Manual entry of client's data into MTD accounting software
Q: My client is a retailer and uses a till that is digital, but cannot download data into excel or accounting software. I currently prepare their VAT return using MTD compatible accounting software; I manually enter the weekly summary figures into this from weekly excel summaries they pass to me. Under MTD, will I have to manually enter all their individual sales figures into my software?
A: Retailers using a retail scheme (including point of sale retail scheme which is where the till has been set up to automatically work out the VAT applicable on an item by item basis) do not have to digitally record the details of every sale that goes through the till. Instead they can simply digitally record the daily gross takings (DGT) figure, but this must be done every day. They will still need to keep their detailed till records of transactions making up the DGT for normal record keeping requirements, but these do not have to be held digitally. In your client's situation, your current approach should suffice during the soft landing period, but once this period is over, you would need to either be able to transfer the till DGT data from the till to the accounting software via digital links, or, you would need to enter the DGT figures (daily rather than monthly totals) manually into the accounting software.