Making Tax Digital
Discussion
PurpleMoonlight said:
Do they realise that they can buy access to a system for £40 pa that will let them copy/paste the totals from an excel spreadsheet?
Mine do, because that's what I'm telling them, I'm also offering to them help if they can't use it. These spreadsheet link types of software have made things a great deal simpler. As long as you can type the nine figures for a VAT return into a single spreadsheet, together with your business name and VAT registration number, and operate a very simple piece of software, you're good to go. All of which does go a long way to rubbish HMRC's claim that MTD will reduce errors. You can just as easily mistype a figure into a spreadsheet as you can mistype one into the return on HMRC's VAT portal.ICAEW and others backing the call for a delay:
https://www.accountancydaily.co/leading-institutes...
LeighW said:
Mine do, because that's what I'm telling them, I'm also offering to them help if they can't use it. These spreadsheet link types of software have made things a great deal simpler. As long as you can type the nine figures for a VAT return into a single spreadsheet, together with your business name and VAT registration number, and operate a very simple piece of software, you're good to go. All of which does go a long way to rubbish HMRC's claim that MTD will reduce errors. You can just as easily mistype a figure into a spreadsheet as you can mistype one into the return on HMRC's VAT portal.
ICAEW and others backing the call for a delay:
https://www.accountancydaily.co/leading-institutes...
The VAT Notice 700/22 specifically states that you must hold digital records for each supply made and received (tax point,value,amount of VAT). This is a legal requirement. A spreadsheet is fine for this but it also must contain.ICAEW and others backing the call for a delay:
https://www.accountancydaily.co/leading-institutes...
HMRC said:
the total output tax you owe on sales
the total tax you owe on acquisitions from other EU member states
the total tax you are required to pay on behalf of your supplier under a reverse charge procedure
the total input tax you are entitled to claim on business purchases
the total input tax allowable on acquisitions from other EU member states
the total tax that needs to be paid or you are entitled to reclaim following a correction or error adjustment, and
any other adjustment allowed or required by VAT rules
A total of each type of adjustment must be recorded as a separate line
If the VAT inspector comes knocking and all your client can show is a load of sheets with the box 1 to 9 values in and no digital records to back it up they are not going to be impressed.the total tax you owe on acquisitions from other EU member states
the total tax you are required to pay on behalf of your supplier under a reverse charge procedure
the total input tax you are entitled to claim on business purchases
the total input tax allowable on acquisitions from other EU member states
the total tax that needs to be paid or you are entitled to reclaim following a correction or error adjustment, and
any other adjustment allowed or required by VAT rules
A total of each type of adjustment must be recorded as a separate line
BishBosh said:
Sounds interesting....do you have any links?
This is what I am likely to use.https://www.absoluteexcelvatfiler.co.uk/pages/abso...
PurpleMoonlight said:
Yeah, right, not seen one of those on 20 years.
Yep - that's a good approach. Be sloppy careless and inaccurate in your record keeping on the assumption that the powers that be will never notice.Sadly, you are correct and that is the precise reason why HMRC are keen to see MTD (eventually) cover ALL taxes - not just VAT.
LeighW said:
All of which does go a long way to rubbish HMRC's claim that MTD will reduce errors. You can just as easily mistype a figure into a spreadsheet as you can mistype one into the return on HMRC's VAT portal.
While this intermediate step is not much progress, it does support where HMRC, and many practices, want to go - submissions generated from transaction details recorded in accounting software. There are obvious benefits and drawbacks depending on your view of the role government should play.
PurpleMoonlight said:
Thanks, I’ll keep an eye on it, do my own online returns every quarter for two companies MTD for small business is just another ball ache...Rovinghawk said:
PurpleMoonlight said:
LeighW said:
Hope so.I'm delaying buying anything to the last minute just in case they do.
Otherwise it all seems a bit cutting off your nose to spite your face.
Dromedary66 said:
I suspect you only registered for VAT in the first place to benefit from it, rather than because your turnover was > VAT threshold.
Partly that, partly because I expected turnover to rise due to a deal that never actually happened.The benefit is no longer there so I'm baling out.
Received my HMRC notification letter over the weekend. It states the new reporting regime is for periods starting on or after 1st April 2019.
So this intimates that if your quarter ends 31/03/2019, 30/04/2019 or 31/05/2019 you will still be able to use the current system for reporting that one.
So this intimates that if your quarter ends 31/03/2019, 30/04/2019 or 31/05/2019 you will still be able to use the current system for reporting that one.
Yes, you will be required to complete an MTD VAT return for whatever your first full VAT return period is after 1 April 2019.
So, if you have a VAT quarter ended 30 April 2019, the first MTD return is the quarter May/June/July 2019.
Because HMRC has no way of knowing whether a businesses' 12 month rolling turnover exceeds £85,000 on a quarter by quarter basis, there will be many small businesses who will be able to continue to submit old style VAT returns even if their 12 months turnover will break the £85,000 barrier.
Following on from the House of Lords' call for a delay in the implementation of VAT MTD, the accounting and tax bodies have now asked for the same -
https://www.accountancyage.com/2018/11/23/should-m...
So, if you have a VAT quarter ended 30 April 2019, the first MTD return is the quarter May/June/July 2019.
Because HMRC has no way of knowing whether a businesses' 12 month rolling turnover exceeds £85,000 on a quarter by quarter basis, there will be many small businesses who will be able to continue to submit old style VAT returns even if their 12 months turnover will break the £85,000 barrier.
Following on from the House of Lords' call for a delay in the implementation of VAT MTD, the accounting and tax bodies have now asked for the same -
https://www.accountancyage.com/2018/11/23/should-m...
I now starting to think (and hope) that MTD will not be compulsory at 1st April 19 after all, despite what they have said. Also, the ICAEW have issued a warning that anyone signing up for the MTD for VAT pilot must be sure to be MTD Ready as once you are signed up - any VAT Return filed through the Government Gateway will not be processed. What's more, once you're 'in', there is apparently no easy way out.
Thought I'd have a look at the VAT APIs. Didn't take long at all to knock together something to hit the sandbox, so I submitted an application for production creds. They denied it because I haven't spoken to their software development support team and demo'd it to their digital relationship management team.
Yuck.
Yuck.
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