In order to comply with HMRC’s regulations regarding copy/paste, the ‘Standard Box Format’ Template is no longer available to use for submissions where the obligation period starts on or after 1st April 2021.
Magic Tax is the perfect solution for small businesses and contractors who currently manage their accounts manually and do not want to sign up for costly subscription-based accountancy packages.
Accountants will be approached by many small businesses looking for help to file their VAT returns and comply with the new legislation. Magic Tax will give them the ability to look after multiple clients on one dashboard.
Larger Businesses (Legacy Systems)
For larger businesses, it’s likely that you are running your business on a legacy system or an older version of your system. Magic Tax is a quick and easy way to bridge the gap between your legacy system that may not comply with Making Tax Digital and the HMRC’s new legislation.
Bookkeepers are likely to be filing VAT returns manually for a number of clients. Now they can manage multiple client’s VAT returns from one easy to use FREE solution. By using Magic Tax, they are less likely to lose clients to accountants too.
KFA Connect have been designing, developing and integrating innovative software solutions for multi-national
and medium-sized businesses for over 30 years.
We wanted to design and develop something which would raise money for a worthwhile charity
and Magic Tax is the result!
KFA Connect, the company behind Magic Tax has been successfully trading for 30 years!
Our team comprises of 27 Designers, Developers, Test and Support team members, all based at our UK head office in Ringwood, Hampshire.
During that time we have been looking after our multi-national and medium-sized business customers.
We specialise in bespoke software development, systems integration, eCommerce, eCommerce integration as well as Management Reporting solutions. We have a multitude of skills on many platforms and can usually find a creative solution for any IT software issue or frustration our customers face.
We are a dedicated bunch and are happy to chat through any future projects you may have planned – follow this link to the KFA website for more information.
Throughout KFA Connect we aim to inspire Innovation, Collaboration and Accountability and at all times act with Independence and Integrity to bring Excellence to everything we do.
We have a passion and pride for our work. Going the extra mile to produce a quality result is what drives us, and we are proud to add value by delivering exactly what is required.
We respond to our clients changing needs as well as those of the marketplace. We listen, discuss and challenge established practice to find better ways of doing things.
Our vision is to bring IT software products to the market that are both useful to businesses and to raise as much money for charity as possible in the process.
If people hear about KFA Connect in the process then that’s an added bonus!
Tutorial - Magic Tax user guide video
Our Chosen Charity
Marie Curie is the UK’s leading charity for people living with a terminal illness and their loved ones.
KFA Connect are supporting Marie Curie by offering Magic Tax for FREE for subscribers. 100% of all donations made by anyone using Magic Tax will go directly to the charity.
We want to raise £20,000, which is enough to pay for a nurse for an entire year of expert care from a Marie Curie nurse for people at the end of their lives.
Registered Charity, England and Wales (207994), Scotland (SC038731).
If you are living with a terminal illness or caring for someone and need support?
You can call 0800 090 2309 to speak to a trained member of staff or a nurse for practical information and emotional support.
Here are some statistics on the amazing work they carry out across the UK, from just one calendar year:
People cared for in Marie Curie hospices
People cared for by Marie Curie Nurses
People have accessed the Marie Curie Infomation & Support Service
Raised by Magic Tax since April 2019 launch
Need Some Help?
Some of the most frequently asked questions can be found here…
What format should I save the spreadsheet? You should save your Excel spreadsheet in .xlsx (Microsoft Excel 2007 or newer) or .xls format (Microsoft Excel 97-2003). You should not rename the sheet or the headers or add any additional columns.
Does Magic Tax support older versions of Excel? Yes. Download the template file type to match the version of Excel you are using.
I use a free version of Office software, can I still use Magic Tax? Users of free office software such as Open Office or LibreOffice should make sure they are able to save the file in one of the formats mentioned above. The file must be .xlsx or .xls in order to successfully upload to Magic Tax. There are free converters available on the internet if your software does not allow you to save in either of these formats.
Will the Excel spreadsheet work with my Mac? Yes. Just save the spreadsheet in .xls or .xlsx format (depending on which version of Excel you are using).
What support is offered if I need help in the future? Should you encounter a technical issue, KFA Connect offers a support portal, which can be accessed here or in the ‘Support’ link in the bottom footer of this page. Simply register for the support service and our team will be able to help you.
Is my company’s 9 box data stored by Magic Tax? Yes, the VAT return submitted is stored (as HMRC require our users to be able to view what they have submitted), but your spreadsheet data is not stored. This allows users to view past submissions in the ‘VAT Filing History’ tab from the Magic Tax dashboard.
Where is the standing data that you hold about our company stored? The only standing data we hold is;
the company name (as entered by the user) which is only stored to display to the user so they can choose the company they are working with.
the company VRN (Vat Registration Number) – which must be passed to HMRC.
details of the VAT sector if they are on a fixed-rate scheme (which Magic Tax needs in order to calculate the return).
This data is all held in an encrypted database in our UK data centre.
I’m getting an error message that says: ‘You are not authorised to use this VRN’ Either you have not completed the MTD for vat sign-up process with HMRC (and had the email from HMRC confirming the sign-up process is complete, which can take 72 hours). Agent/Bookkeepers: Ensure that you use your Agent Services Account to authorise Magic Tax, which are the HMRC gateway credentials specifically for MTD (different to those you would use to log in to HMRC to manage the company). Those filing on behalf of a company should check they are using the MTD login credentials when authorising Magic Tax. You can “Extend” the authorisation within Magic Tax if you would like to check the correct credentials have been used. Another obvious thing to check is that you have been authorised by the company to file on their behalf.
I have signed up for Making Tax Digital with HMRC, but I am still getting a message saying, “You are not authorised to use this VRN”? You should check that you are authorised with HMRC to make submissions for the company – you can check this with HMRCand that you have not de-authorised Magic Tax with HMRC for any reason. If this is the case, you must re-authorise Magic Tax to interact with HMRC before you will be able to make a submission. Be sure that you are using the gateway credentials which you used to sign up for MTD as these are different credentials than those used to manage your company with HMRC.
Do I need to wait for confirmation from HMRC that I signed up for MTD before adding my Company details? Yes. You should wait until you have confirmation from HMRC of your sign-up to Making Tax Digital BEFORE you trying to add a company or submit a VAT return using Magic Tax. HMRC can take up to 72 hours to confirm your sign-up.
My obligation period is not showing in the drop-down box? First, log in to the HMRC government gateway using your MTD gateway credentials to check that HMRC has an open obligation period showing for the company. If there is no obligation period showing in the HMRC gateway you should contact HMRC in the first instance. Note: Your obligation period will not show if you are late making your submission and you should contact HMRC in this instance to arrange to make your submission manually. If you have checked the above and the obligation period is not showing as expected, you can contact our support team for further assistance.
I’m a ‘Limited Cost Trader’, can I use Magic Tax? As HMRC will not accept copy/paste as a valid method to compile your data – Limited Cost Traders will need to find an alternative solution from their first submission where the obligation period starts on (or after) 1st April 2021. Up until April 2021, Limited Cost Traders have been able to use the Standard Box Template to upload their data in Magic Tax. The Standard Box Format template will not be available for use in Magic Tax for submissions made for obligation periods starting on or after 1st April 2021.
Can more than one user submit on behalf of a company? Yes, as long as they are registered with HMRC and have a Government Gateway User ID and Password to allow them to make submissions for that company – they will be able to add the company to their dashboard within Magic Tax. It’s important that their gateway credentials are those used to sign up to MTD, as these credentials are different to other gateway credentials used to manage your business with HMRC.
Do I need to register again to submit on behalf of another company? Each Government Gateway account will require a separate Magic Tax account. You can add multiple Magic Tax accounts for different companies, but each registration will require a unique user name.
Can I delete my Magic Tax account? Users who have signed up for a Magic Tax account (but have not used the solution to make a submission) can request that their account is deleted. You can request this here
I have forgotten my Magic Tax User ID or Password? Remember that your username may not be your email address (your user ID is chosen by you when you first registered). The password is case sensitive. If you have forgotten your password, you can reset it by clicking on the ‘forgotten password’ link on the log in page and follow the instructions. An email (valid for 24 hours) will be sent to your registered email address to reset your password. Remember to check your junk/spam folder! If you have forgotten your user ID, a reminder of your user ID will be on the password reset email. Still struggling? get in touch with our support team.
When uploading my spreadsheet, I receive an ‘Error’ message? You should check that you have not entered any additional text/data in line 1 of your spreadsheet and that you do not re-name the columns or add any new columns. Do not rename the sheet/s and do not include any references to other spreadsheets or reference any other worksheets using formulas. You can get in touch with our team, send a screenshot of the error message and a copy of your spreadsheet and our team will try and help identify the issue.
I’ve uploaded my spreadsheet, but the 9 box figures are not correct? If you are using the Simple Sales & Purchases or the Sales, Purchases, Acquisitions & Goods Supplied template – you should be aware that only the data from your obligation period will pull through to the vat submission. For example, if your obligation period is May-July, Magic Tax will only pull through the data from that period, so an entry for April or August on your spreadsheet will not feature in the 9 boxes. If you are a Limited Cost Trader or work in the Hospitality or Catering industry you will not be able to use Magic Tax after the Standard Box Format template has been removed from use from April 2021. This is due to date-specific percentages following the Covid pandemic which Magic Tax was not developed to manage.
Download the Magic Tax User Guide v2.4 (Revised July 2021)
“The software is easy to follow and use with the video tutorial. Furthermore, getting the friendly and helpful advice from KFA Connect made the whole process run smoothly.
There are many companies out there that offer MTD software but charge extortionate prices. KFA have come up with a great solution of asking for voluntary donations to their chosen charitable cause as payment for using their software.
This is more appealing to the end client to use the software and your services.”
Rosemarie GrovesH J Groves & Sons
"End user satisfaction 10/10!"
“We are a small family business established over 50 years, so change is always a bit daunting!
KFA’s Magic Tax solution was the perfect answer, using their software has made the transition very easy and their support outstanding considering there is no payment involved other than a voluntary donation to Marie Curie, which I was more than willing to contribute to a very worthwhile cause.
Magic Tax was the perfect answer to Making Tax Digital and I would particularly like to thank Nicki for her patience with me.
End user satisfaction, 10/10 – Thank you”
Eileen NortonArtema Ltd
“Thank you for the Magic Tax ‘bridging software’. It has really helped us to understand the role of bridging software better. To date we have used it for a handful of submissions.”
I also wanted to let you know that we have donated to the Marie Curie charity just giving link. We think the Marie Curie charity is one of the most helpful out there and their nurses do an unbelievably hard job under some of the most upsetting circumstances.
Artema are using Magic Tax as an ‘Agent’ to submit on behalf of their clients.
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