From April 2018 every business in the UK exceeding the £85,000 VAT threshold will be required to submit their UK VAT returns digitally to HMRC.

Making Tax Digital will affect every organisation from how you run your processes to how your systems are set up to record and report on tax. For many organisations this characterizes a large paradigm shift with a sense of uncertainty - will their system be compliant and what will this look like?

Join us on Feb 12, 2019 at 10am to gain an insight into how the Unit4 solution can benefit your organisation in line with general principles and requirements defined by HMRC.

Visit our website for more information on the Making Tax Digital solution. 

 

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Q: Can a normal system administrator set this up or do you recommend consultancy for this? 

A: An experienced system administrator should be able to install and configure some of this, but the configuration of the tax codes / tax systems per tax box may require the assistance of a tax accountant and/or Unit4 consultancy. Please contact your Account Manager if you want to arrange Unit4 consultancy. 

 

Q: How will the solution deal with VAT in payroll expenses & deductions? 

A: Any VAT transactions, whether from payroll or elsewhere, must be recorded correctly in the tax transaction table. If they are recorded there then this solution can report them. 

 

Q: We have 2 legal identities both with the same VRN.  What changes will we need to make? / How do you deal with VAT groups?  We have one client, multiple legal entities, some in VAT group, some not. 

A: Currently this configuration is not supported, but please let your Account Manager know and Unit4 will be able to take this into account for possible future development plans. 

 

Q: What happens if someone posts a transaction on an earlier date but in the new period that is open? / Can the system identify which transactions were used in the previous return and tell you in the next VAT quarter which has a previous quarter date but werent included on the return? 

A: In a future release of the software it will be possible to configure the process to pick up older transactions that pre-date the current HMRC date range, but the software will exclude transactions already reported in an earlier period via this solution. Note that this will not help during a switch-over from a previous solution, as this solution cannot know which transactions were reported via a previous solution. 

 

Q: Does the UBW MTD solution work for both standard VAT reporting (GL04) & bespoke accelerator VAT reports? 

A: Neither, but the new solution is very similar in principle to GL04. 

 

Q: Does the system stop users from submitting tax transactions/data as part of the HRMC return which has been included in a previous tax return? 

A: No, the system will not stop such transactions being posted. Sometimes supplier invoices may come in too late for the VAT return so this can be unavoidable. In a future release of the software it will be possible to configure the process to pick up older transactions, that pre-date the current HMRC date range, but the software will exclude transactions already reported in an earlier period via this solution. Note that this will not help during a switch-over from a previous solution, as this solution cannot know which transactions were reported via a previous solution. 

 

Q: What will customers using your UNIT4 hosted systems be required to do to get UNIT4 to configure this on their databases? 

A: Please contact your Account Manager if you require Unit4 consultancy to help with configuring this solution. 

 

Q: How do we get hold of this module?  Is it available to our technical team to download from your website? 

A: Please contact your Account Manager to obtain this software. Once licensed, it will be made available via the Unit4 UK Software Release Team. 

 

Q: Are the browsers part of the solution or do they require setting up? 

A: The browser enquiries demonstrated in the latter part of the demonstration would require setting up. However, the next release of the solution will include built in Information Browser enquiries. 

 

Q: What are linked tax codes and how can we set them up? 

A: The configuration and use of linked tax codes is part of our standard Unit4 Business World. Please contact your Account Manager if you require Unit4 consultancy to help with this aspect of UBW. 

 

Q: Can you please confirm that the transaction date you are referring to is the date the transaction was posted and not the invoice date? 

A: The date is the transaction date (a.k.a. voucher_date in the database), not the date the transaction was posted. 

 

Q: Are the Unit4 partners being trained in this module.  If they are by which date will they be ready? 

A: The installation and configuration of the solution will not require specialist training for experienced consultants using the information in the Reference Manual that comes with the solution. 

 

Q: The report shown after a proposal was run showed the total of Tax Transactions, but also the total of Transactions – what’s the difference, how do we check what Transactions go to make up the number shown (which is greater than tax transactions)? 

A: The software does also check against the GL transaction lines, but it is the tax transactions that form the basis of the VAT return. 


Q: We are partially exempt. Does this solution allow us to amend the VAT return to take account of this? 

A: The solution does NOT allow the VAT return to be amended after being generated - HMRC specifically disallow this. However, it is possible to cater for more complicated tax transactions in UBW, such as partially exempt transactions, by using linked tax codes. If these are set up correctly they should generate the required data into the tax transaction table. Alternatively, you could post journals to record the correct tax values for partial exemption based on external calculations. 

 

Q: How does this deal with partial exemption calculations please?  

A: The solution just reports off transactions posted into the UBW tax transactions table. It is possible to cater for more complicated tax transactions, such as partially exempt transactions, by using linked tax codes. If these are set up correctly they should generate the required data into the tax transaction table. Alternatively, you could post journals to record the correct tax and base values for partial exemption based on manual calculations. 

 

Q: How do you establish digital links for VAT relating to entries not in the financial system (e.g. prime account schools running their own financial systems & then incorporated into the LA VAT return)? / We have one entity in Agresso, and another entity in Xero which form part of a VAT group. How will this work? 

A: The solution is purely based on tax transactions posted into UBW. Possibly you could post a journal into UBW with aggregate transactions with appropriate tax codes / tax systems to represent the values from Xero / other systems, but this is outside the scope of the solution. 

 

Q: We currently post a number of journals to our VAT GL accounts, which we then run reports against to get final VAT figures. These may represent total VAT figures from a third party, or adjustments, and may not have a net amount or a defined vat rate. These journals do not require tax codes, so they do not get written to the tax transactions table. How should we handle these in future? 

A: The solution just reports off transactions posted into the UBW tax transactions table. So, in the future any transactions posted into UBW which relate to VAT need to be posted with an appropriate tax code / tax system, so that they generate data into the UBW tax transaction table. 

 

Q: I am confused. Who is the client? Isn't Agresso used mostly in house and hence this session would be more relevant to in house finance/Agresso experts? 

A: The term 'client' used in the UBW context refers to a Company (or similar organisational unit) that has its accounts stored in UBW. 

 

Q: When will free API links be available? 

A: The Unit4 solution does not provide an API itself, but utilises some of HMRC's MTD for VAT API endpoints. The Unit4 solution is not free, but please contact your Account Manager to determine if this software is available to you at no extra cost as part of your existing license or if an additional chargeable license item is required, and if so what the cost would be. 

 

Q: How much does the software cost? / Is it free? / Is this solution a chargeable option? 

A: The Unit4 solution is not free, but please contact your Account Manager to determine if this software is available to you at no extra cost as part of your existing license or if an additional chargeable license item is required, and if so what the cost would be. 

 

Q: When will the MTD module be ready for those due to start in October? 

A: There is nothing in principle that means that the currently released solution cannot be used for organisations due to start in October. However, the organisation needs to check that it is posting the required tax transactions, has a supported VAT registration configuration regarding UBW clients (companies) and/or UBW legal entities, and other pre-requisites. 

 

Q: What solution do you have for your customer base on Milestone4? 

A: This solution is only for Milestone 6 and later. Customers not upgrading in time will have to select a 3rd party solution, possibly to use in conjunction with Excelerator. 

 

Q: Can you please confirm the database tables the information is pulled from to help us reconcile the data before we go forward with a solution. 

A: This solution works off table agltaxtrans. 

 

Q: U4BW is not on HMRC list of approved software for MTD. 

A: Unit4 is listed on this page https://www.gov.uk/guidance/software-for-sending-income-tax-updates under "Software for VAT in development" - in fact the software is complete, and HMRC have seen it and raised no problems with it, but it will only move to the "Software for VAT available now" list when a certain number of live customers have submitted actual VAT returns. Because the UBW customer base is made of larger more complex customers, this is taking longer than for a software house will a large number of smaller, simpler customers. 

 

Q: Presumably there will be no issues with connectivity from U4 Cloud environments? 

A: Unless the customer has specifically requested connectivity restrictions on their Unit4 Cloud environment, there should be no problem connecting to HMRC. 

 

Q: How do you receive communication back from HMRC 

A: When a non-test VAT return proposal is run a message is received from HMRC that specifies the current VAT obligation date range. Also, when a VAT return message is sent to HMRC a response message is received back to confirm receipt. Other types of message, e.g. regarding payments due, are not supported. 

 

Q: What happens if file is not sent successfully to HMRC? Can it be re-sent? 

A: Yes, a message can be resent if an earlier attempt fails for some reason, such as temporary network problems. 

 

Q: The status of Reporting and Excluded is presumably based on the mapping of Tax Codes/Systems to HMRC fields and any Codes/Systems not mapped will be excluded? 

A: Yes, any tax transaction that does not match a mapped tax code / tax system will not be included in the VAT return figures. 

 

Q: Can you confirm please, when running by transaction date is that voucher_date? 

A: Yes, it is voucher_date. 

 

Q: What is the logic used to pull through the info from general ledger is it similar to the tax report in the general ledger? 

A: Yes, the solution is based on the UBW tax transactions (as per Desktop query GL34, database table agltaxtrans). 

 

Q: Does running this new process flag transactions as having been included in a return so they cannot be picked up again? 

A: Yes, the transactions are flagged in a new solution specific table as included in a return. In a future release of the software it will be possible to configure the process to pick up older transactions, that pre-date the current HMRC date range, but the software will exclude transactions already reported in an earlier period via this solution. Note that this will not help during a switch-over from a previous solution, as this solution cannot know which transactions were reported via a previous solution. 

 

Q: Is the common parameter which need creating detailed in the setup notes? 

A: Yes, this is detailed in the Reference Manual. Future releases of the solution will set this parameter to the correct value by default. 

 

Q: If the report runs on txn date rather than period how do you reconcile to the balance on the balance sheet? 

A: You would have to do a manual reconciliation exercise 

 

Q: I’d like to talk through the Making Tax Digital solution from Unit4 in more detail to understand how it can work for my business. 

A: Don’t hesitate to reach out to your account manager who’ll be able to work with you to find a solution. 

More information



To find out more on the Making Tax Digital offering for Unit4 Business World, visit our website. 



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