MTD for VAT registered companies

[ThePenIsBlue]

Apologies for putting this in chat, but I need the traffic as I seem to be getting nowhere online.

My family has a Ltd company, it’s very small, deals with woodland/agricultural land. We are VAT registered to allow us to claw back some of the vat we pay on certain things through the tax year.

it’s always been very straightforward, but as of next year, HMRC are moving to
Making Tax Digital , which means I have to download online software that will speak to my current software and submit the vat return through the MTD software.

the issue I have is that we do not have any software! We run the “business” through paper accounts, it’s extremely basic and very simple, we have no need for a sage or quick books type thing. I am absolutely stumped as to what I am meant to link this software to. I’m not the most techy person anyway, but I am going round in circles here.

wondering if anyone could please give me some help?!

Try the Able Wharton MTD website option. It's currently free and stand alone. You set up an account and then they submit on your behalf. It may not remain free but will tide you over for now!

I can’t help but I think it’s already in place unless HMRC have given you an extension?

The deadline was 1 nov 2022. Just giving you a heads up in case a jobsworth HMRC officer gets in touch!

HMRC have just moved the start date , it depends on your turnover so you need to check online.

You really need to speak to an accountant, mtd for VAT has been compulsory for all business for some time now. The only exception is for businesses that are IT excluded which doesn't appear to be the case for you.

The digital tax that has been postponed is for income tax not VAT

Found the link
Able Warton MTD

Op, if you're open to paying amount then I would recommend Xero, it's excellent and very good value.

There is a facility to search for software including free software on gov.uk

www.tax.service.gov.uk/making-tax-digital-software?_ga=2.170964704.195347579.1673287317-978277636.1673122065

You can use a spreadsheet and then use "bridging" software to submit your VAT as well. Again you can search for suitable software on the gov website.

What software are you currently using op? It might be worth upgrading to an MTD compatible package.

Thank you for all your replies so far. I have a letter from HMRC saying after May 2023. So I can file this tax years but not next.

I don’t use any software ant all at the moment. It’s not worth it and I don’t need it. Some years the vat claimed back is only in the hundreds. Some years it’s thousands depending on what we’ve had to buy.

i have looked at the HMRC website to see all the software options but the issue I have is that they have to be “Bridged” with the software you are currently using in your business.

How are you submitting your VAT returns currently? It's been compulsory to do them digitally for a while now.

Anyway, if they haven't yet caught up with you and are weirdly still accepting paper returns, just move your paper records onto Excel and use one of the free software packages linked above.

I will definitely look at this, thank you!

Have just reread this and seen you can use a spreadsheet ! I need to try this.

OP, if your families' business is so small that it doesn't require any kind of accounting software, is it over the threshold for compulsory VAT enrolment? If not, is it actually beneficial for you, overall, to be enrolled in it?

My dad is self employed as a Ltd company and VAT enrolled even though he doesn't have to be - he just pays HMRC back the VAT he charges the agency and pays a third party company £500 a quarter so submit the filing for him. Throwing money away but he doesn't believe me that its pointless! He just sees that his invoice amounts are higher and thinks he's earning more money 🙄(I'm not implying you are thinking like that btw!)

It’s not over the threshold, nowhere even close.
but we choose to do this as it means each year we can claw back a little bit.
last year it was only £1k, this year it will be closer to £4.5k

so really not worth paying for any time of software at all

We also don’t sell anything, this is VAT on things we have bought that we can claim back

Only if you have to do it. We are voluntary registered and we file annually,

Do you have a NatWest or RBS account, if so you can use freeagent software for no extra cost. It's worth checking with your bank to see if they have any free software available. Basic sage/Xero etc will cost you min £10 MTH.

Even if you're voluntary registered electronic records for MTD have been mandatory since last April.

About MTD for voluntary registration

Xero is easy to use and you can link your accountant into the system so they can file vat online for you unless you want to do it yourself

I think if you file annually you get one more year. I just filed today, and it all went through fine. but this is the last year.

we don’t have an accountant! Honestly, we are barely a business. This is such a headache for small enterprises like ours. We’ve been keeping a notebook with the lists of expenses each month. It’s incredibly rudimentary- we don’t even use excel.

Have a look at taxoptimiser.co.uk

I recommended it to a number of clients and they all say it's easy to use and cheap.

As per previous poster, if your business banks with NatWest you get FreeAgent for free. This makes electronic VAT returns incredibly simple. Easier even than a notebook!

You can do your VAT work in spreadsheet and submit it via MTD bridging software, there was free one called DataDeer which would do the job