FMS – Making Tax digital
From April 2021, it will no longer be possible to populate data into the HMRC VAT submittal return manually.
Relevant to Academies, Multi Academy Trusts and maintained schools using FMS who are VAT registered, above VAT Threshold and who submit their VAT returns directly to HMRC. Also applicable to those who registered for phase One of MTD in Spring 2019
As you will be aware HMRC require all VAT submissions after April 2021 to be digitally transferred. This can be carried out via FMS using the Making Tax Digital Solution (MTD). To support this, Capita have built on the current Phase One solution to enable a user with a Sims ID and HMRC portal access to transfer and consolidate VAT submission data from FMS to HMRC via the FMS Hub.
New Phase Two Process Summary
FMS – Submit VAT MTD submittal return as normal. Print.
SSM – Auto transfer of VAT submittal return to the FMS Hub
FMS Hub – log in with SIMS ID – Got to Making tax digital – This will open HMRC portal
HMRC Portal – After successful data synchronization, new return will show in the portal automatically, pre-populating VAT submittal boxes 1-9. Once checked, can be submitted directly to HMRC electronically.
Note: If your organisation has multiple schools then VAT submittal returns will be consolidated.
The Phase 2 element will include an FMS package that will require installing in your SIMS Services Manager (SSM).
If you think your organisation will be affected by these changes or you are an already in Phase One and want to transfer to Phase Two, you will need to ensure the following:
- Edit FMS VAT ledger codes to enable consolidation in the FMS hub.
- Apply patch 25325 to SIMS data to all schools in your Organisation. Available on SOLUS 3 upon request
- Install FMS Data synchronisation package in SSM on your SIMS server
- Ensure you have already setup SIMS ID.
The above steps should be undertaken before your next VAT return is due.
Please for further guidance on this including a pre-recorded webinar please see the below link:
Any specific VAT related queries should be clarified with your Accounting Team or finance team.
If you have any queries please log a support call by email to firstname.lastname@example.org or call the helpdesk on 03456436802.