MTD VAT

[98elise]

I've recently sacked my accounts after multiple cock ups, so what's the easiest way for me to do my VAT return? It's due at the end of April so need to get so need to get it sorted ASAP!

[Eric Mc]

98elise said:

I've recently sacked my accounts after multiple cock ups, so what's the easiest way for me to do my VAT return? It's due at the end of April so need to get so need to get it sorted ASAP!

Sounds to me like this VAT return can be submitted the old fashioned way.

[Clockwork Cupcake]

Eric Mc said:

Sounds to me like this VAT return can be submitted the old fashioned way.

Indeed. My understanding is that MDT is not mandatory until April 2020, and then only if your turnover is in excess of £85k

(Happy to be corrected. But that was my understanding)

[Squiddly Diddly]

Clockwork Cupcake said:

Indeed. My understanding is that MDT is not mandatory until April 2020, and then only if your turnover is in excess of £85k

(Happy to be corrected. But that was my understanding)

Consider yourself corrected.

It applies to VAT periods commencing on or after 01/04/2019.

[Eric Mc]

If a VAT return is due at the end of April 2019, then the VAT return itself must be for the three months, January, February and March 2019. That VAT return can still be submitted under the "old" system.

The next VAT return will cover the quarter April, May and June 2019. As this VAT return commences on 1 April 2019, it will need to be filed under the new MTD system.

If the business' 12 month sales total stays below £85,000, it can continue to file VAT returns under the old system.

[Clockwork Cupcake]

Squiddly Diddly said:

Consider yourself corrected.

It applies to VAT periods commencing on or after 01/04/2019.

Ahhhh... poopsocks.

[98elise]

Eric Mc said:

If a VAT return is due at the end of April 2019, then the VAT return itself must be for the three months, January, February and March 2019. That VAT return can still be submitted under the "old" system.

The next VAT return will cover the quarter April, May and June 2019. As this VAT return commences on 1 April 2019, it will need to be filed under the new MTD system.

If the business' 12 month sales total stays below £85,000, it can continue to file VAT returns under the old system.

Thanks, TO is over 85k so will need to be ready for the next quarter.

[sagarich]

I'm just setting up my bridging software and signing up for MTD... yes yes, I know I'm leaving it late.

We're above the VAT threshold and file monthly as we're normally in a repayment position... However, I've just logged in to see 2 available periods on the old system??? If I don't register, can I just continue on the old system until forced to switch? Or have I missed something?

[Clockwork Cupcake]

That reminds me - I really should sit down and do the VAT return for Jan-Mar.

[Clockwork Cupcake]

It does amuse me that it is still referring to a pilot.

So unless you are below the threshold, you must sign up to the pilot. It's not really a pilot if almost everyone has to be signed up to it.

[Squiddly Diddly]

Clockwork Cupcake said:

It does amuse me that it is still referring to a pilot.

So unless you are below the threshold, you must sign up to the pilot. It's not really a pilot if almost everyone has to be signed up to it.

Or perhaps they just haven't updated the web page.

[Clockwork Cupcake]

Squiddly Diddly said:

Or perhaps they just haven't updated the web page.

Probably. Still amusing and ironic though.

[Mr Overheads]

Squiddly Diddly said:

Consider yourself corrected.

It applies to VAT periods commencing on or after 01/04/2019.

Not if you use Kashflow it doesn't. They've forced me to use MTD for the 1st quarter of 2019. My interpretation was as above. Any return for periods after 1st April 2019. Kashflow have interpreted it as any submission after 1st April 19,

[Eric Mc]

Mr Overheads said:

Squiddly Diddly said:

Consider yourself corrected.

It applies to VAT periods commencing on or after 01/04/2019.

Not if you use Kashflow it doesn't. They've forced me to use MTD for the 1st quarter of 2019. My interpretation was as above. Any return for periods after 1st April 2019. Kashflow have interpreted it as any submission after 1st April 19,

You are at the mercy of software programmers who may not fully understand the rules. Indeed, they may not even be based in the UK.

Guess who gets it in the neck if you do it wrong though?

[plasticpig]

Eric Mc said:

You are at the mercy of software programmers who may not fully understand the rules. Indeed, they may not even be based in the UK.

Guess who gets it in the neck if you do it wrong though?

Unfortunately people are also at the mercy of their accountants some of whom it appears don't know the rules either. Have spoken to a couple of people who have been told by their accountants that they have to do their next return using MTD when the VAT quarter in question started before the 1st of April.

[Eric Mc]

plasticpig said:

Eric Mc said:

You are at the mercy of software programmers who may not fully understand the rules. Indeed, they may not even be based in the UK.

Guess who gets it in the neck if you do it wrong though?

Unfortunately people are also at the mercy of their accountants some of whom it appears don't know the rules either. Have spoken to a couple of people who have been told by their accountants that they have to do their next return using MTD when the VAT quarter in question started before the 1st of April.

You can get uninformed people in all walks of life. At least, if you are using an accountant who is a member of a recognised professional body, you do have some legal recourse if he/she causes you problems through bad advice.

The route to recompense with software providers is far less clear.

[Clockwork Cupcake]

It could be that if the accountants in question are using the aforementioned defective software then they are equally constrained by it, of course.

[Eric Mc]

I think an accountant would be expected to spot basic errors in accounting or book-keeping software - especially an error where the software is forcing a business to comply incorrectly with non applicable legislation.

[MaxFromage]

Mr Overheads said:

Not if you use Kashflow it doesn't. They've forced me to use MTD for the 1st quarter of 2019. My interpretation was as above. Any return for periods after 1st April 2019. Kashflow have interpreted it as any submission after 1st April 19,

The programming is just a bit clumsy. If you go into VAT settings and tick that turnover is below £85K, you can submit your final VAT return before having to submit via MTD.

After submitting the above, you'll need to register with HMRC for MTD. This will then allow you to submit the next return in Kashflow. Of course you'll also need to change the £85K question back to make sure you're compliant.

[sanguinary]

I’m no longer a full time accountant, but I am an agent for a couple of family members... spent today in a loop trying to set the new access codes needed for MTD. I’m no further forward after spending five hours on HMRC’s clunky web pages trying to understand what I was missing.

When RTI was launched, it looked on the face of it, it would be riddled with problems, but actually it seemed to be implemented reasonably well.

From what I’ve seen today, MTD is much more complicated that it needs to be. I’d be surprised if accountants aren’t raising fees substantially to cover their time... I know I would be.