"President Ball set out three reasons to delay the rollout of MTD ITSA:
Taxpayer obligations are not yet clear
Approved software is limited
The pilot is not yet up to speed."
From the three reasons listed above, I would like to offer comment on the last, namely, " the pilot is not yet up to speed ".
Reliance on Automation.
Following the advent of semiconductors, the capability of automation has increased in leaps and bounds. The human role in controlling a system evolves as automation capabilities take over more complex tasks. However, the human controller unable to keep pace, would appear to be falling behind its robotic self.
The aviation industry is the corollary to this proposition.
I would suggest, aviation whilst remaining the safest mode of transportation is also the least forgiving of mistakes and errors. It is the costliest of all when error or mistake occurs.
It`s scale an importance is demonstrated by the statistics published by IATA. That in 2019, just before Covid, that from a world population of some 9.2 billion, over 7 billion passengers traveled by air.
Boeing in its challenge for supremacy against its rival Airbus, decided to make some changes to its highly successful, tried and tested 1967 design, B737 aircraft in order that it could be fitted with modern efficient power plants. They came up with the B737MAX. The aircraft required a special computer program to overcome an inherent design shortcoming, stability. They named it Maneuvering Characteristics Augmentation System, MCAS for short.
As we all now know, the thing failed to do what was on the label, it sort of did its own thing and the hapless "pilots" of the two airliners could do little to avoid the ensuing tragedies.
The cost was 346 lives lost, Being charged with Fraud Conspiracy and entering into a deferred prosecution agreement to pay $2.5 billion.
I ask myself, would, could this have happened without the wizards of automation on tap. I doubt it very much.
With IMTD, no matter how much HMRC has already spent on it, I know they would like to call it "invested", what could the casualty and real cost be and who is to pay for if the "pilots" never manage to get up to speed with it.
Me, no I do not need to loose any sleep over it, I will be out of the cockpit by then.
I am rather attracted to the idea of tackling NS (natural stupidity ). I think it is a far more fascinating subject than AI ( artificial intelligence ), where all you need is a hypodermic jab or even a pill which administered daily should work for most.
After all, did`t Boris prove that with his herd immunity for Covid. Despite that, the ungrateful so and so`s still gave him the boot. Unfair, I`d say.
The sole reason for IMTD is to reduce HMRC`s costs in tackling the so called "tax gap", a fictional figure derived by much hocus- pokus dished out by guru chefs working in the kitchens of the Treasury.
In contrast there is very little done to stem the enormous loss of blood caused by the promoters of tax dodge schemes.
Right in the wake of one of the biggest disasters, COVID, to hit us all on the planet, we are now facing the enormity of a major economic crisis. Add to that, the fact climate change is now no longer a thing for debate and discussion by scientists, we are very much in a situation where necessaries become a matter for survival.
I was an articled clerk during the 1970`s power cuts. We carried on working in the light of candles. How are we going to do that now, without our electricity dependent computers, phones, banking systems, freezers, fridges, Christmas lights, tea kettles, coffee machines, not to forget our zero carbon emission cars.
The whole thing needs to be shelved until such time when we are in a better position to see our future and make plans accordingly.
I wrote to Liz Truss before she became PM about this, as she seemed keen to reduce taxes. I did say to her, it was not so much tax per se, it was more a matter of its burden. The burden of IMTD is wholly untimely, unnecessary and unjust. I got the usual automated reply.
A question of that which should have been done and why it was not done by when it should have been done, without the proverb better late than never.
It is now more than 12 months since I appealed against late filing penalties for a client. HMRC has not even assigned it to anyone to deal with it. Whilst my client continues to be flooded with demands and threats for payment of the penalties and mounting suspicion I am not doing my job correctly. Should there not be a similar penalty system for their unreasonable delay. The proverb, what`s good for the goose is good for the gander comes to mind.
The whole sad and sorry tale begins and ends with the "TAX GAP".
"HMRC defines the tax gap as “the difference between the amount of tax that should, in theory, be paid to HMRC, and what is actually paid”."
A piece of fiction authored by HMRC itself. Here is the 2020 edition. https://www.nao.org.uk/wp-content/uploads/2020/07/Tackling-the-tax-gap-S...
What I find particularly distaste full is that we, accountants are accused of being creative. Surely that title rightly belongs to HMRC. I prefer the adjective necessary evil.
I wonder whether any of the readers may recall the 1974 three day week and the power cuts. I was a lowly articled clerk then, working in Dickensian offices, ticking and vouching all day and night on ledgers, day books, invoices and vouchers in candle light, not even any such gizzmo as a electronic calculator. let alone computers, MSDOS, iPADS and all manner of electrical wizardry now at our finger tips.
So, what if no electricity, what back to the abacus ? What no electronic money, no crypto currency ? Here is the link to the events in history:https://en.wikipedia.org/wiki/Three-Day_Week
Advice to clients and colleagues in preparing for MTD is to invest in a stand by diesel fumes belching stand by gen set.
When MTD was first announced back in 2015, no one had even an inkling about COVID-19. So much has has changed since then and changing now towards an unknown and unpredictable future. To now
enforce such a burden as full MTD on the business community is foolhardy to say the least.
It would seem the thing that kicked this one into play is :
"We understand from HMRC that advisers who are not by members of professional bodies represent 30% per cent of tax agents, but those advisers are responsible for most of the behavioural issues HMRC encounter."
One can only speculate as to what "behavioral issues" may be.
I would have thought the main issue is one that concerns the actual amounts of tax involved in any tax advisers behavior . That then brings into question who the big players are for tax avoidance advice.
Are all those unqualified little agents not offering tax return completion services for all the one man band CIS bricklayer, plasterer, labourer types who supposedly are self employed.
My answers
"President Ball set out three reasons to delay the rollout of MTD ITSA:
Taxpayer obligations are not yet clear
Approved software is limited
The pilot is not yet up to speed."
From the three reasons listed above, I would like to offer comment on the last, namely, " the pilot is not yet up to speed ".
Reliance on Automation.
Following the advent of semiconductors, the capability of automation has increased in leaps and bounds. The human role in controlling a system evolves as automation capabilities take over more complex tasks. However, the human controller unable to keep pace, would appear to be falling behind its robotic self.
The aviation industry is the corollary to this proposition.
I would suggest, aviation whilst remaining the safest mode of transportation is also the least forgiving of mistakes and errors. It is the costliest of all when error or mistake occurs.
It`s scale an importance is demonstrated by the statistics published by IATA. That in 2019, just before Covid, that from a world population of some 9.2 billion, over 7 billion passengers traveled by air.
Boeing in its challenge for supremacy against its rival Airbus, decided to make some changes to its highly successful, tried and tested 1967 design, B737 aircraft in order that it could be fitted with modern efficient power plants. They came up with the B737MAX. The aircraft required a special computer program to overcome an inherent design shortcoming, stability. They named it Maneuvering Characteristics Augmentation System, MCAS for short.
As we all now know, the thing failed to do what was on the label, it sort of did its own thing and the hapless "pilots" of the two airliners could do little to avoid the ensuing tragedies.
The cost was 346 lives lost, Being charged with Fraud Conspiracy and entering into a deferred prosecution agreement to pay $2.5 billion.
I ask myself, would, could this have happened without the wizards of automation on tap. I doubt it very much.
With IMTD, no matter how much HMRC has already spent on it, I know they would like to call it "invested", what could the casualty and real cost be and who is to pay for if the "pilots" never manage to get up to speed with it.
Me, no I do not need to loose any sleep over it, I will be out of the cockpit by then.
I am rather attracted to the idea of tackling NS (natural stupidity ). I think it is a far more fascinating subject than AI ( artificial intelligence ), where all you need is a hypodermic jab or even a pill which administered daily should work for most.
After all, did`t Boris prove that with his herd immunity for Covid. Despite that, the ungrateful so and so`s still gave him the boot. Unfair, I`d say.
The sole reason for IMTD is to reduce HMRC`s costs in tackling the so called "tax gap", a fictional figure derived by much hocus- pokus dished out by guru chefs working in the kitchens of the Treasury.
In contrast there is very little done to stem the enormous loss of blood caused by the promoters of tax dodge schemes.
Right in the wake of one of the biggest disasters, COVID, to hit us all on the planet, we are now facing the enormity of a major economic crisis. Add to that, the fact climate change is now no longer a thing for debate and discussion by scientists, we are very much in a situation where necessaries become a matter for survival.
I was an articled clerk during the 1970`s power cuts. We carried on working in the light of candles. How are we going to do that now, without our electricity dependent computers, phones, banking systems, freezers, fridges, Christmas lights, tea kettles, coffee machines, not to forget our zero carbon emission cars.
The whole thing needs to be shelved until such time when we are in a better position to see our future and make plans accordingly.
I wrote to Liz Truss before she became PM about this, as she seemed keen to reduce taxes. I did say to her, it was not so much tax per se, it was more a matter of its burden. The burden of IMTD is wholly untimely, unnecessary and unjust. I got the usual automated reply.
It makes me wonder whether Zipvit claimed the input VAT on the massive legal costs in pursuing the case all the way to the SC.
A question of that which should have been done and why it was not done by when it should have been done, without the proverb better late than never.
It is now more than 12 months since I appealed against late filing penalties for a client. HMRC has not even assigned it to anyone to deal with it. Whilst my client continues to be flooded with demands and threats for payment of the penalties and mounting suspicion I am not doing my job correctly. Should there not be a similar penalty system for their unreasonable delay. The proverb, what`s good for the goose is good for the gander comes to mind.
Very good idea to get the press involved with us providing the grenades for them.
Failing that all that we will get from Rishi will be :
https://youtu.be/A4DQPLWAzeY?t=18
The whole sad and sorry tale begins and ends with the "TAX GAP".
"HMRC defines the tax gap as “the difference between the amount of tax that should, in theory, be paid to HMRC, and what is actually paid”."
A piece of fiction authored by HMRC itself. Here is the 2020 edition.
https://www.nao.org.uk/wp-content/uploads/2020/07/Tackling-the-tax-gap-S...
What I find particularly distaste full is that we, accountants are accused of being creative. Surely that title rightly belongs to HMRC. I prefer the adjective necessary evil.
I wonder whether any of the readers may recall the 1974 three day week and the power cuts. I was a lowly articled clerk then, working in Dickensian offices, ticking and vouching all day and night on ledgers, day books, invoices and vouchers in candle light, not even any such gizzmo as a electronic calculator. let alone computers, MSDOS, iPADS and all manner of electrical wizardry now at our finger tips.
So, what if no electricity, what back to the abacus ? What no electronic money, no crypto currency ? Here is the link to the events in history:https://en.wikipedia.org/wiki/Three-Day_Week
Advice to clients and colleagues in preparing for MTD is to invest in a stand by diesel fumes belching stand by gen set.
When MTD was first announced back in 2015, no one had even an inkling about COVID-19. So much has has changed since then and changing now towards an unknown and unpredictable future. To now
enforce such a burden as full MTD on the business community is foolhardy to say the least.
I do wonder, how much of this is a matter of "discovery " and how much of it is tax avoidance schemes. I think the real impact must be on the latter.
It would seem the thing that kicked this one into play is :
"We understand from HMRC that advisers who are not by members of professional bodies represent 30% per cent of tax agents, but those advisers are responsible for most of the behavioural issues HMRC encounter."
One can only speculate as to what "behavioral issues" may be.
I would have thought the main issue is one that concerns the actual amounts of tax involved in any tax advisers behavior . That then brings into question who the big players are for tax avoidance advice.
Are all those unqualified little agents not offering tax return completion services for all the one man band CIS bricklayer, plasterer, labourer types who supposedly are self employed.