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I just cannot understand how this will work, given the timescale. The pilot scheme starts in just seven weeks and finishes the day before it actually goes live. On the basis that the pilot scheme is meant to highlight problems, the time available is insufficient.
As mentioned the pilot scheme won't touch the final "balancing" submission at all.
What of the third party data supplied to HMRC to populate the returns? I have not heard how this is progressing, yet this is the one area that should (in theory) reduce tax payer errors.
I seem to remember that when the "new" CIS scheme was introduced one premise was that subbie's returns would be pre-populated with earnings/tax deducted under the scheme. No more scrabbling around chasing up lost beer stained 715 certificates from defunct building companies.
If HMRC are serious, step one should be the simple process of populating SATRs with, P60 & P11D entries & state pension. Step two would see the scheme extended to third party information. When this is shown to work, then we start the full MTD trial.
I suspect history will repeat itself, and there will be a repeat of the delayed introduction of the CIS scheme when HMRC realise they are no where near ready and graciously say "In recognition of concerns from the profession, we are delaying the introduction of MTD for 12 months"!
I am relieved that people other than myself are starting to realise that multiple electronic submissions (effectively tax returns) will be needed each year instead of just the one. I am naturally referring to Rebecca's excellent above summary:-
"under MTD separate quarterly returns will be needed for each diversified arm. This would lead to 12 more interactions with HMRC being required per year."
as stated above, but may I just add that for 3 businesses it is 16 tax returns a year as there is a quarterly for each then the subsequent adjustment and declaration for each then there is still the SA100 until it is eventually abolished, but this will not be before 6 April 2020 at the earliest.
To quote from page 19 (PDF version page 21) of the Conservative Party's 2015 Election Manifesto there is the title "WE WILL CUT RED TAPE." followed by the text "This Government was the first in post-war history to reduce the burden of regulation. We will cut a further £10 billion of red tape over the next Parliament through our Red Tape Challenge and our One-In-Two-Out rule. This will support our aim to make Britain the best place in Europe, and one of the top five worldwide, to do business by 2020."
I am now writing to my Conservative MP to remind him of his Manifesto obligations and to CUT RED TAPE and not to increase the burdens on businesses with MTD Quarterly Reporting.
Can't they see the damage this will cause?
The costs will sky rocket.
Many will be unable to do this.
Tax will go down.
Fines may go through the roof
Businesses will suffer and many will fold.
It will be a massive barrier to starting to be self employer
There will be no benefit - none at all.
No cost savings - at all for the "customers"
Support will be insufficient.
This is stupidity beyond anything ever seen before.
It must be stopped