For UK based VAT tax-registered businesses, that are over the £85k threshold - 1st April 2019 was the start of the new VAT regime. HMRC requires that these enterprises now keep their VAT records digitally and file tax returns using HMRC Making Tax Digital (MTD) compatible software. Many companies will experience MTD for the first time when they submit their June VAT return - due by 7th August 2019. Are you one of these businesses, and are you prepared for Making Tax Digital?
HMRC now requires that return data can be traced from the complete VAT return right back to source through digital linking – without any manual intervention.
For oil and gas companies that have increasingly complex financial records and overseas offices, this additional digital step could be a stumbling block. Financial departments will need to check that their systems talk to HMRC's new VAT API.
Businesses submitting returns may find inputting tax more difficult if they do not have automated systems already in place. PAMTD for Infor SunSystems offers automated processing and digital retention of your records. Developed by Progressive TSL's longstanding partner Professional Advantage (PA), PAMTD for Infor SunSystems is a fully HMRC compatible solution that offers a detailed audit trail from purchase/sales ledger to VAT return submission.
“PAMTD is a stand-alone executable programme that automates the link between Infor SunSystems and the HMRC, avoiding the need to re-key data. The data values are fully auditable and eliminate costly errors."
Professional Advantage: PAMTD for Infor SunSystems.
A number of our clients are currently implementing PAMTD or are in discussions with us to add PAMTD to their existing Infor SunSystems solution.
As Alexandra Taylor, Finance Lead at Progressive TSL, explains:
“We already have a number of our clients up and running with MTD. As Progressive TSL's Financial Solutions are built to facilitate VAT reporting, the transition to MTD, using PAMTD for Sun Systems is proving fairly seamless.”
If you currently do not use an automated, MTD compatible, financial system, we recommend that you consider Infor SunSystems coupled with PAMTD. Automation is paramount for finance in oil and gas businesses. We predict that requirements for automated data generation, reporting and submission to entities like the HMRC will become essential for oil and gas businesses in the future. There are plans for HMRC to roll out this method to other tax areas such as for income tax from 2020. Moreover, by March 2020 – cutting and pasting your links won't do it:
“HMRC will give businesses until 31 March 2020 to make sure there are digital links between software products. Before that date, cut and paste will be an acceptable way to transfer information.”
Gov.uk: Making Tax Digital
Successfully automating all your finance processes by using Infor SunSystems will offer a seamless, streamlined approach for finance and accounting. You will have fewer errors, easy reporting, and you will only need to input that data once – no manual intervention required.
To discuss automated VAT, finance and accounting needs that are perfectly tailored to your oil and gas business, get in touch.
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