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MTD options

An attempt to provide clients with choices

We have spoken to clients who keep their own books in recent years about MTD but most have chosen, given Government backtracking and lack of a list of definitely compliant software, to wait.

I now want to inform clients more formally and have the following options. Can you confirm if there is anything you feel is missing  ....

To keep a spreadsheet and use bridging software to upload your VAT return. Or email the data to us, and we will use bridging software for you. (on a course last week we were told this system can only be used for a maximum 12 months - is that true?) Im in contact with a bridging supplier who will hopefully confirm. 

To use our in house bookkeeping service and we use SAGE or Xero, depending on the client and their requirements. 

To sign up to a bookeeping package themselves, we can discuss pros and cons of those we have experience of, if they wish. 

If they already use a software package they will need to ensure it will be MTD compliant in time. 

 

 

 

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By Matrix
22nd Oct 2018 07:10

You may aswell wait a week now and see what happens in the budget.

Re your final paragraph, most of my clients file their own VAT returns having prepared them in VT or old Sage desktop so will need bridging software. This option means they don't have to change anything if they don't want to (these businesses have been happily running like this for 20 years or so and their bookkeepers don't use the cloud).

Thanks (4)
22nd Oct 2018 09:24

I would definitely wait until monday.

This afternoon you might also want to watch the house of lords select committee politely discussing the project with HMRC (who have sent a deputy, as the big boss just happens to be on holiday).

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

Expect some fireworks.

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22nd Oct 2018 09:50

Thanks!

Its a real dilemma. Trying to keep clients informed (when no one appears entirely ready) as well as ensuring we pick the offer best option for each of them going forward. Like all practices we have a mix. Many using solutions already that are as likely as not to be compatible by April. However, a fair number of my clients are still keeping records manually, in excel format or even simplex books. One even refuses to have a computer because her friend was scammed by £5000! I would be very naive to imply that software will enable her to understand her business is better - its been her lifeblood for 40 years she knows exactly how well she is doing.

I will wait - you are right it would be a waste of time if the goalposts were to be moved, although I feel they will just go for it and accept a mess to start as it will resolve over time (it seems to be this brave new worlds attitude). Never thought I would be made to feel old at 50.

I will watch that link later today - thanks!

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22nd Oct 2018 18:21

Just finished listening. Well done on the questions posed. At least someone is raising them appropriately. Obviously HMRC reply with the same old but they, politely, referred to the deja vu ons more than one occasion.

Does this committee have any teeth, so to speak. What wasn't said in reply spoke volumes.

Oh, and from today, the word absolutely has been officially banned from my world. Anyone use it once more in my presence and I will not be accountable for my actions!

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31st Oct 2018 19:07

Well, I waited. A deafening silence.

Now, I assume the HoL select Committee will report but I fear I ought to be sending letters out now. Tailored to each client who does their own VAT as they each do it differently.

Ive spoken to two clients this week for their annual review and who both maintain excellent cash books and are well aware how their businesses are doing. Both are really well organised but both, to differing degrees, scared of computers. One so much so she even gets her husband to sit with her when she files the VAT figures. They cannot afford to use a bookkeeping service.

Last Friday I met with another, similar, and she is going to sell. She said the admin is so high now, her staff get more per hour than she does and trade is falling. She expects a change of use will go in and her property will most likely become a residential property for let or holiday let. 5 lost jobs :( MtD is just another nail in a coffin for her small business.

Not a good weeks progress on MTD.

Thanks (0)
avatar
31st Oct 2018 19:07

Well, I waited. A deafening silence.

Now, I assume the HoL select Committee will report but I fear I ought to be sending letters out now. Tailored to each client who does their own VAT as they each do it differently.

Ive spoken to two clients this week for their annual review and who both maintain excellent cash books and are well aware how their businesses are doing. Both are really well organised but both, to differing degrees, scared of computers. One so much so she even gets her husband to sit with her when she files the VAT figures. They cannot afford to use a bookkeeping service.

Last Friday I met with another, similar, and she is going to sell. She said the admin is so high now, her staff get more per hour than she does and trade is falling. She expects a change of use will go in and her property will most likely become a residential property for let or holiday let. 5 lost jobs :( MtD is just another nail in a coffin for her small business.

Not a good weeks progress on MTD.

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