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Friday the 13th - MTD for VAT documents released

It is happening

Didn't find your answer?

Of course they release the VAT Notice and the list of 18 software suppliers that are ready on Friday the 13th.

So we can say for certain that MTD for VAT is happenning!

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Tornado
By Tornado
13th Jul 2018 17:11

"So we can say for certain that MTD for VAT is happenning!"

The public trail has been delayed until an unspecified date later in the year so who knows.? Perhaps they cannot find enough people to take part in the trial or perhaps although the commercial software is available, the HMRC systems are not.

We were promised a full years trail of the software beforte going live so I think it is still a certainly that MTD for VAT will NOT be mandatory as from April 2019.

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Replying to Tornado:
RLI
By lionofludesch
13th Jul 2018 17:43

And here's the difference between MTD for VAT and other tax software introductions.

SA - introduced on a voluntary basis. If you couldn't make it work, there was always paper. After a few years it was pretty much universally used by the profession, as well as for a substantial proportion of unrepresented taxpayers.

VAT - original version. Again, voluntary to start with. Compulsory now but, to be fair, most traders will include three zeroes in their seven figures they need to enter.

PAYE - developed from a programme were employers were PAID £825 to submit their P35s and P14s. Well tried software already used by the bulk of employers.

MTDfVAT - software not yet available. Little or no chance to trial it. No option to file on the old system. Reputedly requires information to be submitted within very specific parameters. Many traders will be using software for the first time. Many others will need to change their software. Accountant Superheroes sort out the Government's mess - as usual.

Thanks (3)
Replying to Tornado:
Locutus of Borg
By Locutus
15th Jul 2018 18:50

Tornado wrote:

Perhaps they cannot find enough people to take part in the trial or perhaps although the commercial software is available, the HMRC systems are not.

When I was at Accountex in May, I spoke to someone on the HMRC stand and enquired what was happening with MTD for VAT.

The guy was friendly, but didn't really tell me much more than I already knew.

He suggested that I take part in the trial to find out more. I hold him that I would try it on my own practice, which is run on Xero.

He said Xero would not be ready for MTD for VAT until September.

I had a brief exchange of e-mails with one of his HMRC colleagues the day after Accountex and have heard nothing further since.

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Replying to Locutus:
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By jonibarnes
15th Jul 2018 19:39

Interesting a total train wreck waiting to happen. No way will hmrc risk a huge reduction in income due to problems submitting via the new system which is why the current one will have to run alongside it for at least 12 months

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Replying to jonibarnes:
RLI
By lionofludesch
15th Jul 2018 23:09

What will Joe Trader do next July if he can't work out how to submit his first MTD return ?

Nothing - knowing there's no penalty for the present.

Huge drop in tax inflow for HMRC.

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Replying to lionofludesch:
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By david.bransbury
16th Jul 2018 09:29

If no return submitted, then HMRC will raise a estimated assessment. Of course this will be higher than reality. Only way to adjust to actuals would be to submit a MTD VAT return.

If not paid surcharges will still arise. These are not being suspended because of MTD.

So HMRC VAT inflows will go up, not down. More reason that it will be compulsory from April.

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Replying to david.bransbury:
RLI
By lionofludesch
16th Jul 2018 10:10

You assume that Joe Trader can pay. He'll have sent much of his time trying to decipher the software so he won't have done much work.

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Replying to david.bransbury:
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By jonibarnes
16th Jul 2018 12:07

If possible I will file for my clients as will the vast majority of other professionals. The customers who do their own returns will ignore the assessments, they are the ones who won’t and don’t care. Hmrc will get the money but it’s bound to cause delays in revenue.

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Replying to jonibarnes:
RLI
By lionofludesch
16th Jul 2018 12:13

jonibarnes wrote:
The customers who do their own returns will ignore the assessments, they are the ones who won’t and don’t care.

Customers who do their own VAT returns don't care ?

What a ludicrous statement.

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Replying to lionofludesch:
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By jonibarnes
16th Jul 2018 12:56

Alright then 50% of the ones who do their own returns.

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By jonibarnes
14th Jul 2018 09:43

Is anyone prepping for April? I am going to move a small amount of clients who suit it over to cloud qbooks, however I have a client who uses a good old fashioned ledger with all manner of adjustments etc easiest option here would be spreadsheets but as we know that option can’t be tried out.

Hopefully it will be made voluntary or better still self destruct and be called off!!

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Replying to jonibarnes:
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By In a Daze
15th Jul 2018 00:13

Clearbooks have a simple spreadsheet solution this would suit your old fashioned client.

Thanks (1)
Replying to In a Daze:
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By jonibarnes
15th Jul 2018 07:57

Cheers I will take a look , you recommended? Looks like it’s free

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By bernard michael
14th Jul 2018 11:03

It's interesting that it starts with us out of the EU 31st March
Will we have hard or soft requirements for MTD ??

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Replying to bernard michael:
RLI
By lionofludesch
14th Jul 2018 15:28

We're out on 29th so there's a two day lull.

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By jonibarnes
14th Jul 2018 16:09

Hopefully Brexit will cause further problems, looks like it is definitely a go go for April my guess is mtd will be voluntary with the current system for filing staying live for everyone maybe with some kind of incentive if the switch is made.

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Replying to jonibarnes:
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By DonDan
16th Jul 2018 09:55

Do we know for sure if the 7 day filing extension will be going once MTD for Vat kicks in?

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Replying to DonDan:
RLI
By lionofludesch
16th Jul 2018 10:11

For sure ?

We don't know anything for sure.

As we may be out of the EU by that time (we don't know that for sure either) there may be no VAT.

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Replying to lionofludesch:
Locutus of Borg
By Locutus
16th Jul 2018 10:39

lionofludesch wrote:

As we may be out of the EU by that time (we don't know that for sure either) there may be no VAT.

There will still be a VAT system regardless of whether or not we actually leave the EU next March and on what terms. The EU Withdrawal Act imports all existing EU Law (including VAT law) into UK law when/if we leave in March 2019.

What happens with MTD for VAT is uncertain, though. I wouldn't be surprised if it is initially voluntary.

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Routemaster image
By tom123
16th Jul 2018 13:06

As a Sage 200 user, sage want to charge me the best part of £4k to upgrade to a version to suit MTD.

In order to do that, I will also need to upgrade my servers and MS office too.

Happy days

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Replying to tom123:
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By jonibarnes
16th Jul 2018 13:56

Bonkers

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Replying to tom123:
By anthonyboggiano
19th Jul 2018 10:15

You should look at this - output your vat report to Excel and this tool maps the relevant fields then submits via VAT MTD - free for the first company:

https://vat.liquidaccounts.com/

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Replying to tom123:
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By jonathan.kempson
19th Jul 2018 11:32

Sounds as if you may have been, to some extent, misinformed. The choices are:
* either to not upgrade and pay an annual fee to Sage for a standalone MTD module;
* or to upgrade to the latest version with no payment to Sage (but with, no doubt, upgrade time payable to your reseller, and if you have an older server and MS Office then quite likely, and expensively, they'll need upgrading)

Not good, of course, if you have older IT, but still all being well a little better than you've been told.

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Replying to tom123:
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By Hyprosteps
19th Jul 2018 11:34

Don't be daft........HMRC said (somewhere near the start of this shambles) it will only cost a few hundred pounds for any upgrades. There's no way they would get any costings wrong is there ????!!!!*********

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