Today my MTD VAT account confirmed I had submitted a return in the region of £4k but that I owed nothing. That £4k is due tomorrow! Then had to rummage about to find the payment on account option to make sure I don't go into arrears.
Yes, I could set up a DD but I'm using my CapOnTap card for as long as possible for all them juicy Avios.
@Maslins - you say one off faff but I've had to reauthenticate or some such my Sage One connection a couple of times since setting it up. It was quick but i don't trust there not to be an issue that would take longer to resolve
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Previously on "What exactly is different/better about electronic VAT?"
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The techies can probably go into more detail, but as I understand it it's more of an IT change than an accounting/tax one.
There's a more permanent link between your bookkeeping data and HMRC's systems. As things stand, there's no extra data transferred, and it's only transferred when you/your accountant click the button. However, it's inevitably drifting towards more synchronisation between bookkeeping data and HMRC data.
I agree, as of right now, doesn't seem to be much benefit to anyone. Just a modest amount of one off faff to switchover. However I can see benefits (admittedly at least as much to HMRC as the taxpayer) further down the line when the integrations expand. Things that should be possible in the not too distant future:
- your bookkeeping data knows what HMRC think is due for each tax.
- this would include any adjustments HMRC might make, be they trivial things like a bit of interest cos you paid last period's tax early, or more significant following an enquiry.
- if you move address, you'll be able to change details once in your bookkeeping software, then click one button in that same software to update HMRC.
- better feedback when things don't tally/submissions aren't accepted.
- authorising your tax agent for multiple taxes by perhaps entering one code (bespoke to that firm) into your bookkeeping data.
Ie it should drift toward negating the need for people to use the HMRC portal at all. Anyone who moans about the poor UI of the HMRC portal will hopefully appreciate this.
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What exactly is different/better about electronic VAT?
Since my accountant does my VAT returns I've not really been exposed to any differences apart from IIRC setting up a new Direct Debit, for the new system. They were already filing my returns electronically but as far as I can see the only differences now are:- My accountant can no longer see if I've paid or not
- I no longer get an email from HMRC warning me my return is due
How is this an improvement?Tags: None
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