Making tax digital

[PurpleMoonlight]

Anyone looked into the software yet?

I had an online demo of one today. All it did was to pull the total figures from cells on an excel spreadsheet and populate the VAT return. Is this correct? There was no requirement to file any details of the individual transactions making the totals.

[PurpleMoonlight]

Okay ta.

No wonder it's costing business £37m.

I will be doing exactly the same work, but will be incurring a fee of £210 pa thanks to HMRC.

[PurpleMoonlight]

Yes I know Eric.

Time I retired.

[PurpleMoonlight]

Eric Mc said:

As an aside, have you got the name of the software supplier?

It was Liquid.

It's free for one VAT entity, but I guess like you I have clients VAT returns to file too so a fee is incurred. I'm not sure I want to have to upload the data to someone else to file though. I would rather have the programme on my computer.

I had a quick look at KashFlow but didn't like it.

[PurpleMoonlight]

I just want a VAT filer though, not all the other bells and whistles.

[PurpleMoonlight]

This is the simplest I have found so far.

https://www.absoluteexcelvatfiler.co.uk/pages/abso...

[PurpleMoonlight]

Piersman2 said:

Thanks for that, that's looking like the kind of thing, an interface between excel and HMRC MTD submission. That seems to be £48 - but only for 13 months.

Yes, you will have to pay it annually.

The free Liquid one does something similar, but I doubt it will remain free for long.

[PurpleMoonlight]

I assume HMRC have ignored the HOL recommendation to delay for those above the threshold.

[PurpleMoonlight]

snuffy said:

I've been looking into this since I will file my VAT this way now.

In a nut shell the software I've been using for 20 years (yes it's old, but it does all I need) is not compliant and it will not be updated to be so, so I have to use one of the approved applications.

But you can't buy any of these approved applications, you have to rent them. At least I can't find one that you can buy. And the going rate is about £150 - £200 a year, every year.

So it's going to cost me £200 or so every year from now on, i.e. an expensive I did not have before.

It reeks of a massive backhander for someone in Government here.

Do you currently file the VAT return manually using the data from your software?

[PurpleMoonlight]

snuffy said:

The software I used (Dosh/Marmot Cashbook) produced the VAT figures. Then I just use the HMRC webfilling page and enter the numbers.

Okay.

This appears the simplest I have found. You will just need to type the relevant totals in a excel spreadsheet, then copy/paste to the web filer.

Cost is £40 pa.

https://www.absoluteexcelvatfiler.co.uk/pages/abso...

[PurpleMoonlight]

snuffy said:

Yes. I was a bit hasty looking at the £200 pa options. Because I don't need all those extra things when I only issue a few invoices a year and there's only me. Thanks.

Are you trading over or under the VAT threshold?

If under, you don't have to file digitally yet.

[PurpleMoonlight]

snuffy said:

Well, their website makes no mention of that:

https://www.gov.uk/guidance/software-for-sending-i...

I suspect if that is the case they will have a lot of screaming suppliers and companies who have bought it on to them.

Although HMRC deny it, nobody really believes that their eventual desire is not to receive all the background transaction details as well as the totals.

[PurpleMoonlight]

I am convinced the Government are deliberately using this sort of exercise to stimulate the ecomony.

Demand something in a specific way.

Software developers have to employ more people to provide the way.

Business has to pay for the new software to satisfy the 'demand'.

[PurpleMoonlight]

That looks good, thanks for the head up.