Reporting VAT > Making Tax Digital
Making Tax Digital
For the latest up to date information and a complete walkthrough of Making Tax Digital in AccountEdge, all VAT registered customers are strongly recommended to follow the full AccountEdge 2019 VAT Guide
For businesses within the scope of HMRC's new Making Tax Digital requirements, you can easily produce and submit VAT Returns directly from AccountEdge to HMRC.
Starting in April 2019, the government's new Making Tax Digital (MTD) initiative will see important changes to the way in which businesses report their VAT information to HMRC.
MTD doesn't change what you submit to HMRC, it changes how you submit it.
MTD provides businesses the ability to keep records of their income and expenses digitally, and to send VAT summary updates to HMRC directly from their software.
VAT registered businesses (including self-employed and landlords) with turnover above the VAT registration threshold (currently £85,000) will have to:
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keep their records digitally (for VAT purposes only)
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provide their VAT return information to HMRC through Making Tax Digital compatible software
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Smaller businesses will not be required to use the system, although they can do so voluntarily.
AccountEdge 2019 will require macOS 10.11 El Capitan as a minimum requirement.
For more information, read our AccountEdge 2019 VAT Guide.
Once you have registered with HMRC to have AccountEdge submit VAT Returns on your behalf you then will need to open your company file and set up AcountEdge for MTD.
To setup AccountEdge for MTD VAT Return Submissions
1
Go to the Setup menu and select Company VAT Information. The Company VAT Information window appears.
2
Select I use AccountEdge for MTD VAT Return submission. If this has not been selected then only VAT Return reconciliation and VAT Return Export will be available. Also be sure to select Calculate data for VAT Return submissions.
3
Click the VAT Registration Number and select your company's VAT Scheme.
Important: Check with your accountant or HMRC if you are not sure of your VAT Scheme.
4
AccountEdge needs your permission to interact with HMRC. Click the Authorise button. The HMRC website is launched.
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Click OK. The VAT Obligations List window appears.
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Select the next open VAT Period then click Set VAT Period. This will automatically display the VAT Accounting Period, the Current VAT Period From/To dates and the VAT Return Start Date in the Company VAT Information window.
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Click OK.
Reconcile your VAT return
1
Go to the Accounts command centre and click VAT Return. The VAT Return window appears.
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Select the transactions listed in the top portion of the window to include in the VAT Return period.
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In the bottom adjustments section of the window, sleect any required adjustment transactions that have been added into a previously reconciled and/or submitted VAT period, if any are present.
4
Once you have verified the information selected is correct, click Reconcile Period. We highly recommend you make a backup of your company file before you reconcile the VAT period. The VAT Submission assistant opens.
Create the VAT Return Submission
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Go to the Accounts command centre and select VAT Submission. The VAT Submission window assistant opens.
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Select the VAT Obligation listed for the VAT Return.
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Click Next. The VAT Submission - Reconciliation view appears.
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Verify the information is correct, click Next. The VAT Submission - VAT Submission view appears.
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Select I declare that the information is true and complete. The VAT information is a legal document, be sure what you are submitting is correct.
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Click Submit.
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Click OK to send your VAT Return to HMRC.
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Once the VAT submission is successful, the VAT period will automatically change for the next open VAT obligation.
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Click OK. The VAT Submission view now displays the details of the submission.
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Important: HMRC strongly recommends you make a backup immediately upon submission of a VAT return.
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HMRC does not allow the resubmission of a VAT return.
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Until you submit your next VAT return, this backup will therefore become your earliest valid backup if you encounter a situation where you need to restore your company file.
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To phrase it another way, you will not be able to restore an earlier backup than this and be able to resubmit this VAT return.
Ensure you provide your backup with an appropriate name and be sure to note the backup's location.
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Once the backup has been made, you can close the VAT return window.
Related Topics
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Setting up VAT codes
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VAT reports
 

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