my invisible text
Categories
  • TIMELINE

Making Tax Digital for VAT from 1 April 2019

<<

Gary Barker

User avatar

2 Star Contributor

Posts: 161

Joined: Fri Jun 20, 2014 2:23 pm

Country: United Kingdom (uk)




Post Thu Dec 27, 2018 7:20 pm

Making Tax Digital for VAT from 1 April 2019

Hi All
Are you all aware that VAT returns now have to be done direct with your accounts software? currently Sage and QuickBooks offer this.

Its all part of the government making tax digital
(https://www.gov.uk/government/publicati ... al-for-vat)

if so which programme are you using? is it easy to use ?

Thanks Gary
<<

Robert Walker

User avatar

3 Star Contributor

Posts: 294

Joined: Sat Sep 11, 2010 11:09 pm

Country: United Kingdom (uk)




Post Thu Dec 27, 2018 9:43 pm

Re: Making Tax Digital for VAT from 1 April 2019

Been using this feature for a while with XERO, didn't know it was going to be compulsory
<<

Chris Wilson

4 Star Contributor

Posts: 326

Joined: Sun Aug 07, 2016 11:54 am





Post Thu Dec 27, 2018 9:57 pm

Re: Making Tax Digital for VAT from 1 April 2019

We use QuickBooks.

Fairly easy system to use. My accountant has just sent me a quote for the next year and honestly thinking on telling him no. All he does is glance over them and submit them.
We run payroll etc through it to.

What I would say is there is ALOT of features so it takes a while to link everything up and work it all out. I would also suggest everything gets paid by card or BACS.
<<

Carl Morton

User avatar

Premium Member
Premium Member

Posts: 8

Joined: Fri Mar 24, 2017 10:36 pm

Country: United Kingdom (uk)




Post Thu Dec 27, 2018 10:11 pm

Re: Making Tax Digital for VAT from 1 April 2019

We use Xero, it's simple enough to use and has got some great features.
<<

David Hammond

User avatar

Premium Member
Premium Member

Posts: 3262

Joined: Wed Jan 05, 2011 11:17 am

Country: United Kingdom (uk)




Post Fri Dec 28, 2018 7:51 am

Re: Making Tax Digital for VAT from 1 April 2019

We use sage essentials, not a fan of subscription's for my accounts package.

I think any accounts software takes a little bit of learning to understand how to use it effectively.
<<

Steve Newell

User avatar

Silver Member
Silver Member

Posts: 95

Joined: Thu Dec 14, 2006 4:40 pm

Country: United Kingdom (uk)




Post Fri Dec 28, 2018 7:23 pm

Re: Making Tax Digital for VAT from 1 April 2019

I’ve been using Sage one accountant for about a year now and wished I’d done it years ago. It makes Accounting and especially VAT a lot easier. It automatically calculates your VAT and then sends it via the gateway.
<<

Kevin Busby

User avatar

4 Star Contributor

Posts: 348

Joined: Mon Dec 31, 2012 1:02 pm

Country: United Kingdom (uk)




Post Sat Dec 29, 2018 12:38 pm

Re: Making Tax Digital for VAT from 1 April 2019

been using Kashflow for a few years now after moving from sage, very useful and reasonable price.
<<

Robert Lambie

User avatar

*****
*****

Posts: 27158

Joined: Wed Dec 12, 2001 1:00 am

Country: United Kingdom (uk)




Post Sat Dec 29, 2018 1:31 pm

Re: Making Tax Digital for VAT from 1 April 2019

Steve Newell wrote:I’ve been using Sage one accountant for about a year now and wished I’d done it years ago. It makes Accounting and especially VAT a lot easier. It automatically calculates your VAT and then sends it via the gateway.


I agree with Steve, we have been using it for around 4-5 years now I think.
Same applies with SageONE Payroll, all integrated into the same system.
The software itself is very easy to use, it all connects directly to HMRC and does the VAT return etc all in a few clicks.
With it all being cloud-based, you can work on it from your mobile phone, laptop or desktop. No downtime, hard drive fails to worry about and you have 24/7 phone support if needed.
<<

David Hammond

User avatar

Premium Member
Premium Member

Posts: 3262

Joined: Wed Jan 05, 2011 11:17 am

Country: United Kingdom (uk)




Post Thu Jan 03, 2019 7:26 pm

Re: Making Tax Digital for VAT from 1 April 2019

Here's my gripe with MTD.

We use a desktop version of Sage, that has provided the ability to submit VAT returns as standard for the 8 years I have used it. The basic version we use costs about £100, and we update every 2-3 years... there's very few new features that make it worth upgrading more regularly.

Now in order to submit VAT returns from April, I need to pay £10 pcm for sages AddOn... even if I updated to the latest version of their desktop app.

Or I could pay £18 pcm, for their 50c edition.

Either way I now have to fork out a minimum of £120 a year to submit a f**kin VAT return.

I'm tempted to reclaim the full £30 a quarter from HMRC on each return :bangshead:
<<

Gary Barker

User avatar

2 Star Contributor

Posts: 161

Joined: Fri Jun 20, 2014 2:23 pm

Country: United Kingdom (uk)




Post Thu Jan 03, 2019 7:34 pm

Re: Making Tax Digital for VAT from 1 April 2019

Ive been told that sage cloud version isn't compatible with the desktop version, so you have to start from fresh on cloud, I'm not 100% this is correct.
<<

David Hammond

User avatar

Premium Member
Premium Member

Posts: 3262

Joined: Wed Jan 05, 2011 11:17 am

Country: United Kingdom (uk)




Post Thu Jan 03, 2019 7:40 pm

Re: Making Tax Digital for VAT from 1 April 2019

50c is a desktop version with a sync to the cloud... they do have a full cloud version.

Either way why do I need to pay a subscription to submit a tax return?
<<

Gary Barker

User avatar

2 Star Contributor

Posts: 161

Joined: Fri Jun 20, 2014 2:23 pm

Country: United Kingdom (uk)




Post Thu Jan 03, 2019 7:44 pm

Re: Making Tax Digital for VAT from 1 April 2019

its because of VAT Fraud, in time they will be able to see the invoices, so they can check your invoice (vat number) against the one your claiming it back from, but yes I agree its just another tax we have to pay. :bangshead:
<<

David Hammond

User avatar

Premium Member
Premium Member

Posts: 3262

Joined: Wed Jan 05, 2011 11:17 am

Country: United Kingdom (uk)




Post Thu Jan 03, 2019 7:47 pm

Re: Making Tax Digital for VAT from 1 April 2019

So why do I have to pay, so HMRC can spy on us?

I ain't doing it.

I'm not updating my software, or paying a subscription, I will post HMRC a cheque each quarter showing willing in paying what is due, but I refuse to have additional costs imposed on me.
<<

Phill Fenton

User avatar

Premium Member
Premium Member

Posts: 11019

Joined: Tue Apr 30, 2002 11:04 pm





Post Fri Jan 04, 2019 11:24 am

Re: Making Tax Digital for VAT from 1 April 2019

HMRC will probably charge you an admin fee to process your cheque. Worse still they may put you on their hit list and go after you. I've been brought up to believe you should never pick a fight with HMRC. If you are on the flat rate scheme you've probably saved yourself thousands of pounds in tax already, enough to fund this additional expense and more. The flat rate scheme was introduced a number of years ago and is quite generous in the way it calculates your liability. This was introduced to simplify the VAT owed and favours the honest trader
<<

David Hammond

User avatar

Premium Member
Premium Member

Posts: 3262

Joined: Wed Jan 05, 2011 11:17 am

Country: United Kingdom (uk)




Post Fri Jan 04, 2019 11:29 am

Re: Making Tax Digital for VAT from 1 April 2019

We're on the standard scheme, doing cash accounting.

It's no so much HMRC, it's the fact I'm now forced to pay a subscription... I may have found a free bridging software that will work around it.

I've never been a fan of SaaS, and whilst everyone sings about the regular updates, I can recall one update we did just for one feature.

Same with Adobe, I wont use their CC, as CS5 does everything I need, I've seen no new features that make me wish I was paying £xx a month for it. :tongue:
<<

Phill Fenton

User avatar

Premium Member
Premium Member

Posts: 11019

Joined: Tue Apr 30, 2002 11:04 pm





Post Fri Jan 04, 2019 11:33 am

Re: Making Tax Digital for VAT from 1 April 2019

In that case I urge you to do a comparison and look into switching to the flat rate scheme. You could save yourself a fortune, and I would be quite happy to accept a small emolument from you on a monthly subscription basis as a thank you for my well meaning advice...
<<

David Hammond

User avatar

Premium Member
Premium Member

Posts: 3262

Joined: Wed Jan 05, 2011 11:17 am

Country: United Kingdom (uk)




Post Fri Jan 04, 2019 11:39 am

Re: Making Tax Digital for VAT from 1 April 2019

My understanding on the Flat Rate scheme, is that you can't reclaim the VAT on purchases?

So you cannot reclaim the VAT on your materials, rent, utilities, etc.

You then invoice the jobs, with 20% VAT, but only pay the % they stipulate (perhaps 15%) and you get to keep the 5%?

So you're paying the Gross price for materials, then adding 20% on that?

Perhaps I've gotten it wrong... I'll quiz the accountant and see what he says.
<<

Phill Fenton

User avatar

Premium Member
Premium Member

Posts: 11019

Joined: Tue Apr 30, 2002 11:04 pm





Post Fri Jan 04, 2019 11:54 am

Re: Making Tax Digital for VAT from 1 April 2019

That's more or less correct but the percentage you pay on turnover is less than 15 percent so you do keep more. And you can still claim back VAT on major purchases over a certain value so you are not deterred from investing in new equipment but leasing becomes less desirable. Seriously, look into it.
<<

Hugh Potter

User avatar

Premium Member
Premium Member

Posts: 8386

Joined: Fri Jun 17, 2005 10:43 am

Country: United Kingdom (uk)




Post Sat Jan 05, 2019 10:48 am

Re: Making Tax Digital for VAT from 1 April 2019

David Hammond wrote:My understanding on the Flat Rate scheme, is that you can't reclaim the VAT on purchases?

So you cannot reclaim the VAT on your materials, rent, utilities, etc.

You then invoice the jobs, with 20% VAT, but only pay the % they stipulate (perhaps 15%) and you get to keep the 5%?

So you're paying the Gross price for materials, then adding 20% on that?

Perhaps I've gotten it wrong... I'll quiz the accountant and see what he says.


Pretty much it from my understanding. I'd never heard of it until a few years ago - it is mainly suited to people who don't buy much in the way of materials and supply mainly labour...

Eg. I have a good friend who works in the city, I presume on or near a 6 figure salary, rather than be employed he works on a 3yr rolling 'contract of employment', His reasoning for this... he lives on the family farm which is vat reg'd as whatever business name it uses, however, they don't buy much in as it's almost entirely livestock (lambs in the main) so they're on the flat rate. As a result of having to be vat reg'd, he contracts himself to the employer through the farm but, charges his salary plus 20% vat, the business don't mind as they're vat reg'd too and get it back.. in the mean time, he adds 20% to his salary but only pays 11 or 12% on his flat rate vat.. earning an extra 8% for doing.... fair play!! :claps:
<<
User avatar

L-Gold Member
L-Gold Member

Posts: 4568

Joined: Tue Oct 15, 2002 9:18 am





Post Sat Jan 05, 2019 12:54 pm

Making Tax Digital for VAT from 1 April 2019

We have been in the flat rate scheme for years and for me works well, you can’t claim vat back unless it’s for one item purchased over £2000 and only on certain items, new van, computer etc I leave this to my accountant so don’t hold me to amounts.Im not sure what rate we are on but it does simplify things, although this for me has to change due to starting a limited company as I have had to pay 40% tax on some profit , we use Sage line 50 and will be going to Sage cloud in the next few months
<<

David Hammond

User avatar

Premium Member
Premium Member

Posts: 3262

Joined: Wed Jan 05, 2011 11:17 am

Country: United Kingdom (uk)




Post Sat Jan 05, 2019 1:21 pm

Re: Making Tax Digital for VAT from 1 April 2019

There is bridging software that will make sage MTD compliant no need for their subscription :wink:
<<

Gary Barker

User avatar

2 Star Contributor

Posts: 161

Joined: Fri Jun 20, 2014 2:23 pm

Country: United Kingdom (uk)




Post Sat Jan 05, 2019 8:14 pm

Re: Making Tax Digital for VAT from 1 April 2019

Whats it called Dave ?
<<

David Hammond

User avatar

Premium Member
Premium Member

Posts: 3262

Joined: Wed Jan 05, 2011 11:17 am

Country: United Kingdom (uk)




Post Sat Jan 05, 2019 8:26 pm

Re: Making Tax Digital for VAT from 1 April 2019

MTD Submission Pro - https://www.dcsoftware.co.uk/MTDfVAT

Free until March 2020, then it's £20 P/A

You can export you VAT return from Sage as an excel file, then import the excel file into the software to do the submission :thumbsup:

It's currently running in Demo Mode until MTD goes live, so you can experiment and try it out, but my dummy runs take a couple more minutes than they do through Sage alone so worth the £100 saving.

I may update to 50c in September, as I've paid up for sage cover to enable bank feeds until then, in September for £4.00 more I can get the latest software.
<<

Gary Barker

User avatar

2 Star Contributor

Posts: 161

Joined: Fri Jun 20, 2014 2:23 pm

Country: United Kingdom (uk)




Post Sat Jan 05, 2019 10:22 pm

Re: Making Tax Digital for VAT from 1 April 2019

Thank you.
<<

Jason Davies

User avatar

5 Star Contributor

Posts: 1271

Joined: Tue Mar 21, 2006 11:26 pm





Post Sun Jan 13, 2019 6:53 pm

Re: Making Tax Digital for VAT from 1 April 2019

Is this just making your VAT return online?
<<

Phil P Davies

User avatar

1 Star Contributor

Posts: 70

Joined: Thu Jun 16, 2016 8:37 am

Country: United Kingdom (uk)




Post Sun Jan 13, 2019 7:07 pm

Re: Making Tax Digital for VAT from 1 April 2019

Jason Davies wrote:Is this just making your VAT return online?


First stage is.
https://www.icaew.com/technical/tax/mak ... businesses

Return to Say Hello & Off Topic Chat



 

About
Contact
Board Rules
Membership
Terms & Conditions

 

Signapp - iPhone & iPad
Signapp - Android
Vehicle Wrap Training
Vinyl Application Training
Vehicle Wrap Accreditation
UK Sign Group
Site Membership
Advertising
Videos
British Signs & Graphics Assoc.

 

 Facebook
 Twitter
 Youtube
 Linkedin

 

Who is Online

In total there are 94 users online ::
7 registered, 0 hidden and 87 guests
[based on past 5 minutes]

Most users ever online was
370 on Tue Aug 28, 2018 5:02 pm

Registered users:
Alex Crosbie, Jean jenkins, Luke Culpin, Robert Neill

Copyright © 2000 - 2019 Robert Lambie