Making Tax Digital - Recording Daily Sales?


#11

Did you actually read any of the above articles?

Try section 4.5 of the following

https://www.gov.uk/government/publications/vat-notice-70022-making-tax-digital-for-vat/vat-notice-70022-making-tax-digital-for-vat

The following rule has the force of law:

In addition to the records listed in paragraph 4.3 above, if you account for VAT using a retail scheme you must keep a digital record of your Daily Gross Takings (DGT). You are not required to keep a separate record of the supplies that make up your DGT within functional compatible software.


#12

Our accountant is increasing our monthly fee by £25 because of this. Has anyone else received fees increase from their firm as a result of this MTD ? Please let me know because i am thinking of disputing the increase with them

Thanks in advance


#13

HMRC are running a load of help webinars to help agents and business owners
This link tells you more about MTD and if you also type in MTD webinars you should be able to see past presentations
https://www.gov.uk/government/publications/making-tax-digital/overview-of-making-tax-digital


#14

Yes, you keep a daily record, but you don’t have to input them daily


#15

Your comment that I replied to:

Your comment to my reply:

Changing your position doesn’t make what I said wrong.


#16

My position is that with respect to Amazon, you already have a record of your daily sales. So if there is any issue, it will be how you input those data into the HMRC system. All I am saying is that it is not really extra work.


#17

I almost choked on my Frosties when reading this line in the link you supplied…

HMRC’s ambition is to become one of the most digitally advanced tax administrations in the world.

An organisation that would have trouble finding its bum with both hands, and yet this is their lofty goal :rofl:


#18

You may find this helpful:
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/780345/Making-Tax-Digital_Mythbusters.pdf


#19

The end goal of course is to get rid of cash. No more black economy, no more cash in hand and no more fiddles. Every transaction will be traceable to and from every individual.


#20

A2X - software that will handle all amazon transactions for you - fees, sales etc


#21

To be clear, I am not saying that you have to physically enter your sales and the end of every day.

Whenever you choose to do your accounts you must enter each days takings separately and calculate your VAT return from this.

The guidance states that you cannot use combined weekly or monthly figures


#22

If I was paying my VAT daily I could run with that. But I’m not, I’m paying it 3 monthly and my accountant will be getting the CSV’s he’s asked for on a monthly basis.

Until he tells me otherwise that’s what I’m doing, I’m not going to look to challenge his instructions.

He’s managing my accounts, he’s setting up an online portal for his clients, he pays my VAT, he’s responsible for ensuring he meets the approval of HMRC. I couldnt give a monkeys beyond that. :smiley:


#23

You may have delegated your responsibility to your accountant but it is still your responsibility to comply with all filing requirements. It is you that will get fined for non-compliance, not your accountant…


#24

I very much doubt I will be hauled over the coals any time soon Peter but I can handle the possibility.

Getting it up-and-running as expected it will take an eternity, then dealing with the DIYers will keep them busy for many moons to come…


#25

Our accountant has told us that he could sort it however he’s not completely sure how he’s going to convert everything we do from spreadsheets, but there will be a monthly charge, I’ve been looking at accounting software and i’ve been playing around with a couple and i’m thinking about taking the plunge with one in particular that seems to work with what i’m currently doing.


#26

There are several good cloud based accounting software for around that price or less. Using one could reduce your accounts fees even more as, e.g. you can submit VAT returns direct from the software with a few clicks.
https://uk.pcmag.com/accounting-tax-software/32761/the-best-small-business-accounting-software


#27

Look at Xero. Great bit of software does the job with lots of benefits with the reports to keep an eye on everything and extremely simple to use.

Test it for a month for free and not very expensive


#28

There is a few VAT accounting schemes you can sign up for.

I expect that a few of the contributors to this thread are on different VAT scheme to Jafool


#29

Remember, for 2019/20, only VAT registered business with a taxable turnover exceeding £85000 need to use Making Tax Digital for VAT.

Making Tax Digital for Tax begins in 2020/21.and will affect almost every business or self employed trader.

https://www.gov.uk/guidance/check-when-a-business-must-follow-the-rules-for-making-tax-digital-for-vat

Also be aware that the software you use must be approved by HMRC for the purposes of Making Tax Digital

https://www.tax.service.gov.uk/making-tax-digital-software


#30

It would have helped if they’d got their act together and informed businesses what they need to at least a year ago. Springing it on people with only a few months to go is extremely poor planning. Don’t they think businesses haven’t already go enough to do, especially if they are likely to be impacted by Brexit planning?

I suspect HMRC are going to be extremely busy in the coming months trying to sort out the mess that they’ve created because businesses just aren’t ready or aren’t doing things properly.

As I type it’s suddenly dawned on me that it’s all begining to sound rather familiar… I hope they’re not taking a lead from a certain retail giant?