From 1 April, 2019, HMRC mandates the use of the Making Tax Digital (MTD) service to keep records digitally and use appropriate software to submit VAT returns. This means that all VAT-registered businesses with taxable turnover above the VAT threshold will be required to submit VAT returns digitally.
To ensure you and your clients are compliant, MTD VAT Returns is introduced as a new feature which will enable you to digitally file and record your VAT Returns for UK businesses. To access the feature, log in and on the left panel, go to Nominal Ledger > MTD VAT Returns.
For more information and steps to use the feature, click the following links, as required.
- Authorising Surf Accounts Production
- Finalising VAT Returns
- Submitting VAT Returns
- Clearing VAT Returns Records
- Printing VAT Return Records
You need to fulfill the following conditions prior to accessing the feature.
- The business location is United Kingdom. To verify, go to Compliance Database > Client Details > Key Information.
- You should sign up with HMRC. See HMRC's detailed guidance at https://www.gov.uk/guidance/sign-up-for-making-tax-digital-for-vat. You should ensure that you have signed up at least a week before you intend filing your next VAT return. Note in particular that if you are currently paying VAT by direct debit, you cannot sign up in the 7 working days leading up to, or the 5 working days after your VAT Return is due.
Authorising Surf Accounts
Before you start using the Making Tax Digital (MTD) service to submit VAT returns digitally, you need to provide a one-time authorisation to Surf Accounts Production to interact with HMRC on your behalf.
- Sign in and click the required practice.
- Go to Nominal Ledger > MTD VAT Returns.
- On the Information Message window, click OK.
Carefully read the HMRC webpage instructions on authorisation and click Continue.
- To sign-in to the HMRC, click Sign in to Government Gateway.
- On the login page, enter the login credentials and click Sign in. Note that the credentials are unique to the business.
- Confirm permission by clicking Give Permission.
- The VAT Return page appears. It shows the following information.
FIELD DESCRIPTION Original Amount Amount payable to the HMRC on the VAT return. Outstanding Amount Amount that the HMRC considers to be outstanding on the return. Return Status VAT returns that are considered completed by HMRC will have status Fulfilled. If a new VAT obligation period is available from HMRC, it will appear in the list, with status Open.
Post authorisation, the VAT Return page will appear whenever you attempt to submit or view
VAT returns status.
Finalising VAT Returns
To submit the VAT returns, you need to first generate and finalise the VAT amount payable during a quarter. To generate and finalise, complete the following steps.
- Click and then click Generate VAT Return.
- On the Confirmation Message window, click OK.