Making Tax Digital (MTD) user guide

Chris Horroll
Chris Horroll
  • Updated

This article includes: 

Digital Tax Returns

From 1 April 2021, HMRC are introducing further changes to Making Tax Digital for VAT which will affect how you transfer your accounts data between software packages.

For more information, visit the gov.uk website.

We have produced a new application that will allow you to import your agency fees directly into Quickbooks, Sage or Xero accounting systems. There is no software update required for you to use this function, you just need to install an application. Please see Digital Tax Export Installation Instructions below for instructions on how to do this.

Digital Tax Export Installation Instructions

There is no software update required for you to use this function.

  1. Right click on the Install Application link below and click Save link as, to save and download it

    Install Application

  2. Choose a location on your computer to save the application and click Save
  3. Click the application from the downloads bar at the bottom of your browser to run and install it

Only the Book-keeper or Accounts person in your business needs to install and use this application.

 Note

If you require this application to be run on the Remote Desktop Server\Terminal Server, your IT company will need to install this for you as the administrator and in ‘Install Mode

After you have installed the .exe, follow the setup wizard that appears on screen.  Each step of the wizard has instructions that should be read before you click on the NEXT button.

Wizard

If you aren’t already using Microsoft .Net Framework 4.5.2, you will get this message:

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Click on Yes to install the Microsoft .Net Framework 4.5.2. 
(Click on No to have this installed by your IT company) 

When you click Yes (or if you already have the .Net Framework 4.5.2 loaded) you will be prompted with the rest of the wizard screens:

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(Click on the Create Desktop Shortcut option to create a shortcut on your PC as well as installing the application in CFPwinMan):

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Click the final Next button and the install will be complete.

Now that you have installed the application, please see Digital Tax Return Export below to find out how to use it.

Digital Tax Return Export

If you have already followed the instructions above in Digital Tax Export Installation Instructions, you’ll see the Digital Tax Export option under the Help/Utilities menu:

(If the option does not appear immediately, close winMan and reopen it to refresh the screen. Make sure that the application is in the location you selected during the installation or check with your IT company.)

Click on Digital Tax Export and you will be presented with a screen to enter details of your Export:

How to complete the form

Database and Accounting Software Selection

  • Select the database for your Export.  If you have more than one database, you can run the export more than once.  See below*
  • Select the accounting product (Sage, Quickbooks or Xero)
    (*For each database/accounting product combination, the data entered is retained so when you return it, it is re-presented to you to re-use or amend as required.)

Export Information

  • Enter the Account Name that is referenced in your Accounting software currently

  • To distinguish the invoices related to your lettings business from other invoices, you can enter an invoice prefix

  • If the Summary Export option is not selected then the export will contain a line for each transaction

  • If you tick the Summary option, the data will be summarised by nominal code. When using a summary you must enter a Summary Invoice number

Your Accountant can give you advice about this section.

Accounting Method

  • You can select from either an Accrual or Cash accounting method.  For Accrual Accounting, the tax point date is that of each invoice issued.  
    For Cash Accounting, the tax point date is the drawdown date (i.e. the date the agency pays themselves in CFPwinMan)

Your Accountant can give you advice about this section.

When selecting Cash, you can pick a single Pay Agency Fee batch, or, multiple batches that you want to be included in the export:

When selecting Accrual, the Batch list is replaced by a date range:

Format Translations

  • The CFP Transaction Types and CFP Tax Rates being imported from CFPwinMan will need to be translated into the correct format for the software you use. (Your accountant can assist you with this.)

    Nominal codes - there must be an entry for each transaction type if you use Sage and Xero. They can only be left blank if you use Quickbooks

    Tax Rates - these fields are mandatory for all Accounting software packages

    When the data is imported, these translations will be carried out automatically

Exporting the records

  • When you click the Export button, you will be presented with a window to select the location where you wish to store the data being extracted:

         

  • If you wish to change the location for the file, make sure that the alternative location/folder already exists or is created in advance.  Once you have selected the output folder, click OK and you will receive a confirmation message:

         

  • This might take a while to appear while the file is being created so please allow time for the process to complete

The final step will be to upload the file that has been created into your Accounting software. Please contact your Accounting software provider if you need advice on how to do this.

Related articles:

What is Making Tax Digital (MTD)?