Group VAT Making Tax Digital Submissions Explained

18th Nov 2019
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Are you one of the types of businesses that had a deferred MTD for VAT start date of October 2019 (UK companies)? HMRC delayed the mandated start until 1 October 2019 for some businesses with more complex requirements (such as those who are required to submit a group VAT registration).  There are approximately 40,000 businesses that fall into one of the relevant categories making them eligible for deferral. 

Group VAT Registration

If we take VAT groups as an example, 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 was required to 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.

Since October 2019 that spreadsheet needed to be API enabled – otherwise known as bridging software, which is effectively a spreadsheet with a link to HMRC. Group returns until April can be prepared in Excel and use a bridging tool to submit the 9 figures – this is the quickest fix for groups, but is not a long term solution.  There is a soft landing period for one year from the deferred start date for group VAT registration companies, so from October 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 October 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

The AccountsIQ cloud accounting solution is used by thousands of companies who already submit their MTD VAT return digitally to HMRC. From March 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 Making Tax Digital Webinar

Join our live Webinar on Wed 4th March at 11am GMT in which we will demo in AccountsIQ:

  • How to submit group digital VAT returns now for MTD
  • How AccountsIQ will enable you to consolidate the group VAT return for MTD
  • Phase 2 of our automated solution

Reserve your Webinar place

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 business. 

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About AccountsIQ

AccountsIQ's award-winning cloud accounting software simplifies how finance functions capture, process and report the results of multiple location businesses. 

Built for the cloud, AccountsIQ is ideal for dynamic businesses that are growing locally or internationally, via subsidiaries, acquisition or through a franchising model, enabling anytime-anywhere processing, while allowing easy central control and consolidated reporting of results. Its unique consolidation engine, along with its ability to integrate with other applications, makes it easy to scale.

Today, over 4,000 companies in 85 countries enjoy 24-7 access to top level Financial Management functionality, providing smarter working practices, including integrated approval workflow app, expenses app and API integration with front end systems, while delivering simple and accurate consolidated results and a superior level of business insight.  

AccountsIQ Wins Enterprise Accounting Software of the Year badgeAccountsIQ won Enterprise Accounting Software of the Year for the second year running at the recent UK Accounting Excellence Awards and has been ranked in the top half of the Deloitte’s Technology Fast 50 high growth index for the past 4 years.