Member Since: 24th Mar 2015
11th Oct 2021
Thank you for confirming what I've thought from the start. The only benefit of MTD ITSA is for HMRC, using penalties as an income-generating initiative (and maybe also, as a side effect, for software companies, and accountants who are able to expand their paid services). Those who need and understand up-to-date data on profit and tax due already have access to it! My clients achieve the same benefits by keeping regular records in whatever format works for them, and using my "put 30% of extra income away for tax" guidance. I actually have sympathy for HMRC staff who will have to deal with this, because as we all know, exceptions and queries are always underestimated. Your examples were also very appropriate, as so many people (i) don't recognise themselves as businesses to start with, and (ii) can't and shouldn't stop Real Life taking priority over making returns because they "have" to.