Share this content

Kashflow and MTD??

Struggling with Kashflow and MTD

Didn't find your answer?

We have a handful of clients on Kashflow.  Trying to get them activated for MTD and not getting any sense out of the Kashflow support.  Has anyone else managed to "connect" kashflow with the HMRC MTD system?  I've already transferred these clients to my ASA, though that's not particularly relevant here.  The thing is that Kashflow help pages say you go into VAT settings and click on the "connect to HMRC" button.  But when I do that, in each of the clients, there is no "connect to HMRC" button.  Some of these previously used the direct link to HMRC for VAT submissions, and some were manual inputs via the Gateway.  There's no "connect to HMRC" button in either scenario.  When I tick the "my annual turnover is over £85,000" button, nothing changes.  I am just getting generic answers back from KF support saying just "press the button" but they don't seem to read that I don't have a button to press.  Help anyone?

Replies (11)

Please login or register to join the discussion.

My photo
By Matrix
22nd May 2019 21:47

I don’t use Kashflow but I had to activate MTD in my practice account first in my cloud software. I did some research for you and it looks as if you have to activate the connection in your Connect account. If you mean they will be filing their VAT returns using their own government gateway then check your permissions and ask Kashflow if this makes a difference to their answer. Or ask the clients if they see this button if they will be doing the filing.

Thanks (0)
Easy MTD VAT
By EasyMTDVAT
22nd May 2019 22:27

Hi. There is a quick and easy way to test whether Kashflow is at fault or if it is something HMRC related:

1. Download and install Easy MTD VAT (https://easymtdvat.com).
2. Create a client (specify the VAT number of one of your clients you know is registered for MTD).
3. Grant authority to Easy MTD VAT for that client (click the Authority button then follow the onscreen prompts).
4. Click the Get button.

If all is well then the client's VAT obligations, liabilities and payments should now appear in the Easy MTD VAT interface. If they do then Kashflow is likely at fault. If not then it is likely HMRC related.

You can do all the above without signing up for anything and without spending a penny. You can also carry on using Kashflow as normal.

I hope this helps you get to the bottom of your issue.

Thanks (1)
avatar
By johnhemming
23rd May 2019 06:50

It is worth getting at least one of the free MTD providers software to work out whether the problem is with Kashflow or HMRC. If I were an accountant I would run through all of the free providers and find out what options they have as these vary and it could save a lot of time.

There are technical aspects of authorising MTD which it is worth understanding for agents.

a) There are two steps
i) Joining MTD
ii) Authorising MTD for a particular scope (if people want me to explain about scopes then if someone asks a question I will).

b) When you authorise MTD it can be authorised either via an ordinary taxpayers gateway or via the ASA credentials (this is worked out when you type in the user name and password in the government gateway).

c) When you go through that process (b) you can see what has already been authorised by looking at one of the links.

d) When MTD software talks to HMRC it passes some tokens, these tokens expire after 4 hours and the MTD knows how to get those tokens refreshed.

e) Another complicated thing is that if you have two accounts or more on your ASA using the same MTD software, but they are not properly linked in the MTD software you can find that authorising one client loses (over writes) the authorisation on another client and a client which was working stops working.

Ideally your MTD software provider will provide you with diagnostic software which enables you to look at what is happening, but I am not sure how many of them do this (I do). Hence you can identify some things by getting some bridging software and running at least the query options using that.

Thanks (1)
avatar
By pdtaylor78
23rd May 2019 12:35

I have successfully managed to connect Kashflow. You need to do this in Kashflow Connect and not in the individual client. This can be found under settings then bottom right below client auto emails.

Thanks (0)
avatar
By fpdbookkeeping
26th Jun 2019 12:48

Just want to reply to the OP. Have you had any success with this issue, as I am having similar problems. Thought I had it set up (enabled in the client connect account), but then when I try to submit a return it is marked as failed.

Thanks (0)
Replying to fpdbookkeeping:
avatar
By MakingTaxDifficult
15th Jul 2019 20:07

Hi.

Not sure if you have managed to sort yet? But I have had the same issues with failed Vat returns under MTD when using the agent services account to file. It has been driving me mad and as the OP states there is no option within the VAT settings to select that the client has been signed up. Good old Iris as normal not keeping their knowledgebase up to date. After some frustrating time wasted I got it to work as follows:

Log into the clients Kashflow account (outside of Connect and you may need to set yourself up as a new user) and then link to HMRC within the clients own tax section using your agents services account login.

Once connected I was then able to file via my Connect account.

Probably not the correct way, but it worked.

I have to say having now used most of the major software providers for MTD filing; Kashflow is hands down the worst of the lot. Not just VAT but the whole software itself. Thankfully I only have 3 clients on it. Would not recommend Kashflow to anyone.

Thanks (2)
Replying to MakingTaxDifficult:
avatar
By aj_cook
18th Jul 2019 11:11

Thank you for some very helpful postings. I had the same problem trying to file via Connect and after 6 'failed' messages, I tried logging onto the client's account directly and it worked first time. I used exactly the same credentials as via the Connect account. What a waste of time. Would happily never use Kashflow again but the client seems to like it for some unfathomable reason.

Thanks (0)
Replying to MakingTaxDifficult:
avatar
By mwoolston8
19th Jul 2019 10:27

This actually worked, thank you! Not actually sure how or why it wouldn't work using the Kashflow Connect Log In. The HMRC do like to make things difficult and Kashflow appear to struggle too. Glad I only have a couple of clients on Kashflow. I must admit I have had issues authorising Sage with the HMRC too, spent nearly an hour over the phone with a client trying to authorise it. Also Xero, even though it has been better, asks for you to authorise / connect the software again, after you have already done it! The system is a bit of a mess really.

Thanks (0)
Replying to mwoolston8:
avatar
By johnhemming
19th Jul 2019 11:25

The only time it has taken me more than a minute was when the client did not have the mobile phone that the text message was sent to by HMRC so had to phone him to get it.

Thanks (0)
Replying to johnhemming:
avatar
By mwoolston8
19th Jul 2019 14:15

You have obviously been one of the lucky ones then!!

I have had quite a few go through successfully, but then had various glitches along the way.

Sage firstly would only bring a blank white screen up, when trying to authorise the software with the HMRC. Then when the client rebooted her computer and tried again later, it wouldn't let her scroll down the page to click authorise. We finally worked a way around it in the end.

Kashflow is just crazy that, as an agent, with a connect partner account, that you can't authorise (successfully) with the HMRC. You can only do this by logging into the clients system to connect (using the agent credentials, that I had already previously authorised with) and then going back through the agent connect partner account to submit the vat return.

Xero has been better, but once you authorise with the HMRC you expect it last 18 months, not 1 month and then have to reauthorise. I am hoping this was some teething problems with monthly vat returns and doesn't apply to all clients.

Lets go onto MTD sign up process, this has now settled down and we are getting clients signed up fairly successfully. Before the 31st March 2019 the system wouldn't let you sign up, it failed every time. Not a major problem, but nearly caused issues as Kashflow activated the MTD for vat early, as it asked the client the question is your turnover > £85K, which it was. I realised that by putting turnover < £85K it reactivated the old vat system on Kashflow, so I was able to submit the vat return.

Also annoyingly every time you sign up clients for MTD, it sends a code to my mobile phone, which we are now unable to change, yet when you actually log into the agent services account, it doesn't ask for a security code, work that one out. Not sure how I will remove my phone from this now and keep getting bugged by all the staff in our office for the code, everytime they want to sign up a client for MTD!

Oh yeah and don't mention the fact that you are unable to get through to the MTD vat helpline and when you do they don't know what to do anyway.

Also several clients, who have signed themselves up, have had to do it a couple of times, as the first time failed.

Anyway rant over! We now are starting to settle down with most clients signed up, but still haven't tried authorising Clearbooks yet, that could be fun! I just can't understand why they have made it so difficult to get everything in place, when the HMRC will just be getting a vat return, like they usually do.

Anyway John I am glad it hasn't taken you more than a minute, so you obviously have been lucky, but it doesn't mean that the system works correctly, I am afraid. Also I haven't needed the clients mobile phone number, so far, apart from getting a client onto our agent system, not sure why you would need it, if you were an agent signing clients up and authorising software.

Thanks (0)
Share this content