effect from the 1st April 2019. This blog takes a closer look at Making Tax Digital with Sage Enterprise Management (formerly Sage X3) and what it means for existing users.
What is Making Tax Digital?
Making Tax Digital (MTD) is part of HMRC’s plans to become one of the most digitally advanced tax administrations in the world, modernising the tax system to make it more effective, efficient and easier for end users to manage.
Businesses operating in the UK whose taxable turnover exceeds the VAT registration threshold of £85,000 will need to keep their records digitally using MTD compatible software from the 1st April 2019.
MTD aims to fulfil three key requirements:
- Digital record keeping – ensuring all transactions are stored in an electronic form
- Digital links – supporting digital links between final numbers and source data
- Digital submissions – all submissions are to be made using HMRC’s approved software
MTD and Sage Enterprise Management
Sage has been working on updates to their existing software portfolio and for those Sage Enterprise Management users on versions 9, 11 or cloud, updates will be made available in the next few months which will ensure that the software is MTD compliant. This will allow a complete end to end process with the new features available as part of your maintenance contract.
If you are running on versions 6 to 8, Sage are currently developing an MTD compliant solution, however have yet to announce any estimated timeframes for availability. We will keep our existing customers updated with any further developments on this.