VAT nightmare incoming

[nheather]

1 hour ago, bentwaters81tfw said:

^Haven't you heard of 'Levelling UP'? never down is it? 

Items that cost $20 or 20 Euros around the world cost £20 here. (plus taxes, fees, and anything else they can get away with)

If there is a fast buck to be made somewhere by making untrue statements, someone will do it.

Be sceptical, especially from places or persons with a track history of not playing by the rules, or ignoring small items like intellectual property and the like.

I have never even heard of Banggood before, so have no dog in this fight, just stating some of life's experiences.

Yes I have but this is a different issue.

 

Cheers,

 

Nigel

[JeffreyK]

Anyone heard of the latest HMRC stupidity? Now they make you use a third party tax service in order to file your VAT return!!!

Until now I just logged into my HMRC VAT account every three months, entered the relevant numbers into five boxes, hit "send" and that was it. I saved the document for reference, made the payment quoting my tax number, done.

Now you can't do that anymore! You have to first save the exact same five figures in an Excel file, go to anyone of a number of UK tax service agencies, upload it to their system, enter your HMRC account details and hit send. Basically exactly the same, just more complicated and involving a private company with your confidential information. If you do the creation of the Excel sheet and uploading yourself this is apparently free of charge (well, for now...).

I really don't get it?? What's the point of that??

Jeffrey

[IanHx]

16 hours ago, JeffreyK said:

Anyone heard of the latest HMRC stupidity? Now they make you use a third party tax service in order to file your VAT return!!!

Until now I just logged into my HMRC VAT account every three months, entered the relevant numbers into five boxes, hit "send" and that was it. I saved the document for reference, made the payment quoting my tax number, done.

Now you can't do that anymore! You have to first save the exact same five figures in an Excel file, go to anyone of a number of UK tax service agencies, upload it to their system, enter your HMRC account details and hit send. Basically exactly the same, just more complicated and involving a private company with your confidential information. If you do the creation of the Excel sheet and uploading yourself this is apparently free of charge (well, for now...).

I really don't get it?? What's the point of that??

Jeffrey

 

One of the many reasons my contracting company stopped trading.....  why should I be obliged to pay a 3rd party just to submit a VAT return ?

 

[Duncan B]

On 6/25/2022 at 2:59 AM, JeffreyK said:

Anyone heard of the latest HMRC stupidity? Now they make you use a third party tax service in order to file your VAT return!!!

Until now I just logged into my HMRC VAT account every three months, entered the relevant numbers into five boxes, hit "send" and that was it. I saved the document for reference, made the payment quoting my tax number, done.

Now you can't do that anymore! You have to first save the exact same five figures in an Excel file, go to anyone of a number of UK tax service agencies, upload it to their system, enter your HMRC account details and hit send. Basically exactly the same, just more complicated and involving a private company with your confidential information. If you do the creation of the Excel sheet and uploading yourself this is apparently free of charge (well, for now...).

I really don't get it?? What's the point of that??

Jeffrey

 

My wife works in an Accounts firm so the following information is coming from her (although she isn't an expert in paying Tax/VAT from outside UK). Apparently the changes are all to do with the move to "Making Tax Digital" (MTD) which came in on the 1st April. I guess it's your first quarter VAT return that you have just had trouble with which would be the first to come under MTD?

This might not be an option for you as you as based outside the UK but software accounts packages readily available in the UK like Quickbooks, Sage etc are all now MTD compatible so users are able to still file their VAT returns directly to HMRC. It is probably more expensive than it's worth to see if you can get access to a UK compatible accounts software package if you want to be able to submit VAT directly to HMRC without having to go through a third party. If you are able to get a UK Government Gateway ID (you probably have one for recording your UK Tax liability?) you should be able to add VAT to your Gateway as an additional service which should also allow you to pay VAT directly to HMRC, probably worth checking that out.

Currently it is only VAT registered companies but in 2 years time all businesses will have to be fully MTD compatible.

 

Duncan B

[JeffreyK]

1 hour ago, Duncan B said:

 

My wife works in an Accounts firm so the following information is coming from her (although she isn't an expert in paying Tax/VAT from outside UK). Apparently the changes are all to do with the move to "Making Tax Digital" (MTD) which came in on the 1st April. I guess it's your first quarter VAT return that you have just had trouble with which would be the first to come under MTD?

This might not be an option for you as you as based outside the UK but software accounts packages readily available in the UK like Quickbooks, Sage etc are all now MTD compatible so users are able to still file their VAT returns directly to HMRC. It is probably more expensive than it's worth to see if you can get access to a UK compatible accounts software package if you want to be able to submit VAT directly to HMRC without having to go through a third party. If you are able to get a UK Government Gateway ID (you probably have one for recording your UK Tax liability?) you should be able to add VAT to your Gateway as an additional service which should also allow you to pay VAT directly to HMRC, probably worth checking that out.

Currently it is only VAT registered companies but in 2 years time all businesses will have to be fully MTD compatible.

 

Duncan B

 

Thanks Duncan,

 

the thing is, I've been finling my VAT return through HMRC's Gateway the whole time, I've never sent any paperwork or the like. Everything was online already and as such digital.

This MTD I can no longer do that. Instead I have to use an Excel spreadsheat consisting of the exact same boxes as on the HMRC gateway and then upload it to one of several HMRC approved tax services. Their website "translates" it into a web form and then you enter your HMRC account and log-in details there. The form gets loaded into the HMRC system and as far as I understood, that's it. I have no idea why they had to add this additional step...?

If you just use this upload service and no "real" accounting, as far as I understood, the service providers don't charge anything for this.

If that's not correct and I have to pay something then I will have to think very hard and may have to make a painful decision. I already have all that extra hassle with separate filing and doing this VAT return quarterly, just for the UK and the few orders I get from there. If it will cost me extra on top it rapidly becomes unviable.

 

Jeffrey