MTDfB for VAT

Making Tax Digital for Business (MTDfB) is the government’s drive to move all business-related tax reporting online. Businesses will be required to submit their tax records electronically. The first tax to be affected will be VAT. HMRC has published in July 2018 the new VAT Notice 700/22 in relation to Making Tax Digital for VAT. The document outlines the new rules that all VAT registered businesses with a turnover exceeding £85,000 will be required to follow from 1^st April 2019 in preparing and submitting their VAT returns. MTD rules will start to apply from the first VAT period starting on or after 1 April 2019 where “period” is the inclusive dates covered by the VAT return. Additional VAT reporting obligations will come into force from 1^st April 2020. Thereafter similar legislation relating to other taxes will be introduced.

Changes to record keeping

Digital records will need to be maintained within “functional compatible software”. However Excel spreadsheets have been accepted as a solution by HMRC. The content of digital records must contain the following:

• Business Name and principle place of business;

• VAT registration number and accounting scheme;

• VAT account and audit trail;

• Transaction records (the minimum information is date, value and VAT rate) and adjustments;

• Amendments to VAT return such as road fuel scale charge can be made in your spreadsheet.

Data will have to be transferred from your accounting software to your VAT working’s spreadsheets electronically. HMRC is calling this method “Digital Link”.

Changes to VAT return submission

VAT returns will need to be submitted via “functional compatible software” as well. This can be an Excel spreadsheet using a bridging program which will do the actual transmission of the VAT return boxes to HMRC's servers. Only the 9 boxes are uploaded to HMRC's servers in the current legislation.

Our solution: MTDfB for VAT eSubmitter

To support businesses to submit their Excel-based VAT returns we have developed an Excel bridge solution that is compliant with MTDfB for VAT. It has been designed to be simple and straight forward to use. Moreover it can be integrated into your current processes without much disruption.

Two versions of “MTDfB VAT eSubmitter” are available: a workbook version and an Add-In version. Both designs implement the same functionality.

Download and evaluate our Excel bridge solution

“MTDfB VAT eSubmitter” has been recognised by HMRC and it is listed on their website. You can run “MTDfB VAT eSubmitter” in test mode. The program lets you create a test user on HMRC's sandbox server which will allow you to submit one of your VAT returns in the HMRC testing environment. Simply click “Switch between Live and Test mode” button to create this test user and follow the normal steps to submit a VAT return. When signing into HMRC please enter the test user's credential instead of your own.

Click here to download the latest version of MTDfB VAT eSubmitter.

• Workbook version

• Add-In version

Requirement: a working internet connection, Windows 7 or above, Excel 2013 or later and Macros must be enabled.

Version 1.23 update include:

• Resolve issues with a recent Windows Edge update. In some cases HMRC response to grant access was not transferred successfully to MTDfB VAT eSubmitter by Edge.

Find below a short video showing how to switch to test mode.

Prices

Free (as in free beer).

Contact

For further information

Norais.Software.Solutions+sales@gmail.com

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