Making Tax Digital (MTD)

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

For more information, please visit
https://www.gov.uk/government/publications/vat-notice-70022-making-tax-digital-for-vat/vat-notice-70022-making-tax-digital-for-vat

To help you remain compliant, Jupix is providing you with an export in a format that will allow you to transfer your accounts data digitally to your accounting software.  

This article includes: 

Nominal Codes

The lettings income from Jupix can be imported into your accounting software, but first you will need to assign each entry i.e. Management fees, Letting fees etc, to a nominal code that already exists within your accounting software. 

These nominal codes need to be set up in Jupix before you can export your accounts data from Jupix to your accounting software.

If you don't know or you aren't sure what these should be, please contact your company accountant or book-keeper.  

Setting up Nominal Codes

A new section has been added to the Lettings Configuration screen for Nominal Codes and System Charges.

 Note

You will need access to Admin, to edit your default settings. Your appointed office Admin will have
access to these permissions

  1. Select Admin from the main homebar
  2. Click Lettings Configuration on the dropdown menu
  3. The Lettings Configuration screen will open. Scroll down to Nominal Codes and System Charges 
  4. Click Edit to open the Nominal codes & System Charges screen 
  5. The top section of this screen, Nominal Codes, is where you will add your accounting software nominal codes and descriptions 

Add a new Nominal Code

  1. To add a nominal code, click New Nominal Code 
  2. The Add Nominal Code screen will open allowing you to enter a code and its corresponding description
  3. Each nominal code entered has to be unique. You will receive a warning if you try to save if a code that already exists 

Assigning Nominal Codes

Once you have added all your nominal codes into Jupix, you will need to assign the nominal codes to your various agency income types in Jupix, for example, Management fees

There are three areas where this needs to be completed:

  • Tenant Charges screen
  • Landlord Charges screen
  • Nominal Codes and System Charges screen

To assign Nominal Codes to system charges:

  1. Select Admin from the main homebar
  2. Click Lettings Configuration on the dropdown menu
  3. The Lettings Configuration screen will open. Scroll down to Nominal Codes and System Charges 
  4. Click Edit to open Nominal Codes & System Charges
  5. The Nominal Codes and System Charges screen will open. Scroll down to the System Charges section 
  6. The Charge Description can’t be changed, the only option you have is to assign a nominal code to the Jupix charge. Click Edit to assign the nominal codes

  1. Use the Nominal Code dropdown menu to display the list of codes that have been added
  2. Click the relevant Nominal Code you want to assign to the Charge Description
  3. Click Save

How to unassign a Nominal Code that has been assigned to a charge

  1. Select Admin from the main homebar
  2. Click Lettings Configuration on the dropdown menu
  3. The Lettings Configuration screen will open. Scroll down to Nominal Codes and System Charges 
  4. Click Edit to open Nominal Codes & System Charges 
  5. The Nominal Codes and System Charges screen will open. Scroll down to the System Charges section 
  6. Click Edit by the relevant Charge Description you want to unassign a nominal code from
  7. The Nominal Code dropdown menu has a blank option at the top that can be used to unassign the nominal code in the future
  8. Click Save to unassign a nominal code to the System Charge

Assign Nominal Codes to Tenant and Landlord charges

Both the Tenant Charges and Landlord charges screens allow you to enter a nominal code against the custom charge that you have previously added into Jupix.

  1. Select Admin from the main homebar
  2. Click Lettings Configuration on the dropdown menu
  3. The Lettings Configuration page will open. Scroll down to Tenant Charges or down to Landlord Charges 
  4. Click Edit to open either tenant or landlord charges
  5. Select the relevant tenant or landlord charge that you want to assign a nominal code to
  6. Click Edit to open the charge information
  7. Use the Nominal Codes dropdown  menu to select the relevant nominal code
  8. Click Save
  9. When you assign a nominal code to a charge, there will be a warning at the top of the screen stating that Nominal code assignment is incomplete across the system until you have assigned nominal codes to all charges across the system

Once added, the code is displayed on the Tenant Charges and Landlord Charges screens.

Delete a Nominal Code that has not been assigned

You can also delete a nominal code that has not been assigned to a charge.

  1. Select Admin from the main homebar
  2. Click Lettings Configuration on the dropdown menu
  3. The section for setting up your Nominal Codes and System Charges can be found on the Lettings Configuration screen  
  4. Click Edit to open the Nominal Codes & System Charges screen 
  5. Click Delete to remove the relevant unassigned nominal code
  6. If a nominal code has been assigned to a charge, the Delete option will be greyed out and hovering over Delete will display a message confirming that this Nominal Code cannot be deleted.
    To unassign a nominal code from a charge, follow the steps as detailed above in How to unassign a Nominal Code that has been assigned to a charge 

Accounting package settings

To enable access to the exports from Jupix for the accounting package that you use, you will need to select the appropriate package and enter the relevant settings.

  1. Select Admin on the main homebar
  2. Click Lettings Configuration from the dropdown menu
  3. Click Lettings Settings
  4. Scroll down to Accounting Package Settings

Available accounting software formats

  1. Use the Accounting package in use dropdown menu to select the relevant export format you require

Jupix exports are available in the following formats:

  • Sage
  • Xero
  • Quickbooks Desktop
  • Quickbooks Online 

Sage

If you select Sage, you will need to complete the following:

  1. Enter the Account Name
    • This is the customer name already set up in Sage that the invoices will be posted against when you import the file
    • This is limited to 8 characters
  2. Enter you Sage VAT codes into the relevant VAT Category fields
    • These are the VAT categories set up within Sage that equate to 0% and 20% VAT rates in Jupix 

Xero, Quickbooks Desktop and Quickbooks Online

If you select XeroQuickbooks Desktop or Quickbooks Online, you will need to complete the following:

  1. Enter the Customer name in to the field
    • This is the customer name already set up in Xero, Quickbooks Desktop or Quickbooks Online that the invoices will be posted against when you import the file into your accounts software
    • If it is left blank, the relevant contact name from Jupix will be used on the detailed export
    • If the landlord, tenant (Lead) or supplier name, is left blank, the agency name will be used on the summary export
  2. VAT inclusive tickbox
    • If this is ticked, the gross figures will be exported
    • If this is unticked, the net figures will be exported
  3. Enter Invoice number prefix into the box if required
    • Using an invoice number prefix will enable you to maintain a separate sequential invoice number sequence for the invoices imported into your accounts package
    • If a value is entered, this will be prefixed to the Jupix invoice numbers imported into your accounts package
    • If no value is entered, the Jupix invoice numbers will be imported into your accounts package without a prefix
  4. Enter Last summary invoice number issued into the box
    • If you choose to import your invoices at a summary level, you will need to assign an invoice number to the summary invoices before they are imported into your accounts
    • The summary version is only available where you are accounting for VAT on a cash basis
    • Enter the last invoice number used in your accounting package
    • When the invoices are summarised, the next number in the sequence will be applied
    • The number sequence will be maintained by Jupix so only needs to be entered once, but it can be updated at any time if need be
    • If a prefix is entered, this will also be applied
  5. Enter your relevant VAT category into the Code boxes
    • These are the VAT categories set up within your accounts package that equate to the 0% and 20% VAT rate in Jupix

Producing the export

The export that you will use depends on the tax basis used for calculating your VAT liability. 

You will either use the accrual or cash basis for calculating your VAT.

If you do not know which basis you use, you should contact your own company accountant.

Accrual basis

If you are working on an accrual basis for VAT, the export that you require to complete your digital link is available from within: 

  1. Reports in the main homebar
  2. Click Invoice Report from the dropdown menu

Tax point

The Tax point is the date of the invoice or credit.

Export

  1. Date Range From - Use the calendar to select the relevant date
  2. Date Range To - Use the calendar to select the relevant date

or

  1. Invoice Number From - Enter the relevant invoice number
  2. Invoice Number To - Enter the relevant invoice number
  3. Offices - Use the tick boxes to select the office or offices that the export is required for
  4. Choose Format - Use the dropdown menu to select the required format. Your options are:
    1. .pdf
    2. .csv
    3. Export in your selected accounting format. That is taken from the format already selected in your settings and will be either Sage, Xero or Quickbooks
  5. Click Generate
  6. After a brief wait, you will be prompted to download the export in the form of a zip file containing a .csv file in the format required

This will be also recorded in the Report History panel and can be downloaded again at any time.

  • The Report History panel displays the details of the report generated including the format it was created in
  • Where the report was only for a single office, that will be shown
  • Where the report was for multiple offices, the first office will be shown followed by...hover over this field to display the full list of offices included in the export

 Note

Only reports generated by selecting the accounting export are stored as .pdf and .csv exports will not be stored

Cash basis

If you are working on a cash basis for VAT, the export that you require to complete your digital link is available for each drawdown of agency fees.

Tax point

The tax point is the date the money is transferred from your client account to your business account or the pay agency drawdown date.

Summary version

Many accountants will only want to enter the summary level by nominal code totals into your business accounting software.  

This is acceptable for a cash basis but is not practical for an accrual basis as it will make reconciliation too complex.  

Export

The export required for accounting on a cash basis is available by navigating to:

  1. The Accounts dashboard on the Lettings home screen
  2. Click Pay Agency
  3. Click Save
  4. The Agency Payment Summary screen will open. Click the download button to export in your selected accounting format

This will initially be greyed out and a Download Pending message displayed when you hover over the button until the export is available.

  • The export generated will return a zip file containing .csv files in both a summary and detailed format that contains all the transactions for that drawdown
  • Where summary is used, the detailed .csv provides an audit trail for the summarised entries
  • Where Quickbooks is selected, there will be separate files for the debits and credits and any file in excess of 1000 lines will be split into multiple files 
  • The export can also be downloaded by reopening the Agency Payment Summary screen from the Bank Reconciliation screen, OR, the Reconciliation History screen if the entry has already been reconciled 

Alternatively:

  1. Click Reports on the main homebar
  2. Select Agency Payment History from the dropdown menu
  3. Select the relevant Paid From bank account from the dropdown menu
  4. Date Range From - Use the calendar to select the relevant date
  5. Date Range To - Use the calendar to select the relevant date
  6. Click Generate to display all the drawdowns for that period
  7. You will then be able to click to download the required export

  • If the export was not generated at the time the drawdown was completed, for example where the drawdown was made before this feature was added, the option to Generate the export will be displayed instead of the option to download
  • The export will use the currently selected format and settings

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