gnucash-uk-vat

Introduction

This is a utility which manages HMRC (UK) VAT returns in accordance with HMRC MTD directives for users of the GnuCash accounting system. It can study your GnuCash accounts, compare this with your HMRC VAT obligations, and produce the VAT return to meet your obligations. As an optional step, once the VAT return is filed, a bill can be posted describing the VAT owing, and posted to an Accounts Payable account.

Discuss

There's a #gnucash-uk-vat channel on our Discord server if you want to discuss... https://discord.gg/3cAvPASS6p

A word from our sponsors :)

If you need low cost, automated accounts filing for small businesses, Accounts Machine has a commercial offering which incorporates the functionality you see here in a web service.

The proposition is simple. Accounts Machine does not offer an accounting system. You manage your accounts using GnuCash or anything which produces CSV output. You manage your accounts, manage your invoices, manage receipts, and record everything in your application under your control. When it comes to filing returns, you upload your accounts to accountsmachine.io and use the system to file VAT returns, corporation tax returns, and company accounts with Companies House. The production of returns is as automated as possible. Accounts production conforms to iXBRL specifications, and HMRC VAT MTD.

This service is able to simplify accounts filing for simple businesses. Your company should be a Limited Company, conform to micro-entity requirements, and have a single trade. This service is aimed at making life easier for startups and small businesses.

The roadmap is for launch in 2Q2022. VAT filing is complete, just going through the final validation process with HMRC. Demo is here

Visit https://accountsmachine.io. Accounts Machine is registered with HMRC and Companies House for filing purposes and have successfully filed VAT, corp tax and company accounts.

Join our discord service to keep on top of latest progress: https://discord.gg/3cAvPASS6p

Enthusiastic early adopters will find free deal links on the Discord server. Looking forward to filing for you. :)

GnuCash backends

Two ways of interacting with your GnuCash accounts are supported:

• The gnucash module is bundled only with Linux GnuCash packages, and can only by used on Linux.
• The piecash module is pure Python and can be obtained from package repositories. This module only supports GnuCash files saved in Sqlite files or a Postgres database. You can convert a GnuCash XML file into Sqlite by using the "Save As..." option in GnuCash.

Status

This is a command-line utility, with a GTK-based dialog mode which removes the need to know about configuration files or command-line options. I have used this to submit my own VAT returns. If you want to join the party come to the #gnucash-uk-vat channel on Discord server https://discord.gg/3cAvPASS6p and I'll try to help you through the process.

Credentials

In order to use this, you need production credentials (client ID and secret) for the VAT submission API. HMRC does not permit these credentials to be shared publicly:

We have checked with our colleagues who look after HMRC’s API Platform. They have advised that this is not allowed and would be likely to result in your Developer Hub application being blocked. We recommend that instead of sharing these credentials that you inform your users how they can register for their own Developer Hub application and use its credentials with your code.

In order to get credentials you would need to go through the full process to register as a VAT MTD provider, which is not a simple process.

You would need to apply for production credentials using the HMRC developer portal (you need to register).

Developer hub: https://developer.service.hmrc.gov.uk/api-documentation/docs/using-the-hub

Testing

To use the staging API to test your integration, after registering you'll need to change some settings in config.json under the application section:

• Set profile to test.
• Change product-name to the name you registered your project under.
• Change client-id and client-secret matching what HMRC creates for you.

In the HMRC hub, under your application, you need to go to the redirect URIs section and add http://localhost:9876/auth.

When following the auth link, just follow the links to get credentials and a VRN for a test user from HMRC.

Fraud headers

Before requesting production access, you'll need to test the fraud headers.

To do this, run test/test_fraud_api.py (it accepts --config if not using the default).

If your auth credentials have expired from the previous test, you can recreate them with gnucash-uk-vat --authenticate (again, accepts --config).

The response is expected to include a warning due to gov-client-multi-factor being empty. But, no other errors should appear.

Production

Once tested, you can click 'Get production credentials' and enter details about the application. When you apply for credentials, HMRC will contact you to fill in an application.

The list of endpoints supported at any point in time can be found by looking through the features at: https://github.com/cybermaggedon/gnucash-uk-vat/blob/master/docs/cli.md#using-gnucash-uk-vat

As the software doesn't handle user data, you shouldn't need to include ToS, but you can always point to the simple license and notice at: https://github.com/cybermaggedon/gnucash-uk-vat#licences-compliance-etc

You will likely be asked to test all supported features, so probably best to run through each example command listed in the CLI docs when submitting.

After approval (can takes months), you'll then need to change the config again using your production ID and secret, plus change profile to prod.

Installing

To install directly from a git repository:

pip3 install git+https://github.com/cybermaggedon/gnucash-uk-vat

To install/update from the local checkout, a wrapper script can be used:

[git-bash-prompt]> ./setup.sh

See Installing.

Usage

There are two modes:

• Assist mode, which is a GTK-based dialog-driven. This automates everything including configuration file setup.
• CLI mode, which is purely CLI-based and has no dependency on PyGTK.

GnuCash accounts structure

See Accounts.

Local test service

There is a local test service which allows you to emulate the HMRC VAT service with test data under your control.

See local test.

Sample accounts

A sample account file is included at accounts/accounts.gnucash. This account file contains some transactions dated in the 1Q17 quarter which match the test data in HMRC's Sandbox. There are also some transactions in 2020 which match the obligations in the dummy-vat-service data.

Licences, Compliance, etc.

Privacy

gnucash-uk-vat is hosted by you. It runs on your computer, accesses information from your accounts, and forwards data using the HMRC APIs. Everything is within your control. No other network systems are used, and no information is transmitted to other parties.

Additional data (configuration and credentials) is stored on your filesystem under your control and you should manage the credential files as you would any password or other secret.

Licence

Copyright (c) 2020-2021, Cyberapocalypse Limited Copyright (c) 2021-2024, Accounts Machine Limited

This program is free software: you can redistribute it and/or modify it under the terms of the GNU General Public License as published by the Free Software Foundation, either version 3 of the License, or (at your option) any later version.

This program is distributed in the hope that it will be useful, but WITHOUT ANY WARRANTY; without even the implied warranty of MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE. See the GNU General Public License for more details.

You should have received a copy of the GNU General Public License along with this program. If not, see https://www.gnu.org/licenses/.

Tests

Run pytest or make test