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Making Tax Digital for VAT - Use software to submit your VAT Returns

28/11/2018 07:32:22
Hello,

All the guidance I have been reading from HMRC state that business with a turn over in excess of the VAT threshold need to sign up for MTD. It also states that businesses with a turnover less than the threshold, that have registered for VAT voluntarily, can also register for MTD voluntarily.
My business is well below the threshold, I am only registered because that is what my customers want. I do not want to go down the route of special software, certainly not if it mans an additional overhead to my small business.
As I am below the VAT threshold please confirm that I can carry on submitting my return manually via the online form.
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Re:Making Tax Digital for VAT - Use software to submit your VAT Returns

28/11/2018 07:32:22
Hi. I am a sole trader.
I use my own spreadsheets for accounting on two separate sheets, one for sales and the other for expenses.
I then manually enter the vat return figures onto the VAT return.
I am now being told that i need to go digital and be able to transfer my return digitally.
I currently have no charges for the way i do it now.
You are asking for me to invest and pay for a system that will do it digitally, which will erode away profits for me just to complete a VAT return that i can equally do efficiently enough.
I am also not totally computer literate so changing to another accounting system just to satisfy this requirement is going to cause me major concerns.
Can you please tell me what assistance you will give and what packages you are going to provide to the like of me as a sole trader trying to make an income in both the financial and knowledge requirement.
Thankyou.
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Re:Making Tax Digital for VAT - Use software to submit your VAT Returns

28/11/2018 08:10:42
Hi,

Yes, only businesses whose taxable turnover is above the VAT registration threshold will be required to sign up to Making Tax Digital.

If you don’t trade above the threshold then you will continue to submit your VAT Returns via the online form.

Please see section 2.1 of VAT Notice 700/22 for more information:

VAT Notice 700/22: Making Tax Digital for VAT
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Re:Making Tax Digital for VAT - Use software to submit your VAT Returns

28/11/2018 08:19:16
Hi,

HMRC will not be providing software for businesses to use, we have however published guidance on the website with regards to helping you find the right software for your business.

Software for sending VAT Returns and Income Tax updates

There is a number of links on our website to guidance, including a couple of YouTube videos that you can watch with regards to Making Tax Digital.

Making Tax Digital for VAT - news and communications

If you still have further questions then please call the Helpline on 0300 200 3700.
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Making Tax Digital for VAT - Use software to submit your VAT Returns

13/12/2018 10:21:12
Hi
In addition to moving from a spreadsheet that takes me 10 minutes every quarter to submit, my main concern is that, in order to move to digital, I will have to disclose my banking login details to a third party that I have never dealt with before, plus grant them a limited power of attorney, all of which contravenes my banking terms and conditions. What is HMRC's official view on providing an indemnity against fraudulent use of my bank account as a result of this disclosure?
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Re:Making Tax Digital for VAT - Use software to submit your VAT Returns

14/12/2018 16:49:37
Hi,

Thanks for your question.

Log in details for your bank is not something that should ever be divulged to a third party and we would suggest that you contact your software provider for further information on this.

You can find out which software packages support the Making Tax Digital pilots here.

In terms of payment methods, it is still the businesses choice as to whether or not they wish to pay manually or by direct debit. If you wish to discuss this further, please contact our helpline on 0300 200 3700.

I hope this helps.
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Making Tax Digital for VAT - Use software to submit your VAT Returns

17/12/2018 11:53:32
If you are making tax digital then it would be useful if your online services were fit for purpose. HMRC expects my company to comply yet I find that HMRC's on-line sevice is terrible, if it was a business it would be bankrupt by now.
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Re:Making Tax Digital for VAT - Use software to submit your VAT Returns

17/12/2018 11:57:23
Hi,

Thank you for your feedback. We are always striving to improve our services to customers. It would help us a great deal if you could let us know which online service you are referring to, and if there is a specific element of the service that makes you feel this way? We can then investigate this further.
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Making Tax Digital for VAT - Use software to submit your VAT Returns

20/12/2018 08:28:43
HMRC have pointed out that only businesses with a taxable turnover above £85K will need to use MTD. What if a business shows a turnover of £100K on its VAT returns £75K is taxable supplies and the remainder are exempt... how will HMRC know whether it should be using MTD or not. As I understand it HMRC will deny access to the online portal where a business has a turnover above £85K. But this would wrongly penalise businesses with a turnover as I have described. How will HMRC decide?
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Making Tax Digital for VAT - Use software to submit your VAT Returns

07/01/2019 10:33:04
Is this a difficult question? Its taking a long time for a reply....
"HMRC have pointed out that only businesses with a taxable turnover above £85K will need to use MTD. What if a business shows a turnover of £100K on its VAT returns £75K is taxable supplies and the remainder are exempt... how will HMRC know whether it should be using MTD or not. As I understand it HMRC will deny access to the online portal where a business has a turnover above £85K. But this would wrongly penalise businesses with a turnover as I have described. How will HMRC decide?"
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Re:Making Tax Digital for VAT - Use software to submit your VAT Returns

07/01/2019 12:31:36
Sorry we haven't yet responded to the query.

We are seeking advice from our technical experts who will provide an answer very soon.

Thanks for your patience.

This message was edited 1 time. Last update was at 07/01/2019 12:41:40

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Re:Making Tax Digital for VAT - Use software to submit your VAT Returns

09/01/2019 07:10:27
Will making tax digital for VAT apply to those on the flat rate vat scheme? I've been looking for bridging software from excel but none of that available seems to provide for the flat rate scheme

Thanks

Peter
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Re:Making Tax Digital for VAT - Use software to submit your VAT Returns

09/01/2019 11:46:31
Hi Peter,

Thanks for your question.

Making Tax Digital will apply to all business whose turnover is above the VAT registration threshold.

VAT Notice 700/22 section 3.6 talks a bit about the flat rate scheme under making tax digital.

I hope this helps.
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Re:Making Tax Digital for VAT - Use software to submit your VAT Returns

10/01/2019 10:28:17
Hi,

This is a response for the question from VATMatters that was sent in on 07/01/2019 at 10:33.

A VAT registered business is responsible for checking their taxable turnover, and must sign up for the new MTD service if their taxable supplies are over the VAT registration threshold (currently £85,000). We will only close the legacy VAT service (or online portal) for a specific customer once they have signed up to MTD - until they do, they can continue using the existing service. We are using the information provided by the customers on their previous VAT returns to identify whether they are potentially in scope for MTD. We are writing to them to ensure they are aware of their new obligations. If they have not already done so, this letter will prompt them to get ready for MTD.

Businesses can join the MTD VAT pilot now if they wish - or wait until their first return for the period starting on or after 1 April 2019. However, we would encourage businesses to sign up early to be sure they are ready well before they are madated to join. VAT Notice 700/22 on gov.uk has more information about the turnover test.
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Making Tax Digital for VAT - Use software to submit your VAT Returns

11/01/2019 09:21:12
Thank you Admin 45 for your reply. On the basis that it is the business who is responsible to ensure they are within the scope of MTD can you confirm how HMRC will monitor that all businesses who are required to use MTD are doing so? Also what sanctions/penalties will apply to businesses that do not use MTD when required?
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Re:Making Tax Digital for VAT - Use software to submit your VAT Returns

14/01/2019 12:14:36
Hi,

Thanks for your further question.

We are checking this with our technical experts and will get back to you as soon as possible.

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