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By 17th January 2022No Comments

Important information for users of the SIMS FMS Module submitting VAT returns direct to HMRC from April 2022

HMRC are making changes to how businesses and organisations submit their VAT returns. Historically, an organisation with an annual taxable turnover above £85,000 had to submit their VAT returns via electronic methods.

From April 2022, all VAT registered businesses, regardless of taxable turnover, will be required to follow Making Tax Digital rules.

In the Spring of 2020 and 2021, School ICT liaised with those organisations that were affected by HMRC changes and made the transition to MTD and the required changes to the FMS Package.

Existing FMS MTD Phase 2 users will not be affected.

Are you affected?

You will need to make the transition to Making Tax Digital (MTD) if:

  • You are VAT registered, but currently under the taxable threshold of £85,000.
  • You manually input your VAT return figures via an HMRC portal.
  • You have received a letter direct from HMRC stating that you must transition to MTD.

If your Organisation is affected, certain changes to the FMS system and FMS MTD Hub access will need to be implemented prior to Apr 2022.

You will not be affected if:

  • You do not complete VAT returns via FMS
  • Not VAT registered
  • You are currently using FMS MTD Phase 2
  • You are an LA maintained school and send VAT reports from FMS but direct to your LA for them to process.

Please see the link below for more guidance https://www.gov.uk/government/collections/making-tax-digital-for-vat

If you have any queries or think you may be affected by these changes, please log a support call by email to helpdesk@schoolicts.co.uk.

Any specific VAT related queries should be clarified with your Accounting Team or School finance team.

If you do not use SIMS FMS as your School finance package, please ignore this email.