Taking an accountancy practice doing (say) 300 VAT returns each month, and having about 1,000 self-employed clients' tax returns to complete each year, between April and the following January, I wonder if HMRC have considered what impact MTD ITSA filing will have on practices post 6th April 2023?
The practice will still have 300 VAT clients, and yet have to file 1,000 tax returns within one month every quarter, plus one after the year end. Where VAT phasing is not aligned with the ITSA filing quarters, these accounts will need bringing up to date too, before filing the SA's .
The need for accounting personnel will 'spike' quarterly, as the practice tries to file 1,000 tax returns each quarter, which it previously filed once a year, over a 10 month period.
I would be interested to know what thought others have had on this, and what HMRC's views on how this can be achieved?