About turn, you can use spreadsheets

HMRC has about-faced regarding the ban on using spreadsheets to work out your VAT return data from 1 April 2019, when the new requirement to file VAT returns using Making Tax Digital (MTD) format is introduced.

Bowing to pressure from industry, the accountancy profession and Parliamentary committees, HMRC has now agreed that you can use spreadsheets for VAT purposes; unfortunately, there is a large “but”.

The rationale behind the development of MTD is that HMRC wants your returns of data through its MTD portal to be linked directly to the source material, the accounting entries that make up the returns. They do not want you to cut and paste data from your accounting records (including spreadsheets) into HMRC’s digital accounts.

Accordingly, they have agreed to the use of spreadsheets as long as the data is transferred using bridging software that is compatible with its MTD systems.

Software developers are now faced with creating this bridging solution and we will be reviewing solutions to settle on the best-fit option for clients.

Latest Blog
03
Jul

What would a closure of the Strait of Hormuz mean for the UK

Tensions in the Middle East have always carried global implications, but few pressure...

Read More
01
Jul

Why every business owner needs an exit plan

For many business owners, the daily focus is on growth, sales, staff, and operations....

Read More
26
Jun

How global unrest could impact the UK economy and your business

At a time when many UK businesses are focusing on recovery, growth, and future planni...

Read More
24
Jun

Winter Fuel Payments reinstated for over 9 million pensioners

The government has confirmed that Winter Fuel Payments will return for the 2025-26 se...

Read More