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Digital VAT for Groups: Are You Prepared?

9th Sep 2019
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For companies needing to prepare Group VAT returns, the deferred MTD for VAT start date is October 2019 and from April 2020 companies will need a digital solution in place. AccountsIQ will have additional functionality in place which will allow a consolidated group VAT return to be submitted digitally to HMRC under MTD. This means no bridging software or spreadsheets will be required, there will be full transparency as to how the VAT calculations have been made, and you'll be able to output detailed reports all in a single click.

Group VAT Registration

Companies needing to submit group VAT returns from October 2019 will need to submit returns digitally via the MTD VAT portal – this is for VAT periods starting October 1st, so the first group MTD VAT return will actually be filed for the quarter ending December 2019 in January 2020.

Many companies need to produce and register a group VAT return. Today, that group VAT calculation can be done on a spreadsheet (copy and paste the individual VAT figures from the different bookkeeping systems, add them up) and the resulting figures manually entered into HMRC’s portal.

From October 2019 that spreadsheet will need to be API enabled – otherwise known as bridging software, which is effectively a spreadsheet with a link to HMRC. Group returns until April 2020 can be prepared in Excel and use a bridging tool to submit the nine figures – this is a quick fix for groups, but is not a long term solution. From April 2020 there will need to be a digital link between the individual databases of the group and the medium used to calculate the VAT owed.

Digital Links and VAT submission

From April 2020 records that are maintained in more than one programme or product must have a digital link between each of the software products and their spreadsheets. Information cannot be transferred manually (so no more copy and paste, adding figures together and then submitting).

How AccountsIQ will make it easier to submit Group VAT returns digitally

AccountsIQ is used by thousands of companies who already submit their MTD VAT return digitally to HMRC. From early 2020 additional functionality will be in place which will allow a consolidated group VAT return to be submitted digitally to HMRC under MTD.

AccountsIQ’s solution will be a best practice solution for group companies needing to submit a group VAT return, as using the AccountsIQ platform the process will be efficient, reduce inaccuracies and the underlying architecture will provide the ability to produce a ‘detailed VAT return’ report. Essentially this is what HMRC ask for ahead of an enquiry, something that is not so easily achieved using multiple spreadsheets, digital links and APIs.

Group VAT Lunch and Learn Event

AccountsIQ is running a free event aimed at accountancy practices on Sept 26th at our London Euston office from 10am-1pm.

  • How AIQ consolidates the group VAT return for MTD – by providing digital links between group members and a consolidated detailed group vat report

  • Reduce risk, increase efficiency and transparency at the touch of a button

  • No Excel or bridging software required

  • Caroline Miskin from ICAEW's Tax Faculty will also provide an update on the progress of HMRC’s digitalisation project and the MTD for VAT requirements in practice including digital records and links, the soft landing and penalties.

And Lunch is on us.

Book via emailing [email protected]. Spaces are limited.

Alternatively, to find out how we can help you with Making Tax Digital, get in touch or request a demo to see for yourself how AccountsIQ’s powerful cloud accounting software could transform your organisation. 

Read our guide on how to submit VAT returns digitally for more information.

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