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Broadband connection and MTD the reality

Small businesses urged to apply for broadband vouchers follow the link and find out the real cost!

I saw an article in Accountancy Daily ...'High-speed broadband access is of increasing importance to SMEs with the approach of the Making Tax Digital (MTD) for VAT deadline. From April 2019, all businesses with a turnover of £85,000 or more will be required to upload their VAT figures to HMRC online, necessitating access to broadband coverage'. Rang one of the suppliers and they said even with the grant the monthly cost would be £550. The infrastructure is not in place that is the reality and the cost to small businesses has not been taken seriously. Definitely car crash waiting to happen. 

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14th Nov 2018 10:07

The data submitted to HMRC for MTD for VAT is nine numbers. Unless you're submitting figures at 11:57 on deadline day every quarter I don't think high speed broadband is a necessity.

Any internet access at all will do and if you can't get that you're exempt from MTD anyway.

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By Di
to Duggimon
14th Nov 2018 12:13

Its cloud accounting that is a concern and you need a reliable internet connection which isn't available to all. If the data submitted is only 9 numbers why are they changing it?

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to Di
14th Nov 2018 12:18

MTD is not a requirement to use cloud accounting.

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By Lisa09
14th Nov 2018 14:26

Most cloud accounting software is looking at a bridging software option. I.e. use the software to only enter the nine values and submit. Possible, accounting software cost of £couple per client per month. If submitted on time then broadband speed should not be a concern.

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By Maslins
14th Nov 2018 14:27

Broadband costs £550/month after getting a grant? No it doesn't! Or have I misunderstood...

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By Di
to Maslins
14th Nov 2018 14:49

If you live/work in a place where you cannot get broadband apparently that is what it will cost. Price was quoted this am after I followed the link re the Gigabit voucher scheme and spoke to one of the suppliers. Looked into satellite too but conflicting reports. Better off renting an office in an area with broadband.

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to Di
14th Nov 2018 15:26

Gigabit internet is fast enough to send an average sized Sage backup with eight years of transactions in it in about 0.8 seconds. I don't think it's necessary for filing a VAT return.

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to Duggimon
14th Nov 2018 15:27

Are you perhaps planning on filing your VAT returns via an hour long HD video of an interpretive dance?

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By Di
to Duggimon
14th Nov 2018 15:45

Seems like you live in an area with a good connection. I've spoken to the software suppliers and if we want cloud accounting we need a decent reliable connection. BT cant/wont offer it. I'm not an expert but it seems like you are and perhaps a little facetious too.

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to Di
14th Nov 2018 15:59

I expect I come across as facetious because you keep moving the goalposts.

1. You don't need cloud accounting to comply with MTD, your question/complaint was about being forced into the cloud, that is not happening.

2. You don't need a fast internet connection for MTD.

3. You don't need gigabit internet for anything, unless you're running a web server, you can run cloud accounting software on normal broadband. Though you are not required to use cloud accounting to comply with MTD.

4. Your question now seems, 9 replies in, to be about how to get a fast enough internet connection for using cloud software and nothing to do with MTD, and your issue is that BT won't offer it. Perhaps you should have opened with that.

FYI I live remotely enough that there's no mains gas and I get broadband through my phone line and it works fine. If you have enough of a connection to send an email you have enough of a connection to comply with MTD and if you can use youtube you can use cloud accounting.

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15th Nov 2018 13:24

You don't have to use cloud software MTD, use can use desktop software but you will need to submit your VAT return digitally. You don't need a fast connection for that. I have clients who have no connection. HMRC VAT 700/22 2.1 says exemption can be granted if "it is not reasonably practicable for you to use digital tools to keep your business records or submit your returns, for reasons of age, disability, remoteness of location or for any other reason". I will be making good use of this argument. HMRC are currently working on the detailed criteria which they should publish by the end of the year.

On a practical point: I live 1 mile from our local phone exchange and enjoy fast speeds (76 Mbps). I have a client who lives the same distance from the same exchange but he can't get broadband at all because the copper wire to his house is above ground and isn't in good enough condition to carry broadband.

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15th Nov 2018 15:05

Cloud software is crap anyway. Get VT and the bridging software and you're laughing (in the face of MTD)!

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