FAQs

No.

This should not be an issue for agents who have one HMRC Account featuring many clients.

But an individual may only purchase one Ftax MTD package year within any Ftax Account. For example, if an individual has 2 VAT registered companies and a VAT registered self-employment, then they will need to purchase each within their own Ftax Account. Subsequent year forms may be purchased within the same Ftax Accounts.

In summary, only one HMRC User ID for an MTD account may be used within one Ftax Account.

HMRC’s Step-by-Step guide to Making Tax Digital (MTD) sign up

Before you begin:

• Agents need to create an Agent services account, which provides the agent with the log in details required to access the MTD for VAT or MTD for IT APIs. Agents will also need to use the link existing clients’ service, if they want to submit for a client who they have an existing relationship with in MTD for VAT or MTD for IT.
• Businesses submitting their own VAT returns only need to complete steps 3 and 4. They can do this using existing Government Gateway (GG) ID if they have one OR they can set up a new one.
• Be prepared – once signed up to MTD returns MUST be submitted using MTD compatible software, don’t sign up unless you are ready.
• Where a business pays by Direct Debit and email address must be provided.
• Business that pay by Direct Debit have to sign up at least 15 working days before they need to submit.

Important: The role of the Business Tax Account (BTA)

• A business does not have to set up a BTA for an agent to link clients to the new ASA.
• A business does not have to set up a BTA to be signed up to MTD by an agent (the journey only requires them to validate an email address).
• A business does need to have a BTA set up to authorise a new agent relationship.
• Once a business is signed up to MTD, the BTA will be used to send them notifications to file and provide a view of their MTD for VAT or MTD for IT returns, so whilst the journey itself does not require the business to sign up to BTA being in the service and interacting with HMRC digitally does.

Step 1 : Create agent services account (ASA)

• Before signing up to MTD you must first create an Agent Services Account (ASA). For guidance and to create an account go to: https://www.gov.uk/guidance/get-an-hmrc-agent-services-account
• You may already have an ASA if you’ve signed up for the Trust Registration Service (TRS), you do not need to create a new one for MTD.
• The ASA is currently only used for the TRS, MTD VAT and MTD Income Tax. The GG ID which is generated in this journey is the one you will use to access MTD services. You will still need your old GG IDs to access other HMRC online services.

Step 2: Copy existing agent/ client relationships

• Once the ASA is created, you can use the service to copy existing authorised SA and VAT relationships you already have with a business, by following the guidance to copy existing clients.
• The copy clients service is accessed from inside the ASA, once done you will see a ‘Client Relationships Copied’ message.
• This process requires you to input your existing GG IDs so that we can identify the relationship already exists.
• All the clients that exist under a specific GG ID are linked to the ASA (if you have multiple GG accounts you may need to repeat this step to link all of your clients).

Important: The client list cannot be viewed from within the ASA however you are now able to view the number of client relationship copied over from HMRC online services.

Step 3: Authorise MTD compatible software

• Before signing a client up to the pilot you must make sure you have compatible software, see: https://www.gov.uk/guidance/software-for-sending-income-tax-updates
• If using existing software you need to make sure your provider’s MTD capabilities have been enabled – contact your provider to discuss.
• You must delegate authority to the MTD compatible software (this applies to both new and existing software).

Important: Once signed up returns must be submitted using MTD compatible software. You cannot use the previous channel.

Step 4 : Sign business up to Making Tax Digital (MTD)

• Using the new GG ID generated at step 1, you can sign up clients by going to: https://www.gov.uk/guidance/agents-use-software-to-submit-vat-returns
• You will receive confirmation that the client’s information has been received. We will email you (usually within 24 hours, but can take up to 72 hours) confirming you can start using MTD software to submit the client’s return.
• You should tell your client you are now submitting returns through Making Tax Digital.
• Each client needs to be signed up individually or the client can sign themselves up.

Important: For an Agent, when connecting software to HMRC you must use your new ASA GG ID (provided at step 1). If you attempt to log in with another GG ID our systems will not be able to recognise the MTD relationship with your client so you will receive an error message and be unable to file the return.

For more information on Making Tax Digital go to GOV.UK and type ‘Making Tax Digital for VAT’ or ‘Making Tax Digital for IT’ into the search bar

No. There are several ways the Ftax MTD forms may be used:

1. You may advise your client to purchase the non-agent Ftax VAT or Ftax Cashbook package. These feature a single copy to be used solely by the client.
2. If you have purchased either an Ftax Agent VAT or an Ftax Agent Cashbook package then you may generate both the agent and client copies before securely transferring the latter to your client using the password provided. The two copies are designed to be ‘sync’ed when in use so that the agent and client view the same data. Either may complete the form or submit to HMRC. Typically, the client may enter the VAT data, (either directly into the Ftax Cashbook, or into their own spreadsheet before using the Ftax VAT Link to transfer the data to the Ftax VAT pdf form), under the supervision of the agent.
3. If you have purchased either an Ftax Agent VAT or an Ftax Agent Cashbook package then you may generate the agent copy only. You should do this if you plan to complete and submit the form on behalf of your client.
4. If you have purchased either an Ftax Agent VAT or an Ftax Agent Cashbook package then you may choose to only generate the client copy before securely transferring this form to your client using the password provided. The client would then be able to enter all VAT data and submit to HMRC themselves.

Step 1: Visit https://www.gov.uk/guidance/find-software-thats-compatible-with-making-tax-digital-for-vat. Click ‘Yes’, (as all of the Ftax MTD for VAT packages or the Ftax MTD for IT packages submit through MTD), and then ‘Continue’.

Step 2 : Click ‘Sign up’, enter your Government Gateway credentials, and then click ‘Sign in’. Once signed up to use MTD you cannot return to the previous method to submit VAT or IT. If your business is not yet eligible to join, a message will appear to advise this.

If your business pays by Direct Debit then you need to sign up at least 7 working days before you need to submit.

Step 3: Follow the on-screen prompts and provide any requested information, including your email address.

Step 4: When you receive a verification email, click the link to verify your email address. Read and accept the terms of participation. HMRC will then confirm if you can start submitting MTD for VAT or MTD for IT returns. This confirmation usually occurs within 24 hours.

You must wait for the confirmation email from HMRC before to attempt to use the MTD software.

If you do not receive a confirmation email from HMRC After 72 hours, you should report this to HMRC.

Step 5: After purchasing an Ftax MTD for VAT or MTD for IT package you must authorise the Ftax service to submit VAT or IT or MTD for IT returns using MTD. This is done by first logging into your Ftax Account, clicking NEW to begin setting up an MTD web form, and then clicking to authorise Ftax for MTD when prompted (usually the 2nd or 3rd step in the Overview process). You should then be prompted to ‘Continue’, to log into to your HMRC account using your existing Government Gateway User ID and password, and to click a ‘Grant authority’ button.

HMRC recently answered this question in the following manner:

Will customers receive penalties for not filing MTD returns or keeping digital records?

Not yet. The government has confirmed a light touch approach to penalties in the first year of implementation for MTD VAT. Where businesses are doing their best to comply, no filing or record keeping penalties will be issued. However, customers must continue to pay their VAT obligations on time, as late payment penalties will still apply.

MTD Developer Update: April 2019

The most likely reason far a Communication Error:”SOAPservice is undefined” when logging in to your account from an Ftax form is that your version of Windows is not using the correct TLS (Transport Layer Security) version.

Ftax forms require TLS 1.2 to be available for use.

TLS settings are handled via the Advanced tab of the Internet Properties (or Internet Options) dialogue box.

To open the Internet Properties (or Internet Options), press the start button and start typing Internet Properties (or Internet Options) and Windows will show you the control panel to open.

Once open, click the Advanced tab at the top:

Please make sure that your system has TLS 1.2 version ticked, click the OK (or Apply) button and try again.

Exactly how this is done depends on the type of spreadsheet you are using. Examples are given below:

1. Create a new worksheet in your spreadsheet, e.g. by clicking the ‘+’ or the ‘new sheet’ icon to the right of the tab at the bottom of the most recent worksheet.

   

2. Link your 9 VAT report values to the new worksheet in a column. To do this, go to the new sheet, select the cell you wish to copy to, and type ’=’ in the Formula Bar above. Then go to the first sheet, select the VAT report value cell you want to link from, and press enter.
3. Export the new worksheet as a .csv file, e.g. by clicking File/Save as from the left of the menu bar, then ‘save as type’ before selecting CSV (Comma delimited) and saving as a file in a known location.

The VAT report can be laid out on the new worksheet with a header and data to the left of the 9 VAT values. But there must be no data to the right of any of the 9 values.

Yes, provided you first export the VAT report from Sage as a .csv file.

After setting up the Ftax VAT form (see video for details) go to the VAT page and click the red ‘Import VAT Report’ button. Select the ‘.csv’ option and browse to select the Sage VAT report .csv file. The data should be immediately imported and put into the correct format ready to submit to HMRC.

VAT reports from other accounting applications can also be imported into the Ftax VAT form provided they can be exported as a .csv file. You can also generate the .csv file using your own spreadsheets (see the FAQ ‘How do I export my VAT report from my spreadsheet as a .csv file?’).

If the VAT report .csv data fails to import, please send a sample via Ftax Support on the Ftax website. The Ftax team should be able to adjust the form such that the data can be imported successfully.

Yes. The Ftax VAT form will adapt its display depending on whether the imported HMRC VAT period dates are monthly or quarterly.

The VAT period details are imported from HMRC when the VAT Registration Number (VRN) is entered and whenever the VAT page is opened. The ‘Next’ and ‘Previous’ buttons on the VAT page can be used to scroll through the quarterly or monthly reports.

Each Ftax MTD VAT package includes all VAT submissions for the year, whether that consists of 4 quarterly submissions or 12 monthly submissions.

Initially, when purchasing in April, the Ftax CT600 will allow tax filing for accounting periods up to the March 31st just preceding that tax year.

HMRC usually update their CT600 tax filing requirements during September/October.

The Ftax CT600 will then be updated to allow tax filing for accounting periods up to the March 31st at the end of that tax year.

This upgrade is free so long as the tax year Ftax CT600 credits have been purchased.

The Ftax form itself will clearly state the latest accounting period end date that may be submitted using that form version.

Probably nothing. The overwhelming reason that people seem to get this error is that they have not quite followed HMRC’s sign-up procedure.

To sign up to MTD for VAT with HMRC, particularly as an agent, you must go through their sign-up procedure precisely. There are a number of different steps you need to undertake in the correct order and, sometimes, within the correct timescale.

HMRC have published a step by step guide for agents which can bee seen here and which they recommend all agents use when signing up to the service.

We have also produced a couple of FAQs on the subject:

• one for tax agents, and
• one for non-agents.

If you are getting this error, have a look at the above guides – they will almost certainly tell you what you need to do.

In most cases the reason is one of the following:

• The agent didn’t use their agent services account (ASA) credentials to link MTD VAT software
• The agent hasn’t signed up to the ASA
• The agent has signed up but has not linked their clients
• The agent has signed up and linked clients but the customer hasn’t subscribed to the Making Tax Digital service.

There is a mistake in HMRC’s calculation for a number of tax payers with incoming Marriage Allowance Transfers.

HMRC have stated the following:

HMRC Exclusion 105

For most customers MAT_IN is retained and the SA tax calculator correctly re-allocates reliefs and allowances to be
able to do so. However, for customers who have dividend income that is in the nil band that would otherwise be
taxable at both basic rate and higher rate the Marriage Allowance transfer amount of £238.00 (£1,190 x 20%) is not
retained when the calculator should be allocating allowances to reduce dividend income in that would be in the basic
and higher rate band were it not for the dividend allowance nil band.
An example is a customer with MAT_IN, Employment (EMP1) £50,495, Savings (INC2) £45, Dividends (INC4) £997 and
Gift Aid £4,145 (£5,945 gross). The MAT_IN is disallowed and the SA tax calculator sets PA £11,850 against non-savings.
The liability is £7,729.00. By setting PA £997 against the dividend income MAT_IN is retained and the liability is
£7,690.40, a difference of £38.60.
Note that for MAT_IN to be retained there can be no dividend income in the higher rate or in the higher rate nil band.
However, there can be savings income in the higher rate nil band (but none in the higher rate). In this example there is
£5 in the higher rate nil band.
The number of customers affected is tbc
The maximum a customer will have overpaid as a result of this is MAT_IN £1,190 x 20% £238.00 minus amount of PA re-
allocated to dividends x 20%. In this example that is £238.00 minus £199.40 (£997 x 20%) = £38.60.

In these circumstances a paper return should be filed.

The Ftax SA100 identifies and alerts customers affected when you click Calculate. If you are affected it is recommended that you file a paper return.

Yes. The new Ftax SA100 Web form will initially be available alongside the old PDF version. You may use either version but we advise you to migrate to the Web form version as soon as you are able. The Ftax SA100 PDF will be automatically available from April 2023. If you need the PDF form, please create a support ticket.

Adobe Reader is setup to automatically update periodically  when you are connected to the internet. There is no preference within Reader which allows you to change this behaviour.

If you wish to, one way to stop the updates for Windows10, is:

1. Click the Windows Search box (the question mark) and type ‘services’ then click the Services App to open it.

2. Right-click the ‘Adobe Acrobat Update Service’ in the right hand pane of the app and select ‘Properties’ from the menu that appears.

3. On the ‘General’ tab, change the ‘Startup type’ to ‘Disabled’, then click ‘Apply’.

4 Still on the ‘General’ tab, click the ‘Stop’ button to stop the service.

5. Click ‘OK’ to close the dialogue box then close the ‘Services’ app (click the X in the top right).

To re-start the automatic updates for Windows10, the process similar:

1. Click the Windows Search box (the question mark) and type ‘services’ then click the Services App to open it.
2. Right-click the ‘Adobe Acrobat Update Service’ in the right hand pane of the app and select ‘Properties’ from the menu that appears.
3. On the ‘General’ tab, change the ‘Startup type’ to ‘Automatic’, then click ‘Apply’.
4. Still on the ‘General’ tab, click the ‘Start’ button to stop the service.
5. Click ‘OK’ to close the dialogue box then close the ‘Services’ app (click the X in the top right).

Yes. A series of videos, guides and FAQs will be made available.

Any data from the previous year Ftax PDF form may be imported into the new SA100 Web form. In future, previous year Web form data may be imported into the current year Web form. Data may also be forwarded from the current PDF SA800 and Cashbooks into the SA100 Web form.

A company can offset a trading loss against other profits made in the same accounting period. Any remaining losses may then be offset against the total profits of the previous 12 months. Trading losses may also be carried forward to set against the trading profits of subsequent periods.

Following the 2021 budget, trade loss carry back has been extended from the current 1 year entitlement to a period of 3 years, with losses being carried back against later years first. This extension will apply to trading losses made by companies in accounting periods ending between 1 April 2020 and 31 March 2022. Further details are given here.

The Ftax Company forms may be used to manage losses in order to reduce tax liabilities and claim tax rebates. This is done via the tax returns themselves, a trading losses worksheet, and iXBRL Computation files produced by the forms.

Further details are given in this FAQ:

How can the Ftax Company tax return be used to carry back trading losses?

There are also boxes in the Company tax return to manage losses from UK property businesses, intangible fixed assets, loan relationships, and unquoted shares. Details can be provides in the Notes section on the Profits Worksheet page which will be included with in the iXBRL Computations file.

Further details on how to declare losses in the Company tax return are give here and in in the HMRC Notes. You are recommended to read this information as it is your responsibility to complete the tax return correctly in accordance with HMRC requirements.
 

Yes. When an SA100 credit is allocated against a UTR for a given year, it will work with both the PDF and Web form.

The Ftax team intend to move all Ftax forms to the Web form format over the next two years. The CT600 Company tax return will be next.

Yes. All data currently held on the Ftax servers will continue to be available.

Click the ‘?’ in a red ball, select the bottom option, and log into your Ftax Account again.

Then, clear the UTR and enter it again to ensure a credit has been allocated and a tick appears to the right of the UTR.

Then submit again.

Yes, as the new SA100 Web form does not need to be set up or logged in to your Ftax Account. The submission process is also easier to follow. Otherwise it works in a similar way to previously.

You can check the availability of HMRC’s Making Tax Digital VAT platform using the link below:

https://api-platform-status.production.tax.service.gov.uk/

HMRC have recently changed their specification to accept a wide range of non-alphanumeric characters, and a password length of greater than 12 characters.

Ftax are in the process of updating their forms to the same HMRC specification. We expect to have this work completed by April 2021, ready for the new tax year’s forms.

In the meantime, please ensure that your HMRC password contains only alphanumerics and is no longer than 12 characters. To change this, you need to use your HMRC account.

There are a few tax circumstances where the HMRC tax calculation gives an incorrect amount of tax due.

These vary from year to year, as problems are fixed and new ones arise.

HMRC publishes a set of Exclusions which define these circumstances and give a recommended workaround (commonly, the workaround is to submit a return on paper).

If your tax return fits into one of these categories, you will be alerted when you calculate your tax and the workaround will be suggested. Ftax will not prevent you from submitting the incorrect data, but your return may be rejected by HMRC, or you may be paying the wrong amount of tax if you do.

HMRC have stated:

“Where a personal return cannot be filed online for a reason listed below [an Exclusion] , provided that a paper return is delivered on or before 31st January following the end of the tax year to which the return relates, HMRC will accept that the taxpayer had a reasonable excuse for failing to file a paper return by the normal 31st October deadline. A reasonable excuse claim should accompany the paper return.”