Making Tax Digital for VAT requires VAT registered businesses with taxable turnover above the VAT registration threshold to keep records in digital form and file their VAT Returns using software.
HMRC is working with a wide range of software suppliers to produce suitable software for businesses and their agents. Software which has been recognised by HMRC is now available, whilst other suppliers still have products in development – full details here.
Below, CTG is highlighting software currently available from its Observer Members (described in their own words) – others will follow shortly. CTG has not tested these products, but hopes that this information is helpful to members in deciding on a software provider.
Deloitte has a dedicated Making Tax Digital website and a short video of its filing solution. It is aimed to be extremely simple with no software installation and no change to the existing Excel environment. It is competitively priced at £150 per return filed (£125 per monthly return) with no on-going commitment.
If you have any questions about Deloitte’s recommended approach to MTD please contact Nick Comer on 02070077946 or at [email protected]
EY’s Global VAT Reporting Tool is a cloud hosted VAT reporting solution. It is compliant with HMRC’s Making Tax Digital for VAT initiative and capable of create a digital link between your source records and VAT return data. The tool can be used to submit your VAT return to HMRC via built-in API capability and offers a complete end-to-end audit trail. Further details including indicative fees can be found in this document and online here.
For further information please contact Dermot Rafferty on 01613332794 or at [email protected].
Grant Thornton UK
Grant Thornton’s VAT filing solution is outlined in this flyer. Grant Thornton is willing to offer this service for a charge of £50 plus VAT per quarter where their solution is used to file the VAT return. In addition we’d be happy to take interested parties through a live demo on Skype. Additional information can be found here.
For further information please contact Carolyn Risdell on 02077283412 or at [email protected].
KPMG has developed two alternative offerings to enable businesses to submit their VAT returns digitally in line with HMRC’s Making Tax Digital requirements. Further information on KPMG’s MTD solutions can be found here or contact [email protected]
KPMG Tax Bridge
For taxpayers using spreadsheets to prepare VAT returns, bridging software may be the easiest solution to enable the digital submission of VAT returns. The Tax Bridge is a stand-alone cloud based application that extracts data from excel spreadsheets and allows submission of the VAT return to HMRC via the required API connection. The tool also allows the user to retrieve filed VAT returns, as well as VAT liabilities and payment information via the API. Importantly, the Tax Bridge is also scalable allowing for the process to adapt should HMRC’s requirements evolve.
KPMG PX Cube
PX Cube is a full MTD solution, helping businesses manage their partial exemption calculations. The P X Cube satisfies all three MTD requirements (being digital records, digital links and digital submission). Although predominantly used by partly exempt businesses, the PX Cube is also used by fully taxable businesses for process streamlining. The PX Cube Suite can replace excel-based processes for data review, consolidation, VAT return calculation submission, workflow management and reporting.
Mazars is offering a bridging solution whereby a VAT return template tab is simply added to an existing VAT return calculation spreadsheet. The template is populated with the relevant return figures by formulating the cells and the return files is then saved as a CSV file. The user just logs in to their Mazars software account and uploads the CSV file. The figures will appear automatically to be reviewed and then submitted, returning a submission reference. A submitted return can be accessed and downloaded. The dashboard functionality allows users to view past return periods and VAT periods due, as well as VAT liabilities. This information is picked up directly from the HMRC website. The costs is £50 per quarter per return (ie per VAT registration). Further information can be found in this flyer or on the Mazars website here, which include a software demo.
Ahead of the 1 April 2019 changes for Making Tax Digital (‘MTD’), PwC has developed an excel based tool that enables you to submit your return in spreadsheet format directly to HMRC’s website. The tool has been approved by HMRC and is ready to download now. The solution costs £90 per VAT registration per year and is offered free to registered charities. Please see this webpage for more information, and to download the tool, as well as a short video which demonstrates the tool.
In addition to the solution above, MTD’s further requirements – including maintenance of an electronic account and digital linking of data – should be considered by taxpayers at the earliest opportunity to ensure compliance with all MTD requirements. Solutions can range from enhancing current excel based VAT return workings, updating reporting procedures within ERP systems or substantial IT system reconfiguration; an appropriate solution will depend on the current processes within VAT return workings.
Information is correct at the time of publication but you should contact the organisations directly to discuss your own requirements.
If you would like to provide details of your organisation’s Making Tax Digital for VAT software offering please contact 02072221265.