What are the timescales for MTD?

What is the HMRC soft landing for MTD VAT?

For the first year of MTD becoming mandatory – VAT periods starting between April 2019 and 31 March 2020 businesses using non-API-enabled software programs do not need digital links between them.

However, if a business uses a bridging product only to submit the boxes 1 to 9 return to HMRC, the transfer of data to the bridging software must be carrier out in digitally.  This could be achieved using a digitally linked VAT calculation sheet, which will then be linked to the add-in submission sheet.

I use software that is pre-MTD, how do I use this bridging software?

Our bridging software works with any Excel spreadsheet. If your pre-MTD software can export to Excel, then our add-in will be able to file your return for you. Be wary that you will need to digitally link (most likely using macros) the exported data to a VAT calculation sheet and then to our add-in by April 2020. Although this exercise shouldn’t be too difficult for those competent in Excel.

How much does it cost to download and file my VAT return?

Our bridging software Excel add-in is FREE to download and integrate with any Excel spreadsheet for both MAC and Microsoft. The filing of the VAT return with HMRC will cost £7.50 + VAT per submission.

Is the filing process safe and secure?

The security and privacy of your data is of paramount importance to us, all transmissions from our MTD compliant VAT Add-in are secure using the latest HTTPS protocols with the highest levels of encryption, we use the HMRC to authenicate all our customer so we do not store or share any of your private information. Payments are taken via Paypal accounts or using Paypal’s credit card processing, these are all PCI DSS compliant and we never get to know or hold any of your payment details, your payments are also protected by Paypal.

What information gets submitted to HMRC?

The only requirement under MTD VAT is the same information that is currently needed, that being the box 1-9 numbers only. Only the box 1-9 numbers can pass through the gateway

How do I integrate the bridging software add-in to my spreadsheet

Download for Free our MTD VAT add-in. If you operate on a quarterly VAT scheme then we advise you integrate 4 of our free add-ins per 12-month period (12 for monthly VAT returns). Simply link up the box 1,2,4,6,7,8 & 9 in each add-in to your VAT calculations sheets for each period, detail each period start and end date and you are ready to go!

Can I use spreadsheet under MTD VAT?

Yes, HMRC have explicitly said that recording businesses records digitally can be recorded in Excel spreadsheets providing that they are digitally linked. In order for a spreadsheet to be complaint with MTD, the initial input of the data in the first instance can be inputted manually. Any further transfer, recapture or modification of that data must be done using digital links. A digital link in this instance would simply be a formula linking a cell from one sheet to another. The use of copying and pasting, or manually creating a VAT return is not compliant with MTD VAT.

Spreadsheets are permitted under the most recent legislation VAT Notice 700/22: Making Tax Digital for VAT Published 13 July 2018 under s 3.2.

When do I need to submit my VAT return digitally?

All UK businesses that are VAT registered with a taxable turnover exceeding the VAT threshold (currently £85,000) unless specifically exempted by HM Revenue & Customs will fall under MTD VAT for return periods starting on or after 01 April 2019.

For those businesses with a VAT return stagger 1 March/June/Sept/Dec, MTD VAT will begin with the first period 01 April 2019 – 30 June 2019 which will be due for filing on or before 07 August 2019.

For those businesses with a VAT return stagger 2 April/July/Oct/January, MTD VAT will begin with the first period 01 May 2019 – 30 July 2019 which will be due for filing on or before 07 September 2019.

For those businesses with a VAT return stagger 3 May/Aug/Nov/Feb, MTD VAT will begin with the first period 01 June 2019 – 30 Aug 2019 which will be due for filing on or before 07 October 2019.