- What is Making Tax Digital?
- MTD for VAT Overview
- What’s new?
- View open and filed VAT obligations
- View payments and liabilities
- New HMRC authentication process
- Joining the Pilot Scheme
What is Making Tax Digital?
As you may be aware, HMRC are embarking on a radical overhaul of the way taxes are filed in the UK. These updates involve a number of business taxes and is collectively referred to as Making Tax Digital (MTD).
We’ve blogged about MTD in the past, so if you need to get up to speed, take a look here.
MTD for VAT Overview
The first area of development will be focused on VAT, with the new VAT filing systems going live by April 2019.
In preparation we have been working with HMRC to develop a VAT filing solution for business owners and agents that utilises the new MTD capabilities. We are enrolled on the pilot scheme and are ready to invite willing participants to try out the new tools.
HMRC now provide more real-time information than was previously available. Under the current setup you could file your VAT return electronically with HMRC, and that was about it. With the MTD updates the following will now be supported.
View open and filed VAT obligations
You will be able to see a live picture of your VAT obligations, showing which periods have been received and what needs to be filed. For open periods you will simply be able to click on the corresponding link to instantly see a prepared VAT return, ready for submission.
View payments and liabilities
As well as VAT obligations, you will also be able to see your current liabilities and recent payments with HMRC. This will make it easier to reconcile your HMRC position with your accounting records in QuickFile.
New HMRC authentication process
With MTD comes a new authentication process for connecting QuickFile to your tax accounts. We’ve developed an area in QuickFile called ‘HMRC Connect’, from here you can connect your personal and organisation HMRC tax accounts and access the current and future filing capabilities deployed as part of the MTD programme.
For Accountants and Tax Advisers you can connect an Agent Services Account from within your Affinity dashboard. This will then allow you to instantly access reports and file for all your connected clients.
Joining the Pilot Scheme
In the early stages of the pilot scheme HMRC will only be able to support limited VAT filing scenarios. At the time of writing those eligible to join would need to meet the following criteria.
- No EC Sales or acquisitions (i.e. zero in boxes 8 and 9).
- Standard accrual or cash base VAT accounting methods. Flat Rate scheme is not currently supported.
- Payment returns only, repayments are not currently supported.
Within the next 7 days we will show a banner message (see below) in your account if you are eligible to join the pilot. This will ensure that we have been able to verify directly with HMRC that from previously filed returns you will be able to meet the criteria. If you would like us to manually check, just reply here or drop me a private message and we’ll look into this for you.
It should also be noted that if you decide to join the pilot scheme, you will not be subjected to any additional scrutiny or compliance auditing than you otherwise would be on the existing scheme. The pilot is designed purely to assess the smooth operation of IT systems.