Important Updates For Payroll 2019 And Making Tax Digital For VAT
Please note that due to the minimum changes required for closing the 2018/19 tax year, no end-of-year video will be supplied. Please use the Payroll 2018/19 checklist below.
OPERA 3 v2.60.00 and Capital Gold v3.80.00
Good news: the release of Opera 3 Payroll 19 & Making Tax Digital for VAT (MTDV) is now available.
Opera 3 (All variants) – Pre-requisite information
Pegasus have implemented all the necessary mandatory changes for Payroll & MTDV in Opera 3 and Capital Gold 3.80.00 (due for release in March).
Pre-requisites required for Opera 3 v2.60 (server and client):
- .NET Framework 4.7.2
Pre-requisites required for Opera 3 v2.60 for MTD (Server):
- Pegasus Scheduler v2.20.00 (will be used to communicate to HMRC and to submit the VAT return.)
- SQL Express 2014, 2016 or 2017 (a pre-requisite for Pegasus Scheduler v2.20.00)
Before MTDV can be switched on, it is necessary for customers to commit the last VAT tax period in Opera 3 prior to the commencement of MTDV and any other prior VAT periods where data hasn’t been committed. The technical uplift to .NET Framework 4.7.2 to satisfy the security and technical requirements surrounding HMRC’s APIs (for all Opera clients) and the installation of the new version of the Pegasus Scheduler version 2.20.00 is required.
All Opera 3 client machines MUST have .NET Framework 4.7.2 installed, regardless of the requirement for MTDV / Scheduler.
Pegasus has listed the Microsoft supported platforms for .NET Framework 4.7.2:
- Windows Server 2016 (version 1709)
- Windows Server 2012 R2 (x64)
- Windows Server 2012 (x64)
- Windows Server 2008 R2 Service Pack 1 (x64)
- Windows 10 Fall Creators Update (version 1709) (x86 and x64)
- Windows 10 Creators Update (version 1703) (x86 and x64)
- Windows 8.1 (x86 and x64)
- Windows 7 Service Pack 1 (x86 and x64)
We have asked Pegasus to clarify its position on SBS 2011 and Windows 2012 Essentials. It has advised as follows:
‘We have successfully tested the Opera 3 MTDV solution on both platforms; however we can’t quantify the impact .NET Framework 4.7.2 may have on the other components on the platform and we can’t disregard Microsoft’s position that it is not supported. Regrettably, we have no option but to withdraw support for these platforms where MTD is in use.’
Please note that uplifting .NET Framework 4.7.2 on either of these platforms therefor will not be supported and will mean we cannot install Pegasus Scheduler 2.20.00.
.NET FRAMEWORK 4.7.2 and EXCHANGE SERVER
TMB is aware that there are issues with regards to .NET Framework 4.7.2 and Exchange server 2010/2013/2016.
DO NOT install .NET Framework 4.7.2 if you are using Exchange Server 2010. Installing/upgrading to .NET 4.7.2 will potentially bring down a server or stop mail flow.
According to the Support Matrix for Exchange server, .NET Framework 4.7.2 is now supported by the latest Cumulative Updates of Exchange (CU 11 for Exchange 2016 and CU 21 for Exchange 2013).
Please contact your IT support company for further information before installing .NET Framework 4.7.2.
Please see .NET Framework 4.7.2 Flowchart for further guidance.
Preparing for MTDV
MTDV starts on 1 April 2019, businesses would only be mandated for MTDV if their taxable turnover is above £85,000 and when the first full VAT period starts on or after 1 April 2019 – a VAT period is the inclusive dates covered by a VAT return.
Where MTDV applies to a business, that business will no longer be able to use HMRC’s online VAT submission portal; VAT returns must be submitted from software using HMRC’s new API platform.
For businesses mandated to use MTDV, it applies from the first VAT period starting on or after 1 April 2019 (a ‘VAT period’ is the inclusive dates covered by a VAT return). Businesses would only be mandated for MTDV if their taxable turnover is above £85,000 and when the first full VAT period starts on or after 1 April 2019.
Below are a couple of examples to illustrate when a business, who will be mandated for MTDV after 1 April, will have to adhere to MTDV:
Example 1: A business submits a quarterly return, and their next return covers the period 1 March to 31 May 2019. As the whole of the VAT period is not on or after 1 April 2019, the business will need to start complying with MTDV rules from 1 June 2019. This means the VAT return for the period 1 March 2019 to 31 May 2019 will be submitted using Online Filing Manager or HMRC online portal.
Example 2: A business submits a quarterly return, and their next return covers the period 1 April to 30 June 2019. As the whole of the VAT period is on or after 1 April 2019, the business will need to start complying with MTDV rules from 1 April 2019.
TMB would like to assist in every way possible to help you prepare for Making Tax Digital for VAT (MTDV).
Firstly, it is imperative we know when your first VAT Period starts on or after the 1 April 2019, to assist with our planning on when your software will need to be upgraded by.
Please complete this online form VAT Return (if you haven’t already done so). TMB will plan to schedule upgrades accordingly from April onwards.
With the release of Opera 3 v 2.60.00, which now has all the mandatory changes for MTDV, we have prepared the below fixed price package to assist with getting you ready:
MTD API – Install and configure scheduler – £400 + VAT
We have prepared a fixed price installation package for Pegasus Scheduler*. This package includes:
- Installing / initialising instance of SQL Express 2016 / 2017
- Installing and configuring Scheduler v2.20.00
If you are interested in the above or if you would like to discuss your options in relation to SBS 2011 or Windows 2012 Essentials in preparation for MTDV – please contact your account manager.
Please Note: Capital Gold Accounts and MTDV – Like Opera 3, Capital Gold Account customers will also need to upgrade to .NET Framework 4.7.2 when they upgrade to version 3.80.00 of Capital Gold Accounts for MTDV. The release is now in testing and is scheduled for release during March.
Opera II has not been updated with Payroll changes for the 2019-20 tax year or MTD for VAT submissions. Opera II users requiring those features must upgrade to Opera 3 before processing in the 2019-20 tax year
We are also running some online training sessions on how to prepare for ‘Making Tax Digital VAT’.
These online courses cover how to process VAT in Opera, in preparation for the digital submissions required next year.
To book a space on this course please click the link below:
VAT 100: Preparing for Making Tax Digital – BOOK NOW (password is: VAT100MTD)
Please see booking page for further details on content and what is covered on this online course
Should you have any further queries, please email firstname.lastname@example.org and one of the team will be able to assist you.