This communication was sent 07 September 2022. Notice 22-GM | 07 September 2022 Since 1 April 2022, all VAT-registered businesses are mandated to follow MTD rules regarding digital record keeping and digitally filing VAT returns. From 01 November 2022, businesses will no longer be able to use their existing VAT online account to file their VAT returns. HMRC will contact businesses that still need to sign up to let them know they must sign up for Making Tax Digital (MTD) and use MTD compatible software to submit returns. Moving over to MTD for VAT is simple. Customers can find out more about MTD in our knowledgebase or our dedicated MTD pages. As a valued partner, we wanted to share the latest update with you and provide information on what this means for our product range, as well as letting you know about our planned activity with customers, so you can respond to any queries you receive. Sage Business Cloud Accounting - Sage Business Cloud Accounting is fully compatible and compliant with MTD for VAT and does not require any add-ons like spreadsheets do. Sage Business Cloud Accounting users without an identified MTD token will be warned by email communications and in-product messages that they must now comply with Making Tax Digital for VAT rules due to VAT online accounts closure on 1 November. This includes registering to MTD for VAT on HMRC’s website and connecting their software to HMRC’s systems. More information on product usage can be found here.
Note that businesses can still produce manual VAT returns for specific cases like choosing to use bridging software to submit their returns to HMRC, multi-company customers with a single VAT registration, or business that are part of a VAT group. More information can be found here. Sage 50 Accounts - Sage 50c Accounts version 24.1 and above are fully compliant with MTD for VAT. The ability to submit an XML submission was removed in version 27.2. Customers using a version of the software that still allows an XML submission may still be submitting via this method or manually.
- Sage will display an in-product message to customers identified as submitting via the XML method advising of the requirement to sign up and submit under MTD for VAT by 1st November, directing to guidance on how to confirm they are using a compatible version of the software, and sign up and Submit under MTD for VAT.
Sage 200 - Version 2018 and above contains the MTD for VAT functionality. The MTD for VAT module is available for earlier versions and additional scenarios such as multi company submissions. Version 2022 R1 and earlier, contains the XML submission feature, however once the gateway is closed this will stop working. No customer communications are planned.
Sage X3 - Is fully compliant with MTD for VAT, earlier versions contain the XML submission feature, however once the gateway is closed this will stop working. No customer communications are planned.
Sage Intacct - Does not have an in-product XML VAT submission capability; therefore customers will already be using the relevant MTD submissions method. No customer communications are planned.
Sage Line 500/Sage ERP 1000 - Historically, has not provided specific in product UK VAT functionality. The ability to perform Making Tax Digital VAT submissions was made available to supported versions of Line 500 and Sage ERP 1000 in 2018. It is unlikely that customers using these Sage solutions will be using the VAT online account. No customer communications are planned.
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