If there is no Purchase Ledger then it is not suitable for standard accounting VAT clients. It may be fine for clients on the FRS scheme though where there is no requirement to record purchase invoices under MTD for VAT.
It's not a contradiction it's an concession for retailers who may have many hundreds of sales in a day which would make the system too onerous. Interestingly in the consultation this was only open to retailers with a t/o under I think £1m and they had to apply for it. In my submission I said whilst I valued the concession to insist they have to apply was a pointless trap for the unwary. Looks like they listened haha.
INterms of the small transactions you mention then how are they bought? If the platform keeps the required individual records (which may also be needed for currency and VAT MOSS reasons) then as long as a summary is transmitted to say QuickBooks digitally (and that could be direct or via a spreadsheet as long as not cut and paste and no re-keying) then your records would be OK. No where does it say that all the digital records have to be on the same system.
Non mandated businesses will still be able to use it but mandated businesses will be locked out bu HMRC so it will be effectively retired for them.
It's my opinion that MTD4V will go ahead as it appears that the infrastructure is in place. There has also been some softening recently by HMRC to accommodate the process. For most small business who will be in this (VAT reg and having had turnover over the registration threshold) then they should already be using something compatible - which can be something far simpler than the original hyped nonexistantware HMRC talked about.
Most of the common small business packages are are now on the list and at a recent Thomson Reuter/Digita day they demonstrated a very effective piece of bridging software for anyone who has something that isn't on the list.
I know, therefore, that all my clients are or can be MTD ready in time.
As for full MTD well who knows!
Interesting what you say about tone. The reminder to file a company's annual CS01 is similarly strong. I regularly get clients asking if Ive missed a deadline for them or worried about urgency.
Abolish all NI add 7% to basic rate tax.
Set an income limit to gain pension and benefits credit
Put feet up job done
The big issue is timing. Many IR35 cases revolvearound 2 aspects how the engagement is set up (so with a compliant contract for example) but then how that operates in practice which may not be compliant as people go to staff meetings have their leave applications turned down or appear at the staff party. So "on thr facts" their compliant contract is not worth anything. The same will happen with any new system
If you have better estimates for the current year then ask HMRC to amend the code.
If there is a difference in an earlier year write to HMRC and advise they can then issue a P800.
I have been doing this for a number of cases. Reduces risk and overall cost for the client.
Aside from getting the cost and other items correct - what about reliefs such as rollover relief or maybe the other way around where a father sells to his son for a much lower than required value?
We are back to this pretence that tax is simple. It could be simpler but that would require lobbing away all the tax law and starting again ....
That was my thought too