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Email from HMRC re MTD

I am puzzled

I have just recieved an email from HMRC which is bizarre bearing in mind I am already set up for MTD and have sent in my first VAT return using the new system. The email states that a webinar will be held on 15th Feb telling me how to comply with digital record keeping and it also refers to a You Tube video. The email refers you to a lots of software thats is bamboozling and at theemail ends by saying the webinar does not cover MTD . My poor clients are totally confused and in the dark after keeping their books manually for over 25 years . My question is what are HMRC playing at , where are the letters and where is the HoL response ? What the point in the enquiry is HMRC ignore their comments ?

 

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12th Feb 2019 17:40

welcome to the mad world of MTD. I applaud the fact you managed to send a VAT return using the new system.

My head is still firmly in the sand..

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to memyself-eye
13th Feb 2019 18:18

I managed to send an MTD compliant VAT return last week.

It's actually quite straightforward. If you already use accounting software to keep your records.

But if you use a spreadsheet, or just keep your records in a shoe box, then you've got a bit of a problem! Of course, if your turnover is over the VAT threshold, then maybe you should really be using a 'proper' accounts system anyway?

I will say, with Brexit, possibly a 'no deal' Brexit looming, the introduction of MTD VAT returns is really badly timed. The timing couldn't be worse.

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to Mike Towle
13th Feb 2019 18:52

Mike Towle wrote:

But if you use a spreadsheet, ... then you've got a bit of a problem!


What is the problem if people use spreadsheets? I have seen loads of MTD submissions go in from spreadsheets of all sorts (and other interfaces such as CSV files).
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to johnhemming
13th Feb 2019 19:43

The problem I've been led to believe is that if the spreadsheet starts with information manually input from another system and thats not digitally linked, it will fall foul of the rules in a years time.

So, take a booking system that records holiday deposits and balances, we will need to download it into a spreadsheet in accrual format, reorganise it into cash receipt format to then use that spreadsheet and bridging to comply with it digitised from end to end and cash accounting for VAT.

Currently they run a spreadsheet that lists receipts and payments in a cash accounting format, typed in at transaction level and with banks balanced to it.

This might change in the first year and some software will update to be able to export in a digital sorted format. A lot of small systems are unlikely to in such a short term though.

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to Kaylee100
15th Feb 2019 08:53

You can do digital links using a spreadsheet.

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to Mike Towle
15th Feb 2019 10:21

Hello Mike - just wondering WHAT exactly is in the vat return you filed ? ie is this invoice date, number, name of supplier, net amount, vat amount for each input and output? thanks mavis

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13th Feb 2019 04:07

Another one to say well done for joining the pilot. I have on all other HMRC pilots but not this one as my package only allowed it for people they invited, then we couldn't as we are a partnership. Didnt seem worth the bother then as I thought we could just do it when it goes live

Intetestingly i have a newly registered client who for that reason cant go onto the pilot..... He will file one return under the old to have to switch, I assume, to the new. Crazy!

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13th Feb 2019 10:45

Got the same email yesterday. Yes, very contradictory I agree. I am signed up for a MTD webinar next week that discusses it from the agents pov, including the new Whether that will be of help to anyone?

Making Tax Digital (MTD) for Business: the latest information on MTD for VAT and the agent services account:

https://register.gotowebinar.com/register/4140181743728662531?source=Age...

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By BBProps
13th Feb 2019 12:14

Looking at using Xero but reluctant to move away from an excel spreadsheet which summarises expenses, credit card payments etc. Would one expense claim fully reimbursed to me within Xero suffice. Appreciate that sales invoicing and cash collection would be different.

Thanks in advance

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By Mitch
14th Feb 2019 16:20

I too would like to know where/when we can see a response to the HoL enquiry!!

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