Making Tax Digital

Pennywise

J_B wrote: »

Our business is a Ltd Co, we have exceeded the 85K in setting up (*) but don't expect to do so from now on - when do they decide when the 85K is from??


(* = we've converted a redundant hotel to holiday letting apartments, so, most of the initial expenditure has been made)

The £85k threshold is on turnover (i.e. sales). Costs and purchases have no relevance to the registration threshold.

For MTD purposes, the rules are the same as VAT registration, i.e. turnover/taxable income in the preceding 12 month period. (ignoring exempt and out of scope income).

johnhemming

baz2277 wrote: »

So the bridging is only a temporary fix I think.

Bridging is not a temporary fix. It can be used for self-assessment as well

A lot of the bridging providers are offering free introductions and very few charge that much even at full price.

simondurkin

There is a piece of bridging software that you can use, it’s called “Vital Tax” and it’s an add on to Excel.

neilsedaka

"it’s called “Vital Tax” and it’s an add on to Excel."

Unfortunately not older versions of Excel.

johnhemming

This is HMRC's list of suppliers:
https://www.gov.uk/guidance/software-for-sending-income-tax-updates

Some of the bridging systems only handle Excel others do pretty well everything.

macawboy

Star_Style wrote: »

I just read on the HMRC's site that you are allowed to copy and paste the information into the boxes until 2020.

Hopefully, everyone will be able to choose the right software before then.

Or the HMRC might have developed free software for smaller businesses to use.

I am going to keep checking HMRC over the next 6 months and then make a decision.

Anyone else got a suggestion?

I am thinking of doing the same, so basically you can carry on as normal filling in the 9 boxes
until April 2020 .If you filled them in manually how would they tell that you have not copied and pasted them?

Pennywise

macawboy wrote: »

I am thinking of doing the same, so basically you can carry on as normal filling in the 9 boxes
until April 2020 .If you filled them in manually how would they tell that you have not copied and pasted them?

The same as with the figures themselves - it's all based on trust. If HMRC open an enquiry, then that's when they check the supporting paperwork, spreadsheets, software, etc., and it's then that you'll face penalties etc if anything is fundamentally wrong. So in the long term, not complying with the MTD rules will be treated/punished similarly to not declaring sales or not having supporting paperwork etc. With systematic failings, if you were caught out, you'd probably find yourself being checked more often.

macawboy

Pennywise wrote: »

The same as with the figures themselves - it's all based on trust. If HMRC open an enquiry, then that's when they check the supporting paperwork, spreadsheets, software, etc., and it's then that you'll face penalties etc if anything is fundamentally wrong. So in the long term, not complying with the MTD rules will be treated/punished similarly to not declaring sales or not having supporting paperwork etc. With systematic failings, if you were caught out, you'd probably find yourself being checked more often.

I am a sole trader Green Grocer and all my sales from the till are cash and all zero rated.
I am above the threshold so am currently registered for vat and get vat back on fuel and other things.
I do all my book keeping on a simple ledger and fill in the relevant boxes manually on my quarterly VAT return.
I am old school 65 years of age and although i get by using a computer i am not that good with the use of spread sheets and Excel.
I use an accountant for my tax return but with limited amount of spare cash i did not want to pay him to do my vat returns.
Any help in recommending a cost effective software to suit my business would be much appreciated.
Thanks in advance
Steve

Ozzuk

Pennywise wrote: »

You won't get any confirmation until HMRC decide what they're doing. There are no fixed plans to even do that yet, let alone imposing a date from which it would apply. Just lots of hot air from HMRC about what they'd like to do in the future and some very flimsy plans. A lot will depend on how much of a car crash the MTD introduction is in April this year, if it even happens in April.

We've since talked to a few accountants, and the HMRC who seem to think this next step is a done deal and will come into effect april 2020. It is also now published on the government website:

"HMRC will give businesses until 31 March 2020 to make sure there are digital links between software products. Before that date, cut and paste will be an acceptable way to transfer information."

Full link:

https://www.gov.uk/government/publications/making-tax-digital-how-vat-businesses-and-other-vat-entities-can-get-ready/making-tax-digital-how-vat-businesses-and-other-vat-entities-can-get-ready

kevin_grey

Hi,
MTD for VAT will come into effect on the 1st April, I have developed free software for anyone who wants to continue to use a spreadsheet or during the soft landing period (until 1st april 2020). This has been approved by the HMRC