The MTD (Income tax) pilot has been ongoing for 14 months. HMRC has just published its updated list of MTD (Income tax) suppliers. It has taken a full 14 months to double the number of approved suppliers from 2 to 4! There were 28 initially involved with MTD so what has happened to the other 24? Why aren't the well-known suppliers on the list eg Sage, QuickBooks, Xero etc? Gary Turner MD of Xero commented yesterday on https://www.accountingweb.co.uk/comment/655418 that HMRC said "last month added that any remaining HMRC resources and focus on this part was being pulled altogether". Is MTD (Income tax) dead?
If MTD (Income tax) is dead, where is the list of MTD (VAT) suppliers? Gary Turner again "There is not yet a list of MTDfb (VAT) compliant software providers since the HMRC API side - and therefore the software supplier side - is not yet finished." We're 2 months into a 12 month trial and HMRC haven't even made the APIs available to the software industry. It has really turned into a trial, of patience.
If MTD (Income tax) is dead, why is HMRC continuing with HMRC (VAT)? George Osborne's original announcement was all to do with the Self Assessment Tax Return, not VAT. HMRC already receive VAT returns digitally, mainly via GOV.UK. MTD (VAT) will merely replace one method of digital delivery with another so won't save any HMRC resources. HMRC say that they want software used for filing to reduce errors, but in February HMRC changed the Gateway so that users of older software could no longer file through their software and have to resort to GOV.UK. HMRC's actions in February defeats HMRC's arguments for MTD (VAT). Come on HMRC, you have no credible reason to continue with any aspect of MTD so stop wasting resources, cancel MTD and get on with fixing you numerous IT problems.