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Funny Farm

Is anyone else struggling to be MTD ready for VAT for April?

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I was just wondering how everyone's preparations with the HMRC making tax digital (MTD). So far it has been a nightmare as our current database is bespoke as we have multiple investors on individual vehicles. Finding something that suites our needs and links automatically to HMRC for has been a long and painful journey. :angry:

We asked HMRC for advice, there response was "we understand your issue, however we do not have a solution.. but Good luck". Today after speaking with Auto sales systems who showed me a demo, we may actually have something that suits our needs (Fingers Crossed).. :rolleyes:

We are not part of the HMRC VAT pilot scheme but would be interested to find out how business's that signed up to it are coping with it??

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Posted about this couple of months ago, we use pretty simple excel spreadsheets, don't have a workshop and just 1 valetor. Have had a look around and everything is much more sophisticated than what we need.... Hoping someone will bring out a simple API (interface) that will mean we can still used Excel (which HMRC have stated they are happy with) and basically transfer the numbers from excel into the API - which will communicate it to HMRC.

According to my accountant there are hundreds of thousands of businesses in the UK that aren't yet aware of the requirement both small ones who issue only a few invoices, and large ones with groups of companies who perhaps have multiple bespoke accounting systems - that quarterly produce a VAT summary and until now someone keys it in and send it....

The industry are saying someone will bring out a simple API but as yet no-one has broken cover............my take is that either the deadline will slip or they will run the old system in parallel until they have vast majority of companies sorted.......  

I'm not panicking yet, I understand the first new system electronic Vat return to be sent will need to be made at end of July - for the first accounting quarter....

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After speaking with HMRC yesterday, they will be issuing a new directive at the end of the month. What that is they would'nt say!. My guess is they will give business's more time until the software is compatible. We all know that HMRC want all your accounting accessible to them at a click of a button, but for some business's this is impossible until they simplify the tax system (especially Margin Scheme) and they bring out an accounting system we all can use. 

The cost to me is going to be £70 per month extra to fall in line with MTD. Their estimate was £70 per year.

 

 

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I already do my vat returns the new way its not differcult but can be a pain if you've been on the spread sheets for years. Your accounts should help you thats what they are there for. 

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My accountant does mine and is currently uploading everything to Xero at which point, I will take over and manage myself (once up to date).  Doesn't do VAT margin but that is a very easy calculation.

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4 hours ago, Willoughby said:

Have had a look around and everything is much more sophisticated than what we need.... Hoping someone will bring out a simple API (interface) that will mean we can still used Excel (which HMRC have stated they are happy with) and basically transfer the numbers from excel into the API - which will communicate it to HMRC

This is the same situation for us.

Sophisticated systems cost a fortune!

I'm hoping there is a simple cost effective solution on the horizon!

My accountant tells me none of 'off the shelf' software deals with the margin scheme.

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21 hours ago, Mark101 said:

My accountant does mine and is currently uploading everything to Xero at which point, I will take over and manage myself (once up to date).  Doesn't do VAT margin but that is a very easy calculation.

We use Xero for everything.... stock, payroll, VAT, expenses and It's super easy to add the VAT marginal journal in every quarter. I just keep a spreadsheet separate to calculate it all and then create a journal for the total every quarter. 

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We are on the Pilot scheme and using Xero. Very straightforward, especially if you are only doing sales (we have margin scheme for the sales and std for the workshop). Doesn't account for margin scheme but I do the calculations in the spreadsheet and make a manual adjustment on the tax value. Xero is costing us around £25 p/month 

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1 hour ago, RJEauto said:

We are on the Pilot scheme and using Xero. Very straightforward, especially if you are only doing sales (we have margin scheme for the sales and std for the workshop). Doesn't account for margin scheme but I do the calculations in the spreadsheet and make a manual adjustment on the tax value. Xero is costing us around £25 p/month 

1 hour ago, RhinoHorn said:

We use Xero for everything.... stock, payroll, VAT, expenses and It's super easy to add the VAT marginal journal in every quarter. I just keep a spreadsheet separate to calculate it all and then create a journal for the total every quarter. 

23 hours ago, Mark101 said:

My accountant does mine and is currently uploading everything to Xero at which point, I will take over and manage myself (once up to date).  Doesn't do VAT margin but that is a very easy calculation.

 

1 hour ago, RJEauto said:

We are on the Pilot scheme and using Xero. Very straightforward, especially if you are only doing sales (we have margin scheme for the sales and std for the workshop). Doesn't account for margin scheme but I do the calculations in the spreadsheet and make a manual adjustment on the tax value. Xero is costing us around £25 p/month 

Hi, I might look at Xero. Are you doing the inputting the Margin Scheme calculations into Xero manually or is there some kind of work around?

 

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I input them manually.

enter purchase invoice as normal - no VAT for cost price.

Calculate margin scheme amount in spreadsheet.

Enter sales invoice as 0% rate, tax excluding then input the car sales amount as the sale minus the VAT and manually adjust the vat for the calculated amount. The invoice total then should match your sale price. 

If you want any help let me know and I'll PM some screenshots so you can visualise it.

-Kelly-

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Last I heard the House of Lords had asked HMRC to clarify a shit tonne of problems with MTD and insisting, well suggesting, it’s delayed... probably to help their friends out ;)

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VT with a link and conversion to Sage for VAT margin.

Awesome.

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Vitaltax worked fine for me , free for first year then £1 per month . Plugs into excell then copy and paste the cells into HMRC site.

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