We wanted to take the opportunity to share important news (and our favourite comment 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 should now be aware of how it will affect 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, Magic Tax developers, KFA Connect have made changes to the Magic Tax system and for submissions made for the April/May/June obligation period (in July) users will no longer be able to use the ‘Standard Box Format’ template. This simple template only asks for the data for boxes 1-9 of your submission and since it relied 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 still be able to use the Standard Box Format template to make a submission for:
Feb/Mar/Apr (filed in May)
Mar/Apr/May (filed in June).
You will not be able to use the Standard Box Format template to submit a vat return where your company’s obligation period starts on or after 01/04/2021.
The good news if that registered 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 by using either the Sales & Purchases template or the Sales, Purchases, Acquisitions & Good Supplied template, both of which can be downloaded from the Magic Tax dashboard. These templates require you to list all of your transactions for your sales & purchases so it’s important to download this and start recording your transactions now ready for when you have to make your next submission.
We will keep you posted of any further changes to the Magic Tax system.
KFA Connect will continue to support Magic Tax users (with system issues only) for as long as Bridging Software is deemed as an acceptable means of filing by HMRC. However, it is important to plan ahead as to how you will make your VAT submissions as and when bridging software is no longer deemed as acceptable.
“We were really pleased to find your bridging software solution for submitting VAT returns digitally. We found Magic Tax so easy and reliable.
Thank you to you and your team! We will happily donate to Marie Curie.”Lorette Sanders, MAS Design Products Ltd (May 2021) www.mas-design.com
Since 2019, Magic Tax has now raised over £4,500 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…