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VAT Affinity and MTD

From what I have seen from your blogs etc, anyone having to submit VAT returns under the new MTD rules will need to pay for a power subscription.

I have several clients, which are classed as small/medium, which do not have to pay for the power subscription, but are VAT registered. They have no access to the accounts, I just use it for basic bookkeeping. (I have separate email addresses for each client).

So as it stands, I would have to pay a power subscription for each client to be able to file under MTD.

I have just signed up for an affinity account. Am I right that the power subscriptions don’t need to be paid for large/xl clients within affinity?

What happens when the small/medium ones have to comply to MTD

  • would I need to pay for these small/medium clients when it comes to MTD in April?
  • Or, if I import into my affinity account, would there still be a fee? or is it part of the affinity fees I would pay instead?

MTD for VAT will not require a Power User Subscription, it will be available for all account types. This has always been the case for electronic VAT returns filed under the current system.

The income tax related MTD changes (period updates and end of year statements) scheduled to come in for April 2020 will require a Power User or Affinity subscription in order to make use of those online filing tools.

Yes that is correct.

In terms of the April 2019 MTD rollout those accounts may file as usual, no account upgrade will be necessary. They will just need to connect their QuickFile account to their HMRC Tax Account, which takes just a couple of minutes.

Hope that helps!

thank you, that’s cleared it all up for me

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