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VAT Making Tax Digital Avalara

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Rover110
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VAT Making Tax Digital Avalara

#197867

Postby Rover110 » January 31st, 2019, 10:34 am

I don't know how well publicised this is, but HM Revenue want everyone to submit their VAT returns digitally for VAT periods starting this April 2019. I submit returns quarterly and my period starts April so I will need to do it for my period ending June 2019.

Digitally does NOT mean on the HMRC website. They want to avoid the human hand touching those numbers (even doing copy-and-paste). So their intention is that your accounts program should automagically send the numbers in a way that HMRC's receiving computer can understand. (It is documented at https://developer.service.hmrc.gov.uk/a ... n/docs/mtd )

No doubt the accounting-program providers have updated/will update their software to suit. But the updated code might only be available to those who pay ongoing subscriptions rather than having bought the program outright a few years ago. It does seem to be regarded as an opportunity to charge businesses money for what used to be free.

For those businesses who are so small that they do their accounts on a spreadsheet, there do seem to be some options.
I have seen advertisements for accountants providing a service to accept your spreadsheet and transfer the numbers for a per-submission fee of perhaps £10 - £20 per return.
And Avalara advertise a free add-in to Microsoft Excel https://www.avalara.com/vatlive/en/vat- ... s-mtd.html that will do the same job for free. I don't know what's in it for them, but I have registered my interest in it.

Why am I telling you all this?
Although I have received an email confirming registering my interest in the add-in, I have received nothing further.
So I would like to know if anyone has received the add-in, and if so how quickly it came.
It would not surprise me if they are swamped by requests. As far as I know, their add-in is tied to a single VAT number, so they'd need to recompile it for each applicant. And maybe they do not see any urgency in sending the filer out because the earliest I'd need to use it is early July.

But I want to test it sooner because if I can't use it, this might just be the kick to force me to abandon my home-grown accounts and use a commercial package. I'd hate to have to enter everything twice, so I will need to use the commercial package starting in April. And I also hate spending money unnecessarily!

- Rover

Slarti
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Re: VAT Making Tax Digital Avalara

#197880

Postby Slarti » January 31st, 2019, 11:08 am

According to HMRC, their software is still in development https://www.gov.uk/guidance/software-fo ... pdates#Dev so I doubt if anybody has their hands on it yet.

Slarti

johnhemming
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Re: VAT Making Tax Digital Avalara

#197912

Postby johnhemming » January 31st, 2019, 12:28 pm

You can use the service I offer here if you wish:
https://www.vat.direct

That is live and is being used for submissions during the pilot period now. (We started last year).

If people join the pilot scheme it is free for this year.

AndyPandy
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Re: VAT Making Tax Digital Avalara

#198050

Postby AndyPandy » January 31st, 2019, 8:31 pm

Just one note. You don't have to file digitally if your vatable turnover is below the VAT threshold (£85K).

johnhemming
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Re: VAT Making Tax Digital Avalara

#198052

Postby johnhemming » January 31st, 2019, 8:48 pm

Not at the moment.

About half of the VAT registered businesses are below that figure.

brightncheerful
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Re: VAT Making Tax Digital Avalara

#199921

Postby brightncheerful » February 8th, 2019, 2:01 pm

I clicked the link and read:

"MTD for VAT will be mandatory for businesses whose taxable turnover is above the VAT registration threshold (currently £85,000) from 1 April 2019. It will remain voluntary for VAT registered businesses below the VAT threshold until 2020 in any event."


Currently, I do my VAT return quarterly and manually enter on-line. I don't relish the thought of linking Xero direct to HMRC: I don't use the Bank account feed link as it is so why would i want to risk it?

PinkDalek
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Re: VAT Making Tax Digital Avalara

#200007

Postby PinkDalek » February 8th, 2019, 6:27 pm

brightncheerful wrote:I clicked the link and read:

"MTD for VAT will be mandatory for businesses whose taxable turnover is above the VAT registration threshold (currently £85,000) from 1 April 2019. It will remain voluntary for VAT registered businesses below the VAT threshold until 2020 in any event."


Which link and yes for some but not all VAT registered businesses over the threshold!

In case you want 6 months respite, would there be any merit in your going on to annual accounting (if eligible):

https://www.icaew.com/technical/tax/mak ... td-and-vat

A six-month deferral will apply to around 40,000 of businesses who fall into one of the following categories:
...
annual accounting scheme users

These businesses will be mandated to use MTD from October 2019.


Eligibility https://www.gov.uk/vat-annual-accountin ... ligibility

Gilesyb27
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Re: VAT Making Tax Digital Avalara

#200857

Postby Gilesyb27 » February 12th, 2019, 4:07 pm

Am I being thick or does bridging software just = a semi-automated cut and paste from your existing excel spreadsheet?

at the moment I manually cut and paste the figures from my spreadsheet to the HMRC VAT submission website. the new systems I've looked at would involve creating excel equations of eg "=£incomeC16" to move the figure into the bridging softwares excel insert. the insert is then copied to HMRC. So there is still a manual step, performed by me! :?

Tell me I'm wrong.........


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