We wanted to take the opportunity to share important news (and our favourite quote of the week) with you…
HMRC have detailed information on their website as to what constitutes as ‘Digital record keeping’. We need to draw your attention to section 4 of the following page of their site.
On this page when referring to April onwards, HMRC states:
HMRC does not consider the use of ‘cut and paste’ or ‘copy and paste’ to select and move information, either within a software program or between software programs, to be a digital link.HMRC, VAT Notice 700/22: Making Tax Digital for VAT (Section 4.2.1 – Digital Links)
What does this mean for me?
Magic Tax users will need to be aware of how it will apply to their use of Magic Tax for their first return where the obligation period starts on or after 1st April 2021.
As a result, of the legislation, KFA Connect will be making changes to the Magic Tax system and users will no longer be able to use the ‘Standard Box Format’ template beyond 1st April 2021. This simple template only asks for the data for boxes 1-9 of your submission and since this template relies on the copy/paste method it will no longer be a valid method to upload your data.
You will need to use either the Sales & Purchases Template or the Sales, Purchases, Acquisitions & Goods Supplied template instead as these two templates can be used to keep digital records of each transaction within your business.
NB: You will be able to continue to use this method until the first return where your company’s obligation period starts on or after 01/04/2021.
This does mean that Magic Tax users can continue to support Marie Curie by using Magic Tax to file their VAT returns and comply with HMRC’s MTD for VAT legislation – at least while bridging software is an acceptable method of making a submission.
We will keep you posted of any further changes to the Magic Tax system.
KFA Connect will continue to support Magic Tax users for as long as Bridging Software is deemed as an acceptable means of filing by HMRC.
“Can I just say that I have used other programs to do this, but Magic Tax is by far the easiest and cleanest one!”Larry Bulmer, Advo Group (Feb 2021)
Since it’s launch in 2019, Magic Tax has now raised £3,600 for Marie Curie from voluntary donations sent in by users of the FREE bridging software. We’ve helped many small, medium and large businesses to comply with HMRC’s Making Tax Digital for VAT regulations which came into effect in April 2019.
Like what we are doing?
You can find out more or make a donation to Marie Curie here…
More about KFA Connect, including:
IBM i Development, eCommerce Development & Integration, Systems Integration and more…
Already a Magic Tax user?
You can raise a support ticket or ask the team a question here…