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Further delays announced for more consultation?
https://www.gov.uk/government/publications/bringing-business-tax-into-th...
Can you point out where it mentions a delay? I'm reading it late at night so maybe missing the obvious!
An excellent report from the House of Lords which seems to be more in tune with the concerns of the business community than HMRC or the Government.
The initial costs to business of changing their accounting systems to facilitate quarterly digital returns must significantly exceed £280 with estimates for the annual MTD compliance costs to SME's of preparing quarterly returns ranging from £500 to £2,800.
I am aware of a Listed Company assessing their I.T. spend in order to comply with MTD to be in the region of £500,000 to £1m and with the investment needed to deal with BREXIT they were not at all sure whether their FD would sanction such a non-added value spend.
I am also not convinced of the benefits of MTD to HMRC other than possibly paving the way for the payment of taxes on a quarterly basis at sometime in the future, which could bring in a 12 -15 months of tax revenue one year earlier compared with payments 9 months after the year end for companies or up to 15 months after the year end for sole traders and partnerships depending upon your financial year end. This would put a considerable strain on the finances of the business community should compulsory quarterly tax payments be implemented.
The profession has an enormous resource issue in creating the time to persuade clients to change their accounting systems in order to cope with MTD in the first place. Never mind the additional human resources needed to complete quarterly returns for most of their clients as opposed to just quarterly VAT returns and a set of Annual Financial Accounts. Whether clients will pay for this additional regulatory burden is another challenge so pricing these services correctly will be vital or face greater write-offs and increasing numbers of uneconomic clients. Get it right and it will be a super opportunity to significantly grow your practice. So watch this space!
Get it right and it will be a super opportunity to significantly grow your practice. So watch this space!
It is indeed. However, personally, I've no wish to get rich by stealing money from the blind man's tin.
Just my business ethics. Don't feel guilty if yours are different.