Podcast: MTD - Rumours and myths

Tom Herbert
Acting Editor
AccountingWEB
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Welcome to another edition of AccountingWEB’s Making Tax Digital podcast.

Last week was Accountex, the UK’s biggest conference for accounts. HMRC CEO Jon Thompson was due to provide the keynote speech outlining the Revenue’s position on MTD, but the government’s election lockdown on policy announcements meant he had to cancel.

However, there was still plenty of MTD-related news and discussion, including a strong rumour that the project will be delayed, and part one of the podcast addresses some of that news with AccountingWEB’s very own John Stokdyk and Mark Purdue, Product Manager - Tax Products at Thomson Reuters.

In part two Mark Purdue returns for his traditional mailbag slot, this time tackling some of the biggest myths he has come across when answering questions on MTD.

And the pod finishes off with a quick chat with Gary Jacobs, the first practitioner to join HMRC’s Making Tax Digital pilot programme, to get an update on how he’s finding the scheme so far.

The Making Tax Digital podcast is recorded on a monthly basis. If you have any burning questions you can ask them in the comments box below and our panel will do their best to answer them next time around.

You can listen to the podcast by clicking play on the window above, visiting our Soundcloud page or subscribing to this podcast via iTunes, aCast, Soundcloud or your podcasting app of choice.

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21st May 2017 11:41

A QUESTION FROM ONE OF MY UK CLIENTS .

ANY IDEAS AS TO A SUBSTANTIVE ANSWER ??

THANKS ITP3ASSO

Is it currently envisioned that a non active ( retired ) 70 year old such as myself will be mandated to involvement in MTD after April 2018?

My situation is that I have gross yearly income above the £10k stated MTD threshold.

I am a UK resident single dwelling freeholder and am neither a landlord nor trader in any sense.

My total average yearly income is approx £15k of which £11.5k is tax free.

This comprises one UK State plus two (UK) work pensions totalling
circa £11.5 k -- plus £1.2k in UK interest . The balance £2. 3k approx derives as dividend interest from offshore investments held in a Liechtenstein bank and fully declared and HMRC authorised under the Liechtenstein Disclosure Facility finalised / settled Sept 2015 and its interest income thereafter included in my yearly SA jTax Return via my accountant.

Given the above :

a) Will I be considered automatically mandated for MTD wef April 2018 ?

b) If yes -- would repatriation of my offshore patrimony such that it resided fully in UK financial institutions enabling all unearned interest , dividends etc therefrom to be easily reported by said institutions to HMRC enable me to avoid inclusion into the MTD regime given all my income would then be UK controlled?

c) If not and I were forced in spite of b) to adopt MTD -- would my adoption of point b) make quarterly and final annual reporting via free apps / software etc so much easier that by use of my UK Personal Tax Account I could relatively simply complete these periodic submissions without the
( expensive) use of outside accountancy assustance given my straightforward unchanging income streams /situation thereonin.

Sincerely

Thanks (2)
to itp3asso
22nd May 2017 09:40

Thanks for that @itp3asso. A lot of moving pieces there, but will put your client's questions to the pod and get back to you.

All the best,

Tom

Thanks (0)
23rd May 2017 20:16

Look forward to any and all contributions .

I could add preferably in and from a self addressed brain but that would be unnecessarily sarcastic.

Thanks (0)