Hi - I Have been using Quick file software to input figures re my quarterly flat rate Vat returns - All been very straightforward till the latest one - Apparently my inputed figures now have to be backed up by accountancy records software? - I dont have this - Why has this been changed since my previous returns which all went through fine - or am i doing something wrong now?
Do you use Quickfile for your records or just for filing vat returns? from what you’ve said it sounds like you’re using making tax digital which means you have to have the backing records. This is a HMRC requirement.
What’s changed since the last vat return? Have you switched to making tax digital?
Thanks for getting back Paul - I have submitted VAT returns to HMrC for my last 4 Quarters no problem at all via quickfile - I am on a flat rate scheme and just go through my bank accounts to check revenue over 3 months and apply 9.5% rate and enter figures on the online form and submit - Eazy Peezy - My accountant would charge approx ÂŁ150 per quarter for the same exercise over and above what they do for me now (Its a twenty minute job) - I have no idea why I am now being stopped from doing so but resent greatly that I may be forced into over- paying my accountant for this simple job - as a small two man Ltd bathroom/kitchen fitting contractor - I resent being treated the same as BP or Tesco re all the tax nonsense we are expected to put up with - seems like accountants have HMRCs ear when it comes to new demands on us - leading to even more fees for them! - very frustrated as you can see - But thanks for looking at this for me
Thanks for getting back James – I just use quick file for filing VAT returns – My accountant handles all other tax matters - I have submitted VAT returns to HMrC for my last 4 Quarters no problem at all via quickfile - I am on a flat rate scheme and just go through my bank accounts to check revenue over 3 months and apply 9.5% rate and enter figures on the online form and submit - Eazy Peezy - My accountant would charge approx £150 per quarter for the same exercise over and above what they do for me now (Its a twenty minute job) - I have no idea why I am now being stopped from doing so but resent greatly that I may be forced into over- paying my accountant for this simple job - as a small two man Ltd bathroom/kitchen fitting contractor - I resent being treated the same as BP or Tesco re all the tax nonsense we are expected to put up with - seems like accountants have HMRCs ear when it comes to new demands on us - leading to even more fees for them! - very frustrated as you can see - But thanks for looking at this for me
It sounds like you use a bridging module if all you do is go over your bank statements? From what you said it sounds like you don’t actually input any receipts or invoices to generate a vat return.
If this is the case maybe check that your subscription to the bridging mofule hasn’t expired?
BTW, ÂŁ150 a quarter to just submit your own figures is abit high imo.
If he was actually doing the work as in obtaining the figures I’d say that was cheap but if you are providing the figures for him to submit only, I’d advise you find someone else.
Hi @PCJOE,
Further to what @Paul_Courtier said to submit your returns using the Bridging Module requires a Power User Subscription (ÂŁ45+VAT) or a link to an Affinity account. You are able to submit the first return with no charge but after this you are required to make a payment.
This is probably what is stopping you from submitting your return. If you have an active subscription and are still unable to submit the return then please let us know and we can take a further look into this for you.
Hi Beth - I have submitted last 4 1/4s of my fixed rate vat returns with no problem on QuickFile - the latest one let me put in figures but would not complete upload to hmfc - I do no not have backup accountancy software being the reason ( I don’t - just worked it out in 5 minutes from figures in bank statements) - happy to pay £45 for bridging but not if I can’t input fixed rate vat figures without using accountancy software - I understand the need for accountancy software back up re standard vat treatment but not for fixed rate treatment - just meaningless red tape & expense in cases like mine - let me know what you think - thanks for helping - Steve
Hi Steve,
The subscription will allow you to continue to use the bridging module and input your own figures.
You are required to have a backup to show how you achieved the figures whether that is in QuickFile or not, but if HMRC were to audit your returns you need to have the backup documents to show where they came from.
In order to upload your bridging return you may just need to create a spreadsheet with the relevant figures in boxes that will map to the VAT return boxes, I’m not sure whether just typing them into the box is allowed/will work
If that is the case, and your accountant confirms that this is acceptable under the MTD rules, then you could just enter one dummy sales “invoice” into QuickFile dated on the last day of the quarter for that quarter’s gross total sales (you can enter it gross and let QuickFile back-calculate the net and 20% VAT), mark it as paid on the same date, and then submit your return in the normal way. That way the return would be pre-populated from your “accounting records” (i.e. the single quarterly invoice), adjusted for flat rate, and you wouldn’t have to use bridging.
But like I say, you will need to check with an accountant that this is a permitted way to do things under MTD - the rules as I understand them do now say that you are supposed to keep a digital record of each individual sale with its date, total amount and the VAT rate charged to the customer, so it may no longer be acceptable to just total up your bank entries like you have been doing pre-MTD.
Under mtd there has to be a digital link. Whether that be from a spreadsheet or from accounting software, either is fine, but if using a spreadsheet you can not copy and paste or manually type in figures, it has to have a way of exporting and importing that data digitally.
Furthermore, there also has to be a record of the transactions taking place, whether that be by writing down income and expenses or using accounting software.
What you can not do under mtd, is use a calculator to manually add up your bank statements and then input that info manually in to a vat return.
So I’d say the op has more worrying issues than getting the vat return to submit.
The thing is, just because you can do something doesn’t mean it’s OK. I could manually adjust all my VAT returns and pay no VAT ever, but that is called VAT fraud so I don’t do it. OP can manually enter figures calculated the non-HMRC way but it doesn’t mean it’s correct. The figures might be correct but if you get pulled for an inspection they’re going to be sat at your side for quite a while!
Hi guys thanks for all the comments - it appears what I need to do is# File a MTD VAT return for a flat rate schemeI may be wrong but it appears that QuickFile does not provide an option to do that? - or if they do perhaps the cost is prohibitive?
Unfortunately the tax system is so complex for Very small Ltd Cos that they are at the mercy of the accountancy industry it seems - the only major difference regarding tax treatment and reporting measures ( and late submission fines etc) between a two man ltd construction business and say BP is scale it seems - MTD certainly makes accountancy cheaper and more efficient - non sign of the benefits of such reaching small Cos like mine - self employment is hard enough - the Gov & HMRC determined to wipe it out it seems - no wonder the black economy is thriving and further undercutting legitimate small construction businesses - each wee builder needs an accountancy degree as well as construction talent - Or pay through the nose to subcontract it - getting to the point where lots of wee honest builders losing the will to be independent - someone spare us from new Cis ( gross paid subys and tax deducted subys) paye admin, vat admin, tax payment deadlines, personal taxes , corporation tax, dividend treatment, NI admin ( company & employee contributions) Compulsory pension regs and the much anticipated Soon to be joy of collecting VAT from subys for HMRC - and all before trying to figure out an excel sheet from a 4” nail
Surprised a brick or a tile ever gets laid - never mind the poor exhausted owner!
Rant over 
Quickfile does handle flat rate schemes. I just think the way your going about it is probably not right.
With regards to the system, yes being a construction worker you do have plenty of hurdles to jump through, but with reference to your previous comment, us accountants do not have hmrcs ear. Not at all.
We are the middle men that make sure you pay the correct amount of tax and vat and we make sure hmrc don’t take advantage which quite often with someone who’s unrepresented, they do.
I’d advise you seek one soon, they don’t have to be expensive and they will take a lot of strain off you and give you the free time to concentrate on laying that brick.
It’s as complicated as you make it. If you use Quickfile to do your bookkeeping most (all) of the figures will be in Quickfile so all you have to do is press a button and the VAT is done, correctly. I don’t know what you’re using for invoicing but if you’re thinking that knocking up an invoice in Word is free then as you have discovered this isn’t strictly true as it can cause complications further up the chain.
As for the independent contractor having to become an accountant, where does it say this? Your customers employ you as they do not have the skills to do what you do. They don’t go around moaning that someone is making them fit their own bathroom even though they aren’t up to the job, they get you to do it. Same for you and accountancy, if you can’t do it pay someone to do it. If you don’t want to then don’t be self employed, no-one is forcing you to run your own business and do your own books.
For the record, I’m in the construction industry, and the CIS and the new tax rules are ridiculous yes. But there’s nothing I can do about it and for the most part it doesn’t affect my day to day activities and I’m not worried about it as this is why I have an accountant on the books.
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