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MTD and online retail sales

Making MTD software work to extract correct 9 box tax submission.

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I am new here, so I may have missed this discussion but I have looked for any similar answers before. 

My business as a sole trader generates thousands of PayPal and online sales via a merchant provider. These all produce a CSV spreadsheet of the sales which include the required data for HMRC. This constitutes my outputs. 

I make trade purchases from two suppliers one bills me monthly, the other bills me on a drop ship basis for about 100 items a quarter, again these are listed on a CSV spreadsheet.

 

I have left it too late to work out how to get mtd software to integrate with these spreadsheets. 

 

Since the mtd software just extracts the 9 box figures to submit to hmrc I have submitted the info Into my mtd software as a couple of monthly and quarterly summing up purchase invoices and sales invoices. Since my sales are all retail and the customers don't require full vat invoices. 

I have worked out my 9 box submission figures as per the old way, and I have checked the VAT return generated by my MTD software and they both match. Well there is s 2p difference but that's a mystery of round ups. 

If I get a VAT inspection my records are all available as per the spreadsheet, but they don't support the 9 box return in the same way. 

As there is no requirement for HMRC to directly interrogate the mtd software to inspect the source of the 9 box will this be a reasonable approach to comply with HMRC given my time limits. 

I will work to ensure my data gets into a mtd software in the approved manner as soon as possible. 

 

Replies (19)

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By Tax is making my head hurt
22nd Sep 2019 09:50

I must add that I am using a Windows xp laptop to run my business ...lol...yes

So all this talk of bridging software using Excel spreadsheets etc etc is no good , because, I don't have excel, I use open office when required to open an excel and edit it then save back as excel.

I have opened a mtd package called quickfile, I have inputed summary invoices and a small number of actual invoices to generate a tax return that is correct as per the old method.
I plan to submit this return to meet my Oct 7th deadline after which I seem to now need to update my computing hardware. Argh! So much for low carbon footprints.

Is there an easier way or more correct way given my circumstances and deadlines. No chance of visiting an accountant as I am a digital nomad who is currently travelling outside UK.

Yes my life is complicated and MTD is not what I need right now.

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By johnhemming
22nd Sep 2019 10:12

The good news is that you don't have to create the digital links until 1st April 2020.

Additionally I did a video about how to link a CSV file to a spreadsheet to create digital links here:

https://www.youtube.com/watch?v=ycjnVUMzrN0

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Replying to johnhemming:
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By Tax is making my head hurt
22nd Sep 2019 10:28

So basically if I am finding a way to pay the correct VAT at the correct time , I need not bother or worry too much about how so. For now anyway.

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Replying to Tax is making my head hurt:
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By johnhemming
22nd Sep 2019 10:32

If you are using the API you won't get stress. What I do (I am an MTD provider), however, is to ensure that my clients are fully compliant for next year. However, you still have a good few months.

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By Tax is making my head hurt
22nd Sep 2019 11:13

Many thanks John Hemming.

So I need to get my head around the mapping of data from one or more import OpenOffice spreadsheets to the 9 box vat summary sheet. (Or upgrade to a fully functioning excel laptop to do it on excel)

But one last point how do I get the 9 box Vat summary sheet into HMRC?

I seem to remember alvaras or something that would work on a excel spreadsheet and submit it for you to HMRC.

But ...
I seem to have successfully kicked the can down the road until April 2020.

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Replying to Tax is making my head hurt:
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By johnhemming
22nd Sep 2019 11:18

Most bridging systems will do this. Mine amongst others copes with open office and does not need excel.
Www.vat.direct my email is [email protected]

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Easy MTD VAT
By EasyMTDVAT
23rd Sep 2019 11:37

Hi and welcome to the AccountingWeb forum.

You may come unstuck when choosing an MTD solution due to using Windows XP. I can't vouch for Jon's solution but ours - Easy MTD VAT (https://easymtdvat.com) - doesn't support it.

I vaguely remember one of our developers stating the reason why we don't support XP is because of the different way we would need to grab data for the fraud headers that HMRC require (https://easymtdvat.com/support/knowledgebase-article?id=60). We deemed supporting a now old and unsupported operating system with a limited user base would not be viable for us. I suspect you will find this to be the same for many MTD solutions but again, Jon's solution may work perfectly well.

If you do decide to update your operating system, you will find any MTD solution that states it is compatible with VAT data contained in an Excel spreadsheet or a CSV file to be suitable. Like you state, that is because Open Office can export to these formats.

Good luck in finding a suitable solution and if you have further questions please ask.

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By Tax is making my head hurt
23rd Sep 2019 12:21

The windows XP issue is why I used quickfile which is cloud based. I simply created the invoices to produce the correct MTD 9 box submission. And that for me is kicking the can down the road until next April.
Meantime I have to consider a solution that uses open office spreads or upgrade a perfectly functional laptop that has served me well for 10 years.

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Replying to Tax is making my head hurt:
Easy MTD VAT
By EasyMTDVAT
23rd Sep 2019 13:13

I have just been talking to one of our developers regarding XP and he mentioned that support for this OS was implemented some time ago but it failed to make the release notes. Therefore, please ignore my comment about Easy MTD VAT not supporting XP - it does!

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Replying to Tax is making my head hurt:
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By johnhemming
23rd Sep 2019 13:41

Our approach uses the cloud rather than any particular spreadsheet. That means that people who use Excel, Apple Numbers or Open Office can use it. I think we already have some XP users as well.

When it comes to Self Assessment I can see using Excel for bridging as being quite a technical challenge. With Cloud it is still quite a bit of work, but has been done.

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By Tax is making my head hurt
23rd Sep 2019 17:04

My self assesment is actually quite simple once I have done my VAT returns, at least it always appears to be, perhaps I'm doing it wrong ?

My VAT returns produce the figures for my income. Then I do the fun bit of adding deductions.

When they introduce MTD for people's self assessment I will worry.

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Replying to Tax is making my head hurt:
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By johnhemming
23rd Sep 2019 18:37

I have written an article on AW about MTD Self Assessment which is here:
https://www.accountingweb.co.uk/community/industry-insights/now-we-have-...

It is not yet compulsory and we don't know when it will be made compulsory or for whom. However, if you only have a single self employment and don't have any foreign income or employment income you could join it now. (there are other exclusions as well)

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By Tax is making my head hurt
23rd Sep 2019 20:26

I suppose What I was looking for and without beating about the bush is the following ...

a simple bit of software in which I could just input my 9 box VAT figures, sign the software all up into HMRC, press submit and the MTD software would submit it to HMRC.

Job done.

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By Tax is making my head hurt
23rd Sep 2019 20:31

I did see that quickfile allowed direct access to the 9 box by using the error correction facility. But I thought maybe it would contain a flag as such when submitted to HMRC.

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By johnhemming
23rd Sep 2019 21:12

I am not aware of any flag that would do this. However, hmrc are likely to stop systems having these facilities from 1.4.20

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By Tax is making my head hurt
24th Sep 2019 06:38

It seems with this MTD all HMRC is doing is getting the private sector to develope approved software and for us to pay for them to be able to delve deeper and more automatically into our finances.

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By johnhemming
24th Sep 2019 08:41

In fact there are two trends internationally in digital tax. There is the trend where a copy of all of the transactions is sent to the tax authority in SAF-T format (which they are using in Italy and Poland for example).

MTD is in fact less intrusive. It requires an electronic audit trail so that the figures submitted to the tax authorities have a list of transactions associated with them that add up to the submitted sum.

Hence systems that allow taxpayers to simply type in a list of the values or to manually adjust the values will find that HMRC will show resistance to them continuing to have authority to submit data (aka production credentials). This won't happen overnight, but will start happening next year.

That is why I have taken the view to make sure my approach is fully compliant with what the rules will be in the future. I think it is best to have a single change rather than two changes.

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By JCresswellTax
24th Sep 2019 09:10

cool thread, maybe one for a software forum or something?

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By Tax is making my head hurt
04th Oct 2019 13:12

Having submitted my VAT return via the summation purchase invoice and summation sales invoice on quickfile, I paid my VAT bill, using Faster payments, over 3 working days later I still await my VAT account balance to clear. So I rang HMRC only to hear via recorded message that if you haven't signed up for MTD to submit a return then don't worry you can STILL submit your return the old way......argh!

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