Head of Insight AccountingWEB
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VT Software says yes to MTD

19th Dec 2018
Head of Insight AccountingWEB
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In a change of heart, VT Software has started working on tools to support MTD for VAT filing directly through its VT Transaction+ bookkeeping program.

In a post on its website and email to users, the company explained, “VT will be implementing MTD directly into VT Transaction+ and VT Cash Book. This feature will be available by the time the first quarterly VAT returns need to be filed under MTD in July 2019.”

The announcement will be welcomed by the large numbers of accountants who rely on VT to prepare accounts for their small company clients.

In October 2017, many AccountingWEB members expressed their disappointment when VT said it would no longer continue to develop the bookkeeping program for MTD, preferring to focus its efforts on its VT Final Accounts application. 

According to VT Software, the response to this week's announcement has been overwhelmingly positive. It is clear that feedback from customers played its part in convincing the developer to reconsider its MTD strategy.

The government’s change of tack from income tax to VAT as the first milestone for MTD filing posed fewer problems for the developer and the appearance of a wide range of bridging tools reinforced that impression. With its large existing user base, it did not make sense for VT Software to sit back and let other suppliers fill the vacuum.

Up to this point, VT’s strategy was to link its programs to third-party bridging software tools that worked with HMRC’s new online filing process. VT Transaction+ and its simpler client cashbook companion already have a small Excel add-in that can extract the VAT return totals for existing Excel bridging products, but this will be superseded by the company’s own direct MTD for VAT link and bridging software.

Subscription costs

The new MTD for VAT features will be available to users of the VT Accounts suite that includes VT Final Accounts, VT Transaction+ and VT Cash Book. The VT Accounts subscription will remain at £150/year, but without a first-year premium.

Existing licenses for VT Transaction+ will remain valid until 30 April 2020, the company said. But after that date, users will need to renew their VT Transaction+ licence annually for a subscription fee of £75.

VT Cash Book will remain free, but customers will need to have a current VT Accounts or VT Transaction+ license to access the MTD features.

Replies (20)

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Chris M
By mr. mischief
19th Dec 2018 20:10

Great!

in fact late adopters must have saved a fortune in software development compared to those in the vanguard, due to all the messing around on specifations from the numpties at HMRC.

Thanks (5)
Replying to mr. mischief:
Mark Telford Chartered Accountant
By Mark Telford
20th Dec 2018 00:27

No messing around here, save in the knowledge that our software of choice will be fit for purpose...

...and not just satisfying HMRC

Thanks (3)
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By Patricia McCartney
20th Dec 2018 10:05

Excellent news! VT Transction+ and VT Final Accounts are such great packages.

I would have continued using them with bridging software but this is even better.

Thanks (5)
By Lutondata
20th Dec 2018 10:14

Oh hindsight! I was convinced by the all coverage in 2017 that there was no other way but double entry cloud accounting. Purchased the Sage compliance pack along with 200 licenses ready for action. After so many enquiries, "Where does.....go?" I was so relieved to hear that bridging software might become a reality. Thankfully Taxcalc has it and now VT will join the club. Oh hindsight!!!! Cost £0000`s in wasted subscriptions. Excel rules!!!

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By birdman
20th Dec 2018 10:29

This really annoyed me, and I emailed them to let them know, but heard nothing back. I had several clients on this software but due to their original statement saying they wouldn't be going down the MTD route I migrated them to another package as year-ends passed to ensure compliance. What a waste of my time and effort!

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By andy.partridge
20th Dec 2018 10:30

I feel sorry for those, especially the small businesses, who have gone out of their way to develop bridging software on the basis that VT announced they would not be MTD compliant and would not be working to be. Good news, but poorly handled.

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By Ruaraidh Morrison
20th Dec 2018 10:40

Very frustrating for small accountants to call this so late in the day. If I had known this I would have kept my clients on VT, however, had to move with the times and moved more clients onto QB/Xero online. Could easily have kept VT for clients where I do the book-keeping for them. I still see the advantages of QB/Xero online where client does the book-keeping themselves and I can view the book-keeping. Pretty sure MTD does not allow for backups to be restored and worked on so still no "live" solution to VT???

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By BirdnCo
20th Dec 2018 10:54

This is great news! VT Transction+ and VT Final Accounts are excellent packages.

We would have continued using VT Transaction+ with bridging software but this is even better. I am so pleased we did not sign up to other packages as we were so close to doing so!

Shame VT Software didn't decide this earlier though?

Thanks (4)
By ireallyshouldknowthisbut
20th Dec 2018 11:18

I am surprised so many firms have ditched VT and moved to cloud on the back of what seems to be a basic misunderstanding about what MTDfV is about, and what is required.

It seems that HMRC's "pro cloud" propaganda has worked.

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Jennifer Adams
By Jennifer Adams
20th Dec 2018 13:02

As mr mischief says... great! what a relief!
But as others have said - I am annoyed at this late stage. They could have given us some indication that they were at least thinking about it.
I've moved my VAT return clients onto Clearbooks a over a year ago to give me time to get acquainted with the software and lets just say its not been an easy experience although I do love the bank statement automatic input facility. Their support is good though.
So after spending all that time getting my head round the software and to take advantage of the bank input facility I am inclined to stick to them for VAT only and stay with VT for the remainder.
And I echo what birdman says what a waste of time and effort. Especially time.

Thanks (0)
Replying to Jennifer Adams:
Chris M
By mr. mischief
20th Dec 2018 17:01

At least Clearbooks actually respond to good feedback. My first Clearbooks client had £30k VAT not claimed, because by default the VAT return only picked up dates within the VAT quarter.

I suggested that best practice was to set the default to pick up all dates up to the quarter end date, so that late posted items from earlier quarters would be included. And they changed it right away, so everyone could benefit!

I have made similar reports of system weaknesses to xero and QBO and just been totally ignored, the flaws are still there 2 years down the tracks.

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Chris M
By mr. mischief
20th Dec 2018 16:58

I have every sympathy with VT and all other software developers who have waited. HMRC have been constantly moving the goalposts, and the likes of the House of Lords have totally trashed MTD, quite rightly.

In my view HMRC are very lucky that the Government only care about 1 issue - Brexit - even though they are making a total mess of that 1 issue. In normal times HMRC would have been told to sort out MTD before making businesses comply.

I have said all along in numerous posts on here that I was going to wait until the last possible moment before making any radical decisions, like moving on to much slower and inferior software like Xero or QBO.

I know it has been difficult with all the pressure from the vested interests trying to make everyone buy their junk earlier. But if you had the bottle there were enough other voices out there putting forward a rational alternative "just in time" strategy that you don't really need to be bleating on here about having migrated early.

That said, the real culprits are the numpties who run HMRC. Merry Christmas to one and all except the HMRC numpties!

Thanks (2)
Replying to mr. mischief:
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By Mrs_G
20th Dec 2018 21:31

I wouldn't call Quickbooks and Xero inferior to VT. More like apples and pears. We use all three for different types of clients and needs.
PS: To be fair I'd happily ditch Xero though!

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Replying to Mrs_G:
Chris M
By mr. mischief
21st Dec 2018 10:34

I would say that both Xero and QBO are greatly inferior when it comes to the production of final limited company accounts.

Clients will have posted stuff to the wrong areas, or want adjustments. This in turn adjusts the corporation tax, possibly some key notes like directors' disclosures or fixed assets.

Let me take a simple example. You post through an interest charge to a director. That adjusts the corporation tax charge.

In VT it takes about 1 minute to post this through and have draft accounts ready to submit to Companies House.

If anyone using Zero or QBO can do this in less than 4 minutes please post details of how you are doing it.

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By Aamer Amin
20th Dec 2018 15:05

Great news! VT Transaction+ is very useful, convenient and user friendly software especially for practice accountants, I was thinking about few clouds software and have decided for taxcalc bridging software, but this news is even better, thanks VT.

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By Ken Howard
20th Dec 2018 16:30

Brilliant, thank goodness I decided to wait and see what happens. I very nearly migrated my VT clients onto MTD compliant software, but held back in the hope MTD would get delayed. Now I can forget about it and stay with VT.

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By Ken Howard
20th Dec 2018 16:30

Brilliant, thank goodness I decided to wait and see what happens. I very nearly migrated my VT clients onto MTD compliant software, but held back in the hope MTD would get delayed. Now I can forget about it and stay with VT.

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By Matrix
20th Dec 2018 20:33

I have made no changes since there is no suitable alternative for my clients who use VT.

I would never move a client due solely to MTD, there would have to be other benefits such as real time advice. Clients choose.

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By Dean012
26th Dec 2018 14:04

great discussion.

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By Bill H
04th Jan 2019 17:33

I am totally confused! A colleague of mine went to a Barclays Bank seminar on MTD and they said that bridging software and spreadsheets will not be allowed to be used by HMRC. I have a couple of clients who have IT PSC's who will have to close down next April because of the new rules on employment status. I was going to advise them to continue doing their VAT from April 2019 on spreadsheets using bridging software for that one year. Have they now got to purchase a VAT filing program. Interesting to hear John Stokdyk now having doubts about MTD coming in on Brexit worries. Hopefully somebody will come to their senses and drop the whole thing before an inevitable car crash! 80% of accountants are not prepared and I am one of them! 95% of small businesses who take no advice have not got a clue. BH

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