Share this content
1
1038

MTD - ACCA & CIOT's Head of tax tried their best

Finance Bill Sub Committee 10 Oct = a must view!!

Anyone interested in MTD and wonder whether the Institutes are doing anything must view this video of the sub committee meeting. They did try to get it deferred and pointed out the concerns but it doesnt look as they got anywhere.

Rather than listening to it all (the start bit was about offshore) - start at 16.50pm

https://www.parliamentlive.tv/Event/Index/1790e456-2970-4d5a-8488-800b5b...

Apparently its going to only cost £280 for each company!

 

 

Replies

Please login or register to join the discussion.

avatar
By Matrix
22nd Oct 2018 19:23

They did well. I don’t know why the Lords were asking the heads of the institutes the benefits of MTD.

Thanks (2)
avatar
22nd Oct 2018 20:08

i thought they were shoddy

Thanks (0)
avatar
By Matrix
to carnmores
22nd Oct 2018 20:29

They said the right things until Lord Forsyth asked about the benefits and gave them a get out of jail free card - John Cullinane said MTD would improve accounting records instead of saying that all the bodies had been telling HMRC there were no benefits from the outset.

Thanks (0)
to Matrix
23rd Oct 2018 08:30

The records will look nicer but they're more likely to include the wrong numbers.

Thanks (0)
avatar
to Matrix
23rd Oct 2018 16:11

I am at the opposite end of the political spectrum to Lord Forsyth but I thought he did rather well and showed a good deal of commonsense. He said MTD for VAT would be a 'car crash'. He thought the present system using the Government Gateway was working - so why try and fix something which actually works? He was also sceptical about the cost to individual businesses and it seemed to be agreed that the main cost to small firms would be the time involved in learning to use software rather than the actual monetary outlay on it. Unfortunately - it looks like MTD will go ahead regardless. Quick - someone ring 999!

Thanks (0)
avatar
23rd Oct 2018 09:31

Haven't watched this yet. However I did watch last night the Committee grilling the HMRC, in particular the lady in charge of MTD for business.

Lots of the complaints mentioned on AWeb were put to HMRC

- How is MTD for VAT going to close the tax gap. Answer - Arithmetic errors in manual records?????. Unrecorded sales.
- Has the OBR audited their figures on the expected costs to businesses of MTD for VAT. Answer - no but they have audited our tax gap figures
- When are the tax payers going to be told about this - letters are going to be sent - but no mention when.
- It is not a proper pilot as you not testing whether it is going to raise any more tax. Answer - the pilot is only to test the software. We are going to monitor the tax take from April next year.
- Six months can't be a serious timeframe to get everything ready, would April 2020 be much more sensible. Answer - we will be ready for April 2019, a significant number of software companies will be ready and our evidence is that businesses will be ready
- Isn't the six months deferment only for big business. No - not for profits are included which includes charities and local sports clubs.

Regardless what was said to them, in their mind there isn't any problems and MTD for VAT is going ahead.

Thanks (0)
to david.bransbury
23rd Oct 2018 09:46

david.bransbury wrote:

- How is MTD for VAT going to close the tax gap. Answer - Arithmetic errors in manual records

Oh - of course. Innocent arithmetical errors are always in the taxpayer's favour.

Truly, we are led by donkeys.

Thanks (1)
avatar
23rd Oct 2018 09:57

Thanks. I watched from 16.48 and it was very interesting with good points made including the extent to which software may not cope well with people's complex issues, even just the petrol receipt with the chocolate bar on it point that was made.

The lady expert made the good point that the overall plan we understand - HMRC want everyone on the same system, that HMRC can see and have transparency over but just bringing in MTD now and compulsorily on its own with just the same boxes of data as now is pretty pointless.

Thanks (0)
avatar
23rd Oct 2018 10:12

they should have SHOUTED how big a 'car crash' this will be - it was all far too polite!

Thanks (1)
23rd Oct 2018 11:47

I enjoyed that session from the 22nd

Especially when the select committee seemed to hold very similar views to my own.

Whilst the committee is not formally asking for evidence at this stage, if you have any specific and concise views that may help them form their report of this session, their contact details are available just here.

https://www.parliament.uk/business/committees/committees-a-z/lords-selec...

Personally I found the assertion that the tax gap was to be reduced by transposition errors (the words 'VAT reconciliation' springs to mind) and that missing sales are not picked up in a bank rec most troubling.

HMRC's report into business record checks suggested we do keep good records.

https://www.gov.uk/government/publications/business-records-checks-and-a...

Thanks (0)
23rd Oct 2018 16:27

I wonder how many businesses with a turnover of <£150,000 are in this pilot.

Thanks (1)
avatar
23rd Oct 2018 18:29

I wanted to join the new pilot they mentioned yesterday as if it was open now to most people.

I cant as Im in a partnership! How come thats such a problem? Its still one return, same boxes, and im using one of their (hopefully) compliant softwares as its one of the major players. Im just a straightforward accountancy practice.

I also have a progressive company client who would probably be interested and is fully digistised. They cant because they trade with EU!

So much for the pilot being open to most taxpayers.

It makes me wonder how many returns have actually been filed under the initial pilot.

Thanks (0)
Share this content