Skip to content
logo Knowledgebase

Making Tax Digital for VAT - Calculate and submit your VAT Return in Sage 50cloud Accounts

Created on  | Last modified on 

Summary

Find out how to calculate and submit your Making Tax Digital (MTD) VAT Return in Sage 50cloud Accounts.

Description


If you've registered with HMRC for Making Tax Digital (MTD) for VAT, and you've switched on the MTD feature in your Sage 50cloud Accounts, you can then calculate and submit your VAT Return under MTD.

TIP: Need to submit a group VAT Return? With the Sage MTD Submissions Module you can combine values from different sets of data to submit under one VAT Number.


Resolution

If you're using the stand alone Sage MTD Submissions Module to make your VAT submission, you must still follow the first two sections in this article to calculate your VAT Return for each company in Sage 50 Accounts.

Summary of steps 

  1. Calculate and reconcile your VAT Return
  2. Post the VAT transfer journal
  3. Submit your VAT return to HRMC

1. Calculate and reconcile your VAT Return

  1. If this is your first VAT period under MTD, check your VAT settings.
  2. On the navigation pane click VAT, then click VAT Return.
  3. To back up your data, click Back up and follow the on-screen prompts.
  4. Under Date range, choose your VAT Return period then click Calculate VAT Return.

    If there are any transactions dated before the date range which haven't been reconciled the Earlier unreconciled transactions window appears. To include these transactions, click Include. If you don't want to include them, click Ignore.

  5. Check your VAT figures and post any required adjustments.
  6. Print your VAT Return reports.
  7. Click Reconcile VAT Return then click Yes.

2. Post the VAT transfer journal

  1. Complete the VAT transfer area as follows:
    DateEnter the date for the VAT Transfer.
    Sales Tax AmountThis is the amount from Box 1 on the VAT Return, you can amend this if required.
    Purchase Tax AmountThis is the amount from Box 4 minus the amount from Box 2 on the VAT Return, you can amend this if required.
  2. Click Post Journal.

3. Submit your VAT Return to HMRC

NOTE: If you intend to submit these figures as part of a group VAT Return using the Sage MTD Submissions Moduledo not follow the steps below. Instead, click Close.

  1. Be in the Complete VAT Return window. If you have exited from this window previously after reconciling the VAT return, to get back to this window double click on the VAT Return.
  2. Click Submit online.

    Image



    TIP: If you make MTD VAT Return submissions on behalf of a client and you've previously chosen to save your Agent Services Account (ASA) login credentials, every 18 months you will be prompted by HMRC to re-enter your credentials during the VAT Return submission.



  3. Click Next.

    Image

  4. Check your company name and VAT Registration number are correct, then click Next.

    Image

  5. In the Gov.uk window, scroll to the bottom and click Continue.

    Is the MTD sign in page blank? - Read more >

    Image

  6. Enter your Government Gateway ID and password, click Sign in.

    Image

  7. Click Continue then select a method to receive your access code.
  8. Click Continue and follow the on-screen prompts.
  9. In Access Code enter the code you received, then click Continue.
  10. Click Continue then click Grant Authority.

    Authority must be granted each time you submit an MTD VAT Return.

    Image

  11. Under Submit your period, in the drop-down click the obligation period you want to submit for.

    Image



    TIP: More than one obligation period may be listed, take care to choose the correct one. No obligation period showing? - Read more >

  12. Click the confirmation check box then click Submit to HMRC.

    Image

  13. When the successful submission window appears, click Close.

    Getting a submission error? - Read more >

    Image

  14. If required, to view a submission confirmation report, click Submission confirmation.
  15. If required, record your VAT bank payment however you have payment set up with HMRC, then click Close.

    NOTE: Sage does not automatically pay to or reclaim from HMRC. If you do not have a Direct Debit set up with HMRC you will need pay them via the HMRC website.

Benefits for your employees above and beyond their payslips

We want to help your business where we can. That's why we are offering Sage Employee Benefits free to Sage customers for the first three months.

Leave your details and we'll call you back


 

Need more help?

Chat to one of our Sage Ambassadors now.

Chat now

Image