Isn't Making Tax Digital a great opportunity to move to a cloud accounting software? It's unclear how long we will be able to submit through a Bridging software for.
I have received an invoice from a supplier who is a sole trader in France. The supplier is not required to register for VAT as he is below the registration threshold? If he was in UK I would put him as an effective 0% supplier in Box 9. Is there any reason to self account here as if it were in the UK no VAT would be charged?
HMRC describe box 9 as follows "Show the total value of all acquisitions of goods from VAT-registered suppliers in other EU member states and directly related costs, such as freight and insurance, where these form part of the invoice or contract price, but leave out any VAT"
I think you possibly have a bigger problem that can't just be solved by entering a bank payment. My suggestion is if the bank reconciles to your bank statement but you believe these invoices have been paid then the original bank payment was probably incorrectly allocated. You should search in TAS in the bank account nominal ledger to try to find the original payment as I would imagine that this has been allocated incorrectly in one of the following ways:
1) Posted to a duplicate invoice.
2) Posted to profit and loss account directly rather than allocated to the invoice.
3) Posted to another invoice for the same amount.
4) The final option is that the invoice may not have been paid at all.
I can't give any advice on the software as I haven't used TAS. I understand it's quite an old software that isn't being supported by MTD.
I have no idea, if these numbers are correct but I actually would expect them to be quite high due to to following reasons:
1) I work for an accounting software called Bokio.co.uk, we have had a number of users sign up for MTD and submit their VAT Return using MTD. These users have mostly signed up due to the way HMRC worded it "from April 2019". Many companies therefore registered by mistake thinking that because they are submitting their March return after 1st April 2019 they have to use MTD.
2) Also, from experience I think that it will be considerably more than 1/3rd who have a June quarter end. Many companies want to have a coterminous VAT period with Year end and the most common fiscal year end is March (to tie in with tax year) or December (to tie in with calendar year).
Interesting that you don't agree with this point. Do you feel that the clients records are more accurate in excel than they are using an accounting software?
Interesting that you don't agree with this point. Do you feel that the clients records are more accurate in excel than they are using an accounting software?
Yes, that is correct but if you have registered for MTD you can click on "Update your VAT details" in the new MTD screen and I think this should show you the date of registration.
I would expect accountants to be informing clients of any updates of tax rules and regulations as part of the service. I feel that many accounting software companies and accounting practices are embracing MTD. It is also a great way of acquiring new clients as it starts up conversation. Also, in the long run this should make accountants job easier since clients will be keeping better records. I work for an accounting software and we have informed all of our users about MTD and are trying to help them as much as we can.
My answers
Isn't Making Tax Digital a great opportunity to move to a cloud accounting software? It's unclear how long we will be able to submit through a Bridging software for.
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TAS must show a bank nominal ledger of some kind maybe it’s called general ledger or account transactions.
I have received an invoice from a supplier who is a sole trader in France. The supplier is not required to register for VAT as he is below the registration threshold? If he was in UK I would put him as an effective 0% supplier in Box 9. Is there any reason to self account here as if it were in the UK no VAT would be charged?
HMRC describe box 9 as follows "Show the total value of all acquisitions of goods from VAT-registered suppliers in other EU member states and directly related costs, such as freight and insurance, where these form part of the invoice or contract price, but leave out any VAT"
I think you possibly have a bigger problem that can't just be solved by entering a bank payment. My suggestion is if the bank reconciles to your bank statement but you believe these invoices have been paid then the original bank payment was probably incorrectly allocated. You should search in TAS in the bank account nominal ledger to try to find the original payment as I would imagine that this has been allocated incorrectly in one of the following ways:
1) Posted to a duplicate invoice.
2) Posted to profit and loss account directly rather than allocated to the invoice.
3) Posted to another invoice for the same amount.
4) The final option is that the invoice may not have been paid at all.
I can't give any advice on the software as I haven't used TAS. I understand it's quite an old software that isn't being supported by MTD.
I have no idea, if these numbers are correct but I actually would expect them to be quite high due to to following reasons:
1) I work for an accounting software called Bokio.co.uk, we have had a number of users sign up for MTD and submit their VAT Return using MTD. These users have mostly signed up due to the way HMRC worded it "from April 2019". Many companies therefore registered by mistake thinking that because they are submitting their March return after 1st April 2019 they have to use MTD.
2) Also, from experience I think that it will be considerably more than 1/3rd who have a June quarter end. Many companies want to have a coterminous VAT period with Year end and the most common fiscal year end is March (to tie in with tax year) or December (to tie in with calendar year).
Interesting that you don't agree with this point. Do you feel that the clients records are more accurate in excel than they are using an accounting software?
Interesting that you don't agree with this point. Do you feel that the clients records are more accurate in excel than they are using an accounting software?
Yes, that is correct but if you have registered for MTD you can click on "Update your VAT details" in the new MTD screen and I think this should show you the date of registration.
I would expect accountants to be informing clients of any updates of tax rules and regulations as part of the service. I feel that many accounting software companies and accounting practices are embracing MTD. It is also a great way of acquiring new clients as it starts up conversation. Also, in the long run this should make accountants job easier since clients will be keeping better records. I work for an accounting software and we have informed all of our users about MTD and are trying to help them as much as we can.