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These are the details for Capital Gold (3.80.00).
Version |
3.80.00 |
Released |
Mar 19 |
Summary |
This release includes the software changes for Making Tax Digital for VAT. The following new features have been added:
|
Contents
Guide |
Purpose |
|---|---|
This guide assists with the installation of Capital Gold. |
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This guide is provided so that you understand the steps necessary to switch on Making Tax Digital for VAT in Capital Gold at the appropriate time. |
Making Tax Digital (MTD) is a government initiative designed to transform the tax system and to end the use of the tax return for a great many taxpayers. It is intended to make it easier for businesses and individuals to maintain records and to get their tax correct. Under Making Tax Digital for VAT, businesses will be required to keep records digitally and send VAT return data to HMRC online.
Making Tax Digital for VAT comes into force on 1 April 2019 and will apply for most businesses with annual sales over the VAT threshold of £85,000. If Making Tax Digital for VAT applies to you, you’ll have to use digital tools to keep records of your income and costs.
Until 1 April 2019 you can use the free Government Gateway for entering your VAT return, but for your first full VAT period after 1 April 2019 you will need to use Making Tax Digital for VAT software to submit your VAT returns.
You will not have to follow the Making Tax Digital for VAT rules where HMRC is satisfied of the following:
The business is run entirely by practicing members of a religious society whose beliefs are incompatible with the requirements of the regulations (for example, those religious beliefs prevent them from using computers)
It is not reasonably practicable for the business to use digital tools to keep your business records or submit your returns, for reasons of age, disability, remoteness of location or for any other reason
The business is subject to an insolvency procedure.
For more details please visit www.gov.uk and read these
articles:
Overview
of Making Tax Digital
Vat-notice-70022-making-tax-digital-for-vat
The Company Parameters form on the Parameters menu now includes an option for switching on Making Tax Digital for VAT and entering the start date.
You can only switch on Making Tax Digital for VAT in Capital Gold after committing all VAT transactions dated before the MTD for VAT start date. The earliest that you can switch on Making Tax Digital for VAT is 1 April 2019.
You must sign up for Making Tax Digital for VAT with HMRC before switching it on in Capital Gold.
Making Tax Digital for VAT rules apply to business from the first full VAT period starting on or after 1 April 2019.
The following examples illustrate whether Making Tax Digital for VAT should be switched on.
Example 1: VAT period spans 1 April 2019
In this example
Making Tax Digital for VAT
must not be switched on yet.
A business that is mandated for Making Tax Digital for VAT submits a
quarterly VAT return, and their next VAT return covers the period 1 March
2019 to 31 May 2019.
Because the start of the VAT period is not on or after 1 April 2019,
the business will need to start complying with Making Tax Digital for VAT
rules for the period starting 1 June 2019.
This means the VAT return for the period 1 March 2019 to 31 May 2019 will
be submitted using an old method, for example the HMRC online portal.
Example 2: VAT period starts
on 1 April 2019
In this example Making Tax Digital for VAT
must be switched on.
A business that is mandated for Making Tax Digital for VAT
submits a quarterly return, and their next return covers the period 1 April 2019 to 30 June 2019.
Because the start of the VAT period is on or after 1 April 2019,
the business will need to start complying with Making Tax Digital for VAT
rules for that period starting on 1 April 2019.
The Insert New VAT Rate screen, which is opened from the VAT Rates screen on the Parameters menu, has changed to include a new check box called VAT Adjustment Rate.
If this check box is ticked a list of VAT boxes is displayed so that you can choose which boxes are updated when the VAT code is used when posting a VAT Adjustment. You define which VAT Return boxes are updated when the VAT code is used, in accordance with your agreement with HMRC.
These VAT rates can only be used when using the new VAT Adjustment screen.
The new VAT Adjustment screen on the Periodic menu is available so that VAT adjustments can be posted to update selected boxes on the VAT Return.
These VAT Adjustments make it possible to post amendments to goods values and VAT values. You also need to select Sales, Purchase or Nominal ledger for memorandum purposes, but the ledgers are not updated. Only the VAT boxes selected for the VAT code are updated on the VAT Return.
End of period VAT adjustments must be done in accordance with any end of period agreement you have with HMRC.
The VAT Adjustment check box on the Journal Entries screen has been renamed to Update VAT Control to avoid any confusion because of the introduction of the new VAT Adjustment screen.
The VAT Return screen in Capital Gold now completes these additional tasks:
When the Calculate button is used, any VAT adjustments posted using the new VAT Adjustment screen are now included together with the VAT values from the Sales, Purchase and Nominal ledgers.
When the Commit button is used, a VAT Return is generated in the format required for Making Tax Digital for VAT file.
Any VAT adjustments that were posted using the new VAT Adjustments screen are now included in the calculation together with the VAT values from the Sales, Purchase and Nominal ledgers.
Your Capital Gold software must be authorised with HMRC for Making Tax Digital for VAT. A message will be displayed before the calculation if it has not been authorised.
Committing the VAT Return will also submit it to HMRC. After the VAT Return has been generated you have the choice to submit the VAT Return to HMRC or cancel it. When you submit your VAT Return to HMRC you are making a legal declaration that the information is true and complete.
If the VAT Return submission fails the VAT Return will not be committed.
Capital Gold will retrieve VAT obligations from HMRC and then submit the VAT Return for the current period. The VAT Return submission results are then stored along with details relating to the generation of each digital VAT Return file.
If the MTD for VAT option is selected on the Company Parameters screen, the Commit button is only available if Microsoft .NET Framework 4.7.2 is installed on the computer. To download Microsoft .NET Framework 4.7.2 visit dotnet.microsoft.com/download/dotnet-framework-runtime/net472.
The new List of VAT Adjustments report is available for reporting on VAT Adjustments within a selected date range.
The report is available from the General section of the Accounting Reports wizard.
The new MTD for VAT Submissions report includes details of VAT Returns that were submitted to HMRC. Responses from HMRC are also included on the report.
The report is available from the General section of the Accounting Reports wizard.
