Skip to main content
JackS
JackS
July 20, 2018
Question

QuickBooks and Making Tax Digital (MTD)

  • July 20, 2018
  • 10 replies
  • 0 views

About Making Tax Digital

Making Tax Digital – or MTD as it’s often called – is the UK’s biggest tax shake-up in a generation. Making Tax Digital is HMRC’s plan to bring UK tax into the digital age, beginning in April 2019. In a nutshell, every UK business will be affected. Here’s what will change:

 

  • All business-related transactions will have to be recorded digitally using MTD-compliant software or apps.
  • Tax returns will have to be submitted to HMRC in a digital, MTD-compliant way.

 

If you’d like to learn more about MTD then read on or check out the QuickBooks MTD hub.

Which businesses are affected

 

Businesses with an annual turnover above the VAT threshold (currently £85,000) will be required to keep their records digitally and file VAT returns online on a quarterly basis. Businesses who are currently exempt from having to file VAT returns online will also be exempt from MTD until otherwise notified by HMRC. 

 

MTD timelines

Businesses with a turnover above the VAT threshold need to comply by April 2019. Businesses below the VAT threshold can comply on a voluntary basis until otherwise notified by HMRC.

Comply with MTD using QuickBooks

We've published an additional  FAQ page for everything MTD. 

 

    10 replies

    J
    Jess W
    August 2, 2018

    Awesome post, @JackS!

    C
    CliveT
    September 16, 2018

    Will the enhancements include facility for those of us who prepare accounts to 5th April?  Useful especially for landlords. 

      JackS
      JackSAuthor
      September 19, 2018

      Hi @CliveT, thanks for posting in your question.

       

      May I ask which product you're using out of QuickBooks Online, self-employed or Accountant? 

      C
      CliveT
      September 23, 2018

      JackS

       

      It's Online.

       

      CliveT

       

       

      K
      klarkle82
      October 17, 2018

      Since this post the QuickBooks team have released an update regarding the development of Making Tax Digital in QuickBooks Online and Desktop. 

       

      Thanks

       

      Keith

      (QuickBooks UK Team)

        A
        AM24
        November 14, 2018

        Please be aware that Quickbooks Online will not be compliant for MTD for those

        on the Flat Rate Scheme. Please make your clients aware as Intuit seem unwilling to do so.

        They have no current plans (as at 14/11/2018) to include those on the Flat Rate Scheme within their MTD program.

         

        Responses from Intuit most welcome to this rather unbelievable situation

        E
        EmmaM
        November 14, 2018

        Hi AM24

         

        Making Tax Digital begins in April 2019 and Quickbooks will be complaint with this across the board including Flat Rate Scheme. Currently there is testing that has to be completed to make sure the FRS VAT filing will pull across correctly to HMRC and this is why there has been a delay in adding this option in the product. It will be in place before it is a legal requirement however, rest assured

         

        Kind regards

         

        Emma

        A
        AM24
        November 14, 2018

        Hi Emma. Thanks for the reply. Unfortunately, your own development team have replied differently. 

         

        Quote

        "

        With regard to including FRS submission in QuickBooks for MTD , it is not currently included on the beta test. I cannot give you any guarantees that this will be added in a future release but I will add my recommendations to it. I will forward this feedback to our Product Development Team so they can work on it and so this will be added in the future release. But I cannot I cannot give you any guarantees that this will be added in a future release but I will add my recommendations to it.

        "

        So no promise that FRS will be included by April 2019

        K
        KarenZ
        February 6, 2019

        Hi Jack,

         

        Apologies if this is a silly question!

        I'm using QB Self-employed for the first time and loving it but I can't find any VAT related submission information on that platform.

        Will I need to change to another platform in order to submit my VAT return or is there an add-on that I can purchase?

         

        Thanks

        Karen

        Kristine Mae
        Kristine Mae
        February 6, 2019

        Hello there, KarenZ.

         

        When you're using QuickBooks Self-Employed, you're unable to file the VAT return. Only QuickBooks Online Essentials and Plus versions can calculate and file it.

         

        You can always visit our website for more information: https://quickbooks.intuit.com/uk/vat-software/.

         

        You can always post in the Community if you have other concerns. Have a good day! 

         

        P
        Platinum Online Pro
        February 26, 2019

        Can you help me find pricing for the QuickBooks bridging solutions? Thanks

        JamesC
        JamesC
        February 26, 2019

        Hi Michaelchester,

         

        You only need an active subscription to use our Bridging Solutions, currently, there are no extra charges for this feature.

         

        Thanks,

        M
        markodyssey
        March 11, 2019

        ok Im new to QB , just spent an age bringing in old outstanding  , got hang of issuing new , even ran a vat return which I then spent hours reconciling to my old method (steam ) , and all correlated , naively pressed the button to submit only to find YOU DO NOT SUPPORT FPS RETURNS , we are 3 weeks away and im fekked ! sorry the frustration has got to me , Ive tried speaking to you help staff who just say we dont do that , sorry .

         

        Im at a loss what to do , I can do my steam powered return if I do it early , but thats the last one , before its obligatory . 

         

        reading all the above would seem comforting whilst the reality is far from it . 

         

        Im a small company traded over 20 years , devoted total 4hrs a year doing my calcs and returns until now and getting no where after investing days into a new worthless system . 

         

        ps im using online which my accountant registered me into , 

         

         

        M
        Mhutch
        March 14, 2019

        Hi, we are a small business that currently use a till software that doesn't talk to quickbooks but i was advised to get this by my accountant.  so i have two weeks to be compliant and have no idea what I'm doing? ive been told i can use the bridging software to simply input the boxes as at the moment i work everything out using spreadsheets but i honestly don't see the point in having to pay to do this when i could do this before by just going online and submitting?  am i the only one that finds this to be crazy?

        T
        TaliaI
        March 14, 2019

        Hello Mhutch,

         

        That is correct, you can use our bridging tool to submit a spreadsheet of your box 1-9 figures. Unfortunately HMRC are closing down the option to submit through their site from April 1st. 

         

        You would need to check this with HMRC, however if you do need to, you would get the QuickBooks Online Accounting & Invoicing app. This will allow you to take images of receipts and attach to transactions - of course as you are using the bridging software, you will not be entering your transactions so again I would double check this.

         

        Thanks,

         

        Talia

        M
        Mhutch
        March 14, 2019

        Thanks for your reply!

         

        unfortunately every time i call HMRC they tell me they are getting too many calls and hang up but i will keep trying!

         

        im hopefully that the software we use at the moment will update to put all the sales through automatically as i dont want to have to put everything through twice.

         

        M
        Mhutch
        March 14, 2019

        can i ask what app to use to upload receipts? i have been told im not fully compliant if im not recording each and every receipt on quickbooks but im going to try and use the bridging software to submit my vat returns so not sure if this is right?

        J
        JamesPenn
        April 8, 2019

        Hi,

        Please help. I have signed up to MTD, authorised Quickbooks successfully. I have the MTD logo on my Tax page in quickbooks. 

        However, when I try to submit my return I get this message asking me to confirm that I have NOT signed up to MTD. 

        How do I submit my return please? As HMRC's VAT accoutn will not allow me to do it through them... 

        M
        MirriamM
        April 8, 2019

        Thanks for reaching out in the Intuit Community, JamesPenn,

         

        Let me get the help you need to ensure you'd able to file VAT return.

         

        To start with, we can perform some basic troubleshooting steps like using an incognito/private browser.
        Just follow the keyboard shortcuts below to open a private browser:

        • Google Chrome: press Ctrl + Shift + N
        • Mozilla Firefox: press Ctrl + Shift + P
        • Internet Explorer: press Ctrl + Shift + P
        • Safari: press Command + Shift +N

        Once able to open a private browser, try to file VAT return again. However, if the issue persists after performing the steps above, I suggest contacting our QuickBooks Support team for them to further check your account and determine what caused the error using one of their tools.

         

        To contact us, here’s how:

        1. Click this link https://help.quickbooks.intuit.com/en_GB/contact.
        2. Choose the QuickBooks Product.
        3. On the Contact Us page, select a topic.
        4. Click on Get Phone Number button to see the support number.

        If there's anything else you need help with in filing VAT return, please don't hesitate to reach back out. I'm always here to help. Have a great day!

        I
        IGUK
        September 18, 2019

        Thanks for Sharing JackS, It is most useful article for medium to SMBs businesses. Intuit Quickbooks is most reputed software used by many accounting firms.

         

        Cheers,

        Initor Global

          JackS
          JackSAuthor
          September 18, 2019

          You're welcome @IGUK , if you need anything else, please feel free to let me know. 

          Terms & ConditionsAccessibility statement