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man o' the year

MTD Help (VAT)

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Just thought I would put this here as it may help others, especially having heard the panic story on Moneybox programme on radio 4 just now. It looks as though our own solution to Making Tax Digital will be straightforward and cost free.

We have to go fully digital with VAT from April and I thought this would be more onerous. We use excel for our accounts, not that our accuntant likes it, but it works well for us at the moment. So our solution is simple : a free excel addin called VitalTax. https://vitaltax.uk/#landing

The videos take you through everything you need and it looks like it will marry perfectly with what we already do. I hope it is the same for others. I have no vested interest and was more than a little concerned at £20 per month subscription for software. It is a relief to find this which is no inconvenience for us at all.

 

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1 hour ago, SNACR said:

I thought I read importing stuff from spreadsheets was only going to be allowed for a transition period.

Typical. Hopefully by then we will be a bigger business and software costs will be more justifiable. At the moment would be difficult but I will still resent the cost in the future.

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^ Well done for posting this - I'm all in favour of keeping things simple and if that means adding a macro to my existing spreadsheet I can live with that :Beer:

Things keep changing but the last update I saw said only large (vat-registered) companies were affected in this first phase (smaller businesses could sign up if they chose to). Eventually everyone will have to use approved software but initially they will accept semi-automated system (like marcos in spreadsheets?) Quarterly reporting is/was planned but has been delayed. 

from https://www.simplybusiness.co.uk/knowledge/articles/2018/07/heres-the-hmrc-deadline-you-probably-dont-know-about/ "Making Tax Digital is now set to be phased in from April 2019, beginning with a new regime for VAT reporting. At that point, VAT-registered businesses with a turnover that exceeds the VAT threshold (£85,000) will be required to keep digital records, and submit VAT returns only using MTD-compatible digital systems."

Looking at other forums, I was surprised how many self-employed folk are considering closing their business if/when MTD & quarterly reporting affects them (semi-retired folk with a company so they can legally take work when it's offered to them, and seasonal workers who might only work a few months of the year currently only have to submit 1 simple return, with no need to pay for dedicated software).

Once again, TPTB making life difficult for the little guys (& gals)  :PissedOff:

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4 minutes ago, Andersen said:

^ Well done for posting this - I'm all in favour of keeping things simple and if that means adding a macro to my existing spreadsheet I can live with that :Beer:

Things keep changing but the last update I saw said only large (vat-registered) companies were affected in this first phase (smaller businesses could sign up if they chose to). Eventually everyone will have to use approved software but initially they will accept semi-automated system (like marcos in spreadsheets?) Quarterly reporting is/was planned but has been delayed. 

from https://www.simplybusiness.co.uk/knowledge/articles/2018/07/heres-the-hmrc-deadline-you-probably-dont-know-about/ "Making Tax Digital is now set to be phased in from April 2019, beginning with a new regime for VAT reporting. At that point, VAT-registered businesses with a turnover that exceeds the VAT threshold (£85,000) will be required to keep digital records, and submit VAT returns only using MTD-compatible digital systems."

Looking at other forums, I was surprised how many self-employed folk are considering closing their business if/when MTD & quarterly reporting affects them (semi-retired folk with a company so they can legally take work when it's offered to them, and seasonal workers who might only work a few months of the year currently only have to submit 1 simple return, with no need to pay for dedicated software).

Once again, TPTB making life difficult for the little guys (& gals)  :PissedOff:

Exactly. We are fortunate in it being amageable at the moment and likely moving to a larger business sometime in the next two years or so. To be honest the experience of going through this now will stand me in good stead in the new larger business whereas if this came in while in the larger business I think it would be unamanageable.

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This is interesting to me. I have an old copy of sage line 50 multi company that cost me a fair few quid back in the day but works brilliantly for my needs. But it isn't compliant.

When payroll went online, there were some free solutions provided which do everything but print a payslip. Apparently under EU rules the government aren't allowed to compete with private business.

Does anyone know how this online vat will work? I have half a plan to get whatever free solution there is that they have to offer, but still run my usual software. I will then post one big sales invoice and one big purchase invoice per month into the approved app to allow it to file my return.

Will this work?

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I think one of the things they are trying to achieve is making the evidence for submissions traceable in digital records. I say this after inspection where the first thing I did on receiving notice was to go through all of our record to ensure that they were complete. This meant the traceability that they sought was no longer there. With regular submissions digitally this type of inconsistency is less likely. The advice given post inspection moved us to this situation and although we were not on the fiddle but merely trying to fully justify our submissions with evidence the digital record had changed amking it difficult for them to follow. We were given a clean bill of health and complimented on our record keeping but it was clear that they expected more traceability of all records when they return, if they ever do. 

The reason for the visit incidentally was really that our turnover had gone down drastically due to me disappearing for 2 years to look after my parents. Once they realised this they were almost embarrased about being here to inspect.

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29 minutes ago, Wight Flight said:

This is interesting to me. I have an old copy of sage line 50 multi company that cost me a fair few quid back in the day but works brilliantly for my needs. But it isn't compliant.

When payroll went online, there were some free solutions provided which do everything but print a payslip. Apparently under EU rules the government aren't allowed to compete with private business.

Does anyone know how this online vat will work? I have half a plan to get whatever free solution there is that they have to offer, but still run my usual software. I will then post one big sales invoice and one big purchase invoice per month into the approved app to allow it to file my return.

Will this work?

I'd have thought It will until you're audited. 

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Looked into MTD, and also notice there's a big QuickBooks advert going on at the moment which is trying to scare people. 

Initially I was also very worried. Do you guys have an accountant? Currently I just send everything as a CSV to my accountant who takes care of things. After taking a look at MTD, I can see that this should not impact people who do this. The only new spanner in the works is that invoices etc must be retained digitally. So scan everything on paper as it comes in and if you get audited, be sure to have everything ready. I scan everything in already, but normally only do this at EOY. So just means I need to say on top of things now. 

I received a VAT audit once after I hit the threshold many years ago. This triggered an audit as in my first return I was claiming a lot back under the de-minimis rules. The auditor was more interested in our tech than the receipts.. and despite showing him everything, he requested it again a week later via email.

Obviously this is a step towards digitalising CT as well. I'd not worry for now at all. Being a smaller business will be in your favour as you can adapt more swiftly in this instance. Our local VAT officer has said there will be leniency for SMEs. If you are paying the VAT, you are going to be OK. 

Think you can tell this is still early roll out when we are getting our C88s in the post once a month..

 

S

Edited by sam1994

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4 hours ago, Andersen said:

^ Well done for posting this - I'm all in favour of keeping things simple and if that means adding a macro to my existing spreadsheet I can live with that :Beer:

Things keep changing but the last update I saw said only large (vat-registered) companies were affected in this first phase (smaller businesses could sign up if they chose to). Eventually everyone will have to use approved software but initially they will accept semi-automated system (like marcos in spreadsheets?) Quarterly reporting is/was planned but has been delayed. 

from https://www.simplybusiness.co.uk/knowledge/articles/2018/07/heres-the-hmrc-deadline-you-probably-dont-know-about/ "Making Tax Digital is now set to be phased in from April 2019, beginning with a new regime for VAT reporting. At that point, VAT-registered businesses with a turnover that exceeds the VAT threshold (£85,000) will be required to keep digital records, and submit VAT returns only using MTD-compatible digital systems."

Looking at other forums, I was surprised how many self-employed folk are considering closing their business if/when MTD & quarterly reporting affects them (semi-retired folk with a company so they can legally take work when it's offered to them, and seasonal workers who might only work a few months of the year currently only have to submit 1 simple return, with no need to pay for dedicated software).

Once again, TPTB making life difficult for the little guys (& gals)  :PissedOff:

I'm a sole trader under the VAT threshold, I'm far from retirement but I'm sorely tempted to shut up shop and get a PAYE job somewhere if MTD comes in as planned I'm 2020. I suspect that is the whole point of the new rules being introduced. The idea terrifies me, I'd rather all of that stuff was someone else's responsibility. I can manage annual accounts but don't want HMRC breathing down my neck the whole time and threatening me with sanctions if I cock something up. I'm a tradesman not a flippin' financial and legal expert.

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