Ok, so MTD for corp tax is a few years off but for sole traders, partners & landlords and I assume Director's income MTD is just round the corner.
For sole traders I assume client will submit through software either accurate (adjusted for cut-off) or "as it comes" figures. Is the latter allowed? With YE ajustments made for the final submission?
What happens with landlords and there income? is this to be entered per propery or addregated?
We all know it will fail big time but any feedback would be helpful. I am just trying to think of how it will apply to every situation as some situations are more complex than others, I am sorry it the subject has been covered elsewhere. It is quite a worry.
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Will the extra cost per annum to clients still be a just a few quid? Off set by efficiency savings at their end? Of course all very happy clients with the wonderful knowledge of what their tax liability may be as they go along - yipee I can hear them cry!
But you can’t amend MTDfVAT returns? Are you saying you will be able or have to amend MTDfIT returns, don’t you just make the adjustment on the 5th?
But you can’t amend MTDfVAT returns? Are you saying you will be able or have to amend MTDfIT returns, don’t you just make the adjustment on the 5th?
Who knows ?
You're right you can't amend the online submission....cos HMRC can't do that online yet.
But you amend the VAT Return for a period using Form VAT 652 (big errors).
I'd put money on that HMRC will want the original transaction that was wrong amending, not a global journal at the year-end.........
You're right you can't amend the online submission....cos HMRC can't do that online yet.
But you amend the VAT Return for a period using Form VAT 652 (big errors).
I'd put money on that HMRC will want the original transaction that was wrong amending, not a global journal at the year-end.........
Just fill in an MTD equivalent of VAT652 for each separate amendment.
Let's see who gets fed up first.
Good luck with that. Client been waiting 2 months to have a VAT652 processed. Last time I spoke to helpline they said it had been allocated so should be processed within a few months, if it hadn't been allocated then time frame could not be even guessed at. Only an issue as client is due to renew contract (with government) and could be denied renewal as it appears to have unpaid VAT.
i have been waiting months for a simple terminal CT loss claim - so what hope is there this will all work ?
This is my understanding (I could be wrong). MTD is really Making TRANSACTIONS Digital. That means inputting transactions into MTD software or a spreadsheet (with bridging software) that has functionality in it to process the figures for submission to HMRC: basically similar to what is already sent to HMRC on Self Assessment Tax Returns. That means you would input each transaction separately (eg each rental receipt) and the software will put all the FHL transactions together (one total for each of the existing SA boxes) and all other lettings into another set of totals. Submissions have to be made quarterly (or more frequently if you want). There will also be the equivalent of the existing Tax Return that will include allowances, reliefs, non-MTD income. So that means 5x Returns (or submissions) a year instead of the 1x currently. It's a bit like RTI which HMRC made a song and dance about it getting rid of the Year End Return but instead replaced it with 52 in-year submissions and we still had to do a Year End EPS.
If a client is a borrower and you won't be able to input the annual loan interest certificate for the tax year: instead you'll have to input each interest charge. In practice, we're going to input estimates during the year and then correct when we receive the annual interest certificate. In other words, instead of inputting 1x correct figure we're going to input 12x incorrect figures then 1x correct figure. HMRC reckons this is going to improve accuracy and close the tax gap. I get the impression HMRC doesn't care what rubbish is transmitted to them as long as it is digital rubbish. Even though our workload would increase by an extra 12x, will be be able to increase our fee by 12x?
Originally HMRC had said that jointly owned property would require one of the owners to declare everything for all the owners but that's been scrapped and instead each owner records their share in the same way they do currently for SA.
Alternatively, you can claim exemption from MTD. I don't know the detailed exemption criteria for MTD ITSA but I have used it for VAT and obtained exemption for a quarter for my MTD VAT mandated clients. I intend to claim exemption for loads of my MTD ITSA clients. Ironically, one of the reasons you could claim exemption at the moment is software because the likes of QuickBooks Online can't handle 5 April year ends and the law requires all individuals to report rental income to 5 April.
@OP, sorry, you asked:
"Can anyone summarise in simple terms what will have to be done for MTD please?"
And my answer is longer than your question. That just about sums up MTD: it makes a simple task 12x harder.
It s all very simple to understand on the one hand, but how will we be able to do it/cope?
It s all very simple to understand on the one hand, but how will we be able to do it/cope?
It s all very simple to understand on the one hand, but how will we be able to do it/cope?
I'd be surprised if you will cope.
You'll probably need to accept that you won't.
As will HMRC. Though I suspect that you'll beat them to that conclusion by, in racing parlance, a distance.
It s all very simple to understand on the one hand, but how will we be able to do it/cope?
It s all very simple to understand on the one hand, but how will we be able to do it/cope?
It s all very simple to understand on the one hand, but how will we be able to do it/cope?
See you're getting in the practice already ... although you didn't make any corrections within the 5th submission!
No idea whether that last duplication was a deliberate way of making your point ... but it wonderfully illustrates one of the many dangers with digitalisation (a lack of control over what is submitted, and the resultant mess that gets worse with every attempt to tidy it up)!
"Originally HMRC had said that jointly owned property would require one of the owners to declare everything for all the owners but that's been scrapped and instead each owner records their share in the same way they do currently for SA."
And the software HMRC are pushing and bank feeds will work magically with this.........
Make a claim to be digitally excluded on the grounds you don't know how to use a computer and carry on as normal.
Make a claim to be digitally excluded on the grounds you don't know how to use a computer and carry on as normal.
Make a claim to be digitally excluded on the grounds you don't know how to use a computer and carry on as normal.
Obviously don't email it or print it on a word processor. Quill pen recommended.
Surely at this stage HMRC must realise that some real life situations are beyond the current scope of MTD?
The way forward is for them to consult the profession (properly and seriously for once), learn and adapt.
What you then arrive at is the system we have already in place - annual tax returns. Most clients probably are ok with the use of some software but many are not and that's understandable - some are too small to want to pay £300 -£400 per year for software. They are thinking they can solve the black economy with this - which is utter nonsense
Surely at this stage HMRC must realise that some real life situations are beyond the current scope of MTD?
The way forward is for them to consult the profession (properly and seriously for once), learn and adapt.
Let's hope so!!
