SCHEDULE OF SERVICES (610) VAT RETURNS UNDER MAKING TAX DIGITAL FOR VAT (MTDfV)
This schedule should be read in conjunction with the engagement letter and the 300 Standard terms & conditions | Massey Accounting Company
Recurring compliance work
We will prepare/review (as agreed) your quarterly/annual VAT returns on the basis of the information and explanations supplied by you. The first such return to be prepared/reviewed by us will be agreed prior to commencing work.
Based on the information that you provide to us, we will tell you how much you should pay and when. If appropriate, we will initiate repayment claims where tax has been overpaid. We will advise on the interest and penalty implications if VAT is paid late.
Where appropriate we will include import vat from any digital import certificates (postponed VAT accounting) and/or C79s we receive from you.
Where appropriate, we will calculate the partial exemption annual adjustment.
Where appropriate, we will calculate the annual Capital Goods Scheme adjustment.
We will forward to you the completed return calculations for you to review before you provide written evidence of your approval, for onward transmission to HMRC.
We are not responsible for considering or applying for any of the exemptions from MTDfV. However, if you feel that you are eligible for exemption, please let us know. We are happy to discuss this and may correspond to HMRC on your behalf if needed, or we can guide you on whom you should contact for this.
We will advise you of any relaxations applicable in relation to the digital records for supplies made and received. Where the requirements are impossible, impractical or unduly onerous we will seek to reach agreement with HMRC on a specific relaxation, but this may be subject to an additional fee.
We will submit your MTDfV return data online to HMRC only after the data to be included therein has been approved by you. It is therefore important that you reply to our request for your approval at least 7 days before the submission deadline.
Ad hoc queries by way of telephone and email enquiries are not routine compliance and may result in additional fees. As indicated below, where appropriate we will aim to discuss and agree additional fees but it may not always be possible to agree these in advance and we reserve the right to charge you an additional fee for these queries.
Ad hoc and advisory services
Where you have instructed us to do so, we will provide such other taxation ad hoc and advisory services as may be agreed between us from time to time. These services will be subject to the terms of this engagement letter and standard terms and conditions of business unless we decide to issue a separate engagement letter. An additional fee may be charged for these services. Examples of such work include:
advising on ad hoc transactions and queries (including telephone conversations), preparing and submitting information in the relevant format to HMRC and calculating any related tax liabilities
reviewing and advising on a suitable partial exemption method to use in preparing the return
dealing with all communications relating to your MTDfV returns, Intrastat arrival returns until 31 December 2021/ non-union scheme MOSS returns, addressed to us by HMRC or passed to us by you
processing import and export declarations including deferred import entries that require postponed VAT accounting (at present we assume that these will be handled by you or your customs agent)
making recommendations to you about the use of cash accounting, annual accounting, flat rate and other suitable methods of accounting for VAT
making recommendations to you about the use of the VAT Mini One Stop Shop (MOSS) non-union scheme if you supply digital services to consumers in the EU
making recommendations to you about the use of the VAT One Stop Shop (OSS) non-union scheme and/or the VAT Import One Stop Shop (IOSS) with effect from 1 July 2021 if you supply relevant services or goods to consumers in the EU
advice on the VAT liability for consumers outside the UK
providing you with advice on VAT excise duty/customs duty/landfill tax/insurance premium tax/aggregates levy/climate change levy as and when requested
advising on time to pay arrangements or deferral of payment
work required to rectify the position where your software is incompatible with our software
reviewing your record keeping processes and providing advice on potential improvements to enable compliance with the MTDfV requirements, including digital links for the transfer of data between different software
Where the advice is provided in writing, the information provided and the query raised will be set out with our response to you.
Where specialist advice is required in certain areas, we may need to seek this from or refer you to appropriate specialists. We will only do this when instructed by you.
Changes in the law or practice or in public policy
We will not accept responsibility if you act on advice given by us on an earlier occasion without first confirming with us that the advice is still valid in the light of any change in the law or practice or in public policy or your circumstances.
We will accept no liability for losses arising from changes in the law or practice or in public policy that are first published after the date on which the advice is given.
You are legally responsible for:
ensuring that your returns are correct and complete and in an appropriate digital format and capture the appropriate level of data
[ensuring your record keeping system is compliant with the new requirements for the digital recording and transfer of] data
filing any returns by the due date
making payment of VAT on time
Failure to do this may lead to automatic penalties, surcharges and/or interest.
Legal responsibility for approval of the return cannot be delegated to others. You agree to check that returns that we have prepared for you are complete before approving them.
To enable us to carry out our work you agree:
that all returns are to be made on the basis of full disclosure
that you are responsible for ensuring that the information provided is, to the best of your knowledge, accurate and complete. The returns are prepared/reviewed (as agreed) solely on the basis of the information provided by you and we accept no responsibility for any liabilities arising due to inaccuracies or omissions in the information you provide, which may lead to a misdeclaration on which penalties and interest may arise
to authorise us to approach such third parties as may be appropriate for information we consider necessary to deal with the returns
to provide us with all the records relevant to the preparation of your monthly/quarterly returns as soon as possible after the return period ends. We would ordinarily need a minimum of 14 working days before submission to complete our work. If the records are provided later or are incomplete or unclear, thereby delaying the preparation/review and submission of the return, we accept no responsibility for any “default surcharge” penalty that may arise. Where feasible, we may agree to complete your return within a shorter period but may charge an additional fee of up to double the quoted for so doing.
You will keep us informed of material changes in circumstances that could affect your obligations, for example:
change in the nature of your business
change of type of supply for VAT
change in your type of business entity such as from sole trader into partnership
acquisition or disposal of land or property etc
starting to make supplies which are exempt from VAT
you have reclaimed VAT within the last 10 years, having spent over £250,000 in purchasing, building or redeveloping a property, and the extent to which it is being used for taxable and/or exempt purposes has changed since you first reclaimed the VAT (ie Capital Goods Scheme adjustments will apply).
Where you wish us to deal with HMRC communications you will forward to us all communications received from HMRC such as statements of account, copies of notices of assessment and letters. These must be provided in time to enable us to deal with them as may be necessary within the statutory time limits. It is essential that you let us have copies of any correspondence received because HMRC is not obliged to send us copies of all communications issued to you.
You are responsible for bringing to our attention any errors, omissions or inaccuracies in your returns that you become aware of after the returns have been submitted in order that we may assist you to make a voluntary disclosure.
If you provide digital services to consumers in the EU you are responsible for either registering for VAT in that member state or registering for the OSS non-union scheme in a Member State.
With effect from 1 July 2021, if you provide relevant services or goods to consumers in the EU you are responsible for either registering for VAT in that member state or registering for the OSS and/or IOSS non-union scheme in a Member State.
If you are involved with any other business that is not registered for VAT you are responsible for monitoring your monthly turnover to establish whether you are liable to register for VAT. If you do not understand what you need to do, please ask us. If you exceed the VAT registration threshold, and wish us to assist you in notifying HMRC of your liability to be VAT registered, you must give us clear instructions to assist you in the VAT registration process. You should notify us of your instructions in good time to enable the VAT registration application form to be submitted within the statutory time limit of one month following the month in which you exceeded the VAT registration threshold in force at that time. We will not be responsible if you fail to notify us in time and incur a late registration penalty as a result.
You are responsible for completing your own EC Sales Lists unless expressly agreed. If EC Sales Lists need to be completed you are responsible for obtaining all of your customers’ VAT registration numbers in other member states and to check any that you are not completely satisfied with.
Limitation of liability
Our services as detailed above are subject to the limitations on our liability set out in the engagement letter and in our 300 Standard terms & conditions | Massey Accounting Company of business. These are important provisions, which you should read and consider carefully.