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Topics - johnhemming

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Digital Links / Validation of VAT return data
« on: 14 October, 2018, 10:01:54 AM »
Our system currently checks that the boxes add up to the right amount and won't submit a return where they don't.  It rounds the net amounts to pounds (which is what HMRC require) and reports that to the user.  However, it does not perform a reasonableness test on the net amounts (that they are greater than 5 times the vat or more).  Is there any need for that?

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Starting to use MTD including sanctions regime / VAT Numbers won't change
« on: 10 October, 2018, 12:33:33 PM »
The subject says it all really.   VAT Numbers will remain the same.   Businesses signing up for MTD will click on a link (we know what it is, but it is not publicly available as yet).   After that they will submit VAT returns through MTD.

It is, however, important to note that in signing up to MTD businesses are supposed to be recording their accounts electronically with digital links between them (see elsewhere in the forum).

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During the Mandatory period businesses will need to sign up to MTD, but only if they have a turnover in excess of the registration requirement (currently 85,000).

Obviously HMRC will not know whether or not a business is turning over that much until any VAT returns have been submitted.  An important point about this is that businesses will have to start keeping electronic records at the start of the VAT period (quarter or month), not just when they sign up for MTD.

Hence any business that is marginal as to whether they are turning over more than 85,000 should be careful not to find that they need to keep electronic records that they have not kept.

There will be sanctions for businesses that do not convert to MTD, but they are likely to be based around a points regime whereby the sanctions do not necessarily occur immediately, but only after a number of failures.  Hence if, for example, a business does not convert for the first quarter they may not be fined and will be able to use the old website for submitting the VAT return (which should be done on time).  However, they run the risk of being fined at some stage if they simply ignore the need to change.

Our recommendation is to simply get on with it and ideally that businesses should participate in the pilot scheme where possible.

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Starting to use MTD including sanctions regime / Open Pilot
« on: 10 October, 2018, 12:26:28 PM »
During the open pilot businesses will need to sign up to MTD.

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Starting to use MTD including sanctions regime / Closed Pilot
« on: 10 October, 2018, 12:23:27 PM »
The closed pilot will draw to an end in the near future.  During the closed pilots businesses need to be invited to join the pilot.

6
Developers are welcome to have a test account which enables test submissions to HMRC in order to test extracting data from other computer systems to submit it to HMRC.

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Converting data from Spreadsheets / Save as
« on: 10 October, 2018, 12:21:36 PM »
Most spreadsheet programs allow the users to save the data in different formats using "save as".  That is how we recommend that spreadsheet users generate the CSV file for submitting to MTD.

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Digital Links / Digital Links from other computer systems
« on: 10 October, 2018, 12:20:22 PM »
Our service takes in a CSV (Comma Separated Variables)file.  Details are on the website under Digital Links.
http://www.vat.direct

That is a straightforward easily auditable system for proving a digital link.  We are not sure how other systems operate. 

9
Audit Trails / Printing to PDF
« on: 10 October, 2018, 12:18:46 PM »
We have not as yet seen any advice from HMRC as to how to maintain the audit trail for digital links to prove compliance.  Our recommendation, therefore, is that businesses print the spreadsheets and files to a PDF format file (Portable Document Format) .  The advantage of this is that it freezes the data at the time the VAT return is submitted.  If that is then kept in a separate folder for each return then it will be easy to demonstrate the audit trail.


10
The VAT notice that is particularly relevant to MTD is the following one:

https://www.gov.uk/government/publications/vat-notice-70022-making-tax-digital-for-vat/vat-notice-70022-making-tax-digital-for-vat

In essence I like to describe it as meaning that once data is entered into the electronic records system (which can be one or more than one system) it is not retyped.   Hence any transfer of data is either through a transaction file being transferred from system to system, links between cells in a spreadsheet or some other digital form (which might be behind the scenes in computer program).


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