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MTD exemptions

Have any of your clients managed to get one?

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Hi all,

As requested in the comments section of several of our recent Making Tax Digital articles, we're on the hunt for MTD exemptions as part of a potential write-up. Have any of your clients managed to secure one? If so, how did they do it? By phone or letter? And what do you think tipped the balance for your client? The more detail the better (within the bounds of client confidentiality, obviously).

Thanks as always!

Tom

Replies (10)

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By Kaylee100
14th May 2019 10:47

Ill send a PM

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Replying to Kaylee100:
By Tom Herbert
14th May 2019 11:00

Many thanks!

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By John Stone
14th May 2019 15:12

Tom - I have posted before about this. My client is 86 years old. He doesn't have a computer, tablet or a mobile device and never will. Each quarter he completes an old-style paper VAT return and sends it to me. I then type it into the HMRC portal. I first wrote to HMRC about this on 18 May 2018 and followed this up several times as the promised HMRC guidelines on exemption were promised for 30 November, then 31 December but never showed up (Remember all that?).
Finally, I wrote again by Recorded Delivery on 11 February 2019 listing the dates of my previous letters (6) and telephone calls (4) saying that my patience was exhausted and that my client would continue to submit returns in the same way as there was very ample evidence that I had brought his circumstances fully to their attention.
I received written confirmation of exemption on 8 March 2019. Basically - I guess that they were just sick of me.

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Replying to John Stone:
By Tom Herbert
14th May 2019 15:38

Many thanks for this John, much appreciated.

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Replying to John Stone:
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By Homeworker
15th May 2019 11:04

John Stone wrote:

Tom - I have posted before about this. My client is 86 years old. He doesn't have a computer, tablet or a mobile device and never will. Each quarter he completes an old-style paper VAT return and sends it to me. I then type it into the HMRC portal. I first wrote to HMRC about this on 18 May 2018 and followed this up several times as the promised HMRC guidelines on exemption were promised for 30 November, then 31 December but never showed up (Remember all that?).
Finally, I wrote again by Recorded Delivery on 11 February 2019 listing the dates of my previous letters (6) and telephone calls (4) saying that my patience was exhausted and that my client would continue to submit returns in the same way as there was very ample evidence that I had brought his circumstances fully to their attention.
I received written confirmation of exemption on 8 March 2019. Basically - I guess that they were just sick of me.


I find this very frustrating. I also claimed exemption on behalf of a client in his 70s, who has commercial lettings and is not computer literate but keeps his records in a handwritten ledger. It was refused on the grounds that we have been dealing with it up to now and can therefore continue to do so.
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Replying to Homeworker:
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By John Stone
15th May 2019 14:13

I would definitely appeal. I assume that you have been submitting the handwritten totals via the HMRC portal (as I was). This remains a far cry from the client starting to maintain his records digitally - as MTD requires. My experience is that if you stick at it - HMRC will see sense in the end.

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Replying to Homeworker:
Morph
By kevinringer
15th May 2019 14:26

I have pointed out in my exemption applications that I am willing to file the figures via GOV.UK because this takes less than 5 minutes a quarter and is reasonable for me to do, but it would take many hours to digitise my clients transactions at a cost of up to £2200 for some clients and that is not reasonable. The concept of 'reasonable' is in the legislation.

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By sallyrichardson
15th May 2019 10:24

I have a client who is about to go under the threshold and deregister (within next 3-4 months). They asked for exemption by letter but were told no. In the same letter it was however pointed out to them that due to the soft landing period they wouldn't be fined if everything wasn't kept digitally in the first year. So in other words, we can't say you don't have to do it, but if you don't we won't fine you.
Unclear about whether they would still be able to use the old portal, my client wrote another lengthy letter explaining how they currently kept their records, could they still use the old process etc etc. Got a reply by letter this week giving them a year's full exemption. I have asked to see the letter to double check this is right, but think again the HMRC have just given in.

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Morph
By kevinringer
15th May 2019 13:25

To my knowledge none of my clients have applied for exemption. In March I applied by phone for an exemption for an 82 year old sole trader farmer who has never used a computer or smartphone: he phones the figures to us and we logged into GOV.UK. I pointed out that phoning through figures and filing on GOV.UK is practical but us digitising all his transactions would take hours so would not be reasonable. Two months later I received written agreement to exemption. I have submitted half a dozen cases during April and May and still waiting for all of those.

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Bee
By May bee
15th May 2019 13:26

Applied over the phone for a client on 25th March 2019, heard nothing since.

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