I’m about to use MTD for VAT returns for the first time. I was under the impression that some sort of excel file would be created to submit to HMRC with the return.
I am on the flat rate scheme, so the VAT return is simply a statement of my turnover and a flat rate applied to that.
Should there be a spreadsheet attached when submitting flat rate via MTD?
I’ve clicked on PREPARE and it looks like the VAT submission with no attachments?
Any help appreciated.
Ben
I’ve seen the following online in MANY places:
If you account for VAT using the flat rate scheme: you do not need to keep a digital record of your purchases unless they are capital expenditure goods on which input tax can be claimed.
However I can’t find the official version on hmrc website.
Is the above correct?
The way MTD works you have to use compatible software to keep your records, calculate the return, and submit the box 1-9 totals to HMRC via an API. The backing records and calculations are not sent to HMRC routinely but they must exist and you must be able to demonstrate that you’re following the rules if you ever get inspected.
my question was whether any sales or purchase data needs to be sent to hmrc in mtd vat returns for flat rate scheme.
so either the info I’m seeing a lot of (“If you account for VAT using the flat rate scheme: you do not need to keep a digital record of your purchases unless they are capital expenditure goods on which input tax can be claimed.”) is wrong, or you are wrong?
The records and calculations all exist in quickfile, its just I dont have records or every invoice for every expenditure, as its not required on flat rate VAT (that was the point of flat rate, to minimise the record keeping and simplify the process)
from VAT Notice 733: Flat Rate Scheme for small businesses - GOV.UK
The Flat Rate Scheme is designed to simplify your records of sales and purchases. It allows you to apply a fixed flat rate percentage to your gross turnover to arrive at the VAT due.
Fixed rate percentages vary depending on the type of business.
The main benefits of the scheme are:
No actual sales or purchase details are sent to HMRC under any VAT scheme - all they ever receive in the return submission is the nine box totals and that hasn’t changed under MTD.
You are correct that you don’t have to record all the details of your purchases and the net/VAT breakdown specifically for VAT purposes when you’re on flat rate, but you still need to know the overall totals to be able to do your other taxes correctly (income tax self assessment, or corporation tax and annual accounts if you’re a ltd co).
Thanks ian_roberts, that makes much more sense. I was under the impression the MTD VAT meant that additional details were sent to hmrc, but its good to know that this is incorrect. Thank you for elaborating. Of course I keep all records to allow general accounting, but its not needed specifically for mtd vat.
many thanks for taking the time to explain.
Ben
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