Digital Tax

Digital Tax

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"In an official response to the petition, the government denied that Making Tax Digital will mean four tax returns a year, stating that “Quarterly updates will largely be a matter of checking data generated from record keeping software or apps and clicking ‘send’."

Will it really ?

Personally, I'm struggling to see the difference between submitting a return and a quarterly update.

Clearly, Mr Dauke is labouring under the misapprehension that the average small trader uses record keeping software or apps.

But - more seriously - what do we expect from this ?

1.  Companies aren't specifically mentioned but I expect them to be included.

2.  If dividends are to be pre-populated, they'll need to be reported when they are paid.

3.  What's the time limit for this information ?

4.   Does this have to be submitted for calendar quarters or can you choose your period ?

5. Will it be cash based ?  If it is, how will that information be corrected to proper accounting ?

We can only speculate  at the moment but by speculating perhaps we can anticipate problems and influence the consultations.

Replies (5)

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By cheekychappy
18th Jan 2016 11:49

It seems HMRC are happy to receive meaningless data.

If meaningless data is what they want, I can see a lot of nil returns getting submitted.

 

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Replying to VB2021:
RLI
By lionofludesch
18th Jan 2016 12:06

Penalties

cheekychappy wrote:

It seems HMRC are happy to receive meaningless data.

If meaningless data is what they want, I can see a lot of nil returns getting submitted.

 

Well, that's another question.

Penalties for incorrect information.

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Image is of a pin up style woman in a red dress with some of her skirt caught in the filing cabinet. She looks surprised.
By Monsoon
18th Jan 2016 11:55

Meaningless data

I agree with CheekyChappy. The whole thing is just ridiculous.

Yet another example of fools who don't know and don't care how the real world works.

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By cheekychappy
18th Jan 2016 12:08

Not sure how they would police that one.

I'm sure there are lots of seasonal businesses where a nil return would be correct.

 

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RLI
By lionofludesch
18th Jan 2016 12:15

Easy

They'll compare it to your bank records,

I don't expect them to ask for profits.   I expect them to ask for receipts and payments. Few businesses will be able to enter simply zero.

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