I just used the income tax checking tool. It knows my monthly salary from RTI and so gives an accurate estimate of annual salaried earnings. Next question - are you over state pension age. Yes say I, but my income estimate is not adjusted, so it incorrectly gives a tax calculation based on my salary alone. Nowhere to enter any state pension details and no pick up of the state pension amount from elsewhere in my personal tax account. Don't they know tax codes are adjusted for state pension?
I have just downloaded the app and it has the same information as in the personal tax account. It is easier for taxpayers to access, but they have to go through the pain of setting up a personal tax account anyway. I did this with a friend a couple of weeks ago and it was laborious, but improved from when I set my own up a few years ago.
I thought I would update my medical insurance for my tax code because it has gone up. Can't do that in the personal tax account and can't do it in the app. I have some additional non coded income and want it removed, because it was cleared last year. Can't do that either. So I have to call or leave it. As the amounts are not far from cancelling each other out, I will leave it to next year's self assessment. Can't be bothered with a call.
Oh and I set the app up access via facial recognition, but it is not working, so access to the app is gateway ID, password and a texted code. I always tick the box that says remember me for seven days, but it doesn't.
So, in summary HMRC have created an app that mirrors the shortcomings in the personal tax account, but I can now save my NI number to Apple Wallet!
Having followed this story closely, the developing part of it was surely all about the breach of confidence. Access to a bank account is more along the lines of using an electricity supplier. There is a basic human right involved. This is not true of accountants choosing the type of clients they want. There is no public blacklisting if an accountant doesn't want to deal with you. In this day and age we all need bank accounts and a supply of light and heat. It is simply wrong to make the comparison with accountancy clients. As to the free speech issue, I have more sympathy there for the reasons you outline. Big business caves into the vocal minority over and over again. Banks are no different in that regard. They have reputations to protect. The biggest damage to their reputation came from the breach of confidence. If they hadn't done that Nigel Farage would have moaned and most people would have ignored the storm in a teacup after a few days.
So sorry to hear this news. John was right up there with the best there is in journalism. The AWeb 'In Memoriam' above is right from the heart and captures John's spirit very well. I spoke to him a few times on the phone, but never met him. He was always polite, encouraging and professional. His articles and contributions to Any Answers were the reason I kept coming back. He has big shoes to fill at AWeb. My condolences to his family, friends, colleagues and all of those in the accounting profession who were blessed to have had dealings with him.
I agree with you that I doesn't matter which system you use, plus well run spreadsheets and manual systems will also be accurate. I was only quoting the original HMRC objectives in the NAO report on the need for quarterly updates. I am totally against them, because they will achieve nothing whilst causing a nightmare for small businesses that are the backbone of the economy. It will cause more accountants to leave the profession and ensure those businesses with the least resources don't get any support. Chaos is around the corner.
Having just finished reading the NAO Report, which was laden with carefully worded criticisms, I have a few comments:
The user interface for MTD for VAT records the same 9 boxes as the old system. The only benefit to users appears to be the IR Mark now appearing on the return instead of in a separate submission receipt - big deal - but for those who print these things a bit of tree saved, so good for the environment and not much else. The real benefit for MTD for VAT is to get HMRC off their creaking legacy systems, a job they only finished in March 2023 according to the report. This meant underpinning their new VAT systems with up to date databases capable of working in the digital age.
Turning to the vastly more complex, MTD for ITSA, the VAT lesson needs to be learnt. The ITSA project had three main objectives - getting rid of creaking legacy systems at HMRC, improving record keeping for users by going digital and unperpinning this with quarterly reporting. The latter being so users are forced into digital record keeping rather than just using an annual digital update. According to the report the problem with getting rid of legacy systems first was never addressed as an option, because there were no benefits to offset the cost. HMRC badly needed to demonstrate improved tax take to justify the project which they sold on the basis of users going digital. This was thought to improve record keeping and thereby increase the tax take.
The terrible performance on the MTD for VAT project should alert any sane person to the need to transfer from the legacy systems first, before even attempting to involve users. Any other approach will be a car crash.
An old boss of mine once said keep it simple, when referring to IT projects, because pioneers get arrows in their backside. HMRC have managed to create a monster of their own making with MTD for ITSA. They need to simplify the project, keeping it internal as far as possible, until their systems catch up with the real world.
I don't want to repeat what has been said in the excellent replies so far, so all I'm going to say is that I agree with them and they are spot on. Your article summarises the problem and the effect on the economy very well, but no one is listening at HMRC or in Government.
I agree. My mother in law is in a care home. Had to apply for Savings credit and was given a latest response time of 17th April. No reply yet and now a month later. Have spoken to DWP a number of times and have not yet had a single response going back to March last year, when she was first admitted.
I agree. My mother in law is in a care home. Had to apply for Savings credit and was given a latest response time of 17th April. No reply yet a month later. Have spoken to DWP a number of times and have not yet had a single response going back to March last year.
My answers
I just used the income tax checking tool. It knows my monthly salary from RTI and so gives an accurate estimate of annual salaried earnings. Next question - are you over state pension age. Yes say I, but my income estimate is not adjusted, so it incorrectly gives a tax calculation based on my salary alone. Nowhere to enter any state pension details and no pick up of the state pension amount from elsewhere in my personal tax account. Don't they know tax codes are adjusted for state pension?
I have just downloaded the app and it has the same information as in the personal tax account. It is easier for taxpayers to access, but they have to go through the pain of setting up a personal tax account anyway. I did this with a friend a couple of weeks ago and it was laborious, but improved from when I set my own up a few years ago.
I thought I would update my medical insurance for my tax code because it has gone up. Can't do that in the personal tax account and can't do it in the app. I have some additional non coded income and want it removed, because it was cleared last year. Can't do that either. So I have to call or leave it. As the amounts are not far from cancelling each other out, I will leave it to next year's self assessment. Can't be bothered with a call.
Oh and I set the app up access via facial recognition, but it is not working, so access to the app is gateway ID, password and a texted code. I always tick the box that says remember me for seven days, but it doesn't.
So, in summary HMRC have created an app that mirrors the shortcomings in the personal tax account, but I can now save my NI number to Apple Wallet!
Having followed this story closely, the developing part of it was surely all about the breach of confidence. Access to a bank account is more along the lines of using an electricity supplier. There is a basic human right involved. This is not true of accountants choosing the type of clients they want. There is no public blacklisting if an accountant doesn't want to deal with you. In this day and age we all need bank accounts and a supply of light and heat. It is simply wrong to make the comparison with accountancy clients. As to the free speech issue, I have more sympathy there for the reasons you outline. Big business caves into the vocal minority over and over again. Banks are no different in that regard. They have reputations to protect. The biggest damage to their reputation came from the breach of confidence. If they hadn't done that Nigel Farage would have moaned and most people would have ignored the storm in a teacup after a few days.
So sorry to hear this news. John was right up there with the best there is in journalism. The AWeb 'In Memoriam' above is right from the heart and captures John's spirit very well. I spoke to him a few times on the phone, but never met him. He was always polite, encouraging and professional. His articles and contributions to Any Answers were the reason I kept coming back. He has big shoes to fill at AWeb. My condolences to his family, friends, colleagues and all of those in the accounting profession who were blessed to have had dealings with him.
I agree with you that I doesn't matter which system you use, plus well run spreadsheets and manual systems will also be accurate. I was only quoting the original HMRC objectives in the NAO report on the need for quarterly updates. I am totally against them, because they will achieve nothing whilst causing a nightmare for small businesses that are the backbone of the economy. It will cause more accountants to leave the profession and ensure those businesses with the least resources don't get any support. Chaos is around the corner.
Having just finished reading the NAO Report, which was laden with carefully worded criticisms, I have a few comments:
The user interface for MTD for VAT records the same 9 boxes as the old system. The only benefit to users appears to be the IR Mark now appearing on the return instead of in a separate submission receipt - big deal - but for those who print these things a bit of tree saved, so good for the environment and not much else. The real benefit for MTD for VAT is to get HMRC off their creaking legacy systems, a job they only finished in March 2023 according to the report. This meant underpinning their new VAT systems with up to date databases capable of working in the digital age.
Turning to the vastly more complex, MTD for ITSA, the VAT lesson needs to be learnt. The ITSA project had three main objectives - getting rid of creaking legacy systems at HMRC, improving record keeping for users by going digital and unperpinning this with quarterly reporting. The latter being so users are forced into digital record keeping rather than just using an annual digital update. According to the report the problem with getting rid of legacy systems first was never addressed as an option, because there were no benefits to offset the cost. HMRC badly needed to demonstrate improved tax take to justify the project which they sold on the basis of users going digital. This was thought to improve record keeping and thereby increase the tax take.
The terrible performance on the MTD for VAT project should alert any sane person to the need to transfer from the legacy systems first, before even attempting to involve users. Any other approach will be a car crash.
An old boss of mine once said keep it simple, when referring to IT projects, because pioneers get arrows in their backside. HMRC have managed to create a monster of their own making with MTD for ITSA. They need to simplify the project, keeping it internal as far as possible, until their systems catch up with the real world.
And HMRC and the other government departments that get in the way of top level service.
I don't want to repeat what has been said in the excellent replies so far, so all I'm going to say is that I agree with them and they are spot on. Your article summarises the problem and the effect on the economy very well, but no one is listening at HMRC or in Government.
I agree. My mother in law is in a care home. Had to apply for Savings credit and was given a latest response time of 17th April. No reply yet and now a month later. Have spoken to DWP a number of times and have not yet had a single response going back to March last year, when she was first admitted.
I agree. My mother in law is in a care home. Had to apply for Savings credit and was given a latest response time of 17th April. No reply yet a month later. Have spoken to DWP a number of times and have not yet had a single response going back to March last year.