Making Tax Digital (MTD) - UK
Thread poster: Tom in London

Tom in London
United Kingdom
Local time: 04:38
Member (2008)
Italian to English
Jan 6

I know this currently only applies to those who are over the VAT limit (although I suspect it may also apply to those who have chosen to be VAT registered anyway), but if anyone has already done it I would be interested to hear about your experiences:

From April 2019, VAT registered businesses with taxable turnover above the VAT threshold will need to acquire a suitable commercial software product, or appoint an agent to submit their VAT returns to HMRC on their behalf.

... See more
I know this currently only applies to those who are over the VAT limit (although I suspect it may also apply to those who have chosen to be VAT registered anyway), but if anyone has already done it I would be interested to hear about your experiences:

From April 2019, VAT registered businesses with taxable turnover above the VAT threshold will need to acquire a suitable commercial software product, or appoint an agent to submit their VAT returns to HMRC on their behalf.

It will be a requirement to keep digital records.

Are you preparing for this? If so, what software do you use? Are you finding it easy to switch over from paper book-keeping?

[Edited at 2019-01-06 14:44 GMT]
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Samuel Murray  Identity Verified
Netherlands
Local time: 05:38
Member (2006)
English to Afrikaans
+ ...
@Tom Jan 6

Tom in London wrote:
If so, what software do you use?


Speaking from the side-lines here, is this the list of software that you can use?
https://www.gov.uk/guidance/software-for-sending-income-tax-updates#VAT
For example, if you choose to use Zoho, it's going to cost you about GBP 120-150 per year.

(related thread here.)



[Edited at 2019-01-06 14:55 GMT]


 

Tom in London
United Kingdom
Local time: 04:38
Member (2008)
Italian to English
TOPIC STARTER
@Samuel Jan 6

Yes but that list hasn't been updated since last March



[Edited at 2019-01-06 15:25 GMT]


 

Teresa Borges
Portugal
Local time: 04:38
Member (2007)
English to Portuguese
+ ...
@Tom Jan 6

E-invoicing is mandatory in Portugal since 2014, I've been using SAFT, it's quite easy to use, I fill it every month and send it to my accountant... Please check:

https://www.edicomgroup.com/solutions/electronic-vat-compliance/SAFT-portugal.html

[Edited at 2019-01-06 16:41 GMT]


 

Sheila Wilson  Identity Verified
Spain
Local time: 04:38
Member (2007)
English
+ ...
Particular software is essential? Jan 6

We have to present our business tax submissions online here in Spain, on a quarterly basis, but we can keep the data how we like - in my case, it's PDFs for invoices and expense receipts and excel for the book-keeping. My accountant transfers totals to the relevant boxes on the official returns, but I could do it myself with just a digital access key.

Is that not enough for the UK tax authorities?


 

Chris S  Identity Verified
United Kingdom
Swedish to English
+ ...
@Tom Jan 6

Incorporate!

 

Fiona Grace Peterson  Identity Verified
Italy
Local time: 05:38
Member
Italian to English
Just introduced in Italy this month Jan 6

They've just introduced this here in Italy this month. A real nightmare, and it is highly unlikely it will achieve its aim of combatting tax evasion.

Tom in London
 

Tom in London
United Kingdom
Local time: 04:38
Member (2008)
Italian to English
TOPIC STARTER
You're wandering off-topic.... Jan 7

Fiona Grace Peterson wrote:

They've just introduced this here in Italy this month. A real nightmare, and it is highly unlikely it will achieve its aim of combatting tax evasion.


We're wandering off-topic. I was looking for opinions about e-book-keeping, not e-invoicing. I.E., keeping digital records of expenses, invoices, etc etc. and the software that can be used to do it.

Whilst e-invoicing) is also interesting, it wasn't what I intended to discuss. Apologies if my original post was not clear.

[Edited at 2019-01-07 07:40 GMT]


 

Samuel Murray  Identity Verified
Netherlands
Local time: 05:38
Member (2006)
English to Afrikaans
+ ...
@Sheila Jan 7

Sheila Wilson wrote:
We have to present our business tax submissions online here in Spain, on a quarterly basis, but we can keep the data how we like. Is that not enough for the UK tax authorities?


No, if I understand the Making Tax Digital (MTD) process correctly, you are required to use accounting software that allows you to submit your tax returns with the click of a button. Anything that requires copy/pasting is not considered click-of-a-button. Whatever system you use for accounting must be able to submit returns directly without any additional actions required (e.g. selecting specific files for upload, etc.) except to initiate the submission using a single command.

You will be allowed to use Excel spreadsheets, but if you do, then you have to set up the spreadsheets so that they can communicate directly with an intermediary program on your computer that can submit the tax returns online. However, setting up such an intermediary program is not simple (and you'd still have to redesign your spreadsheets to communicate with it), so I suspect the simplest option for freelance translators would be to start using an online accounting system (e.g. Zoho).

I tried to find technical specifications of the files that should be uploaded, but they don't seem to be public. Apparently you have to be a software developer that signed some kind of agreement with HMRC to get access to that information.

(The Dutch tax department is currently investigating such a system, but they're a long way from implementing it. A trial run ended recently, in which participants could choose from three online accounting services.)


[Edited at 2019-01-07 10:02 GMT]


 

Sheila Wilson  Identity Verified
Spain
Local time: 04:38
Member (2007)
English
+ ...
Roll on retirement Jan 7

Samuel Murray wrote:

Sheila Wilson wrote:
We have to present our business tax submissions online here in Spain, on a quarterly basis, but we can keep the data how we like. Is that not enough for the UK tax authorities?


I suspect the simplest option for freelance translators would be to start using an online accounting system (e.g. Zoho).

Hard times ahead for those who are good at playing with words and yet lousy at using computerised systems then. I hope they don't bring in a similar system in Spain before I reach retiring age - whenever that is! I've passed two already (they put up the age for '50s-born women in the UK, without bothering to inform me, and although I qualify already for a French pension, I don't qualify for a Spanish one yet, and the age is currently rising).


 

Tom in London
United Kingdom
Local time: 04:38
Member (2008)
Italian to English
TOPIC STARTER
Wondering Jan 7

I'm wondering, for instance, what they expect me to do with all the paper receipts I collect, which I currently number and record in a spreadsheet that totals up all my expenses, subdivided into HMRC's categories of expenditure, for the Tax Year. I keep them all in a file, ready for inspection by anyone who might wish to verify that they are correct.

Apparently under MTD, all these receipts are supposed to be digital. But how? Is my local stationery shop going to give me a digital
... See more
I'm wondering, for instance, what they expect me to do with all the paper receipts I collect, which I currently number and record in a spreadsheet that totals up all my expenses, subdivided into HMRC's categories of expenditure, for the Tax Year. I keep them all in a file, ready for inspection by anyone who might wish to verify that they are correct.

Apparently under MTD, all these receipts are supposed to be digital. But how? Is my local stationery shop going to give me a digital receit for a couple of ballpoint pens? Is my electricity supplier going to give me a digital receipt for my energy use, only a percentage of which I declare as a non-taxable business expense?

And so on...

[Edited at 2019-01-07 13:34 GMT]
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Chris S  Identity Verified
United Kingdom
Swedish to English
+ ...
No Jan 7

Tom in London wrote:
Apparently under MTD, all these receipts are supposed to be digital.

No, they aren't.

See, for instance: https://quickbooks.intuit.com/uk/making-tax-digital/what-is-making-tax-digital-and-how-to-comply/


 

Chris S  Identity Verified
United Kingdom
Swedish to English
+ ...
Jan 7



[Edited at 2019-01-07 14:12 GMT]


Tom in London
 

Milan Condak  Identity Verified
Local time: 05:38
English to Czech
The site is updated Jan 9

Tom in London wrote:

Yes but that list hasn't been updated since last March



Published 15 March 2018
Last updated 8 January 2019 + show all updates = 21 infos about updates.

But no joy.

Milan


 


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