Making Tax Digital
Overview
Making Tax Digital (MTD) is an HMRC initiative designed to make sure the UK tax system is effective, efficient and easier for taxpayers.
Making Tax Digital for business (MTDfb) begins on 1 April 2019 with MTD for VAT. From that date, VAT-registered businesses above the threshold of £85k will have to keep digital records and submit VAT returns using compatible software such as WinMan.
Prerequisites
- You will need a Government Gateway user ID and password you use to submit your VAT Returns online
- An updated version of WinMan with the Making Tax Digital extensions to the VAT return process.
- Your Tax number (VRN) correctly entered in to the Tax Number field in WinMan’s application settings.
Process
Create you VAT return in WinMan as normal.
When your happy it is correct ‘Post’ it as usual. This finalises the return, so no further changes can be made.
To send it to HMRC click the ‘submit’ action.
You will be prompted that you may need you Government Gateway user ID and password.
If you have not logged in before or some time has passed since you last logged in then a browser window may be launched prompting you to enter your user Government Gateway user ID and password. Depending on your security setting you may also be prompted to confirm your two-factor security code. You will also be asked to grant authority to allow WinMan to read and write your VAT information on your behalf.
You should only have to complete this process once every 18 months, unless the authority is revoked, so that next time you submit a return you will not be prompted to do this.
Once authentication with HMRC has been completed WinMan will show you a list of upcoming VAT obligations. These are your due VAT submissions by period. Select the obligation that matches the period you have just finalised; there will usually only be one.
WinMan will then transmit the VAT information to HMRC and if successful will mark the return as submitted.
Group VAT Submissions
If you are part of a group and submit a single VAT return for all group members you will need to enable the option ‘Show information for group reporting’ (TaxReturn_ShowGroup).
This will show some additional tabs and actions on the VAT return page.
- A new action to import additional returns to be included in your submission to HRMC.
- A new tab to show those additions and allow you to remove any that are unwanted.
- A new tab to show the totals of the group return that will be sent to HMRC.
Process
The process to submit a group return is very straightforward. You complete your returns on your other systems as normal and file them. You then use the export option to create an export file of the return. Repeat this for each system other than the nominated system you are going to submit the return to HMRC from.
On this last system, complete the return as normal. Then use the ‘Import Addition’ action to import any other returns to be used in the group submission.
When all submissions have been added, check the values in the ‘Group’ tab are correct. If they are then select Submit to send the group submission to HMRC.
Note that this process doesn’t change any values within the WinMan system, it only affects the totals that get submitted to HMRC.