97% of self employed business are below the vat threshold
My comments were lighthearted too.
However I don't see massive profits for software providers. Our software for individuals doing their own tax return is £20+VAT per annum. This is about the going rate. Our software for doing the same under MTD is also £20+VAT per annum and this might fall with competitive pressure. I don't see massive profits even before the HMRC push for providers to provide their software for free to 97% of self employed (whilst providing them with telephone support). We have pointed out we could only do this if exempted from paying the minimum wage.
They probably wouldn't notice. Last time I was given figures it was costing around £47 for every tax return sent in using the HMRC "free" software ... and nobody seems to worry about that.
... and rather than lots of competing accountancy firms providing these agent services, the HMRC could have an accountancy division where they provided accountancy services centrally to the self-employed for free ( by free I mean paid for by other tax payers ).
Are you involved in the pilot ? It is difficult to interpret the £30,000 and £6,000 calculations. If you have ten thousand clients this would be cheap, if you have 3, then very expensive !
The most I think that will happen is mandation for the > £83k will be postponed by a year but even that is unlikely.
Speaking as a software supplier, it makes little difference. It may have introduced a more uncertainty as to when or if it will happen. From a workload point of view, the bulk of our MTD development is already done - if we leave it to see what happens it would be too late. The biggest uncertainty for us remains what will happen to the market when (or if) MTD arrives.
This is just a facility to save typing into boxes on the tax return. You don't have to use it. I think it is useful, especially for clients with many employments (it includes the payeref and company name).
If you choose not to use it and type into the return or use it then amend, the Hmrc won't "correct it"
Regarding class 2 ni - for which there is no box on the tax return, it will give your software a chance to warn you when you are completing a return where you expect class 2 but the Hmrc have not registered the notification of se status.
On a negative, I am not convinced the two stage authentication is only every 18 months.
I also get the impression the delay is mainly for this year because it is a new service.
I would expect it to be mainly computerised.
You are not allowed to submit estimates. The figures you transmit are added up and make the final income and expenses on which your tax liability is calculated. The final submission is for tax adjustments not correcting errors or estimates. If there is an investigation the hmrc will want to see the transactions that make up the quarterly totals and probably the receipts to go with them.
The submissions are the totals (and not all the transactions ) The totals could be transmitted by a different piece of software from that keeping the records.
However you can be fairly sure the first thing the hmrc do if there is an investigation is to demand the transactions and check they add up to the quarterly total.