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MTD VAT client transferred by HMRC

A client has been transferred to MTD without consent or request.

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The helpline says this is part of a "block of transfers" instigated by HMRC and cannot be reversed.  He has to file digitally from now on.  Mandate date is April 2022 - so can HMRC do this ?   

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By rmillaree
29th Jul 2021 12:55

The truth is something different to what the vat office have told you (to the best of my knowledge)

clients have been accidentally moved over to the new ASA acount that has previuosly been the exclusive preserve of MTD clients - however the client isn't actually technically part of mtd obligations. HMRC have made the normal filing route available now within the new ASA acount so you can carry on as normal doing non mtd filings. (this is my understanding but i have not as yet done fact check here to prove what i am saying is correct!)

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By lionofludesch
29th Jul 2021 12:58

Millions of threads on this already.

Everyone will be transferred in due course.

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By Hugo Fair
29th Jul 2021 13:46

1. Your client's non-MTD VAT filings were to an HMRC server that was not capable of accepting an MTD submission.
2. HMRC have a separate server that IS capable of accepting MTD submissions (what you might call an MTD-ready server).
3. Your client will (eventually) have to make MTD submissions for VAT - and at that time will need their account to be on the MTD-ready server.
4. Although it wasn't necessary to do so yet, HMRC decided to be 'efficient' by moving clients like yours onto the MTD-ready server (in readiness for when it'll be essential).
5. This does NOT mean that your client is now registered for MTD and NOR does it mean that they need to file their VAT under MTD (yet).

But, and it's a big but, this is HMRC we're talking about ... so of course they made a pig's ear of both (mis-)communicating all the above AND allowed some some very badly worded 'warning messages' to be generated within their software when you try to access the old route.

For full details of the 'solution' - see several other recent threads on this site.

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