Learn about what the QuickBooks Online bridging software is and how it works. Plus, get answers to frequently asked questions.
What's the QuickBooks bridging software?
The QuickBooks Online bridging software is a tool used to link business records to HMRC’s systems in an MTD-compliant way. This acts as a 'bridge' and provides a digital link between data stored in spreadsheets and HMRC, and allows data to be submitted digitally. The QuickBooks bridging software is a HMRC-recognised software that is compatible for Making Tax Digital for VAT.
How does the digital software in QuickBooks work with Making Tax Digital for VAT?
Our bridging solution is simple and effective. In a few simple steps you can upload the amounts needed for boxes 1 to 9 and then submit it digitally to HMRC through Quickbooks in an MTD-complaint way. You don't need to copy and paste the information needed, and you can use and import both CSV or Excel spreadsheets through our bridging solution.
Once submitted, you'll receive a notification of the VAT return being submitted successfully for your records. You can also use the bridging solution to submit VAT returns for schemes that may not be supported by QuickBooks or other solutions.
Here's how you can submit a VAT return using the bridging software in QuickBooks. If you're an accountant or bookkeeper, read this.
Frequently asked questions
What's a digital link?
A digital link is the transfer or exchange of data made between software programs, applications or products and HMRC to create an end-to-end digital reporting process. HMRC defines digital links as having two key characteristics:
- Data is transferred electronically between software programs, products or applications. This includes linked cells in spreadsheets. For example, if you have a formula in one sheet that mirrors the source’s value in another cell, then the cells are linked.
- The transfer is automated and there's no need for manual intervention. Manual intervention can be anything from copying over the data by hand or manually moving data between two or more pieces of software–but you can, of course, press a button to initiate the process.
HMRC accepts the following as digital links:
- Emailing a spreadsheet containing digital records, so the information can be imported into another software product
- Transferring a set of digital records onto a portable device (for example, a pen drive, memory stick or flash drive) and physically giving this to someone else, who then imports the data into their software
- XML, CSV import and export, and download and upload of files
- Automated data transfer
- API transfer
HMRC does not consider the use of ‘cut and paste’ or ‘copy and paste’ to select and move information as a digital link.
VAT information may be captured and retained in other software (for example, a sales invoicing software or general ledger systems), but if this software is not used to maintain your electronic account, there is no requirement for a digital link to be used when data is transferred to the electronic account.
What does manual intervention mean?
Manual intervention is when you have to manually enter information and VAT data into the software.
Without manual intervention is when you upload a spreadsheet that contains your VAT data and you don't have to manually enter information into the software.
Doesn’t this defeat the purpose of MTD compelling everyone to start using financial management softw...
QuickBooks is here to help small businesses comply with Making Tax Digital for VAT, in the way that makes the most sense for them. Our top priority is to make the process easy and accessible for all. We already offer HMRC recognised, MTD-ready software.
Our bridging solution will be another feature within our suite of MTD-ready software that helps address the needs of select businesses by helping to ensure they remain compliant, while giving them more time to fully migrate their data into QuickBooks Online, and experience the wide ranging benefits of cloud accounting.
Will I get a confirmation of my VAT submission?
Yes, you will see a confirmation on the screen as soon as your VAT return has been accepted and submitted to HMRC. The message will contain a receipt number that you can save for future reference. You'll also receive an email of the confirmation. It can take a few hours for the confirmation email to reach you.
*QuickBooks MTD software currently supports Standard, Cash and Flat Rate schemes. QuickBooks Bridging Software supports Standard and Cash schemes. Businesses whose home currency is not GBP are currently not supported for MTD.