Mitchells Helping You Make Tax Digital

If we currently prepare and submit your VAT returns for you then rest assured we will be able to comply with these new requirements on your behalf.

If you currently submit your own VAT returns we have outlined below the five situations that we believe most of our clients will find themselves in; pick the one that is the most relevant to your organisation to find out what you need to do to be ready for MTD.

Scenario 1: I currently use spreadsheets to record my transactions and then submit my VAT return via HMRC’s Government Gateway

Under the requirements of MTD it will no longer be permissible to submit your VAT return via the Government Gateway. However, it will be possible to use spreadsheets and still comply with the new rules. We are aware of the following MTD compatible Excel VAT Filer: https://www.absoluteexcelvatfiler.co.uk/

Scenario 2: I currently keep manual records and then submit my VAT return via HMRC’s Government Gateway

As stated above, it will no longer be permissible to submit your VAT return via the Government Gateway and you will be required to maintain your records in a digital format.

This is a great opportunity for your organisation to start using software to record your financial transactions and submit your VAT returns. As well as complying with the requirements of MTD, this could bring benefits to your organisation and save you time. Many of the new software products have been designed with the business owner in mind and those with no accounting or bookkeeping experience. They are very user friendly and can cost as little as £10 per month. Please call us to discuss your options.

Scenario 3: I currently use Sage

If you are using Sage to record your financial transactions, then you need to make sure the Sage product you are using is compliant with MTD. In most cases, this means you will need to upgrade to a cloud based Sage product such as Sage 50c Standard or Sage 50c Essentials. Here at Mitchells we are a Sage Partner and can therefore refer you to our Sage Account Manager who can advise you on the most suitable product from the Sage suite and give you pricing information. The benefit of purchasing through us is that we can get most clients a discount.

If you are submitting your returns via Sage, then once you have compliant software in place you will be ready to sign up for MTD.

If you are not submitting your VAT returns via Sage and are instead using the Government Gateway, then you will have to start submitting directly from Sage once you have compliant software. If you’ve never submitted a VAT return from Sage then don’t worry, it’s a straight forward process and we can always talk you through it. If you’ve been submitting your return via the Government Gateway because you make manual adjustments to the Sage figures, then that’s ok too, there’s a way to make manual adjustments in Sage.

Scenario 4: I currently use Xero

Xero is fully compliant for MTD, so you are ready! If for any reason you are submitting your VAT returns via the Government Gateway then you will need to submit directly from Xero. It’s really straightforward.

Scenario 5: I currently use software other than Sage or Xero

At Mitchells we can closely support clients who use Sage and Xero because we have staff who regularly use these products. If your organisation uses some other type of software then we advise you contact your software provider to understand if your software will be compliant for MTD. If you currently submit your VAT returns via the Government Gateway, then you will need compliant software in order to submit your returns directly from the software.

If your circumstances do not fit any of the above scenarios, or if you have any queries regarding MTD for VAT, then please do not hesitate to contact us.