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From a chat with one of the partners in our firm it looks as though this is the bridging software we are going to be recommending to clients so I'm hoping it does the job .
Bridging software, as mentioned, is a reasonable solution for most people now but arguably not the intended long term solution HMRC imagined.
Sorry if it’s already been mentioned already but other than filing VAT returns, MTD is also about a wider push for digital record keeping.
In theory, to be MTD compliant you should also at least be keeping your records on some sort of spreadsheet or other electronic format.
Whether HMRC can really monitor that is a different question.
I didn't pass, but I don't hold him personally responsible.
What is being submitted to HMRC is the same nine figures as before. They don't get to see the back up figures or even if there was a digital link just from the submission. Last I heard, there are no plans to change this further down the line either (or at least for the foreseeable).
The only way they can check is by enquiring into a return and then they are actually quite limited in what they have access to. They don't have the right to access your digital records (i.e. they can't ask for login details for Xero etc or even to get the original excel files) all you have to provide them with is print outs of the data. Obviously this is easier to do if digital records are already being kept but, for the type of business likely to be keeping manual records, putting together an excel file after the fact wouldn't be that difficult as a "get out of the shit" move.
I suspect all this will change and they will be able to check digital links etc. at some point in the future and this will be retrospective.
Ultimately, as temping as it may be to fudge the system for those that can't be arsed with all this, I think we've got to assume that HMRC will be all over compliance checks after the 12 month soft launch period is over and they aren't stupid - they'll know who to target.
My problem will eventually be the software. I really object to a monthly rental, that's just being held hostage. I want a product I can manage locally, no cloud bollocks, and maybe pay an update fee for tax changes etc.
It's a fucking pain in the arse for me, because some (popular) accounting packages (Xero for instance) insist on all purchases being recorded as VAT and Non-VAT because their software can't handle postings with variable VAT rates.
When your software deals with pubs (and pub managers) who record petty cash purchases (for various things, Xmas decs, straws, napkins, some food items, stationery, whatever), and often have receipts with a mix of VAT and non-VAT items - and thus the VAT value for the receipt isn't always 20% or 5%.
As far as HMRC is concerned, this is perfectly acceptable, and we can (and do) produce exports which SHOULD import straight into Xero/Navision/Sun but Xero decided to make up their own rules and won't allow this. So now we're having to use a ridiculous amount of resources to try and accommodate this.
Just to be clear, I'm by no means suggesting that anyone who should be filing under MTD should take these measures. Loop holes only work for so long and, after the soft launch, I suspect none compliance will be met with hefty fines and HMRC will, no doubt, be all over it by then.
As @joneve alludes to, HMRC aren't actually really ready for all this but have stuck doggedly to the April roll out mainly, I think, because so many people said it wouldn't happen. We are less than 2 months from the proper launch of the system and there are still questions HMRC don't have answers for - the main one for us is that exemptions may be granted but there are no guidelines yet so HMRC can't actually decide whether someone is exempt or not. The only published info on this is to state that you may be exempt if MTD conflicts with your religious beliefs.
Take into account I have collected funds for them for over 40 years now - Never been paid for this service and never thanked - Now they want to devise some new format for submitting the same data
Nice to see others have picked up that HMRC are not ready as my accountants have expressed the same comments and have many other smaller businesses all asking the same questions
So you'll have to do it yourself.
Seems a sensible option - just tell customers to go fuck themselves and do it yourself because we can't be arsed to comply. haha.
Not sure I understand. What impact does VAT have on a pension?
takes minutes each month and I can use it on my phone.
I believe they are a private firm that handles pensions among other investment and finance stuff. I’ll grab the name of the company tomorrow if I remember
I am using Xero as the accountant likes it but if I was a slightly smaller business I would reach for quickbooks online I find it simpler and easier and it helps tidy all the other stuff up. Or if you just want what you have then look at those plugin mentioned above to do it in excel.
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