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Making Tax Digital

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  • AbbieCadabra
    AbbieCadabra Posts: 1,706
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    our DD transferred across ok as I've had an email today from HMRC advising that the payment is due to be taken soon.

    I think it's been more luck than judgment on my part that it's worked ok as I probably just caught it 'right' for registering for MTD, filing a return & time required for DD to transfer, but a refreshing change when something works!
  • zebedyboy
    zebedyboy Posts: 9
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    Being a small company of just 2, and only just exceeding the threshold, we are looking for a free or low cost bridging software for next VAT return submission in September for May, Jun, Jul. Does anyone recommend PORTICA or 100PcVatFreeBridge (Comsci) both free, or CMH bridge at £7.50 plus VAT per return. Or can you recommend any other low cost solutions to suit? My records are held in Excel 2010. I have not yet registered for MTD filing. Thank you.
  • Slinky
    Slinky Posts: 9,910
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    I am not aware of anyone being fined as yet for not using MTD, but this quarter about to end is the first mandatory quarter (there have been mandatory months).

    I am also unaware of any penalties for late submissions as yet.


    I've finished trading in my business now so submitted my VAT return (for quarter ending July 31st) using the old portal, and have paid what I owe. I've also deregistered. Can't see what they would have to complain about.
    Make £2024 in 2024
    Prolific to 29/2/24 £184.97, Chase Interest £11.88, Chase roundup interest £0.18, Chase CB £16.96, Roadkill £1.10, Octopus referral reward £50, Octopoints £6.30 to 31/1/24, Topcashback £4.64, Shopmium £3
    Total £279.03/£2024  13.8%

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    Total: £2606.33/£2023  128.8%

  • AbbieCadabra
    AbbieCadabra Posts: 1,706
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    zebedyboy wrote: »
    Being a small company of just 2, and only just exceeding the threshold, we are looking for a free or low cost bridging software for next VAT return submission in September for May, Jun, Jul. Does anyone recommend PORTICA or 100PcVatFreeBridge (Comsci) both free, or CMH bridge at £7.50 plus VAT per return. Or can you recommend any other low cost solutions to suit? My records are held in Excel 2010. I have not yet registered for MTD filing. Thank you.

    I've used the portico free bridging software for our 1st return without any issues, very straight forward to use & received by HMRC almost instantly. Just allow a few days for HMRC to process your MTD registration as it took a full 2 days to receive our confirmation when registering recently.
  • Ash_Pole
    Ash_Pole Posts: 308
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    Does anyone know if these free bridging software will cope with a partial exemption calculation? This is for a charity using Sage50.
  • Pennywise
    Pennywise Posts: 13,468
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    Ash_Pole wrote: »
    Does anyone know if these free bridging software will cope with a partial exemption calculation? This is for a charity using Sage50.

    As far as I know, bridging software just picks up the VAT return box figures from your software/spreadsheet and populates them into a system that allows for electronic submission to HMRC as required - they don't actually "do" any calculations etc.

    You partial exemption calculations would still, presumably, be done as you do them now, i.e. maybe in a spreadsheet, so you'd link the Sage output to your spreadsheet, then do the partial exemption number crunching in your spreadsheet to produce the VAT return box figures, which is what you link via bridging software to HMRC MTD system.

    That's my understanding of how it will work, from what I've seen and read on forums like this and some courses I've been on. I've not yet seen any bridging software in use, so there may be some that are a little more functional than an automated "copy and paste" routine.

    Alternatively, can you not do journal adjustments within Sage to make the necessary changes to each VAT return box and then continue to use Sage to make the automatic submission to HMRC using their MTD system?

    Have you asked on the Sage forums - there'll be a lot of people in your position.
  • Pennywise wrote: »
    As far as I know, bridging software just picks up the VAT return box figures from your software/spreadsheet and populates them into a system that allows for electronic submission to HMRC as required - they don't actually "do" any calculations etc.

    That's exactly what 100PcVatFreeBridge does and probably most other bridging solutions, apart from the simple calculations for Box 3, total VAT due and Box 5 VAT Payable / Reclaimable. Just a means of submitting your return electronically in an MTD compliant fashion.
  • Ash_Pole
    Ash_Pole Posts: 308
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    Pennywise wrote: »
    As far as I know, bridging software just picks up the VAT return box figures from your software/spreadsheet and populates them into a system that allows for electronic submission to HMRC as required - they don't actually "do" any calculations etc.

    You partial exemption calculations would still, presumably, be done as you do them now, i.e. maybe in a spreadsheet, so you'd link the Sage output to your spreadsheet, then do the partial exemption number crunching in your spreadsheet to produce the VAT return box figures, which is what you link via bridging software to HMRC MTD system.

    That's my understanding of how it will work, from what I've seen and read on forums like this and some courses I've been on. I've not yet seen any bridging software in use, so there may be some that are a little more functional than an automated "copy and paste" routine.

    Alternatively, can you not do journal adjustments within Sage to make the necessary changes to each VAT return box and then continue to use Sage to make the automatic submission to HMRC using their MTD system?

    Have you asked on the Sage forums - there'll be a lot of people in your position.

    Thanks for the reply.

    We've had a bit of a ding-dong with Sage about this. We purchased Sage50 outright a couple of years ago but Sage told us we needed to upgrade to the cloud system to do MTD at extra cost. Then we discovered this won't handle a group/partial exemption calculation anyway and we'd need additional bridging software.

    Fortunately we've got a deferral until the end of the year before having to submit using MTD.
  • johnhemming
    johnhemming Posts: 22
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    Vat returns where there are adjustments to be made generally need bridging because many cloud systems cannot take the adjustments. Domestic Reverse charge will add some extra complications to this later this year.

    There are, however, now over 400 MTD applications and a goodly number are free.
  • Ash_Pole
    Ash_Pole Posts: 308
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    I've just come across an article on MTD which said this -

    "after 1st April 2020 HMRC have advised that the current permitted manual transfer of data into the primary accounting system to facilitate MTD filings, will be prohibited and this can only be done going forward via a digital upload into the primary accounting system."

    We have two separate applications for different business areas that produce revenue reports at the end of the month that are downloaded into a spreadsheet, a journal created, and then manually entered into Sage.

    Is this then going to be non-compliant from 2020? If so what if we used the Sage import function to upload the journal from Excel, would that be ok?
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