Share this content

MDT for VAT - Simple Question?

To what extent are clients obliged to participate?

Didn't find your answer?

HMRC states that VAT-registered clients “must have MDT-compatible software”.

My VAT-registered clients normally send me their records by email, typically consisting of three monthly sales invoices, and a dozen or so input vouchers/purchase invoices.  If they continue to do this when MTD starts, and I input the vouchers into the excel spreadsheet that comes with my "MTD for VAT" software (which is still under development - Ablegation/ftax), is there any need for the client to have any MTD software?  I posted a similar query six months ago and would be grateful for any more up-to-date opinion... 

Likewise, I have set up an “Agents Services Account”  (and eventually gleaned  that in order to log in to it successfully, it needs to be via the “Get an HMRC agent services account” webpage).  But again, from here on in, and prior to the start of MDT for VAT, is there any necessity for VAT-registered clients such as those described above to obtain any “VAT-compatible software” or "linking" software?  I'm thinking here of the general sign-up process/client authorisation or re-authorisation process.


Replies (8)

Please login or register to join the discussion.

Routemaster image
By tom123
30th Jan 2019 12:20

Most transactions tend to start out as a document first (albeit a PDF) - so if that is what you are being sent, then that is 'pre' the software.

You are doing the bookkeeping, as such, so I don't think the client needs anything particular.

Thanks (0)
By nodrogbir
30th Jan 2019 12:59

I have been looking into this for months and the more I ask the more confused I become. I did have a contact at HMRC to help me but last four emails have been ignored. Rang and went to message or just cut off. Agents services account so complicated Ive given up. My clients who like the manual records and are non-computer literate are not interested. Let HMRC get on with it , in the end they will damage what reputation they had left.

Thanks (0)
By John Stone
30th Jan 2019 13:18

MTD for VAT - Simple question?

No such thing

Thanks (0)
By ireallyshouldknowthisbut
30th Jan 2019 14:40

The best solution is they do what they do.

You avoid for for as long as possible (probably summer 2020) until HMRC get serious about it.

Then do what you do now, but instead of typing in the 4 numbers, type it into bridging software.

Unless you get a VAT investigation HMRC wont have a clue, and even then their powers are limited if the tax is right.

Thanks (1)
By tonycourt
30th Jan 2019 15:05

First; as I'm sure you know there are different start dates for registered organisations, only when MTDfV is mandated will the "digital journey" requirements need to be met.

Second; all the information you're looking for is in HMRC's notice 700/22. Broadly, while the law requires records to be maintained digitally HMRC will not enforce this rigidly until MTDfV is bedded in. Plus, there are concessions and special rules for agents. There's no point in me setting them out here - just read the notice.

Thanks (0)
By johnhemming
30th Jan 2019 18:10

It sounds to me that your situation is indeed one where you are keeping the VAT records and all you need is something to send the data to HMRC for you.

There is also an agent services API under development and what you probably would be best getting is software which will handle both VAT and agent services. I don't know when the agent service API goes live, but I would expect HMRC to promote that as a route for agents.

The VAT API is relatively straightforward, but Self Assessment is a lot more complex. In part Income tax is a lot more complicated than VAT so the API has to be more complicated.

Some API providers rent their services and some sell systems. Be careful with those which sell a system rather than renting it. Make sure that they will provide the later APIs as well otherwise you might have to change again. There is quite a bit of development spend by providers to keep up to speed.

With those renting services it doesn't really matter because there is no major capital cost although again it is best to not have to go through a learning curve of a new system (although they all should be quite similar really as they do much the same thing).

Thanks (0)
By bendybod
31st Jan 2019 11:52

In a nutshell, "no".

Thanks (0)
By songb1rd
31st Jan 2019 12:19

Hi Bendybod

No to what..?

Thanks (0)
Share this content