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

01/03/2019 13:45:31
My company is just me. I simply charge clients for my time and manually issue just 2-3 invoices a month. I don't use excel or any other software and just type out my invoices in Word. I then do my Vat return online.
What software am I going to be forced to use for a task which doesn't need software?
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Making Tax Digital for VAT - Use software to submit your VAT Returns

01/03/2019 15:29:00
Many thanks for your response dated 19/02/2019 10:46:48

I have spoken to numerous software providers and can not find any yet that handle either the margin scheme or the Global accounting scheme. I have read your notice that states that business using the Margin scheme can essentially continue to record manually. What is your advice where no software appears to be available please ? How do you expect a business using the Global accounting scheme to proceed ?
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Making Tax Digital for VAT - Use software to submit your VAT Returns

01/03/2019 16:48:50
We are a Canadain business that sells our products into the UK. We collect VAT on these sales and submit these collections to HMRC quarterly. As a non-UK based company, we use the Canadain version of Quickbooks so therefore the option of submitting our return via our financial software is not possible. How would you advise we submit our next return?
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Usin Exel

04/03/2019 07:47:08
We currently keep all our records digital by using Excel. We do not really want to have to purchase a new software package so my question is, can I keep using Excel? Is there a way of transferring our digital records to HMRC for our VAT Returns? if so, how?
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Re:Making Tax Digital for VAT - Use software to submit your VAT Returns

04/03/2019 07:49:23
My next Vat return is for Jan/Feb/Mar ending 31st March do I still submit this on the old system ?
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Re:Making Tax Digital for VAT - Use software to submit your VAT Returns

04/03/2019 09:47:41
Hi,

In respect of the question regarding a Canadian business that sells products in the UK.

There is a deferment for traders based overseas when it comes to Making Tax Digital until October 2019, but from then the rules will apply.

We cannot recommend any particular software supplier, but please see the links below for information.

VAT is a self-assessing tax, so please follow the guidance included in these links:

Find software for Making Tax Digital for VAT

VAT Notice 700/22: Making Tax Digital for VAT

Making Tax Digital: how VAT businesses and other VAT entities can get ready
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Re:Making Tax Digital for VAT - Use software to submit your VAT Returns

04/03/2019 09:58:28
Hi,

Regarding your question on My company is just me and what software you need to use.

Previous turnover figures will not be taken into account.

As long as your turnover is not over the £85,000 on 01 April 2019 or any time after, you will not need to sign up to Making Tax Digital.

VAT is a self-assessing tax, so please follow the guidance included in this link:

Check if you have to follow the Making Tax Digital rules
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Re:Making Tax Digital for VAT - Use software to submit your VAT Returns

04/03/2019 10:04:14
Hi,

In respect of your follow up question on the margin scheme or the Global accounting scheme.

Please see Section 4.8 of VAT Notice 700/22: Making Tax Digital for VAT regarding Margin Scheme traders.

VAT is a self-assessing tax, so please follow the guidance included in these link:

VAT Notice 700/22 Section 4

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

04/03/2019 12:14:14
Hi,

This is a response for the question posted by CB Commercial on 14/02/19 at 11:26:

1. Why should I go digital when I have been doing everything in ledgers for over 10 years?

• The introduction of MTD is a vital step in modernising the UK’s tax system and ensuring it is fit for the future. MTD will make it easier for businesses to get their tax right and manage their tax affairs in real-time.

• No business will need to provide information to HMRC more regularly than they do now, nor send any additional information.

• MTD is not changing ‘what’ businesses do for VAT – the frequency of reporting and tax rules remain unchanged. MTD is transforming ‘how’ businesses keep their records and generate the information which they send to HMRC.

• MTD will make it easier for businesses to manage their tax, saving time which can be devoted to maximising business opportunities, and help foster good financial planning.

2. Who pays for the software?

• HMRC has been working closely with the software industry since the inception of MTD to ensure there is a competitive and vibrant market of MTD software. There are already a number of free products available and for those who want to use spreadsheets to keep their records, free and inexpensive (around £20 per year) bridging products are available.

• Of course those with more complicated affairs can choose from a range of software with varying functionality and pay more or less depending on what they want.

• For those already using a supported software package, this is likely to be updated for MTD at no additional cost

• And it is worth noting that most businesses will be able to claim any costs for hardware and software against their tax.

3. My accountant is very old and does not have a computer system, she does everything manually and we file the returns.

• MTD will only be mandated for those businesses with a taxable turnover above the VAT threshold (£85,000) and for VAT purposes only.

• Your accountant’s business clients with a turnover below the mandated threshold, including his own accounting business, will continue to file their VAT returns in the usual way using the online VAT portal.

• Your accountant’s clients in scope for MTD for VAT, will be required to keep their records digitally, and provide their VAT return information to us direct through MTD-compatible software unless otherwise exempt under the MTD for VAT exemption criteria.

• We know that not all businesses will be able to operate MTD, and we will not force a business to go digital if it genuinely cannot do so. We will take each customer’s full range of circumstances into account when considering their business for an exemption.

• If your accountant would like to discuss exemptions from MTD (for his clients in scope for MTD) with us, they can contact our helpline on 0300 200 3700. Our specially-trained helpline staff will be able to advise them on options for submitting VAT returns to us for their clients who cannot submit them online.

4. What if my details are hacked or stolen and please do not say it is a safe secure site, we do not do online banking, we do not have any of the social media bits and pieces, we are old fashioned and survived for years, so WHY CHANGE?

• HMRC takes the protection of customer data and the availability of its online services seriously. HMRC has invested in dedicated Cyber Security Command Centres to help prepare and respond to the cyber security risks and the vulnerabilities that attackers exploit.

• HMRC is working very closely with the software developers as they bring new products to the market and we require all developers of MTD compatible products to sign up to the published ‘Terms of Use’. These set out essential security standards, including cyber security, privacy and customer data obligations that developers must adhere to.

• The General Data Protection Regulation (GDPR) came into effect on 25th May 2018 and set a new standard for data privacy, security, and compliance. The GDPR seeks to protect personal data by giving individuals more rights over how we in HMRC handle their data and it also places new obligations on how we manage customer data.

• HMRC also works closely with partners including the National Cyber Security Centre (NCSC), other departments and industry to tackle risk.
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Re:Making Tax Digital for VAT - Use software to submit your VAT Returns

04/03/2019 12:23:05
Hi,

This is a response for the question posted by grandadratrick on 14/02/19 at 10:17:

HMRC does not recommend or endorse any one product or software provider, our list on gov.uk has been developed as a result of providers that have informed us they will be ready for Making Tax Digital, but it will be down to your business to decide which package best suits your accounting needs.
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Re:Making Tax Digital for VAT - Use software to submit your VAT Returns

04/03/2019 12:40:04
This is a response to the question posted 01/03/19 12:20:40 by Dunkleys.

Hi,

Please see the link below which gives a step by step guide for Agents.

Making Tax Digital for VAT as an agent: step by step

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

04/03/2019 12:47:30
This is a response to the question from Anonymous dated 01/03/2019 12:22:04.

Hi,

Thanks for your question.

Previous turnover figures will not be taken into account. As long as your turnover is not over the £85,000 on 01 April 2019 or any time after, you will not need to sign up to Making Tax Digital.

Please also be advised there are some exemption scenarios.

VAT is a self-assessing tax, so please follow the guidance included in the link below:

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

04/03/2019 13:05:34
This is a response to the question ‘Using Excel’ dated 04/03/19 07:47:08 posted by Anonymous.

Hi,

Thanks for your question.

With effect from 1 April 2019, if your taxable turnover is above the VAT registration threshold (currently £85,000) you must follow the rules set out in VAT Notice 700/22.

If your taxable turnover drops below the VAT registration threshold at any point after 1 April 2019 you are still required to continue to keep digital records and send HMRC your VAT Returns using compatible software.

There is information in the Notice in regard to the continued use of spreadsheets, but in conjunction with bridging software.

VAT notice 700/22: Making Tax Digital for VAT

Making Tax Digital: how VAT businesses and other VAT entities can get ready

Find software that’s compatible with Making Tax Digital for VAT

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

04/03/2019 13:08:02
Hi,

This is a response for the question posted by Anonymous on 04/03/19 at 07:49:

As long as you have not already signed up for Making Tax Digital then you will be able to complete the 03/19 VAT Return the existing way.

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

05/03/2019 09:12:37
Why has HMRC not contacted me about vat going digital.I can only assume I don't need to as I'm below the vat threshold of £85000
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Re:Making Tax Digital for VAT - Use software to submit your VAT Returns

05/03/2019 10:09:37
Good morning Malc

If you are registered for VAT and your taxable turnover is above the VAT registration threshold (currently £85,000), you must keep digital business records and send your VAT returns to HMRC using MTD-compatible software. For the vast majority of businesses this applies to accounting periods starting on or after 1 April 2019. If you are below the threshold and continue to be below the threshold going forward you will not be affected by Making Tax Digital, unless you voluntarily sign up.
VAT is a self-assessing tax, so please follow the guidance included in these links

MTD for VAT

VAT Notice 70022