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Upcoming legislation changes

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Summary

This communication was issued to our Business Partner community.

Description

This communication was sent 31 March 2021.

Upcoming legislation changes

Notice 21-BR | 31 March 2021

Dear Partner,

There are a number of upcoming changes that will effect users of Sage software in different ways.

As a Sage Partner, it’s essential you’re aware of these changes and have all of the information you need to hand, ensuring you can support customers and help them manage through these changes.

Which products does this communication cover?
  • Sage Business Cloud Accounting
  • Sage 50cloud Accounts
  • Sage 200cloud
  • Sage Intacct
  • Sage X3
  • Sage ERP 1000
  • TAS
Deferred VAT Payments

Following the announcement in the budget earlier this month, businesses that deferred their VAT payments between 20 March and 30 June 2020, will be required to settle the relating balance by 31 Match 2021.

Instead of paying the full amount by the end of March 2021, customers can apply to make up to 11 smaller monthly instalments, interest free. All instalments must be paid by the end of March 2022 and third-party agents cannot apply on behalf of businesses. Use the links below to find out more:

End of digital links soft landing period

When MTD for VAT was launched, HMRC allowed for a ‘soft landing period’ of one year for businesses to have digital links in place between applications that made up their MTD ‘functional compatible software’. During this period, HMRC accepted the use of ‘copy & paste’ (which is technically manual intervention) to transfer data from one application to another.

The soft landing period was further extended by one year due to Covid19. However, as of 1 April 2021, digital links are now mandatory. The end of the soft-landing period means businesses will need to ensure digital links are in place and no manual intervention is required in the MTD process.

Click here to find out more about MTD digital links, and what this means for customers.

Revised VAT return labels

HMRC are amending the UK VAT return labels to better reflect the underlying transactions post-Brexit. This is essentially a change to the wording in the product only, and will not change what is being reported or impact submission data. You can find more about when the Sage software will be updated here.

VAT for voluntary filers (XML VAT channel submissions)

HMRC are making changes to how VAT returns are submitted and the option to submit VAT returns electronically using XML format will no longer be possible.

Making Tax Digital (MTD) will be the simplest way to submit using the existing Sage software, customers will need to register for this service and you can find out more information here.

Questions?

To prepare for these upcoming changes, you can find useful information using the links in the sections above or alternatively through our new Compliance Help Centre which helps provide the information you need to remain compliant.