Making Tax Digital

  • 23 Jun 2018 1:48 AM
    Message # 6333847
    Mark Hill (Administrator)

    Making Tax Digital

    You may have heard about MTD. You may have heard software sellers telling you that your business software needs to be MTD compliant. What does this mean? Is this a threat to your business as an MYOB/Accountedge user?

    MTD will be not be mandatory until April 2019, and then only for VAT. From that date, businesses with a turnover above the VAT threshold (currently £85,000) will be required to send their returns in electornically simply to show that they are keeping digital records for VAT purposes.The legislation will not prevent Accountedge users from keeping their records in the software they like. There will not be an approved list of software. However there will be complications for MYOB users. The regulations allow submissions from a bookkeeping software to a filing software which itself will make the filing to the HMRC. We have examined other options for our continuing MYOB and Acclivity users. We expect to be able to provide a solution.

    There are five potential routes.
    1. Mamut could offer a solution. If they don't, as a commercial software seller, they are likely to face considerable trouble selling the software in the UK. The usergroup would support its members to transfer to Mamut AE if they are on the Mac.
    2. As part of this idea we have encouraged Priority (the new owners of Acclivity) and Mamut (the owners of the UK distributorship) to offer a PC version. We would then convert MYOB and Acclivity users to the latest Accountedge.  This could then be the comprehensive PC solution that we hoped for when we set up this group.
    3. Each MYOB Usergroup member could obtain a specialist VAT filer.  This would allow you to file VAT returns from downloads out of their MYOB software for yourselves.  This would mean that you would each need a licence for a VAT filing software.
    4. MYOB Users could approach their existing accountant to make filings on their behalf.  You could stick within MYOB and make download reports that their accountant can file for you.  This would mean that the accountant would need a licence for a VAT filing software.
    5. You could convert to alternative software.

    The option that we prefer as professional accountants, is option 4.  Simple Accounting will use its current method to support its clients through our Dropbox file sharing. To get a report in every quarter we will either enter the dropbox copy of your database or get each client to send one. The totals on the report will be checked and then uploaded into a specialist VAT return submission software.

  • 14 Dec 2018 8:14 PM
    Reply # 6960156 on 6333847

    I've started to think about this situation, prompted by Mark's recent blog post. I have discovered that there are a few solutions provided by third parties that will make the filing for me at low or possibly no cost.

    It seems that as long as the VAT Return numbers can be exported to an Excel worksheet (digitally of course!) then these third parties just insert a bit of code into the spreadsheet (I assume a bit of VBA but that's only because it's all that I know about), that is able to "talk" to the HMRC portal and transmit the numbers. They have to have this interface approved by HMRC.

    I have "expressed an interest" on the site of one of them, "filemytaxreturn.co.uk". I'll wait to see what happens next. I have no connection with them by the way.

    It seems madness to solve the "problem" of non-digital book-keeping by this sort of draconian request that catches businesses like ours (all on this forum) who are already digital. I have kept my accounts on MYOB for almost eighteen years.

    I haven't yet approached my accountant to ask if they have a filing solution. It is quite possible that they have, as they are a reasonable sized outfit with several large offices across the north of England. I just wonder what people on here are doing and whether anyone has considered the type of solution that I've described?

    TIA, Tim

  • 28 Dec 2018 6:20 PM
    Reply # 6975264 on 6333847

    Hi Tim and Mark

    I too am a very long term user of MYOB and have no real desire to re-invent the wheel, however this MTD lark has been giving me some concern.

    I've also been a long term user of Taxcalc by Acorah software and I have just seen their software package (VAT Filer for Business). It seems to cover all my needs to continue to use MYOB without needing a degree in computer science and seems reasonably priced at £25.00 including VAT for a years subscription for two companies, a single company version is available at less money.

    It seems that all I need to do is run a VAT detail report and send it to Excel, then select the spreadsheet cells to import. If it's that easy then no worries!

    What's your view Mark?


  • 11 Mar 2019 10:25 AM
    Reply # 7209985 on 6333847
    Deleted user

    May I follow up on this MTD issue and enquire whether my fellow users and commentators here have finalised on a future approach for their VAT accounting.

    My understanding is that if I can get MYOB to report the VAT report to an excel spreadsheet in a .xlsx format, then using an approved API I can then readily file the VAT data to the HMRC gateway.

    And as it has been commented, this is a very inexpensive route as it avoids leaving MYOB and installing new compliant software - I too have been a long term user of this very user friendly software !

    My problem is that my version of MYOB, and I do not know whether or not this is universal, but I cannot get the software to export this VAT report anywhere and in particular to a spreadsheet format - the screen just freezes.

    So, am I missing something or can someone please advise on how I may overcome the problem.

    My accounting year end is 31 March and my understanding is that I can opt for annual accounting and that together with taking advantage of the soft landing dispensation, after filing my last quarter for 31 March 2019, I can file the next annual return for 2020 under soft-landing by manually entering the figures into a .xlsx spreadsheet the figures from which will be picked up by the API and filed for me. I would therefore hopefully be able to sort out the MYOB reporting problem by 31 March 2021, when I would have to go live to the new system filing.

    My fellow user comments would be welcome.





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