Member Since: 5th Aug 2009
3rd Dec 2021
Well said and good example. They have been straddling 2 platforms of the agent account for years and it is high time somebody who has been running "digital transformation programmes across many different industries for a great number of years" take a look into that and oh while they are at it, why R40s can't be filed online and repayment received in a bank account and why simple employment income filed and of March does not show on the digital tax account till end October??
3rd Dec 2021
"just a summary to say ‘yes we are keeping our records digitally" - WHY?? Since it is NOT about quarterly payments or a realistic tax estimate can the tax payer not simply "check-in" on an world class HMRC designed app to say they are still alive?
"plentiful reward for the accountancy profession" - you are kidding me, our clients that don't walk will be burdened with higher bills or more likely we will drop our profit margins because we feel sorry for our clients and carry on being HMRC's unpaid employees to educate and communicate with taxpayers.
"filing records digitally is the way to go" - newsflash that is already happening and being done by us annually for our clients.
A sad read and leaves me thinking if HMRC are unable to communicate the point of MTD to accountants how are they going to communicate this to taxpayers.
6th Oct 2021
HMRC have been quite clear that the quarterly reports have to be based off actual transactional data (e.g. till records, money in/out of bank account), not estimates. They have also said that they may check into final returns wildly off from the 4 returns added up. So it's a risk you take if you estimate things based on no underlying book-keeping data should the inspector ask to check workings!
6th Oct 2021
Thanks Wendy, excellent article highlighting the obvious cost/benefit skewed view that HMRC have on MTD ITSA.
MTD VAT was sensible, but the reality is with MTD ITSA the group of taxpayers that it affects is so vast from a computer illiterate granny with rental income (above £10k) and state pension to a high earning tech savvy self-employed consultant. The cost/time spent will be highest for the smallest clients and lower at the other end. We are going to be forced to increase fees for the lowest earners, whose lives will not be made any simpler/easier taxwise as they will genuinely take most of our time for all the reasons you have mentioned.
The £10k threshold is simply too low and they need to introduce MTD ITSA in a more staged fashion like they did for MTD VAT (over £85k first in April 2019 and then under £85k 3 years later in April 2022). We had time to embed this, but MTD ITSA is a sweeping blow that does not look at cost/benefit at all and will undoubtedly increase the tax burden and cost for the smallest of clients.
28th Sep 2021
You know what they say, one man's garbage is another man's treasure :)
28th Sep 2021
Absolutely, garbage in garbage out. You need to promote honest reporting, I tell my staff your timesheet is not a beauty pageant, it's a matter of fact. We also give a fair bit of slack for exactly the type of 2 minute conversations you have mentioned.
28th Sep 2021
Well said Alistair, I wanted to applaud you when you said that at DAS2021 as timesheets have had such a bad rap!
Knowledge is derived from Data and that's is exactly what timesheets are - a source of internal data. What you do with it is up to you. I don't think it should act as a pricing yardstick, but that is a practice decision to make. It does, however, help us understand what our unit costs are, helps identify scope creep, helps staff focus their attention on what they have achieved, helps us identify staff development needs etc...
Sadly won't be there at the expo, but will be rooting for you on the debate!
3rd Sep 2021
Great article Rebecca covering all the reasons why this basis period reform if implemented will fall on it's face.
A long terms solution covering tax year change, basis period change and MTD ITSA implementation needs to be mapped out carefully with full consultation and buy-in from the accountancy profession to be feasible.
23rd Jul 2021
They should just change the tax year to 31 December, which would result in a basis period change (Shorter NOT longer) and that would kill 2 birds with one stone, rather than mess about with this basis period change to "help" us with MTD, only then to do a tax year end change to December in the not so distant future!
23rd Jun 2021
The arguments for outweigh the arguments against. It is going to be hard, but getting it right first time is better than changing to 31st March and then considering a change to 31 December a few years / decades later!
Given that HMRC are making seismic shifts to the tax framework with MTD they may as well get this in at the same time. It will certainly solve lots of staggered MTD quarterly returns. As accountants we are used to adapting to new legislation (albeit grudgingly). The software houses are already in development mode as far as MTD is concerned and HMRC have created legislation and processes at break neck speed during the pandemic, so it is not impossible to get done, so long as it gets the right political will to do it.