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From April 1st 2019 your VAT returns must be submitted electronically to HMRC via approved software. Your VAT records must be maintained digitally, and the VAT data must be submitted in MTD-compliant format. MTDfVAT allows you to do this.
MTD stands for Making Tax Digital. It is part of HMRC’s ambition to become one of the most digitally advanced tax administrations in the world.
From April 1st 2019 (or October 1st 2019 for deferred entities), businesses registered for VAT with a taxable turnover above the VAT threshold need to:
- Keep and store their VAT records digitally
- Send VAT returns to HMRC using Making Tax Digital software
VAT registered businesses and entities with a taxable turnover above the VAT threshold will be affected by MTD for VAT.
There are two versions of MTDfVAT:
- Individual – for Individuals and Sole Traders
- Company – for Limited Companies or Liability Limited Partnerships (turnover below £5m with one VAT number)
Choose your version on our purchasing page. After you’ve purchased, we will send you all the details you need to get started, including your VAT receipt, full instructions, and your secure login details to our online submission hub.
Please refer to our helpful guides in the Documentation section.
We provide email support between 9 am and 5:30 pm Monday to Friday. You can get in touch with the team by emailing support@mtdfvat.co.uk
Your data is secured in a UK based server database which only your authorised user can access. Your access is secured with your individual login and password.
Yes, MTD for VAT is mandatory for UK VAT registered businesses with a taxable turnover above the VAT threshold.
Both the Company and Individual versions are £69 + VAT per year.
You can send us any feedback or suggestions using our contact form.
To log in to MTDfVAT, please follow this link.
Once you have logged in you can view your VAT obligations and submit your VAT return to HMRC. You can also see the history of your MTD for VAT returns, payments, and refunds.
Please note: you will not be able to see VAT data submitted before signing up for MTD for VAT.
You cannot enter the data manually. There must be a digital audit trail using functional compatible software such as Excel to show how you reached the nine VAT totals. For more information, please see HMRC’s details on MTD for VAT.
MTD for VAT is more than filing VAT returns using compatible software. Digital record-keeping means having digital income and expenditure records. This can include keeping records in Excel and using bridging software to transfer the data to HMRC, or using bookkeeping software.
For more information, please click this link from the HMRC
Only the total for each amendment or adjustment is required, not the detail of the underlying calculation. For more information see HMRC’s MTD for VAT page.
You can import your VAT return as normal, based on Flat Rate Scheme calculations. You can use our template but will have to edit the calculations so they include the Flat Rate Scheme. For more information, see HMRC’s Flat Rate Scheme page.
You can use your own Excel spreadsheet alongside our Excel add-in tool, as long as you have the 9-box totals.
You can set your VAT quarter end date by going to Home > Edit > VAT Period End. Then choose your period end date from the drop-down list.
Your Net VAT Due must be equal to the difference between the Total VAT Due and the VAT Reclaimed Current Period. This will always be a positive value. HMRC will use boxes 1 and 4 o determine if it’s a payment or a refund.
You have to be in Edit mode to submit the VAT return.
This is an HMRC error code. As an individual or business using MTDfVAT, you must have subscribed to the MTD for VAT service with HMRC. If you haven’t signed up yet then you will encounter error 403. Please follow this link to sign up to MTD for VAT.
There could also be an issue with the HMRC MTD service.
Mac: Excel 2016 and up
Windows: Excel 2010 and up (including 2019)
Initially, HMRC wanted all underlying data to be submitted with the totals, however now this is not the case. All that is being transmitted in MTD-compliant format is the final 9 VAT totals.
You can use your current Government Gateway login but should use this link to sign in.
HMRC don’t allow pennies in the totals, boxes 6 and 8, so this is rounded automatically to comply with HMRC requirements. You can find out more from HMRC here.
When you complete your purchase of MTDfVAT, you will receive an email with your VAT invoice attached. The subject line will be “Invoice [number] Thank you for your order.”
Our MTDfVAT Quick Start Guide is available to download. Click here.
Please see the video below on how to install the MTDfVAT Excel Add-in:
We have an add-in available which allows you to transfer the data from a spreadsheet into MTDfVAT to submit directly to HMRC.
This video demonstrates the add-in:
VAT reporting dates will not be affected by MTD for VAT. Businesses will report their quarters by the same deadlines. MTDfVAT can handle these dates.
You can download the example file here.
HMRC recognise bridging software as an important form of digital transfer, and it will be accepted for MTD for VAT returns beyond the soft landing period.
HMRC recognise spreadsheets as an acceptable form of digital record keeping. This will be accepted beyond the soft landing period.
Some more complex VAT adjustments, for example, Flat Rate Scheme, must be made outside of bookkeeping software after the base data has been exported to a spreadsheet. Any adjustments must be recorded in the spreadsheet to preserve the digital record.
Any record keeping software can be used provided it keeps the individual transactions in digital form and can transfer the data in digital form to an MTD enabled bridging software.
Almost any software can interact directly with HMRC for MTD, but it’s a lot of work to do so. It is acceptable to use bridging software to submit the MTD for VAT return to HMRC.
HMRC recognise a CSV file as an acceptable form of digital link between the record keeping software and the MTD submission software.
Once you have submitted your first MTD for VAT return, you cannot go back to the old VAT 100 submissions, even if you fall below the VAT registration threshold. The only way to leave is to deregister for VAT.
This error is displayed when the customer has not waited 72 hours for their VAT information to be migrated to the MTD service. This means that when the software attempts to call an obligation there is no data to return.
HMRC recommend that agents and businesses should only attempt to submit a VAT return once they have received the email to confirm they are now under MTD. If they are still receiving an error after 72 hours they should report it to HMRC.
Yes, as of October 2019 the latest software version can automatically consolidate multiple data sources. For example, for different companies within a larger group enterprise, or multiple spreadsheets concerning a single company (such as for online operations versus over-the-counter sales operations).
Yes, as of October 2019 the latest software version can automatically consolidate multiple data sources for different companies within a larger group enterprise.
You can sign up for MTDfVAT as a business to manage your VAT obligations under Making Tax Digital rules. However, if your turnover is over £5m or you manage a group of companies for VAT, you should consider BTCHub instead.
Your licence runs for 12 months from the point of purchase.
First, you will need to arrange MTD for VAT software (MTDfVAT). Then, sign up with HMRC. You will need:
- Sole Trader: your National Insurance number
- Limited Company or Registered Society: your company registration number and your Unique Taxpayer Reference (UTR) for Corporation Tax
- Limited Partnership: your partnership’s company registration number, UTR, and postcode where you’re registered for Self-Assessment
- General Partnership: your partnership’s UTR and postcode where you’re registered for Self-Assessment
It is possible to apply for an exemption from HMRC if:
- You cannot use computers, software, or the internet because of your age, a disability, or where you live
- You object to using computers on religious grounds
Automatic exemption applies if:
- You’re already exempt from filing VAT Returns online
- Your taxable turnover is below the VAT threshold
- You or your business are subject to an insolvency procedure
Currently, VAT filing dates remain as they were before the introduction of MTD for VAT.
Click here for our on-demand MTD for VAT webinar featuring a demonstration of MTDfVAT.
The MTDfVAT add-in for Excel allows you to define your VAT information in a spreadsheet and digitally transfer the data to MTDfVAT for compliant submission to HMRC. We also provide a template spreadsheet for digital records if you are not currently using Excel or bookkeeping software.
The import CSV file option allows for digital transfer of VAT data to MTDfVAT from legacy sales and bookkeeping software. Export your data as a CSV file and use the easy import function to upload the file to MTDfVAT.
MTDfVAT has been tested at HMRC and listed as MTD for VAT Compliant.
- Validate and submit VAT data to HMRC
- VAT dashboard view of obligations
- Excel and Spreadsheet friendly
- Integrate with bookkeeping software
- Import using CSV from legacy software
- User-friendly
- Validate and submit VAT data to HMRC
- VAT dashboard view of obligations
- Excel and Spreadsheet friendly
- Integrate with bookkeeping software
- Import using CSV from legacy software
- User-friendly
Updated: The soft landing period has been extended until April 2021 to help businesses deal with the Coronavirus crisis.
When MTD for VAT launched, HMRC allowed a period of adjustment for businesses. The soft-landing period runs until April 2020 and provides flexibility while businesses put their MTD for VAT solution in place. Please note that this is at HMRC’s discretion, so it’s best to get started with MTD for VAT as soon as possible.
MTDfVAT integrates with most major bookkeeping software and accepts files in CSV format. You can also use our template to maintain digital records and our add-in to export from Excel to MTDfVAT.
Please make sure you are logged out of MTDfVAT if you are exporting from Excel.
Also, ensure you are not editing this record in another tab or browser window. If so, please save, undo or discard your changes as appropriate.
Once you have renewed your MTDfVAT licence, you can easily remove the “Unlicenced” status message by refreshing the page, navigating to another page, or waiting 60 seconds at which point it will automatically update the status.
If the software returns the error message “The obligation [start date – end date] was not found” then you will first need to confirm that the dates in your VAT Return are correct. Most commonly, this error indicates that the period end date is incorrect; for example, 2020 is a leap year so the February period end date should be 29/02/2020.
This is an example of the error message:
![The obligation [start date - end date] was not found](https://mtdfvat.co.uk/wp-content/uploads/2020/06/image-300x88.png)
If you have checked your period start and end dates and they are correct, and you are still having issues then please get in touch by emailing support@mtdfvat.co.uk with a copy of your VAT Return file and a copy of the error message.
The changes will apply to VAT customers for accounting periods beginning on or after 1 January 2023
The new system allocates a point for each late return.
Points will last for 24 months and then expire – in the same way as points on your driving licence. There is also a ‘totting up’ process, and for late filing penalties reaching the maximum number of points results in a penalty being charged.
The late filing penalty is a fixed sum of £200.
Late payments are 2% of the VAT due after 15 days and then 2% if it is still outstanding after 30 days.
HMRC’s publication: Penalties for late submission
Bridging software remains compliant after the soft-landing period for Making Tax Digital for VAT ends in April 2021. The soft-landing period was extended to reduce the pressure of the Coronavirus pandemic on businesses, but at this time HMRC has not announced a further extension. So, what do you need to know about compliance after the soft-landing period?
Bridging software remains compliant
HMRC confirms that bridging software remains compliant after the April 2021. That means that if you’re our customer, you will not have to look for alternative software to complete your VAT returns under Making Tax Digital rules.
Read through our guides on how to set up and use MTDfVAT
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