Making Tax Digital Now Available in Dynamics GP 2016 and 2018

Microsoft Dynamics GPMicrosoft’s Jodi Christiansen has, on the Inside Microsoft Dynamics GP blog, announced the release of the January hotfix which includes the Making Tax Digital (MTD) updates required for VAT submissions to HMRC from April.

The Microsoft Docs site has been updated with setup instructions; I need to get it downloaded and installed to confirm the functionality, as all of the setup is around the VAT 100 and not VAT Daybook. Clients with more complex VAT often need VAT Daybook which allows them to define which tax codes appear in which boxes on the VAT Return. We’ve previously been assured by Microsoft that the MTD update would include both VAT 100 and VAT Daybook so I need to check that this is in fact the case.

The hotfix can be downloaded from CustomerSource (login required):

  1. Microsoft Dynamics GP 2016 lock
  2. Microsoft Dynamics GP 2018 lock

The MTD changes are only available for Microsoft Dynamics GP 2016 and 2018; applying the hotfix will update you to the latest version of the R2 release of these versions. If you’re on a prior version you will need to either upgrade to 2016 or 2018 or source an alternative way of submitting to MTD, such as ISC Software’s Making Tax Digital add-in.

Microsoft Dynamics GP and Making Tax Digital

Microsoft Dynamics GPNew HMRC Legislation for VAT will come into effect from April 2019 for businesses who have turnover above the VAT threshold to use the Making Tax Digital system to meet their VAT obligations using digital reporting and record keeping for VAT.

Microsoft have been fairly quiet on the subject with only one page on the Microsoft Support site raising the subject and pointing at an idea on the Experience Microsoft Dynamics site.

There has been some conversation around Making Tax Digital with regards to Microsoft Dynamics GP and whether it would be supported. Tim Wappat did a post on this subject back in June and I’ve been referring people to the idea and asking them to vote on it.

About three weeks ago, Terry Heley posted an update:

This will be reviewed for GP 2018 R2

I wasn’t aware that there was going to be a Microsoft Dynamics GP 2018 R2 and, according to a post on Twitter I can’t find again, someone has suggested it will be released in October; I was expecting a 2019 in December instead.

The idea is now showing a status update that Microsoft are implementing the required changes:

We are in the process of implementing the changes needed for the Making Tax Digital initiative in the UK. Stay tuned for updates as to when this will be released.

This is good news for both partners and clients in the UK, as Making Tax Digital will be mandatory. There is no news on which versions of Microsoft Dynamics GP will have the new functionality, but I would expect this to be in all versions covered by mainstream support (you can access the Microsoft Dynamics GP Product Lifecycle page here) as this is a regulatory requirement (Microsoft has a history of including regulatory requirements; see the addition of the Invoice Receipt Date field which was added to all versions from 2013 to 2016 in the July 2017 update.