Making Tax digital

[hifi_dave]

Does anyone know what is required by the VAT people to make "Tax digital" ?

For years now, those who are VAT registered fill in an online form every quarter to pay or claim VAT from HMRC but I believe this "Making Tax digital is something else and far more complicated, which HMRC has introduced.

I have done a little research but fell foul of the technibabble and am none the wiser. I have an Accountant who I give my books etc to every year and they calculate the Tax payable, so I don't need a full accounting system, just for the VAT.

Any advice or suggestions from the wise of AOS ?

[struth]

all I know is you have to start using compatible software to make and sent your accounts with...ie, making tax digital software, of which i dare say there are many.

[Primalsea]

By the sound sounds of it you have to keep all of your VAT records digitally using software that is approved by the HMRC. You will have to keep al of your paperwork as well, such as receipts. Presumably you will have to pay for the software and I imagine that this will be on the basis of a subscription fee, as the software will have to be constantly updated in order to be inline with any future changes that HMRC make to the rules.

Although it will hopefully make VAT easier for many people it does just seem to be another step onwards for the Government's ongoing plans to shirk their responsibilities and duties onto businesses by putting additional burdens on them. Are they now going to now reduce taxes because businesses now have to take away additional burdens from HMRC? I doubt it. Even though taxes pays for HMRC to do the work and HMRC have stated that the new measures should help mitigate some of the £9 billion cost they have in managing wrong VAT returns.

[Pigmy Pony]

There's something called QuickBooks which I see advertising on TV, I suppose this is what they do. Their prices, depending on whether you're self employed, a small or medium size business, range from £8 to £27 per month, with first 6 months being half this much. The ad makes it all look straightforward. No doubt there'll be others offering similar service.

[hifi_dave]

Thank you.

I have taken a quick look at Quickbooks and several other companies offering similar services but you can't get proper information without joining up with them. I am a total computer numpty, so anything like this is a nightmare to me. I am still unsure what HMRC actually want and I don't need a complete full tax accounting system because my accountant does that.

I am not sure with Quickbooks and the others if you have to take pics of all invoices and payments or do you just input the figures ? I already log all ins and outs in my books. Not sure what HMRC want and how it works with Qucikbooks.

All this extra work, hassle and expense is giving me a headache.

[Pigmy Pony]

HMRC want all the money, but don't want to do any of the work, so they shift the responsibility onto us. Ok for big companies who can employ people to deal with this, but the little guy has enough to do, just making a living. Time was you could walk into your local tax office to talk about stuff with a human being. Winds me up that you're expected to do their job for them, while the only incentive is not being fined for a late submission.

You may as well see your accountants, they'll be clued up about it, but of course it all costs money. I'm not VAT registered, due to my pitifully small turnover, and I'm glad about that.

[Primalsea]

I know that there are apps for company expenses where you just photograph the receipt or invoice and the software is clever enough to read and log the information including recognising VAT and calculating VAT amounts if required. I imagine that Quickbooks does something similar. From what I have heard from someone who uses such an app it is quite reliable and easy to use.

[Oddball]

As a self employed farmer , I can tell you that if you do VAT , you may consider your accountant to do your VAT for you!
He can do the 3 months of VAT (which then enters all the info he needs for that part of the accounts ) probably quite cheaply , and then he buys the software , and at the end of the year you have the info he needs to do your tax yr too!

Thats what I keep telling myself anyway !!
Seriously ,I have sacked the VAT lady (The VAT package Sum -It is £200 a year ,and she charges £120 a quarter and another £120 for year end )and changed accountants to a local one 3 miles awy and will get him to do 3 months worth of vat for £75 a quarter ! He then will do the farm accounts for £1000 a year ,which is slightly below what we pay at present .

Probably no help to you ,but I do hope it makes some sense !! Good luck !

[User211]

VAT already was digital using the website.

I assume they can't be arsed to maintain the site anymore i.e. pay Capita, who do (did?) all their stuff.

Using an online pay per month service from a third party means you are giving them your financial information.

The whole things sucks and smells off.

[mad-moon]

Work for the government. Making tax dodgeable...simples...

[Primalsea]

My wife knows a self employed hair dresser who as a one (wo)man band has found the software very good has has made VAT and tax a lot easier as you tackle it day by day. So I think there is some incentive for self employed people.