Making Tax Digital for VAT

[geogphotos]

I am on the Flat Rate VAT scheme.

 

Until now it has been a quick and easy process to complete my quarterly VAT return online at the HMRC site.

 

Now HMRC are 'simplying' the system.

 

I can't see any way of completing my return in the same way as before. It looks as though from April 2022 everyone VAT registered will have to buy third party software and submit their return that way.

 

It is more complicated and expensive - about what I suppose we should expect from govt 'simplification'. 

 

Can anybody suggest the best way through this?

[Nigel Kirby]

Yes Ian you would need to use something like my accountants use Xero accounting software in order to submit to HMRC.

Have you asked a bookkeeper or accountant as to costs?

[geogphotos]

3 minutes ago, Nigel Kirby said:

Yes Ian you would need to use something like my accountants use Xero accounting software in order to submit to HMRC.

Have you asked a bookkeeper or accountant as to costs?

 

Thanks. No, I haven't asked anybody about it as yet.

 

Until now the costs to me have been NIL - just a few minutes of my time and a few simple sums every quarter. That's why I chose the Flat rate system - just hand over 16.5/20ths of VAT received.

 

Now it appears that I have to buy new software or pay for accountancy services. Not exactly more simple!

[Jill Morgan]

At least the software would be tax deductible. 😁

[geogphotos]

Just now, Jill Morgan said:

At least the software would be tax deductible. 😁

 

 

Sadly my time going round and round in circles isn't tax deductible. 🤑

[M.Chapman]

On 03/01/2022 at 11:41, geogphotos said:

I am on the Flat Rate VAT scheme.

 

Until now it has been a quick and easy process to complete my quarterly VAT return online at the HMRC site.

 

Now HMRC are 'simplying' the system.

 

I can't see any way of completing my return in the same way as before. It looks as though from April 2022 everyone VAT registered will have to buy third party software and submit their return that way.

 

It is more complicated and expensive - about what I suppose we should expect from govt 'simplification'. 

 

Can anybody suggest the best way through this?

Not sure if this helps.

https://www.gov.uk/guidance/using-making-tax-digital-for-income-tax#when-to-use-this-service

Luckily  ?? my self employed income is currently below the threshold so it doesn't affect me yet - But I fear it's only a matter of time...

 

Mark

[geogphotos]

2 hours ago, M.Chapman said:

Not sure if this helps.

https://www.gov.uk/guidance/using-making-tax-digital-for-income-tax#when-to-use-this-service

Luckily  ?? my self employed income is currently below the threshold so it doesn't affect me yet - But I fear it's only a matter of time...

 

Mark

 

 

Thanks. My concern is with VAT rather than Income Tax.

 

I have found that I can use a scheme  attached to my Lloyds Bank business account so will try that.