Member Since: 14th Jun 2010
Nothing in this profile is actualy true. Or is it? Who knows, who cares.
1st Sep 2021
@Lucy, your article seems to heavily imply that everyone must use software
To be clear:
Excel is still permitted.
Bridging software is still permitted
This should mean "no change" for the the vast majority of businesses other than using the MTD portal, and those that cannot comply have several options:
1. Get an exemption
2. File accurate returns using traditional bookkeeping + bridging, and run the very small risk of compliance action from HMRC.
The final option is for many clients very sensible given the penalties available to HMRC involve a warning and are quite small vs potentially large costs of compliance and HMRC cant see what happens prior to the bridge so they are unlikely to find out even if they care - which based on current evidence they do not.
26th Aug 2021
Mistakes happen in poorly tested "agile" systems (ie launching half finished beta dross on the public) but the question remain, why is this not fixed within a couple of hours?
Truly "agile" systems would be fixed immediately. Its clearly one line of code that needs amending. Shouldn't be that hard for anyone who understand the code to know where that line is an change it.
"world class" IT systems would fix it before it even become a news story.
25th Aug 2021
HMRC will do what all large organisations do - drive through the utterly pointless project which everyone in the team who understands the project also understands its utterly pointless. The only ones who "truly believe" don't understand the project.
Then just *before* its delivered, they will up sticks, go off and whistle on their merry way, leaving the tax payer and future HMRC staff to pick up the mess, whilst looking back and say "o you handled that really badly, it was fine before I left". See also Blair and Afghanistan.
25th Aug 2021
its 100% 'tick box'
File something, anything, job done.
25th Aug 2021
MTU is clearly the way to go, it's just a question of having clients feel comfortable with it, which I am sure most of them will when they realise that there are absolutely no consequence of what is filed in the quarterly reports.
No, the bigger problem as I see it is that I will be running two systems in parallel - MTDIT for the clients who have relevant income and 'old' self-assessment for all the others.
Re the two systems this seems to be the biggest issue. Moreover clients who are signed up to the new mess, but cant actually file the year end "new SA" as there is some obscure box they need to fill in which HMRC have not gotten around to programming, so you have to send in a manual adjustment. This seems to happen a lot. Look at the *CURRENT* list of exclusions in a well worn system that has been in place for over 20 years. Keeping well out of it for as long as possible is going to be the most commercial approach. My job is to compute my clients tax bill and deal with HMRC in the most efficient manner. It ends there and does not extent to facilitating HMRC vanity projects.
24th Aug 2021
And I get a hard time on here for advocating MTU as a commercial approach to this shambolic project. First 4 failures to file won't result in a fine either. Whole thing is a very expensive joke.
23rd Aug 2021
I find this a ridiculous situation. Some of us accountants have spent months converting clients to new ways of thinking over the new MTD and invested money in new systems - and now the ‘big boys’ decide they haven’t got the time to get people ready. And we’re the ones who’ll look stupid when our clients will accuse us of scare mongering and profiting from the change.
Let’s just get on with it. But we won’t, because the big companies put their profit above their clients needs.
@BDW, quite which is why we have not been pushing clients into doing this stuff when its far from certain it will happen, or at what level. I can see the £10k threshold going to £30-45k which will mean a huge chunk of mine are taken out. Equally I can see only VAT reg busineses going in on the first wave.
Far too many unknowns at this stage. The original timetable for this was what April 2017? Thats years and years of extra compliance costs if you went for it back then.
23rd Aug 2021
There is a very simple way to make this work.
£500 to each client first year adoption (ie 23/34)
£400 second year (for 23/24 adopters + 24/25 adopters)
£300 third year
£200 4th years
£100 5th years
£500 fine, 6th year
Huge compliance inside of 2 years. I would bring in about 30%-40% of clients in on the first year, the same in the second year, and the rump as and when I can.
It worked for the huge changes to PAYE, it would work again now. HMRC want it done, pay us to do it and build the systems that are needed. HMRC should not expect the tax payer to foot the bill for this massive change.
£1,500 over 5 years would be enough incentive to do it, and do it early and file the extra 20 odd returns.
18th Aug 2021
the prefect summary it would appear.
11th Aug 2021
indeed, unrepresented tax payers are going to be in a huge pickle.
And I think many will just throw up their hands and say "too hard" and not comply and not pay any taxes.
Others will get into huge levels of stress over this and harm their health.
Others will end up getting preyed on by cowboy firms out for a quick buck.
Take just one class of people - those without passports, which makes is virtually impossible to get a personal tax account, without which you cant engage in the first place.