Preparing and Submitting a Digital Tax Return (MTD)

Overview  

HMRC - New Numbering System 

Please be aware HMRC have started migrating customers to a new numbering system for the Period Keys they use. Presently this can mean that you will see two of the same period in your Obligations dialog as Khaos Control will have received earlier versions of period keys for the same period which has now been given a new number:
One in the form NNNN and one in the form NNAA, e.g.

1234 (OLD FORMAT)

12AZ (NEW FORMAT)

If you do encounter two obligations for the same period, you should always select the period which is in the form NNAA otherwise you will encounter a “Invalid Period Key” error returned from HMRC.

Steps 

1. Go to [System Setup | System Values | General].
   
2. Ensure that your VAT number is correct.
   
3. Go to [System Setup | System Values | Accounts].
   
4. Ensure the HMRC Tax Submission box is set to Digitally.
   
5. Go to [Accounts | Tax Register (VAT)].
   
6. Click Actions and select Include (By Date).
   
7. Enter the date range you wish to include in your HMRC VAT submission.
   
1. All transactions within the date range will turn grey.
   
8. Click Actions followed by Submit Digital Tax Return (MTD).
   
1. You will be taken to the HMRC gateway log in screen.
   
2. Log in as usual.
   
1. You will be presented with an auth code. Please enter this in the popup dialog box in KCC.
   
9. KCC will now display the periods in which VAT returns are still required to be submitted.
   
1. Please take note of the information in orange above the video, the format is changing and the format you should select is NNAA (number, number, letter, letter) e.g. 12AZ.
10. Select the period you are submitting and click OK.
    
11. Confirm all of the questions in the popup dialog box, these include your legal declaration and the amount of tax payable.
    
12. Click Continue.
    
13. You will be presented with a message confirming successful submission.
    
14. Click Continue.