VAT Return Due Soon? Stay Compliant – Maintain HMRC’s MTD Path

For those whose quarterly period was 1st April – 30th June 2019, the first official digital payment needs to be made by 7^th August. This is providing that you don’t have a reason to be exempt or deferred from Making Tax Digital (MTD)’s official roll-out date.

With the clock ticking, it’s important to know exactly how to be compliant, and quickly. Here we detail the steps to follow HMRC’S digital path without issue.

Keep the right digital records

Firstly, it’s important to know the specific documents that are required to be stored electronically. The following business-related records will be required:

• Name and contact details
• VAT number and specific details of any schemes used
• VAT on supplies made and received
• Any adjustments to returns
• Time of supply (tax point)
• Rate of VAT charged on supplies made
• Reverse charge transactions – if these aren’t recorded by your software, then you’ll need to do so twice (a supply made, and a supply received)
• Daily gross takings (DGT) (applicable if you use a retail scheme)
• Assets purchased which you can reclaim tax on (applicable if you use the Flat Rate Scheme)
• Value of sales achieved and total output tax on purchases under the Gold Accounting Scheme (if applicable)
• Documents covering multiple supplies made or received on behalf of your business by any of the following: charity fundraising volunteers, a third party business, employees for business expenses in petty cash

Submit returns the right way

The biggest change is how to file your returns. Instead of using HMRC’s existing online portal, MTD requires that you submit via a compatible software package. HMRC have a list of these, which include Liquid Accounts’ VAT Filer, so you don’t have to spend time searching for compliant tools.

Whatever software you choose will either need to have functionality that enables you to both retain records and file your VAT returns or allow you to use spreadsheets and link up with HMRC’s system seamlessly. With the latter type, this is referred to as ‘bridging software’.

While the way you file and upload your returns has changed, it doesn’t have to complicate the entire process. Simply continue with your current methods, then upload the spreadsheets to the bridging software. It’s important to cross-reference the values though – whilst they should be the same as your spreadsheet’s figures, there are very rare cases where they aren’t.

File with Liquid’s fully compliant VAT Filer

After checking HMRC’s list of approved suppliers, it’s a good idea to ensure that the tools meet your needs as well, like being easy to use and saving time. Liquid’s software has a number of features that makes it incredibly efficient. For example, it allows for one-time-only data entry and integrates with the accounting software of your choice.

Plus, it enables data from spreadsheets to pass through without a hitch. The tools incorporate a mapping process too – you simply export your VAT report into Excel, and it maps the applicable fields. Our VAT Filer can also scale to your growth and provides peace of mind with instant confirmation of your return submissions.

To discover more about our VAT Filer and how it maintains HMRC’s MTD path, get in touch with our friendly team today. Call us on 0161 413 5050 or email info@liquidaccounts.com.