vlag UK

Over 1.4 million taxpayers are successfully using MTD for VAT. The UK will extend Making Tax Digital for VAT to all businesses below the VAT threshold from April 2022 to ensure every VAT-registered business takes the step to move to a new digital tax service.

The current UK VAT threshold is £85,000 in turnover per annum.

The UK announced a roadmap for Making Tax Digital, alongside its long-term plans for tax administration reform. The UK published a document setting out its vision for a trusted, modern tax administration system. The tax system should work closer to real-time, improving its flexibility, effectiveness, and support for taxpayers.

Digital tools and services make it easier for companies to keep on top of their tax affairs and improve their productivity. Independent research shows that companies within MTD that fully integrate their accounting and tax software reports spend less time on tax. Micro-businesses who use software to manage their accounts have over 10% higher productivity, according to the Enterprise Research Centre.

Digital tools also reduce the scope for avoidable errors, which cost the Exchequer £8.5 billion in lost revenue in 2018-19 and make the tax administration system less burdensome for those taxpayers who want to do it right.

The UK announced a roadmap for HMRC’s Making Tax Digital program. Since April 2019, most VAT-registered taxpayers with a turnover above the VAT threshold have needed to operate Making Tax Digital for their VAT returns, keeping their records digitally and updating HMRC through secure software.

The UK will extend Making Tax Digital to other taxes. New regulations to businesses and landlords within Income Tax Self-Assessment will be launched in April 2023. This timetable allows companies, landlords, and agents time to plan. It gives software providers enough notice to bring new Making Tax Digital products to market, including software for businesses with the most straightforward tax affairs.

HMRC will expand its pilot service from April 2021 to allow companies and landlords to test the full end-to-end service before the requirement to join.

SAP add-on for MTD UK for VAT obligations 2021

SAP add-on for e-invoicing via clearance model

Roadmap to Tax and IT function effectiveness

KGT SAP add-ons for SAF-T, e-invoicing and MTD UK for VAT work as a standalone application within the SAP system and does not change existing customer SAP functionality or processes. It is fully configurable with custom namespace /KGT.

KGT partnered up with SAP regarding 'SAP Advanced Compliance Reporting for SAP HANA'. The 'Advanced Compliance Reporting' (ACR) service enables you to configure, generate, analyze, and electronically submit statutory reports that contain indirect taxes, such as value-added tax.

KGT provides also S/4 HANA transformation support.

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