Create a digital vision to make MTD work for you
In the first part of our ‘Taking control of Making Tax Digital (MTD)’ series in association with Dext, we’ll explore how you can make your digital transition work for you and your clients.
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let me correct that for you.
MTD for ITSA might happen - if its not cancelled like the HS2west coast route, which was absolutely going to happen, no questions, until it wasn't.
But we don't know when
And we don't know for whom
Or how, crucially, how it will be enforced.
All we know is its not for a couple of years yet and keeps getting put back and back and back and back. And back again. And the spec keeps changing.
And what we do know is accountants who forced their client onto unsuitable software in line for the original dates 3-4 years ago have now costs their clients thousands of pounds in unnecessary work and fees, and many of those clients are jumping ship to firms like mine which are taking a practical approach to this matter.
Of course for clients who benefit from better software, we are already doing that completely independently of MTD on a business case basis.
it's a national disgrace that this was supposed to be introduced in 2019 and now the planned date is 2024 - 5 years later. How can anyone make decisions when HMRC keep moving the goal posts. I am fuming about the stress and anxiety caused to many . Even now their is no clear plan or guide.
I'm sorry, but this article is like Ernie Wise's wig ... you can see the join (in this case between the copied bits from HMRC and the marketing claims from a software vendor).
First, the complete lack of verisimilitude in HMRC's 'survey stats' - which have been exposed over and over as at best based on a non-scientific sample and at worst as responses 'encouraged' by deliberately worded questions.
There is no quantifiable evidence out there to show MTD having either "a positive effect in terms of keeping on top of their business tax liabilities" or "preparing and submitting VAT returns faster" for any substantive proportion of taxpayers.
I can well believe however the 3rd point that "Submitting on a quarterly basis will require working more closely with clients" - without however seeing how this will lead to a promised saving in time for agent or taxpayer!
The other half of the article? Standard 'motherhood and apple pie' stuff, without any particular relevance to MTD or indeed to the sponsored software.
MTD has worked so far as the VAT registered have systems in place so it would never have been a problem to tweak these types of client.
The sole trader butchers, bakers and candle stick makers ( subbies, mobile hairdressers, taxi driver) some cannot barely use a computer .... this is when the fun starts.
Any strategy a practice has can be summarised as extra hours for the accountant tearing their hair out.
It will be a car crash.
There must be an easier way to give HMRC quarterly payments on account ?
First Sage, now Dext, QB advertising like mad. Methinks software companies are getting a little worried that SME's are not doing what they want them to do and consequently they are not getting the return they expected. It is now a good possibility that quarterly updates will either be shelved (I have no doubt HMRC will try and bring them in at some date, maybe after the next election) or re-vamped (although there is not much to re-vamp). My personal view is that QU will be quietly forgotten with Accountants having to declare that clients are using a digital system. If business file their own then they will have to self declare that they are using a digital system.
I love stats! 44% agreed is a positive? so 56% didn't agree and we'll quietly ignore the fact that that is over half.
And the 55% saving time IS significant and the 45% who didn't is not?
The split on these two quotes is basically the same and they are both favourable to MTD - how? 44% positive is good but 45% negative is not relevant.
And I can spend loads more time with my clients. Great. Am I doing this for free or will they be paying me for loads more work that I will magically have the extra time for. What a load of tosh. IMHO.
How many more Plugs will Accounting Web produce spreading the HMRC propaganda.
How about some balanced reporting ?
We don't need a Digital Vision, what we need is a bit of common sense on the part of policy makers. There is no sense in forcing landlords and small businesses with less than £85k turnover to file quarterly.
It is also not obvious how either HMRC or taxpayers will benefit from filing all the data. HMRC does not have the resources to cope with the current level of data it receives. Supplying the data will be of zero benefit and a significant additional resource and monetary cost for most landlords and small businesses.
I suspect it is highly likely that there will be insufficient bookkeepers and accountants available to take on the work, especially if clients only expect to pay the additional £3-185pa (https://www.gov.uk/government/publications/customer-costs-and-benefits-f...) that HMRC seems to think the additional work will cost (that includes the cost of software, such as Dext!).