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QuickBooks MTD bridging solution - FAQ

What is the bridging solution?

The QuickBooks bridging solution is a CSV (Comma-Separated Values) import tool that is accessible from within QuickBooks Online and for accountants who have access to their clients books through QuickBooks Online Accountant.

The CSV import tool imports the final values (9 boxes) of the VAT (Value-Added Tax) return from a CSV file into QuickBooks from where it can be submitted to HMRC via their MTD (Making Tax Digital) application interface therefore meeting HMRC's compliance requirements.

 

Will the bridging software work without a QuickBooks subscription?

Our bridging software solution will be available for those with an active QuickBooks subscription. If you would like to use only the bridging solution to submit VAT returns you will need to sign up to a new Quickbooks online subscription for our website.

 

Will the bridging software convert data from Excel into QuickBooks, or simply send it straight to HMRC?

The bridging solution will import the finalised VAT figures (values of the 9 boxes) into QuickBooks where they can then be submitted to HMRC. The bridging solution will not convert VAT transactions held in a spreadsheet into QuickBooks data. If the user has transactional data held in a spreadsheet then this can be imported into QuickBooks using the existing CSV import option in QuickBooks.

 

When will the bridging software launch?

The bridging software functionality is currently live for both QuickBooks online users and QuickBooks Online for accountants.

 

What will the bridging software cost?

There is no additional cost for using the bridging solution. All you need is a QuickBooks online subscription and you are ready to go.

 

Will small business owners be able to use the bridging software themselves without an accountant?

Yes, business owners will be able to use the bridging software independently or with an accountant.

 

Doesn’t this defeat the purpose of MTD compelling everyone to start using financial management software?

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.

HMRC have already announced a ‘soft landing period’ which lasts until April 1st 2020. This soft landing period means accountants and small businesses can get away with recording transactions and calculating VAT returns outside of software - but the final return must be filed with MTD compliant software. The soft landing period is intended to give businesses more time to get used to keeping digital records and our bridging solution aligns perfectly with that message. Once a business or accountant begins filing VAT through QuickBooks we’ll be in a perfect position to begin educating them on how to easily add and record transactions in QuickBooks.

 

Can I use the bridging solution to submit Corporation Tax?

The bridging solution has been built only for VAT as required for MTD. It cannot be used for any other tax submissions.

 

Why can't I add the amount or add adjustments to the summary before I submit my return through bridging?

The HMRC VAT Notice 700/22 confirms that there must be automated data transfer between your CSV/Excel document. If you do need to make any changes to the final amount of your VAT return before you submit it to HMRC you will need to edit the CSV/Excel as this will be your source of truth. Here is an article to help you understand this better.

 

What do I need to do after my return after submitting through the bridging software?

If you currently use QuickBooks to track VAT you will need to record the payment/refund made to HMRC manually through your VAT centre after you have paid HMRC. This will allow you to match and reconcile the payment/refund in your bank account.

If you decide to use QuickBooks only for the bridging solution you will only need to pay HMRC. You do not need to do anything further in QuickBooks.

 

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 will also receive an email of the confirmation. It can take a few hours for the confirmation email to reach you.

 

Do I need to do anything in QuickBooks before I start using the bridging solution?

Yes you will need to set up your Tax centre in QuickBooks and grant QuickBooks authority to interact with HMRC. This should take about 2-3 minutes.

 

*QuickBooks MTD software currently supports Standard, Cash and Flat Rate schemes. QuickBooks Bridging Software supports Standard and Cash schemes. Annual submissions are not currently supported but will be coming soon. Businesses whose home currency is not GBP are currently not supported for MTD.

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