I have a client that has always done an old school book for their Sales and Purchases and produce their VAT numbers from that.
They do not want to give it up for MTD, so they are sending it to me and I will put the data into VT for MTD submission.
Is this still acceptable and how about after Apr 2020 when the soft landing finishes?
Replies (8)
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As long as you enter the individual transactions into VT and not just their totals:-
Still acceptable.
Still okay post April 2020.
I don’t understand how putting the sales and purchases into VT is not keeping digital records? Why do you refer to the soft landing, how can you digitally transfer the records from the paper to the software? The soft landing is the relaxation of digital links.
I am doing exactly this for a client, entering the data from the book into VT quarterly.
There is no problem typing all of this in after the end of the vat period but before you submit the return. The level of detail required is the same as any other set of digital records (see issues about daily gross takings and using figures from suppliers statements).
I would read up on Regulation on Exemption 1995 (SI 1995/2518) , reg 25A(6)(c) also reg 25A (2A) and 32B(1)(c) and 32B(1)(c) inserted by VAT (Amendment) Regulation 2018,SI 2018/261.
The purpose of MTD is not for the Taxpayer to keep two sets of Records and as such Exemption may well be allowed. Is the case your clients is refusing or unable to keep the adequate MTD records and by definition is that unreasonable to expect him to pay you for the service.
Not sure of the point you are making?
There is no exemption necessary in the OP's example.
The taxpayer doesn't have to personally enter the transactions into compatible software. It is perfectly acceptable for them to pay someone to do it.
Whilst I realise I was not answering the question asked I just thought it might be useful to try and help anyone struggling with the new rules that is effectively two sets of records are having to be kept not out of choice then a reason for Exemption may be possible.
I agree that the the client would be MTD compliant.
I would give the client two service levels
"File only", ie you slap the total in, and explain in detail the theoretical penalties.
"Compliant" you do it properly.
bet they pick "file only"