Making Tax Digital / HMRC VAT returns

[Michael Matthews]

And for a few other software houses.  This has been creeping up on UK businesses without any warnings from HMRC.  Unlike pensions, and other new things, the UK govt has kept very quiet so far.

And only v8.1 with the REST function will work reliably I would imagine.  We are already working on this, such deep joy. :)

Mike

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> On 30 Aug 2018, at 17:37, Simon Dorset via omnisdev-en <omnisdev-en at lists.omnis-dev.com> wrote:
> 
> Thanks Mike,
> 
> I'll have a read of those.
> 
> I've got some really old Omnis 7 system still running quite happily, this is going to be the end of them. 
> 
> 
> 
> -----Original Message-----
> From: omnisdev-en <omnisdev-en-bounces at lists.omnis-dev.com> On Behalf Of Michael Matthews via omnisdev-en
> Sent: 30 August 2018 17:25
> To: OmnisDev List - English <omnisdev-en at lists.omnis-dev.com>
> Cc: Michael Matthews <omnis at lineal.co.uk>
> Subject: Re: Making Tax Digital / HMRC VAT returns
> 
> What we know so far...
> 
> https://www.gov.uk/government/publications/vat-notice-70022-making-tax-digital-for-vat <https://www.gov.uk/government/publications/vat-notice-70022-making-tax-digital-for-vat>
> 
> https://www.gov.uk/government/publications/making-tax-digital-for-business-stakeholder-communications-pack <https://www.gov.uk/government/publications/making-tax-digital-for-business-stakeholder-communications-pack>
> 
> https://www.gov.uk/government/publications/software-suppliers-supporting-making-tax-digital-for-vat <https://www.gov.uk/government/publications/software-suppliers-supporting-making-tax-digital-for-vat>
> 
> Start date
> We expect that a business will be have to keep digital records and submit its VAT returns digitally with effect from the first VAT return period beginning on or after 1 April 2019.
> Exemptions
> The exemptions that currently apply for electronic VAT filing will be extended to cover MTD for VAT. There will be an automatic exemption for businesses which are registered for VAT but have turnover below the threshold. These businesses must elect for the exemption not to apply if they wish to submit their VAT information under MTD.
> Free software
> At this time we understand there will be no free software for MTD for VAT. HMRC is working closely with software providers to ensure a range of suitable products will be available.
> Software requirements
> Commercial software must be able to:
> • Keep records in a digital form.
> • Preserve digital records in a digital form.
> • Create a VAT return from the digital records.
> • Provide HMRC with VAT data on a voluntary basis.
> • Receive information from HMRC via the API (application programme interfaces) platform. This will allow HMRC to send ‘nudges’ to the business/agent.
> Spreadsheets
> The use of spreadsheets will be permitted although they will need to be combined with third-party commercial software, using APIs, to ensure a seamless flow of data from the business to HMRC (and vice versa). 
> Digital record-keeping requirements
> HMRC has confirmed that the requirement to keep digital records does not mean that businesses will have to make and store invoices and receipts digitally. Businesses can continue to keep documents in paper form if they prefer, although transactions will need to be stored digitally.
> HMRC has stated that the following records will need to be kept digitally:
> 
> Designatory data: 
> • Your business name
> • The address of your principle place of business • Your VAT registration number • A record of any VAT accounting schemes that you use. 
> 
> For each supply you make you must record: 
> • The time of supply
> • The value of the supply
> • The rate of VAT charged. 
> 
> If you make multiple supplies at the same time these do not have to be recorded separately. You can record the total value of supplies on each invoice or receipt that have the same time of supply and rate of VAT charged. You must also have a record of outputs value for the period split between standard rate, reduced rate, zero rate, exempt and outside the scope   outputs. 
> 
> For each supply you receive you must record: 
> • The time of supply
> • The value of the supply including any VAT that is not claimable by you • The amount of input tax that you will claim. 
> 
> If more than one supply is on an invoice you can record the totals from the invoice. 
> 
> VAT account
> The VAT account is the link - the audit trail - between your business records and your VAT return. Under MTD for VAT, the information required to be held in the VAT account must be kept digitally (the regulations refer to this as your “electronic account”), and the information in that electronic account will be used by functional compatible software to calculate and fill in your VAT return. 
> 
> To show the link between the output tax in your records and the output tax on the return, you must have a record of: 
> • the output tax you owe on sales
> • the output tax you owe on acquisitions from other EU member states • the tax you are required to pay on behalf of your supplier under a reverse charge procedure • the tax that needs to be paid following a correction or error adjustment • any other adjustment required by VAT rules 
> 
> To show the link between the input tax in your records and the input tax on your return you must have a record of: 
> • the input tax you are entitled to claim from business purchases • the input tax allowable on acquisitions from other EU member states • the tax that you are entitled to reclaim following a correction or error adjustment • any other necessary adjustment 
> 
> Records must be kept for six years (or 10 years if you use VATMOSS). Digital records will need to be maintained for six years following deregistration.
> 
> 
> Mike