Member Since: 9th Nov 2012
25th Oct 2018
I totally have the wrong end of the stick. I am under the impression that the MTD incentive is to stop any manual entries on to spreadsheets and/or bookkeeping software and that transactions are taken from bank feeds, sales and purchase receipts, whether they be digitally produced or a printed paper receipt from a high street store. Software is supposed to be able to take information from the receipts and feed it into the spreadsheet or accounting programme so that no manual inputting errors are made and that a traceable link is generated between the two by doing this. HMRC want to stop the errors made when manually inputting transactions, including those that claim input VAT from a VAT registered supplier that hasn't supplied their customer with a proper VAT invoice. I did not think that we would be complying with HMRCs MTD process if we were to still produce a manually generated spreadsheet to record transactions, even when using bridging software to transmit the information contained in the spreadsheet ready to submit to HMRC. I was totally under the impression that clients' (or myself) would have to be scanning any/all paper receipts/invoices they had and then using software that then would take the information from the scanned image and place it into a compatible spreadsheet so there was no manual input whatsoever. Please, somebody, confirm which is the proper method we will be expected to use...and the cheapest way too!
30th May 2018
I'm not the only one that is wondering how this will be done, then? I want to assure my clients that I will be able to continue to support them in the way they are used to. I currently use the free software provided by Capium - I'm hoping this is going to be available to use with MTD. I've heard that spreadsheets can be used, but again no information on how this is going to work. I'd be grateful if you could point me in the right direction should you hear of any news. Thanks for your response anyway.
27th Nov 2017
One client who works on stages and stage lighting once tried to claim red satin bedding sheets, a 'Kinky Boots' dvd and a [***] pump! Ahem, they were given back in a sealed envelope.
19th Apr 2017
It's stage rigging for the entertainment industry. I'm meeting up with my client this evening to try and get to the bottom of it as I'm thinking along the same lines and do not want to get involved. Thanks for everyone's input.
19th Apr 2017
The only paperwork I have to cover all these transactions going through my client's bank account, is the courier's invoice for delivery of goods going to USA. As I've mentioned in another reply, I have a sneaky suspicion that any commission earned was a 'cash' payment. I'm concerned about triggering VAT registration as this client is extremely bad at keeping and/or providing receipts of any nature and this is another headache I do not wish to burdened with. I'm wondering as these receipts/payments contra each other out would it be prudent (legal even) for me to omit them from my client's accounts?
19th Apr 2017
I cannot see any commission - I have a sinking feeling it may have been a 'cash' receipt. I have no contracts or paperwork for the funds coming into and leaving the bank account. Would it be negligent for me to omit these receipts/payments from my clients own business accounts as they contra each other out?
19th Apr 2017
I have no contracts nor supporting paperwork - client is a law unto themselves! I only have bank statements to work from and am asking constantly for paperwork. Took this client on to help an old family friend who could no longer cope with the accounts for this person - I now see why.
24th Oct 2016
Vat 700/12 and I've spoken to the VAT office and had it in writing from them that boxes 1, 4, 6 & 7 need to be completed for reverse charge on EU Service fees - is there a Vat notice that says differently?
24th Oct 2016
Yes, my client has given them their VAT number and I am basing the VAT element on the gross sales and not sales less the fees being deducted.
When I've spoken to the VAT office they explained that the way to deal with Reverse charge is as given in my previous text. My client has not been charged the VAT on their purchases so cannot claim it as input tax alone, which is why the offset of the output tax is made to cancel the VAT element out completely on the services provided but, in doing this it increases their net Sales for VAT purposes - therefore I'm assuming that I have to make an adjustment somewhere so that the correct Sales figure is used for income tax purposes.
23rd Oct 2016
My apologies, I may have misled you by not including enough information to give any advice.
So here goes: Goods are sold through Amazon by a VAT registered client. The goods are sent to non-VAT registered consumers in other EU countries as well as the UK. The goods are sent from the UK and only the UK. Amazon provide invoices showing sales less their service fees. VAT on the service fees is to be accounted for by the customer using the reverse charge application.
To account for the reverse charge VAT I would include the fee in the purchases total (net) and the VAT on purchases (at 20%) as usual but then would also include the service fee at the same cost in the sales total (net) and the VAT on sales total as well. The net effect would then be zero VAT. Which is great and what we want it to do.
So my question really is, if I credit Sales with the reverse charge net amount, it would surely increase client's sales unfairly for their Self Assessment - so is it reasonable to want to adjust the sales figure for income tax purposes.
I hope this clears up my initial question and you can just put my mind at rest.