We all know that Making-Tax-Digital has been a ‘taxing’ time, with ever changing requirements. K3 Syspro wanted to ensure we understood what this meant for different customer requirements, and we appreciate that this has taken more time than anticipated.

We are now happy to announce that K3 Syspro have developed the required integration directly linking to the K3|digital VAT (UK), allowing you to submit your SYSPRO VAT return details digitally to HMRC via an API.

The K3|Syspro MTD Integration solution will capture all relevant VAT transactions for you to review prior to submitting to HMRC via the K3|digital VAT (UK) solution.  Our solution:

• Meets HMRC’s requirement to keep records in digital form
  • you can now capture transactions generally recorded outside of the ERP (such as cycle-to-work schemes) directly within SYSPRO
• Meets HMRC’s requirements to file VAT returns using software
  • Once reviewed, you can easily push transactions from the K3|Syspro MTD Integration solution to the K3|digital VAT (UK). This solution is recognised by HMRC for UK Making Tax Digital and is listed on the HMRC’s list of software products that support Making Tax Digital.
• Is configurable and will cater for your SYSPRO setup
• Can be tailored to flex as your business grows

With the K3|digital VAT (UK) and K3|Syspro MTD Integration solution, we can provide you a complete UK VAT reporting solution making you HMRC compliant.

Please contact your Account Manager who will be able to discuss next steps, pre-requisites and the associated commercials to get you ready for Making-Tax-Digital.

Will This Support My Version of SYSPRO?

The K3 Syspro Integration Tool has been developed for the following SYSPRO versions:

• SYSPRO 8.0
• SYSPRO 7.0 Update 001
• SYSPRO 7.0
• SYSPRO 6.1 SP1
• SYSPRO 6.0 SP2 Issue 10
• SYSPRO 6.0 Issue 9
• SYSPRO 6.0 Issue 8
• SYSPRO 6.0 Issue 7

If you don’t see your current version of the Syspro, please contact your Account Manager or call the office on 0161 876 4498.

K3 Syspro and Making Tax Digital

HMRC have introduced Making Tax Digital for VAT, which means businesses need to change the way they submit their VAT Returns.

From April 2019, most VAT registered businesses with a taxable turnover above £85,000 must keep their VAT records digitally and use Making Tax Digital (MTD) compatible software to submit their VAT Returns. Read more here about HMRC’s Making Tax Digital plans.

Does It Affect Me?

If your organisation is a VAT-registered business with a taxable turnover above the VAT threshold (i.e a turnover above £85,000) then you will be required to use the Making Tax Digital service to keep records digitally and use software to submit your VAT returns from 1st April, 2019 onwards.

The exception to this is for a small minority of HMRC customers who fall into one of the following categories: trusts, ‘not for profit’ organisations that are not set up as a company VAT divisions, VAT groups, those public sector entities required to provide additional information on their VAT return (government departments, NHS Trust), local authorities, public corporations, traders based overseas, those required to make payment on account and annual accounting scheme users. The deferral will apply to around 3.5% of mandated customers. For these customers, HMRC will be delaying mandation until 1 October 2019 to ensure there is sufficient time for testing the service with them in the pilot before they are mandated to join.

What Does It Mean?

From 2019 you must have a digital record keeping system in use for producing tax records. For SYSPRO customers you are already compliant because you run the SYSPRO ERP solution.

From 2019, UK Businesses operating within the thresholds outlined above will have to submit their 9 box VAT return to HMRC via API using either a direct push from their core ERP system or a middleware software tool produced by a third party (such as an Excel add-on tool).

HMRC have been understanding in the roll-out and have implemented a soft-landing period until 2020.  As of the 2020 deadline:

• You will not be allowed to transpose data into any portals manually. What you are allowed to do until 2020 is collect the underlying VAT data for posting using any digital mechanism i.e. Excel linked to an ERP Database, which you can then adjust for ‘off ERP’ VAT adjustment transactions – such as initiatives like ‘cycle to work schemes’ etc.
• From 2020 all links between the source ERP Tax Transaction and the HMRC VAT submission portal must be digitally linked in nature. So, you will not be allowed to amend VAT figures in excel prior to posting.

Are There Any Prerequisites?

There a number of prerequisites required to enable the K3|Syspro solution provides the necessary detail as requested by HMRC, these are listed below:

• SQL version of SYSPRO
• SYSPRO Sales Analysis
• SYSPRO Cashbook

For further information please contact your Account Manager.

To keep this page clear we’ve archived the past updates, they can be found here.