Anyone know when the letter from HMRC to vat registered traders letting them know about MTD is being sent? I still know of many taxpayers who haven't heard anything about it
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I suspect the problem is that the software that creates these letters is not ready yet and it will then require a one year pilot of 400,000 people to test it before the letters can be issued.
I asked Rebecca yesterday how close to the 400,000 HMRC with the pilot. She reckons they'll be lucky to hit half of that by the time mandation arrives.
On the HMRC webinar last week, they said letters would be sent to the VAT registered businesses who qualify for the current pilot from 5 November 2018.
In answer to my question they don't have the information on who does or does not have to register. Individual taxpayers will have to decide for themselves.
At the moment if a client has zero rated or reduced rate supplies then the HMRC have no actual amounts of current VATable turnover.
Thus they don't know for certain who should applying MTD for VAT. For the majority of clients it would be obvious but for my client who has large exempt sales, a few margin scheme sales and some zero rated sales they will look at the total sales figure and assume yes.
I haven't had a letter but I have been seeing information about it on accounting and business websites, and my accountant informed me about it earlier on in the year.
According to the ICAEW man at the Lords Select Committee last month - some 40% of traders don't know about MTD and some 25% still keep paper records. The Committee Chairman (Lord Forsyth) said he thought we were heading for a 'car crash'. And yet.........on we go.
Ive seen it memtioned on the VAT notes they enclose / send occasionally. A small bit and sort of hidden away.
I dont know if thats what they are referring too. If it is, it will inform about another 1 percent who probably dont read such technical notices.