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MTD full steam ahead

11th Nov 2018
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The Budget is done, the Finance Bill is out, and there is no mention of MTD stopping.

"We have to accept it's going to happen now," I said to Paul earlier this week.

He said nothing. He really doesn't like to be proved wrong.

We now need to work on making sure all of our affected clients are ready. Jack called a strategy meeting with all of us.

"Think about each of your clients," he said. "Make a list of those that are going to have to comply with MTD. Any that we've already got using digital software, should be OK. Any that are using spreadsheets, we'll have to think whether we can move them on to digital software before 1st April, or whether we'll have to look at bridging software for them. And those that won't entertain any form of bookkeeping, that we know won't stop using a carrier bag, we'll have to either do their books quarterly ourselves - which could mean a price increase - or we'll have to think about whether we can keep them as clients."

I reviewed my portfolio after that meeting. There are definitely some that won't move away from their spreadsheets and I can think of at least two that I can't see myself winning over to stop using their trusty bags of receipts. And those are also the clients who won't accept a price increase.

I have to say I'm also wondering whether Henry will accept not keeping clients. He's determined that the practice as it is will see him out.

Meanwhile, Teresa is reviewing the changes to PPR and lettings relief that came out in the Budget. She has at least two clients who are letting their houses out while they live elsewhere, and planning to sell as soon as they can.

"This is going to mean a bigger tax bill if the 'last x months unoccupied' is cut to 9 months and the lettings relief is no longer available if the client isn't living in the house, Allie," she said to me gloomily. "They're not going to like that."

The atmosphere is definitely not very happy around here at the moment.

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