"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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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.
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.
Not sure how they would police that one.
I'm sure there are lots of seasonal businesses where a nil return would be correct.