- September 20, 2018
- Posted by: Kari Jones
- Category: Automotive Industry, Products, Tips For Dealers
When the new tax year begins, HMRC’s Making Tax Digital for VAT rules will apply and your dealership will need to make sure it’s prepared.
From April 2019, VAT-registered dealerships will be required to move away from paper- and spreadsheet-based processes and make the change to digital, using approved software to maintain their records and submit VAT returns.
What is Changing?
The new regulations will essentially reduce paper-based tax records in order to ensure that tax processes are efficient and accurate and encourage the advancement of administration.
HMRC has specified that software used must be able to maintain business tax records and prepare VAT returns from this data. It will also need to be capable of transferring information via an Application Programming Interface (API).
What are the Benefits of Making Tax Digital?
HMRC has listed a number of reasons for the change that is being implemented:
- Better use of information – Digital tax account mean that people will be able to see what information HMRC has and make sure it is accurate at any time.
- Tax in real time – HMRC will be able to process data much faster and stay on top of tax due and repayments more easily.
- A single financial account – Customers will have access to a compressive account of their liabilities and entitlements.
- Interacting digitally with customers – Interacting with HMRC will be more convenient online.
What Do Dealers Need to Do?
If your dealership is still handling tax manually, you will need to adapt and find HMRC-approved software that is able to use the API, replacing your current process with a digital one.
This may seem inconvenient but don’t panic! Click Dealer has all of the necessary software to make the transition as seamless as possible for your dealership. Our award-winning DMS is already equipped to handle tax digitally and produce VAT reports at the click of a button.
Making Tax Digital with ClickDMS
You will simply need to enter the relevant VAT information into our system over time, and whenever you want a report to be generated, ClickDMS will collate the necessary data and present it instantly. Click Dealer has incorporated a button that allows users to send their returns straight to HMRC, so your returns can be prepared and submitted in just a couple of clicks.
Our system if highly effective and easy to use, and it will save you so much time, removing the need to spend hours manually calculating VAT, and allowing you to focus on other aspects of your business.
If you are already using ClickDMS for stock management, maintaining customer and supplier records, enquiry management, marketing, accounting or assessing sales performance, this change will mean you can keep more of your dealership’s important records in one place, which increases efficiency and improves business management.
If your dealership isn’t currently able to comply with the new digital VAT regulations set to be introduced next year, get in touch with Click Dealer today on 01782 478220 or via email@example.com and let The Clickers help you out!