Introduction
This article explains how to set up your group for making Group VAT Returns via HMRC's MTD. If you have already done this and want to learn about how to submit Group VAT Returns please read this article.
For the purposes of this article, the following terminology will be used:
- Group VAT MTD Reporting company: This represents a central company that is registered for Group VAT. Note, that it is not possible to use a consolidation entity for this purpose, it must be a trading entity.
- VAT group company: This represents all trading entities that are part of the VAT group.
See:
Group VAT (10.5) - AIQ Academy
Link all VAT Group Companies
- Log into the group portal.
- Against all companies to be included in the Group VAT return, go to Actions > Edit Entity.
- Enter the company ID of the Group VAT MTD reporting entity. Repeat this for all entities that are part of the VAT Group.
To see that this entity is the designated VAT group reporting company:
- Go to Actions > Edit Entity next to the VAT Group Reporting entity.
Ensure that all of a VAT Group's Entities are not Connected to HMRC
It is important that all of the entities that are part of the VAT Group are NOT connected to HMRC for MTD Vat submissions. This is because, they are now linked to a Group VAT MTD company to make the group submission to MTD on their behalf, instead of doing this step individually.
To check this:
- Log into the entity.
- Go to Setup > Company Details & Settings > Integration.
- If any of the VAT group entities are Connected, click Disconnect.
Connect the designated VAT group reporting company to HMRC
Info
The user who signed up for MTD with HMRC must make the connection between the system and HMRC. In addition, the user connecting the system to HMRC via MTD must have an Admin User Role.
- Go to Setup > Company Details & Settings > Integration.
- Under HMRC Online VAT Returns, click Connect. Once the connection to HMRC is made, any user with VAT Management enabled in their user profile will be able to submit returns to HMRC.
- Follow the on-screen instructions and once the connection has been made, the status will change to Connected.
- Now the setup is complete, the next step is to Submit Group VAT Returns via MTD.