Welcome to Neilson James Technology

(NJT has moved to: '15 Livsey Street, Manchester, M45 6AE' - effective from 26th April 2022)

Provider of 'HMRC Recognised' MTD VAT Bridging Software

This software is called the 'NJT VAT Return Manager' and Supports: Excel, CSV files, Acorn Legal, Avanti, Exchequer, FBA-Promar, Infor SyteLine, IRIS, Kingswood, More, Money Manager, Microsoft Business Dynamics, MYOB, Opsis Millenium, PC Law, Pegasus Opera I, Perfect Books, Quickbooks, Sage, SAP Business One, SAP ERP, Solar, Tally R4.x (UK), TAS Books, VT, Xero & Zoho Books. (See 'Featured Software' below)

MTD Digital Bookkeeping software (In development)

This software is called 'NJT Digital Records' and is a combined bookkeeping solution for both VAT & ITSA developed in Microsoft Excel. This has been designed for the more straightforward businesses and for use with either the 'NJT VAT Return Manager' or 'NJT Tax Return Manager' software. (See 'Featured Software' below)

MTD ITSA Bridging Software (In development)

This software is called the 'NJT Tax Return Manager' and is a combined Tax Return solution for both VAT & ITSA developed in Microsoft Access. (See 'Featured Software' below)

Neilson James Technology (NJT), based in Manchester, is a provider of software applications and a wide range of IT support services. NJT has extensive experience in the development of VAT Return & customised Microsoft Office based applications. In particular, development of Excel & Access based applications that interact with accounts software and HMRC.

NJT also possesses a wealth of operational, technical & project management experience within Government agencies & the IT industry spanning over 3 decades. This includes the Magistrates' Courts Service and commerical software suppliers.


Making Tax Digital Overview

The following sections outline HMRC's Making Tax Digital (MTD) system including updated timescales on implementation. Covering the mandatory 'MTD for VAT' and the current progress on 'MTD for Income Tax Self-Assessment' (ITSA).
Click on the individual Title to view the details.



MTD for VAT became effective on 1st April 2019. Initially, Taxpayers with a turnover above the VAT threshold (£85,000) were required to keep their records digitally (for VAT purposes only), and Provide their VAT return information to HM Revenue and Customs (HMRC) through MTD compatible software.
From 1st April 2022, MTD for VAT was extended to include all VAT registered Taxpayers and Businesses.

For information:
HMRC currently has no plans to introduce a mandatory requirement to submit transaction level data (Supplemental information). Therefore, Taxpayers only need to submit VAT Returns that contain the 9-box totals.

Terminology: Throughout this website, the generic term 'Taxpayer' covers to all types of Taxpayer, including Businesses and Individuals.



On 20th December 2022, HMRC announced a 2-year delay to the live 'MTD for ITSA' system implementation. It will now be mandated from April 2026, this time utilising a phased approach.

  • From April 2026, self-employed individuals and landlords with a turnover of more than £50,000 will be required (mandated) to keep digital records and provide quarterly updates on their income and expenditure to HMRC through MTD-compatible software.
  • Those with a turnover of between £30,000 and up to £50,000 will need to do this from April 2027.
  • The UK Government will not extend MTD for ITSA to general partnerships in 2025. The Government remains committed to introducing MTD for ITSA to partnerships at a later date, to be confirmed.
  • The Government will review the needs of smaller businesses, and particularly those under the £30,000 threshold before taking further decisions. This will look in detail at how the MTD for ITSA service can be shaped to meet their needs and the best way for them to fulfil their Income Tax obligations. Once that review is complete - and in consultation with businesses, taxpayers, agents, and others - the government will lay out the plans for any further mandation of MTD for ITSA.

Featured Software

The following sections describe the software that is available now and software that is currently under development. The Live 'Tax Return' software listed below is fully 'Recognised' by HMRC for use with HMRC's 'Making Tax Digital' system. Software that is currently under development will be demonstrated to HMRC before gaining 'Recognised' status.
Click on the individual Title to view the details.




VRM Dashboard Example

NJT offers a 'Bridging' software solution, named the 'NJT VAT Return Manager', for submitting MTD compliant VAT Returns to HMRC.
HMRC calls this 'Bridging software' as it's function is to provide an MTD compliant digital link between your accounting software and the HMRC system.

Prepared VAT Returns can be imported from a variety of accounting systems & formats, including:
Excel, CSV files, Acorn Legal, Avanti, Exchequer, FBA-Promar, Infor SyteLine, IRIS, Kingswood, More, Money Manager, Microsoft Business Dynamics, MYOB, Opsis Millenium, PC Law, Pegasus Opera I, Perfect Books, Quickbooks, Sage, SAP Business One, SAP ERP, Solar, Tally R4.x (UK), TAS Books, VT, Xero & Zoho Books.

Please Note: Additional systems will be considered on a request basis. However, Systems will require the facility to export VAT Returns to either a Text based file or an Excel file, in a consistent format and layout.

Prices

Single Business licences cost £40 per year.
Agency & Multiple Business licences start from £45 per year.

Applicable For:
  • Businesses with a single VAT account ('Business' licence)
  • Businesses with multiple VAT accounts (Available in 'Banded' licences (Including 5, 10, 25, 50, 75 & 100). E.G. 'Business10', 'Business25' etc.)
  • Agents that submit VAT Returns on behalf of their clients (Available in 'Banded' client licences (from 5 to 200) and a 'AgencyPlus' licence for unlimited clients. E.G. 'Agency10', 'Agency25', 'AgencyPlus' etc.)
Free Demonstration Software

NJT has developed 'Free' demonstration software, named the 'NJT VAT Return Demo', that simulates the 'Live' VAT bridging software.

This demonstration software allows you to simulate the full 'End to End' process without being signed up to MTD. This is a perfectly safe method to familiarise yourself with the functionality of the 'Live' software without actually communicating with HMRC. Additionally, you may wish to use this software to assist in training or to improve understanding of the required processes under MTD.

[Click here] for more details.

Quick Links:



NDR Menu Example

As a result of the planned ITSA implementation, NJT is developing a 'Digital Records’ solution in Microsoft Excel. It is expected that this software will be released in Spring 2024.

This software will allow you to record your Income & Expenses for a complete Tax Year and will be compliant with the legal requirements of the HMRC Making Tax Digital (MTD) system. This software will cater for 'Income Tax Self-Assessment' (ITSA) or VAT or both.

'End to End' Process:
  • When you open this software for the first time, you setup your configuration, including the initial Tax Return period via the 'Configuration' button located on the ‘Menu’ worksheet.
  • You then record your income and expenses in the ‘Income’ and ‘Expenses’ worksheets.
  • Once you have entered your ‘Income’ & ‘Expenses’ records for the given period:
    • Check the accuracy of your records.
    • Lock your records (optional).
    • View your Quarter Summary or VAT Return (this will calculate your financial values).
    • Save & Close the workbook.
    • You then submit the relevant financial values to HMRC using the separate 'NJT Tax Return Manager' or 'NJT VAT Return Manager' bridging software. For ITSA, you submit a 'Quarterly Summary' of your income & Expenses. For VAT, you submit your current VAT Return.
    • After the submission is complete, you open the software and amend the configuration ready for the next period.



TRM Dashboard Example

Software development has commenced to provide a combined solution covering both VAT and ITSA Tax submissions. This will be named the 'NJT Tax Return Manager' and is being developed in Microsoft Access. It will be a true 'Multiuser' solution with a separate database, which can be stored locally or on a central server.
For information, Microsoft provide a free 'Runtime' version of Access, which can be installed by customers that do not have at least Office 2016.

However, HMRC is currently redesigning many of the ITSA interfaces that 3rd party software will use to communicate with the HMRC system. Also, HMRC's test system is very limited at present, which makes it extremely difficult to comprehensively validate the software.

Indicative 'NJT Tax Return Manager' Software Release Schedule

  • Spring 2024 - VAT (Demo)
  • Summer 2024 - VAT (Live Submissions), & ITSA (Demo)
  • Autumn 2024 - ITSA (Live Submissions)

Please Note: The 'NJT VAT Return Manager' 'Excel' application will continue to be developed and supported. I.e. businesses/Individuals will be able to choose their preferred solution where only the VAT functionality is required.

In addition, NJT is currently developing an Excel based, bookkeeping solution for the more straight forward businesses, called 'NJT Digital Records'. This software will prepare both VAT returns and ITSA quarterly updates, which can be imported into the 'NJT VAT Return Manager' (VAT only) or the new 'NJT Tax Return Manager' software. It is expected that this software will be released in Spring 2024.

Clarification on the Use of MTD Bridging Software

There appears to be some confusion amongst certain circles regarding both the Acceptability and Lifespan of Bridging Software. See the sections below for a detailed clarification and the '3 Golden Rules of MTD for VAT'.
Click on the individual Title to view the details.



For the avoidance of doubt, the HMRC VAT Notice 700/22 (see link below) explicitly defines Bridging software as 'Functional compatible software' and is therefore a perfectly acceptable method of submitting, MTD compliant, VAT Returns to HMRC. Bridging software is NOT just an interim solution as some people are advocating.

The VAT Notice defines 'Functional compatible software' as a software program, or a set of software programs, products or applications. Therefore it is perfectly acceptable to use one software program to keep your accounts records (This includes spreadsheets) and a separate software program (Bridging software) to submit your VAT Return. The only stipulation is that you must transfer the data digitally.

The confusion is actually related to the rules governing the transfer of data between the accounts software and the Bridging software (Digital Links).
Again for the avoidance of doubt, the NJT Bridging software supports the, MTD compliant, digital transfer of data from a variety of accounts software and formats.


[Click Here] HMRC VAT Notice 700/22: Making Tax Digital for VAT




  1. Accounts Records: Your accounts records must be kept digitally for Tax purposes using 'Functional compatible software'.
    This includes all transactions that are required to calculate the 9-box totals in your VAT Return. For information, records kept within Spreadsheets are classified as digital records.

  2. VAT Returns: Your VAT Return must be submitted using 'Functional compatible software'. This can achieved using a single integrated software solution or a separate Bridging software solution.
    HMRC only requires your VAT Return submission to include the 9-box totals (Not the transactions).
    For information, HMRC has no current plans to introduce a mandatory requirement to submit transaction level data (Supplemental information).

  3. Digital Links: All data must be transferred digitally between 'Functional compatible software'.
    • Exporting & Importing digital files, for example, (Text, CSV & Excel files) are all acceptable.
    • Linked cells in spreadsheets are acceptable.
    • The emailing of Digital files between the different software applications is acceptable.
    • The use of 'Copy & Paste' is only acceptable where controlled by the software (For example, via buttons).
    • Manual entry of data is not acceptable, unless for purposes outside the scope of MTD (i.e. manual adjustments). However, the data must be transferred digitally.