Vat - flat rate scheme


I’ve just opened a Quickfile account in order to comply with the HMRC’s Making Tax Digital requirements. I am a sole trader operating under the flat rate scheme. I do not have any accounting records apart from my income from this accounting period, as the flat rate scheme does not require them. I have linked my account to HMRC and attempted to file the return. I get this error message:

Error: Under the Making Tax Digital rules VAT returns should be supported by accounting records. This VAT return appears to consist only of adjustments and cannot be submitted to HMRC. If you prefer to submit your return from an Excel document then please use the VAT bridging module instead.

What do I do?


Please note this message at the top of your vat return

You need to go into Reports > Vat Returns > Settings

Set the VAT Filing Start date to the start of the period you are submitting (01/07/2022) as currently your invoice (30/09/2022) is before 13/10/2022 and not being picked up by the return.

Thanks so much - that is really helpful

The flat rate scheme does still require you to issue normal VAT invoices to your customers, and in order to comply with MTD those invoices should be issued using software and the data must feed through electronically from that software right through to your MTD VAT return in QuickFile.

The simplest case is for you to use QuickFile itself to issue your invoices to customers and record your customer payments, and the VAT return will populate automatically from those records. If you are issuing your invoices from some other software then you would need to use the QuickFile “bridging” module to submit a VAT return from a spreadsheet that the other software generates.

In particular it would not be compliant with MTD if you were generating your customer invoices on paper or in some other software, adding up the total income for the quarter and then copying that total by hand or by copy-and-paste into a single quarterly “invoice” in QuickFile. Under MTD your records must be electronic and there must be an unbroken chain of digital links from the initial records to the VAT return with no manual transcription or copy and paste.


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