This training guide explains how to submit Tax Returns to the HMRC in Unity® Practice Management. 

Introduction

Making Tax Digital for VAT became mandatory for all VAT-registered businesses with a taxable turnover above the VAT registration threshold of £85000.00 on 1st April 2019.

VAT Registration Number

Is your VAT registration number logged in the company profile section of Unity®? Check to ensure that your VAT registration number is logged, select your avatar to view the user menu: The Company Profiles page will then populate the screen:

VAT Roles and Permissions 

The VAT return application will not be available to all users; only the users who have permission from someone with sufficient seniority within the Practice. There are 4 levels of access to the VAT application: 

• View VAT Return.
• Modify VAT Return.
• Approve VAT Return.
• Submit VAT Return. 

View VAT Return

This role will enable the user to view the VAT return figures; they will not be able to add adjustments or approve a VAT return.

Modify VAT Return

This role will enable the user to view the VAT return figures and add an adjustment to modify the figures; they will not be able to approve a VAT return.

Approve VAT Return

This role will enable the user to view the VAT return figures, add an adjustment to modify the figures, and approve the VAT return for submission to the HMRC. A user can have all three permissions, so that they are able to view, modify, and approve.

Submit VAT Return

This role will enable the user to view the VAT return figures, add an adjustment to modify the figures, approve the figures, and then submit the figures to the HMRC. A user can have all four permissions, so that they are able to view, modify, approve, and submit. 

VAT Return 

To access the VAT Return, click on the  Money icon from the left navigation menu, then select VAT Return:

The figures that appear on the VAT return are generated from the postings made to Interactive. 

 Accounts, any queries regarding these figures should be addressed to your Legal Cashier.

VAT Status 

The VAT returns have four different states: 

Open 

When the VAT return has a status of Open it is possible to update the figures and add adjustments.

Pending

Whilst the VAT return has a Pending status the figures cannot be changed and the approver has the option to either Reject or Approve the figures.

Approved

Once the VAT return as an Approved status it can be sent to the HMRC, again the figures cannot be changed.

Submitted 

Once the VAT return has a Submitted status the submission is complete and the month end can be finalised.

Adjustments

It is sometimes necessary to adjust the figures and any adjustments that cannot be made in Unity® by carrying out a posting can be done here, for example: accountants' adjustments, reverse charge transactions and scale charges.

To add an Adjustment to the VAT Return, Click View/Add Adjustments next to the box that requires adjustment.

Select Add Adjustment, and complete the adjustment details, to add more adjustments , click again on Add Adjustment. 

Once you have entered all the required adjustments, click Save Adjustments.

Send for Approval 

Once any adjustments are entered are saved,  the VAT return can be sent for Approval. To do this simply select Send For Approval. 

Once the VAT Return is sent for approval, the VAT Status will change to Pending. 

Reject/Approve

The approver has the choice if they reject or approve the VAT return: 

Reject 

If the approver, has a query with the figures then they are able to Reject them and the VAT return will return to the Open VAT status. 

Approve

If the VAT return is approved then the screen will move to the next stage.

When you click Approve, you will be navigated to the HMRC website. 

Login to HMRC

• Click Login to HMRC. 

  

  You will only need to complete this process every 18 months.

• Read the permissions you are giving HMRC, and select Continue. 

  

• Enter your HMRC credentials to sign in. 

  

The HMRC will then ask you to grant authority to Unity® to:

•  View your VAT information.
• Change your VAT information. 

Select Grant authority to enable Unity® to submit your VAT using the HMRC electronic link. This process will only need to be repeated after 18 months.

You will receive a message advising you that have successfully granted Quill access to your HMRC account, simply Close the window. At the Check login Status, select OK. 

Once the VAT return is approved, the status will change to Approved. 

Send to HMRC

The VAT figures can now be submitted to the HMRC, to do this select Send to HMRC. 

You will then be presented with an HMRC declaration, read the declaration and Send to HMRC. Once you have submitted your VAT, you will receive a message advising you that the VAT is submitted successfully.

Submitted 

The submitted VAT return will no longer be editable. The month end can now be completed in Unity® Accounts. 

Reports 

VAT reports can be accessed directly from the VAT Return screen by selecting the blue hyperlinks. 

The Sales hyperlink will take you to the VAT transactions Output Report.

The Purchases hyperlink will take you to the VAT Transactions Input Report. 

VAT Return Report 

This report will show the Making Tac Digital figures, to generate this report select Open VAT Report to open the report screen. Click on the dropdown arrow and select a VAT Period. 

Once the VAT return is submitted to the HMRC, the report will be populated with the 'Form Bundle' number, which is provided by the HMRC upon submission.