Making VAT Digital – It’s Not just about Software – Accurate Data Capture is Vital
Accountancy providers have been pivotal in getting the message out to their clients of the need to move to digital accounting platforms. Having dealt with that issue there remains the vital matter of ensuring that any software system to pull together the VAT Account data is truly reflecting all the information and adjustments that are needed for each box of a UK VAT Return.
With accountancy practices taking responsibility for the submission of clients VAT Returns the need to ensure complete accuracy of the VAT data capture is vital not just from the perspective of the client but also in the context of who would be exposed should VAT accounting errors arise.
For more information see here for the Draft VAT Notice on Making Tax Digital for VAT and here for Addendum to VAT Notice on making Tax Digital for VAT. From our accountancy partners perspective we would suggest that are a three key issues to address:
- Are all of your staff teams completing client’s VAT Returns 100% confident on what VAT data needs to appear in each box of the VAT return?
- Is your client aware of the impact of this VAT Reporting change and what they should be planning for?
- Does the accounting software deliver to the required Electronic VAT Account all data, journals, adjustments needed for each of those boxes?
There is concern across all sectors about the timescale to deliver accurate VAT data capture processes especially for companies where “Outside the Scope” income recording is a concern or multiple legacy systems exist across the organisation.
If the answer to any of the above questions is a “Don’t Know” or “No” then give one of us a call or book on to the next “Prepare for Making VAT Digital” Update HERE. From offering VAT Awareness and Training sessions on the subject through to VAT Process Audits on systems, we can help – always remember – “VAT It’s what our people do”.