How Infinity Partnership is preparing for MTD
It cannot be said often enough that when a major change programme like MTD looms on the horizon, the planning process is paramount.
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There are 2 interesting extracts in this article - but neither of them expand on the detail.
1. “We went through the process last year of identifying each client and the form their records are held in. We’re now at the stage where when we hit the end of the next tax year, we can tell them what they will need to do to comply and what are the benefits.”
Benefits? No indication as to what these might be (in general or for specific clients)?
2. "The firm had some pushback from clients who are reluctant to change their record-keeping systems, or who balk at the extra cost, but that hasn’t deterred Infinity from pressing ahead."
But what about the impact on these clients (who neither wish to change their methodology nor to pay extra for the privilege of doing so)? Just toss them out the door?
Other than saying it's a good idea to know your clients and be able to categorise them (which is hardly a novel idea), I can't work out what the message is here?
VAT
This is not the unknown
It happened before
We should all know what needs to be done by now
Spreadsheets all organised for those that need it
Two letters being sorted for the digitally excluded
Those are the clients we do VAT for
A couple of clients doing their own thing that choose not to get me involved, but both have done all the VAT and wages themselves anyway so unlikely to panic at the last minute
One other is using Sage but refuses to join the MTD club until he really really must
MTD ITSA
Still the unknown
But good news
Non taxpayers are being included
And the clients who have "pushed back" which I think is polite for raised their index finger and told you 'no' are you just throwing them in the bin?
if so where do they go to? ie if its not you, who will do their returns?
Moreover given the history of MTD and its perpetual delays, is it not very premature to force all clients onto software? I mean how do you know who to pick? Clearly HMRC will go soft on the £10k at the last minute, and landlords probably exempt. Local firm close to me did this 5 years ago and we have picked up a huge amount of work from them. They outright lied to clients and told them it was compulsory. Deeply unprofessional in my opinion to have forced unsuitable bookkeeping methods on a client.
Fairly certain some regular contributors have taken the "we do the bookkeeping or do not act" route
Rebecca B comes to mind
Given everything gets amended only at 11th hour by HMRC I will look to pushing only when there is a need, guaranteed. Even then when the disaster of non compliance by the unrepresented becomes apparent I could end up looking like a scaremonger
"The others got away with, I could have as well" I expect to hear for at least 2 years after the actual startpoint