Will MTD go ahead?
You might also be interested in
Replies (3)
Please login or register to join the discussion.
We have been following Professions news and views on Making Tax Digital and are sending you information in a simple format to assist with the evaluation of the impact this mandatory legislation
will have on our clients and this firm.
We service 100 of the smallest SMEs and have been established 40 years. The owner is progressive and computer literate with 40 years experience in the Industry.
Looking at the Professional News we can see that almost all Accountants appear to have an opinion that MTD4V will have a negative impact on their business and client compliance. Only HMRC and Software Companies seem to be proactive about the legislation , interestingly they will not be the professional who have to implement these changes. HMRC have closed the door to so called Customers and Software Companies seem mainly interested in bombarding Accountants with emails to get the smallest SMEs signing up to expensive subscriptions.
We deal with a client base of ages between 45 and 80 years of age and these individuals where not taught at School how to use a computer or how to complete a complicated set of Accounts for Tax purposes. Most clients request we complete Accounts for them on a quarterly basis from prime records. HMRC are expecting the Accountant to train the client , have everything up to date and have the capacity to process this information immediately . This intervention will force many good people out of the profession and leave a shortfall of labour.
I would give you an opportunity to meet with me so that I can demonstrate why this will not work for HMRC and see this as being the biggest publication blunder ever for HMRC. In particular to not contact the taxpayer personally with such a fundamental change is beyond comprehension.
I would also like to make clear than many Government Departments and HMRC are still using paper
records and so think is hypocritical that such legislation is laid before such people as Chip Shop Owners or a Hairdresser.
I agree that technology will change the face of Accountancy but to “scare “ and “force “ taxpayers into submission will do nothing more than cause a flight or fight reaction. I have been proactive with my clients since MTD was first discussed and to date only one client has engaged with me.
Please contact me if you require further evidence and this firm has insufficient resources to deliver MTD4V.
It's my opinion that MTD4V will go ahead as it appears that the infrastructure is in place. There has also been some softening recently by HMRC to accommodate the process. For most small business who will be in this (VAT reg and having had turnover over the registration threshold) then they should already be using something compatible - which can be something far simpler than the original hyped nonexistantware HMRC talked about.
Most of the common small business packages are are now on the list and at a recent Thomson Reuter/Digita day they demonstrated a very effective piece of bridging software for anyone who has something that isn't on the list.
I know, therefore, that all my clients are or can be MTD ready in time.
As for full MTD well who knows!
Do decision yet made - call for evidence issued (very quietly) on 12 September with evidence to be submitted by 1 October:
https://www.parliament.uk/business/committees/committees-a-z/lords-selec...