It's good news this time. We have successfully filed our June VAT Return under MTD and we have access to the new Business Tax Account (BTA) - HMRC's replacement for the existing Gateway VAT administration webpages. The BTA’s VAT pages are clearly still in development and we have provided HMRC with feedback about the changes in layout that, in our view, make it much harder to get to the information held on the various pages.
Further good news is that HMRC have published a list of MTD4VAT software suppliers and Tax Automation / VAT Controller are, of course, included. Please note this is NOT a list of "approved" software suppliers, but a list of organisations in the private pilot who have:
However, we have demonstrated a fully MTD compliant version of VAT Controller to HMRC using it to file live returns using the MTD APIs. We are still awaiting details of HMRC's formal "approval" process, so be aware that there are NO MTD4VAT "approved" solutions available at present.
The less than good news is that HMRC have postponed the start of the public beta test phase from July to "... late summer / early autumn ..." and the additional functionality to support more complex VAT affairs scheduled for release in July 2018 is not yet available. The latest HMRC update now says the public beta will be "... later in 2018 ..." It is concerning that with only 8 months to go there appears to be significant slippage in delivering APIs. We will keep you updated on the HMRC timetable.
HMRC have published the updated VAT notice 700/22 Making Tax Digital for VAT. This provides a lot of the necessary detail - in particular what constitutes a "digital link". The notice is available at:
https://www.gov.uk/government/publications/vat-notice-70022-making-tax-digital-for-vat/vat-notice-70022-making-tax-digital-for-vatIt confirms that cut and paste (and we assume copy and paste although not specifically mentioned) is not an acceptable process in the new MTD world, so you will need to start thinking about how data gets into your analysis packs. Calculations in Excel are perfectly acceptable provided there is a clear audit trail and there is also a digital link between Excel and the filing software and the HMRC API.
This clarification confirms our belief that whilst the changes will require effort in the short term, it is very much a process of evolution rather than revolution. There is no need to throw away existing processes that work for you - they simply need to be adjusted for the new MTD rules. It is also a clear opportunity, however, to leverage any MTD4VAT budget to enhance existing Excel based systems, concentrating on automating the manual processes and reconciliation work.
Our web based VAT Controller software with associated VATPack analysis workbooks have been used by FTSE corporates since 2010 to manage their VAT process and we will continue to work with HMRC and our clients to manage a smooth and efficient transition to the new MTD regime, along with providing practical and genuine automation.
If you would like to know more about how VAT Controller can support your move to MTD, please contact Bryony Clinton on 0118 935 7140 or email bryony.clinton@taxautomation.co.uk.