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MTD and retirement

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Will it just be self assessment for sole traders and partnerships that will be on MTD after 2023 or will Limited Companies be forced to go that way? Also, the thing that sprung to mind, with MTD, is it is being brought in to bring in tax revenues throughout the year and earlier. This will mean a lot of businesses going to the wall because of huge increases in accountancy fees. Wouldn't it be simpler to make businesses pay their tax in quarterly or monthly instalments? The businesses would the set up direct debits so that they don't forget to pay. Or does the HMRC just want to completely destroy the economy of this country, which is already under fire from the covid virus?

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By 0098087
04th Jun 2021 10:06

Why will it mean bigger fees. Once they all switch to cloud accounting, it'll means less work as everyone will be able to use it..Don't you read the hype....:-)

The garbage i've seen from clients using cloud accounting.

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By SXGuy
04th Jun 2021 11:03

Hoping 0098087 is joking regarding not having more fees. As I can really see those yearly receipts stuffed in a carrier bag type clients conforming to quarterly submissions. not.

I think the end game for HMRC is to, as you say, collect tax quarterly, and of course this will have a major impact on cash flow. Not just for those who use the 9 months to find the money, but also for those seasonal businesses which may have to find a big chunk of tax during peak season, and sweat during off peak seasons for their tax refunds which will likely take longer than HMRC expect them to make a payment.

Yes Ltd companies will be drawn in to it too, although I think that's in 2024.

There's a small glimmer of hope that it will be pushed back again, because personally with all these businesses which have been unable to work for the past 18 months, the last thing they need is this, if they do start to "go back to normal".

To be honest, im done worrying about it, ill take the increased fees and ill manage as best as I can. At the end of the day, it will be down to the client to make sure records are received on time, and I will not spend the rest of my working hours chasing all clients for work every three months.

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Replying to SXGuy:
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By Richard Cliff
04th Jun 2021 11:37

SXGuy wrote:

Hoping 0098087 is joking regarding not having more fees. As I can really see those yearly receipts stuffed in a carrier bag type clients conforming to quarterly submissions. not.

Yes Ltd companies will be drawn in to it too, although I think that's in 2024.


I have just read that it will bring in incorporated businesses in 2026. Me and my colleague have decided to downsize because of the increased work and fees to go with it. I have 4 incorporated clients and might decide to push a few others to incorporate. Luckily I have clients who are nearing retirement themselves and I am not taking on any more clients. I file, using my own software, all limited companies and partnerships for my colleague and this is where my workload will increase. I've got to look at it as do I do the extra work each month, and be stuck in the office, or retire and take holidays in our holiday club in Malta. I am past retirement age, so I know what I've decided already.
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Replying to Richard Cliff:
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By SXGuy
04th Jun 2021 11:45

I guess you are in a fortunate position where you can decide to walk away if you wish, I on the other hand am not so fortunate.

I had quite a few black cabs on the books whom most have not worked and probably won't for another year at least and so with the loss of fees from them I'd welcome the increase in fees for the others to make it up, but sadly I can see it only making up the lossed fees and not actually gaining anything other than more work for less money.

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By Richard Cliff
04th Jun 2021 11:53

In reply to SXGuy - Yes a lot of accountants will be facing the same prospect. I think it is a government/HMRC plan to get rid of small practices and just leaving the big boys to do all the work. All those years of training and exams suddenly wasted by the sharp cut of their blade.

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Replying to Richard Cliff:
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By 0098087
04th Jun 2021 12:01

with this lot I wouldn't trust them as far as I can throw them

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Replying to Richard Cliff:
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By lionofludesch
05th Jun 2021 11:12

Richard Cliff wrote:

In reply to SXGuy - Yes a lot of accountants will be facing the same prospect. I think it is a government/HMRC plan to get rid of small practices and just leaving the big boys to do all the work. All those years of training and exams suddenly wasted by the sharp cut of their blade.

The big lads won't want the work. I'm not sure the little las do, either.

Folk tell me that other countries have already implemented this stuff. Presumably, they did a better job of it than HMRC, otherwise it would've collapsed like a pack of cards by now.

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Red Leader
By Red Leader
04th Jun 2021 11:59

That's right, they're out to get us.

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