MTD & VAT

[Maslins]

I think you still need to connect FreeAgent as it outlines in that article. My accountant told me it was necessary.

Yeah my understanding is people will need to:
- set up MTD in their HMRC portal,
- tell their software to switch to MTD,
- give your HMRC login details to the software,
- from then on VAT submissions will be via the new method.

The first step in typical HMRC fashion isn't very intuitive. Involves quite a few clicks and scrolling around. We're trying to work on a nice step by step with screen prints guide, but HMRC are regularly changing stuff so even this isn't foolproof!

The other steps are a doddle, at least with FreeAgent. Only thing to be careful of is once you've clicked to tell FreeAgent it should do things via MTD, I don't think you can reverse it (or if it is possible, it's not readily done). So ensure your HMRC portal is correctly switched over first...and I'd also recommend not trying any of this if your VAT filing deadline is imminent.

EDIT - I now realise my post is largely just a bad version of the info on that FreeAgent link provided by TCP!

[gwynfryn]

I am using Freeagent, had a look today at the FA guidance, on the screen in "settings>integrations" there is no 'HMRC connections' option available. Not all the options in FA are made available to 'users' and Gorilla control the access. I had the same problem when I watched another FA webinar and many of the options in settings were not available.

I'll give Gorilla a few weeks and give then another nudge.

[Maslins]

I am using Freeagent, had a look today at the FA guidance, on the screen in "settings>integrations" there is no 'HMRC connections' option available. Not all the options in FA are made available to 'users' and Gorilla control the access. I had the same problem when I watched another FA webinar and many of the options in settings were not available.

I'll give Gorilla a few weeks and give then another nudge.

Probably your permission settings are too low to see it. Sometimes accountants do that to restrict the customer to more basic tasks (ie reduce a customer's ability to wreak havoc!). Your accountant can potentially do all this stuff on your behalf, alternatively they should be able to upgrade your permission level.

Currently MTD for VAT is still in pilot, so it's optional, no immediate requirement to do anything.

[TheCyclingProgrammer]

Currently MTD for VAT is still in pilot, so it's optional, no immediate requirement to do anything.

When does it become mandatory? I thought it was from April onwards.

[Maslins]

When does it become mandatory? I thought it was from April onwards.

Yes, ish...though I believe it's your first VAT quarter ending after 1 April. Eg so (assuming no further push backs) businesses with VAT quarters coinciding with the calendar year (31 Mar, 30 Jun etc), first one they'd need to do via MTD would need to be submitted in July/early August.

I believe HMRC have already basically said anyone a bit late or who can be seen to have tried won't suffer a financial penalty as they realise their own systems are a long way from perfect.

[pr1]

I am using Freeagent, had a look today at the FA guidance, on the screen in "settings>integrations" there is no 'HMRC connections' option available. Not all the options in FA are made available to 'users' and Gorilla control the access. I had the same problem when I watched another FA webinar and many of the options in settings were not available.

I'll give Gorilla a few weeks and give then another nudge.

Assuming you've given Gorilla authorisation to submit VAT returns on your behalf (which I presume you did when you appointed them), they will sort it

[Craig@Clarity]

MTD takes effect for VAT periods ending on or after 1 April this year so if your VAT Q/E is Feb, May, Aug and Nov then you'll have to join MTD on 1 June. If your business voluntarily registers for VAT you don't need to join MTD i.e. regs with annual taxable sales of less than £85k and can continue to use the government gateway to submit returns but you will have to monitor a rolling 12 month from April and if the taxable sales goes over the £85k, you'll have to join MTD from the beginning of your next VAT quarter.

As far as I'm aware, using any bridging software or accounting package, HMRC still only get the figures from boxes 1 - 9 on a monthly, quarterly or annual basis. I get emails from Absolute who are offering a VAT filer (Absolute Excel VAT Filer) for £40 plus VAT. Anyone going solo without an accountant or software package, this may be a very cheap solution for you. No referrals or kick backs involved. I just find there products really good.

[OhIllDoIt]

Long-time lurker and contractor who does their own accounts in Excel here.

Having searched for a decent, inexpensive MTD VAT option (and failed to find one that actually existed and didn't look like a total pain to use), I decided to build my own and will be demoing to HMRC next week, hopefully going live soon after. It's all completely web-based - you upload your spreadsheet, choose the fields for the standard 9-box return and the numbers get filed with HMRC. I don't plan to charge much; a quarterly-filing business will be able to get a three year subscription for half what's being quoted on this thread for a year's use of other tools.

Not sure on the policy re advertising your own services on the board, so I shan't name it or link to it until I've managed to get it cleared with a mod/admin.

FWIW, HMRC's MTD team has been a total pain to deal with from start to finish, which is probably why a lot of what's being advertised is vapourware.

[administrator]

FWIW, HMRC's MTD team has been a total pain to deal with from start to finish, which is probably why a lot of what's being advertised is vapourware.

Thanks for asking More than happy for you to post about it here, if it helps some DIY account contractors help file their returns then it's going to be of good use so no problem. Maybe one of the regulars here who does their own returns could try it for you on a free trial for a quarter to see if it works for them? Some real world feedback on it would be more convincing than just your say so on its value.

If would be agreeable to you just post up here and we can see if anyone is up for trialling it.

[OhIllDoIt]

Thanks for asking More than happy for you to post about it here, if it helps some DIY account contractors help file their returns then it's going to be of good use so no problem. Maybe one of the regulars here who does their own returns could try it for you on a free trial for a quarter to see if it works for them? Some real world feedback on it would be more convincing than just your say so on its value.

If would be agreeable to you just post up here and we can see if anyone is up for trialling it.

Thanks admin. Your suggestion fits nicely with my plan which is to offer the first filing for free.

You'll find XLVAT at XLVAT | MTD. Unravelled. - however, as I said, I'm still waiting for approval from HMRC to connect to their production environment and therefore not accepting new user sign-ups at the moment. I'll post here again when I've added demo vids to the site and again when we're open for business.