Once your bookkeeping transactions are up to date and correct, up to and including your VAT period end, you can then create the VAT return in Farmplan Business Cloud.
To do this, go to Reports > VAT Returns.
Click 'Add New VAT Return' and enter the dates for the VAT period. If it's your first return since registering, this period could be a long or short one, any subsequent periods will normally be monthly or quarterly as determined in Company Settings – Financial Info. Farmplan Business Cloud will auto populate these dates going forward
Click 'Create VAT Return'.
NB if you are re-visiting a VAT return that has already been created do not forget to ‘Calculate’ to refresh the screen which will ensure that the most up to date figures are included on the VAT return.
Your VAT return will then be calculated. You can see the VAT you charged to customers and the VAT you were charged from suppliers, with the difference being due to HMRC (box 5). The return also shows the total value of sales and the total value of purchases.
You can drill down into the figures of box 1 and 2 by clicking on the magnifying glass icon.
If you are happy that the figures are accurate, you can click 'Save & Lock'. This will prevent any transactions included in the VAT return calculation from being edited. This is important as it avoids potential discrepancies.
Once your return is locked you will see options to export the return to Excel or PDF.
This gives a full breakdown of the VAT return calculation and is useful for checking that everything included is correct.
If you find errors you can unlock the return, make corrections and then lock it again providing the figures have not been submitted to HMRC.
The box 5 figure (amount owed to/from HMRC) will now be in the correct category. When completing your banking, please categorise your VAT payment to the 'VAT Owed to HMRC' category.
Once the VAT return has been locked, the option to submit to HMRC will become available, as shown below:
Submit to HMRC
Farmplan Business Cloud is listed as a recognised software supplier supporting Making Tax Digital for VAT. This means that any VAT returns you submit after 1st April 2019 will be fully MTD compliant.
After you have run your VAT return and chosen to 'Save & Lock' it, the option to submit to HMRC will become available, as shown below:
The first time that you do this you will be presented with this screen:
From here you have two options:
Sign up for MTD: If you are not yet registered for MTD, you will need to follow this link to sign up. You will be taken to an HMRC website and asked to complete some questions. You will receive a confirmation email when you have been approved – this can take up to 72 hours.
Authorise MTD: Select this option if you are already registered for MTD and wish to authorise Farmplan to interact with HMRC on your behalf to submit your returns.
After clicking 'Authorise MTD' you will need to follow the instructions provided by HMRC to grant this permission.
From here you will be prompted to enter your Government Gateway User ID and Password to complete your submission.
After granting permission to Farmplan you will be able to submit your MTD compliant VAT returns by clicking 'Submit To HMRC'.
Viewing your completed VAT returns
You can view/edit/export all previously submitted VAT returns by going back to Reports > VAT Returns.
If, for any reason you need to revoke the ‘Grant Authority’ for Farmplan to link to HMRC you will be given a button at the bottom of this screen to ‘Un-authorise’.