As you will no doubt be aware, Making Tax Digital for VAT Returns commences on 1st April 2019. As a result, you are required to submit your VAT returns electronically via HMRC compatible accounts software for your first full VAT quarter after 1st April.
Teleos is a clinical sales ledger, not a full accounts package and it provides many features not available in standard accounts packages. However, the way in which you record your purchases and run a Nominal ledger are the same as any other business. For that reason, Teleos will never produce a Purchase or Nominal ledger – as you can use an off-the-shelf package recommended by your Accountant. As your Accountant will be totally familiar with this package, it also takes less time (and cost less), to produce audited accounts.
All of the major off-the-shelf accounts programs are already HMRC compatible for VAT purposes.
Because you do not submit your VAT returns directly via Teleos, there is no requirement for the program to be compatible with the HMRC system. However, Teleos does produce and maintain sales and VAT figures, and there is a requirement for these totals to be passed via a ‘digital link’ into your accounts package. It will no longer be acceptable to simply make a note of the Teleos generated figures and then retype them into your accounts package. However, it should be noted that this does not have to be done this year – as there is a ‘soft landing’ period of 12 months to establish a link with whatever program you use.
The facility for Teleos to export files into a CSV format for Sage Accounting Software has been in the program for many years. The ‘Export To Sage’ options can be found in Admin -> Accounts. You have three options to choose from; Summary, Detailed or Cumulative and they all produce a csv file automatically.
Some further development time has been allocated to make the output configurable, so that any accounts package can import the relevant sales and VAT figures to make it compliant with HMRC’s requirements. A further notice will be issued when this facility is available.
Effective Dates
1st April 2019 – You must submit your VAT return via HMRC compatible software.
1st April 2020 – Teleos must be linked digitally to your HMRC compatible software.
Further Information
If you require any further information, please contact your Accountancy Practice in the first instance.
Further guidance has been issued by HMRC:-