MTD for VAT Hints and Tips

Steps to Take Introduction Making Tax Digital (MTD) is a brand new process for providing information to HMRC. As you are aware, mandatory registered VAT businesses are the first to be impacted, and it is vitally important that you follow the correct steps, at the correct time to ensure the process works as smoothly as possible. A lot of the information is available via the HMRC website, and the best advice is to keep up to date on progress directly with HMRC , Step What to do When to do it Tips 1 Review HMRC’s website Now 2 Set up your Agent Services Account (ASA) 3 Link old Government Gateway to ASA After Step 2 4 Sign clients up to MTD Depends – Care needed 5 Authorise your software In time for first submission See Tips See Tips See Tips See Tips See Tips

Back Review HMRC’s website There is various information on HMRC’s website, but the following tips should help understand MTD From HMRC home page (here) – go to Featured > Making Tax Digital for VAT for a list of useful resources Agent specific information is accessed via https://www.gov.uk/government/collections/making-tax-digital-for-vat#for-agents Specifically, follow the guidance within Making Tax Digital for VAT as an agent: step by step which this content is based on Look at the Making Tax Digital for Business - stakeholder communication pack For technical guidance, review VAT Notice 700/22

Creating your Agent Service Account Back Creating your Agent Service Account There is various information on HMRC’s website, but the following tips should help understand MTD You will only have one Agent Services Account, regardless of how many government gateway log-ins you currently have To create the account, you will need information related to the practice (e.g. UTR and Postcode), and confirmation of your Anti-Money Laundering registration details Once created, make a note of your ARN number – it is only shown on screen once!

Linking your old Government Gateway Back Linking your old Government Gateway There is various information on HMRC’s website, but the following tips should help understand MTD Log into your new Agent Services Account Select “link your current Self Assessment and VAT clients to this account” Enter the Government Gateway ID and password for each “old” gateway account you wish to link to the Agent Services Account Note: This step does not onboard clients into MTD – it creates a link between old and new, so you can onboard the client into MTD in the next step

Sign clients up to MTD for VAT Timing here is vital. Following the steps too early, and you may accidentally onboard your client into the Pilot! Follow the steps too late, and you may not have time to submit the MTD return before the statutory deadline. Please note – onboarding clients in one-by-one – you cannot mass sign-up all clients Review your VAT clients, and categorise them into: Monthly; Stagger 1; Stagger 2 and Stagger 3 Follow the link on this HMRC page https://www.gov.uk/guidance/sign-up-for-making-tax- digital-for-vat to onboard a client (remember you must have a 64-8 in place to onboard the client). Alternatively, your client can sign themselves up for MTD Onboard clients based on the following information Monthly Stagger 2 Back Stagger 1 Stagger 3

Non-Direct Debit Client When to Onboard Monthly Clients Back Last ‘Old’ Return First MTD Return Direct Debit Client 8 May 15 May 28 May 7 May 7 June Non-Direct Debit Client Recommended Period

When to Onboard Stagger 1 Quarterly Clients Back Last ‘Old’ Return First MTD Return Direct Debit 8 May 15 May 23 Jun 7 May 7 Aug Non-Direct Debit Recommended Period

When to Onboard Stagger 2 Quarterly Clients Back Last ‘Old’ Return First MTD Return Direct Debit 8 June 15 June 23 July 7 June 7 September Non-Direct Debit Recommended Period

When to Onboard Stagger 3 Quarterly Clients Back Last ‘Old’ Return First MTD Return Direct Debit 8 July 15 July 23 August 7 July 7 October Non-Direct Debit Recommended Period

Back Authorising Onvio VAT The final step is to authorise your software so that data can be submitted to HMRC. Within Onvio VAT, the process is as follows; Ensure you are logged into Onvio as an administrator Visit Setup>Firm>MTD In the Onvio Authorisation grid click Add Type in your Agent Reference Number and a description, click Next Click on Authorise Please Note: Thomson Reuters have no access nor visibility to data you share with HMRC as part of the authorisation process. When authorisation is successful – HMRC provide confirmation to Onvio that the software is authorised.