Overview


To meet the Her Majesty's Revenue and Customs (HMRC) strategy 'Making Tax Digital', this service will allow digital record-keeping for VAT-registered businesses. This service will allow WealthWorks+ to supply business financial data to HMRC, so your organisation can fulfil its obligations. Acting as an agent for your entities or for yourself, enter the VAT account information into WealthWorks+. The software updates HMRC via the API link maintained by HMRC. The API submits this information to an HMRC systems database, where the liabilities for your entities or yourself is stored, to establish whether the entity has met their obligations.


What is Making Tax Digital? Making Tax Digital is a key part of the government’s plans to make it easier for individuals and businesses to get their tax right and keep on top of their affairs.


See Overview for Bridging Mode if you are keeping Digital records of invoices outside of the system and you need to use the 'VAT Bridging method' to submit VAT returns via WealthWorks+.  These instructions are for submitting VAT records for invoices recorded in the Troika purchase and sales ledgers.


Installation of WealthWorks+ VAT Release


Ensure Troika 2.09.005 and WealthWorks+ 4.1 releases, or later are installed and follow the steps outlines below to enable the VAT submission and reporting feature. 


HMRC VAT API


Enabling the API to allow submission to HMRC

  1. Access the Options menu category from within WealthWorks+ and select System Administration.
  2. Select the API Configuration section.
  3. Select the API HMRC VAT API and click Activate.
  4. Click Continue and follow the instructions to complete the activation.
  5. Lastly, from the Other Settings in Sys Admin, Allow bridging functionality for VAT Return submission - Unselect.
  6. Submit returns as agent - Select if you are acting as an agent.
  7. Save.


Authority to interact with HMRC on your behalf

WealthWorks+ needs permission to interact with HMRC on your behalf. To grant this authority, you'll need to:

  1. Sign in to your Government Gateway account.
  2. Enter the 6 digit access code we'll send to your mobile phone, landline or other device.
  3. You might need to confirm who you are by answering some security questions on, for example, your passport, P60 or other documents.
  4. Grant authority for this software to interact with HMRC on your behalf.
  5. This authority will last for 18 months. You can remove this authority at any time.
  6. If you're an agent, to use the Making Tax Digital APIs, sign in with the user ID and password for your agent services account.


Ensuring your data is ready to submit VAT Returns


In preparation to submit VAT returns, ensure each entity you wish to submit data for has the following fields completed in WealthWorks+:

  • Reporting Currency - must be set to GBP
  • VAT Number (VRN)
  • VAT Registration Date
  • VAT Country - must be set to United Kingdom
  • ISO Country Code GBR
  • VAT Frequency
  • Next VAT Return Date
To submit VAT returns and access VAT reports you system role assigned to your login must have the following permissions enabled: -

Entity Details > VAT Returns > Submit and View VAT Return - View must be checked.
Entity Details > VAT Returns > VAT Reporting - View must be checked


Submitting the VAT Returns


The customer is responsible for ensuring their VAT data has been processed through Troika and meets the requirements of VAT Notice 700 published by HMRC.


From Troika

  1. Ensure all invoices have been processed through the purchase and sales ledgers.
  2. From the Tax Report option in Troika, select the VAT return period and calculate the VAT return.  Check the values from the ledgers for each tax box, enter any adjustments and finalise the amounts in the 'Return' column. The 'Return' values will be those submitted to HMRC.  
  3. Client the 'File' button to finalise the tax return and print the report if required.


From WealthWorks+

  1. Select the entity you wish to submit the VAT return for.  
  2. From the Actions button at the top of the page, Select VAT Returns > Submit VAT Return.  
  3. Select the VAT Obligation Period from the list.  Only the 'Filed' and finalised VAT periods from Troika will be listed.
  4. Check the details for the return for each box number match those on the report in Troika and the obligations period is set to Due.
  5. Read the declaration and check the box.
  6. Click Submit.


Submit VAT Return example:

The next VAT return due date in WealthWorks+ for the selected entity will automatically roll forward to the next due date based on the VAT return frequency.


VAT Reporting by Entity


Use the Actions button at the top of the page for the selected entity to access the VAT Reporting option.


The VAT Reports lists VAT Obligations, Liabilities and Payments.


VAT Report example:


VAT Dashboards in WealthWorks+


The Entity Management Dashboard has been enabled with the following dashboard items to assist with reporting:

  • Entity Number Stats
  • Entities by Sub-Type
  • VAT Return Status (displaying when the next VAT returns are due)


These notes are confirmed to be applicable from Troika release 2.09.005 and WealthWorks+ release 4.1.