Making Tax Digital – An Update for Opera II customers
Making Tax Digital is a key part of the government’s plans to modernise the tax system to make it more effective & efficient. From April 2019 businesses above the VAT threshold will be mandated to keep their records digitally and provide quarterly updates to HMRC for their VAT.
HMRC have now confirmed that from 1 April 2019 VAT100 submissions must be done via a new API for Making Tax Digital VAT submissions to HMRC; they will not be accepting submissions made via their website. Opera II does not produce online VAT returns, and Pegasus has confirmed that they will not be adding this functionality to Opera II.
Government Gateway changes
By March 2018, the functionality provided by the Government Gateway will be migrated to a new HMRC Multi Digital Tax Platform (MDTP). The new platform will cater for online VAT and RTI submissions via what HMRC refers to as a ‘transaction engine’, which will have a different URL compared to the current Government Gateway. Businesses will have to migrate to the new transaction engine by approximately 13 February 2018, after which the current Government Gateway service will end.
Online Filing Manager
As a result of the changes, Pegasus are uplifting Online Filing Manager to version 4.00, which will allow users to connect and make their submissions using the new transaction engine.
Online Filing Manager (4.00) will be available as part of Opera 3 (2.43) and Opera II (7.63), due to be released in early November. It will also be available to download separately for customers who do not wish to take the full Opera 3 (2.43) or Opera II (7.63) releases.
What this means for Opera II
Online Filing Manager (4.00) will enable Opera II customers to perform their payroll-related submissions until March 2019.
Opera II won’t, however, support the new API for Making Tax Digital VAT submissions to HMRC, which will be mandatory from April 2019.
What this means for Opera 3
After upgrading to Online Filing Manager (4.00), Opera 3 users will be able to use their software as normal for all their submissions to HMRC.
From April 2019 Opera 3 will support the new API for Making Tax Digital VAT submissions to HMRC.
If you would like to discuss further the implications of Making Tax Digital, please contact your account manager on 01707 607100 as we would recommend moving to Opera 3 before the Making Tax Digital changes come into effect.