Check the digital links in a UK Making Tax Digital VAT spreadsheet workflow

List the systems that hold the records required for the business's VAT return. Include sales software, purchase records, spreadsheets and the submission product. Mark which records each component preserves. A diagram showing only the final connection to HMRC can miss a manual transfer earlier in the process.

HMRC's Notice 700/22 explains that required digital records can be held across several compatible programs. Where data continues to form part of the electronic account, transfers within and between those programs require digital links. Establish that boundary before deciding whether a particular manual step is permitted; not every system that happens to contain VAT information necessarily forms part of that account.

For every transfer, record the source, destination, file or formula, operator and evidence retained. Distinguish a linked spreadsheet cell from a value pasted over the cell. Identify whether an emailed workbook is imported or whether someone reads its totals and types them again. Those procedures can produce identical figures while using different transfer methods.

HMRC accepts methods including linked spreadsheet cells, file imports and exports, and API transfers. It does not treat copy and paste as a digital link. A staff member initiating a file import is different from manually rekeying the records. Test the procedure people actually follow during a busy filing week, not just the integration named in a software proposal.

Notice 700/22 allows specified VAT adjustments to be calculated outside the compatible software, with a separate total for each adjustment type recorded in it. The supporting calculation does not automatically require digital links. Review the relevant rule for the adjustment rather than assuming every spreadsheet calculation is prohibited.

Keep an adjustment register identifying its purpose, supporting calculation and reviewer. A partial-exemption calculation and a manually copied sales total are different things. Calling an ordinary transfer an adjustment does not explain why it falls within the permitted treatment. Where the boundary is uncertain, ask the VAT adviser to document the applicable notice example and the required change.

Choose an actual completed period and preserve its source files. Trace a sale and purchase through the electronic account, then reproduce the return totals using the intended links. Inspect a correction, an adjustment and an excluded transaction. Record the transfer method as well as the amount, because a numerical tie alone does not demonstrate the digital path.

Check workbook formulas after files are moved, renamed or emailed. A formula pointing to an unavailable prior workbook can leave a plausible saved value on screen. Make the owner demonstrate the refresh or import and show which version reached the bridging product. Retain the submitted return and the data version used to produce it.

Write a short operating note listing the file locations, transfer steps, adjustment approvals and submission responsibility. Update it when software or agents change. The next preparer should be able to repeat the approved process without rebuilding totals by hand. Resolve any broken link before making that shortcut the team's recurring filing method.