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HMRC backed by Office of Tax Simplication on MTD

Is this a joke?

Didn't find your answer?

I've seen the article in the Industry Insights about the OTS agreeing with rollout of MTD for accounts and tax returns.

There seems to be a mismatch between being called the OTS and enforcing a change onto what works fine for people in how they currently prepare the accounts and submit their Returns.

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By penelope pitstop
04th Nov 2019 00:31

Maybe. Depends.

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By neilbrookes
04th Nov 2019 14:14

I wonder what the Office of Tax Overcomplication think?

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By johnhemming
04th Nov 2019 14:52

triplicated

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By johnhemming
04th Nov 2019 14:52

triplicated

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By johnhemming
04th Nov 2019 14:51

When I read the OTS report I saw a couple of things I had not seen previously. One was the statement about 2021. Whether that means 2020-21 or 2021-22 I don't know, but if it is to be mandatory in some way for some subset of taxpayers then we are getting very close to the start of 2020-21.

The other thing in the OTS report was the threshold of 10K turnover.

I don't have any special information on this, but I would have thought HMRC would look for some form of gradual introduction of mandatory ITSA MTD.

To save effort for others the OTS report is here:
https://assets.publishing.service.gov.uk/government/uploads/system/uploa...

and my II article is here:
https://www.accountingweb.co.uk/community/industry-insights/hmrc-backed-...

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By johnt27
05th Nov 2019 14:01

Interesting that the OTS don't believe information provided by 3rd parties is going to be accurate when the experience from other countries, further ahead than us in terms of MTD, is that this is the opposite of their experience.

The irony being that if 3rd party data is provided incorrectly it's flagged by the user when it is corrected on their returns. So long as data monitoring is sufficiently undertaken the tax authorities have an immediate red flag to either challenge the tax payer or data provider and sanction them.

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Replying to johnt27:
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By johnhemming
05th Nov 2019 18:52

The second recommendation from the OTS was to study where third party information would be useful:

Recommendation 2
The government should invite the OTS to, or HMRC should, explore and
identify in more detail:
• the sub-sectors of the economy where third parties play a significant
role in relation to a group of taxpayers, in particular where the majority
of a taxpayer’s activity can involve third parties who would have
sufficient information to support effective reporting; sub-sectors to
consider further could include the taxi/private hire market and holiday
lettings market
• the information it would be natural for such third parties to hold and
any additional information (such as the National Insurance number) that
might need to be gathered to support effective and helpful reporting
• the extent to which it is usual for such intermediaries to handle money
relating to the business
• the key steps and timescales that would be involved in requiring them to
report such information

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By itp3e
08th Nov 2019 12:49

@johnhemming. Re triplicated.

You omitted to send the post three tines !!

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Replying to itp3e:
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By lh3f9764bg1g
08th Nov 2019 13:16

And as we all know . . . . . three tines = a pitchfork!
Chris.

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