Member Since: 2nd Sep 2014
9th Nov 2018
Does anyone know if HMRC's online VAT filing portal will still be available after April 2019 for VAT registered clients with a Turnover below the VAT threshold?
Under current proposals these clients will be exempt from MTD for VAT but I'm sure that I read somewhere that the HMRC will be removing the option to file VAT returns directly.
14th Jul 2017
Absolutely elated at the news.
I can now take my relatively new Practice forward instead of worrying about MTD and how to adapt.
I have to say that I am amused by the above table which informs us that businesses with turnovers between £10,000 and £85,000 will only have to file quarterly from 2020 but only on a voluntary basis.
Who in their right mind would volunteer for the additional cost and admin?... That's no one then.
Today is a good day.
24th Mar 2017
Just a thought but it might by handy to know what information will need to be submitted when next April comes around.
Is there any point in putting clients with tried and tested meticulous manual systems onto cloud software if it turns out that we can simply submit summaries extracted from their existing system. Then again, if this is not the case, there will not be enough time to change everyone over at the last minute.
We're told again and again that there will be free software available but how long do we wait to see what these other options look like.
Surely at this stage the powers that be should be able to say exactly what needs to be submitted, by who and in what format. If they can't do that, which, they can't, then it's ever so slightly worrying.
The extract from the above article says it all:
"If the partnership profit is not divided between the partners at each quarterly update, the partner’s tax position can’t be “updated” in their personal digital tax each quarter, so there is no reflection of the income back to the taxpayer. In that case what is the point of the quarterly update?"
Give me strength.
Well, article read, rant over. That's another half hour I can write off to MTD.
17th Mar 2017
MTD definitely needs to be delayed, it's glaringly obvious.
The problem is that it's not being delayed yet is it.
So I have to plan based on the deadlines in place now and start transferring my clients onto software that they may or may not be required to use next year or the year after. If I wait and the project is not delayed then I have no chance of coping.
I have spent most of this week trialing and researching software options instead of doing any actual paid work. This is in addition to the countless hours that I have spent reading articles and posts to try and determine what the hell to do for the best.
They need to decide exactly what is happening and when. If they insist on going ahead with this nonsense then it's about time for some straight answers.
26th Sep 2016
HMRC's "Your Charter" states the following.
"We’ll respect your wish to have someone else deal with us on your behalf, such as an accountant or a relative. To protect your privacy, we’ll only deal with them if they have been authorised to represent you, and we’ll deal with them courteously and professionally."
Yet by asking for quarterly submissions within one month of the end of each quarter they are effectively making it impossible to comply.
I have 150 or so clients, all of them keep manual records. The majority will not be able to submit figures to HMRC and most of the others will not want to. How on earth am I supposed to cope logistically. If tax payers have a right for someone to act on their behalf then surely the system has to allow time for that work to be carried out.
16th Jun 2016
If I understand correctly, as of 6th April 2018 Sole Traders will be required to submit quarterly reports. I presume that this means that the first reports will become due as of 6th July 2018 although I have no idea when the deadline for the submissions will be. Again, I presume the deadline will be sometime before 6th October when the second submissions will become due.
The majority of clients books are made up to 31st March/5th April. The deadline for these SA Returns is 31st January the following year. Are we supposed to submit quarterly reports relating to 2018/19 before we have even finalized the figures for 2017/18 or are we expected to do a full years work in the first three months before the first quarterly reports become due.
Please can someone square this circle for me.
10th Feb 2016
At least you received a reply from your MP. Mine didn't feel the need to bother.
26th Jan 2016
I have watched yesterdays debate on the petition relating to quarterly reporting and although I thought that one or two MP's put forward some of our concerns, I thought that the Ministers response beggared belief.
According to his reply, it is still unknown as to whether or not tax will be due quarterly and exactly what information will be required. Basically the bold statement at last years Budget to abolish the tax return is now being followed by the Government making it up as they go along.
The Minister also confirmed that adjustments for Capital Allowances etc will still need to be reported at the year end anyway. So that's four pointless quarterly submissions and one er.. tax return. Will everyone have to pay tax in four installments only to then claim it back at the end of the fourth quarter when the final return, that definitely isn't a tax return, has been submitted?
Like I say, it beggars belief. Can anyone square this circle because other that it being a tax collecting exercise and despite what we are being told with regards to the system being designed to give businesses a better insight into their position for tax purposes, I cannot fathom how on earth it is going to "make tax less taxing".
Which is less taxing, submitting a three liner once a year or four quarterly submissions followed by year end adjustments?
They need to disassociate digitization from this crazy idea of quarterly reporting.
In my view the only reason that the petition only received 110,000 signatures is because a lot of small businesses owners don't yet realize what is happening. I hope that the backlash from business owners across the country will be enough to change things for the better.
20th Jan 2016
I see that the petition titled Scrap plans forcing self employed and small business to do 4 tax returns yearly is to be debated in parliament on Monday 25th and can be watched live at Parliament live.tv.
You can submit your views via Twitter using #HoCpetitions until 10am on Thursday 21st January. A summary of the tweets will be provided for MPs ahead of the debate.
I know that the poor wording of the petition has already allowed the Government to effectively sidestep the issue with their official response and the cynic in me thinks that they will go ahead regardless of public opinion but surely if you feel so strongly about this issue as I and thousands of others do, then there is no point just bleating on if you are not prepared to do anything about it. With this in mind, tweet away.
One other thing, (and this depends on just exactly what is required when all of this comes to fruition, and forgive me if this has already been said) If quarterly submissions are to be implemented as of April 2018, we would need to prepare annual accounts and tax returns for all clients for the tax year ending 5th April 2018 and then also deal with the new quarterly submissions for the 2018/19 tax year effectively doing 2 years work in one year give or take, all while coping with all of the logistics of the transition.
5th Jan 2016
Government response to petition
I see that the Government has responded to the petition relating to the change to quarterly reporting. The full response can be viewed at https://petition.parliament.uk/petitions/115895
They are basically saying that software is to be used to update HMRC on a quarterly basis by the tax payer. I assume or at least hope that this can alternatively be done by the Agent.
Based on this response, it seems that client records will be needed by Agents 4 times a year in order for us to summarize each quarters income and expenditure. I've no idea how adjustments for stock AIA etc etc will be implemented).
I run a small practice with approximately 70 clients, 100% of which keep manual records, some of whom struggle with all things technology based and a few who do not even own a computer. All of those clients who are not VAT registered or run payroll are happy to provide me with their books and records once a year and to let me look after everything for them. They do not have the time or inclination to file quarterly. They are busy, out there in the real world earning a living. It seems that I will need to have eight meetings a year with each client instead of two.
Tax needn't be taxing!!!