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HMRC’s Giles McCallum on the purpose of MTD

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Giles McCallum, the director of Making Tax Digital, sets out HMRC’s vision for MTD and the benefits it will bring to the tax system.

19th Oct 2021
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Two things are key with Making Tax Digital (MTD): the first is that we must deliver an Income Tax Self-Assessment (ITSA) service centred around the end user – be that a taxpayer, an accountant or a bookkeeper.

Secondly, MTD should be a catalyst to drive up wider digital adoption by businesses, the self-employed and landlords, which I know will bring benefits to both the tax system and the way business operates. MTD is but the first building block of wider tax digitalisation and simplification in HMRC.

I also understand that not everyone will find the transition to digital easy. I’ve heard from those in the vanguard of digital adoption urging us to move further and faster. But I’ve also heard from those apprehensive, or indeed reluctant, about moving from paper-based processes to digital and from a single end of year submission to quarterly reporting.

Not everyone is ready to make this move just yet. That’s why the Financial Secretary to the Treasury (FST) announced the new date for the mandation of MTD ITSA, of April 2024. This will ensure we move at a pace which meets the needs of the full range of businesses and agents who will have to adopt new processes, while also ensuring that more customers have the opportunity to fully test the system by participating in the pilot.

Costs of complying

As part of the FST’s announcement, we also released our estimate of the likely costs of complying with MTD ITSA. These estimates were produced following a period of consultation with stakeholders, including business and accountancy representative bodies, testing our assumptions and gathering feedback to ensure that they reflected the likely range of experiences that different business types could expect.

Some of those who worry about the costs might reasonably ask why small businesses should have to bother with MTD at all. My view is clear. While there are costs involved, particularly in the transitional period, we expect businesses to experience benefits in the longer term, through wider digitalisation, additional resilience and time saved on administration.

Software options

The government thought long and hard about whether to produce a basic ‘one size fits all’ piece of software to use, or whether the software market was better placed to provide these solutions. We believe software suppliers will deliver products that work best for taxpayers. Facilitating a software market means a range of options will be available, so that software which does more for your business is available, whether that be tying in with bank feeds, business management tools or increased automation. So, our job now is to help develop a software market that provides for the breadth of different business needs. It will be able to do this far quicker than HMRC, and with a greater focus on continuous improvement as a result of market pressures.

For there to be a smooth transition to a more digital way of doing tax, we also believe that those with the most straightforward affairs should be able to choose a product to use which is free of charge, something we are working with the software industry to ensure is in place.

Moving to a quarterly rhythm

Alongside digitalisation one thing that some stakeholders want to understand is what drives the need to move to a quarterly rhythm of sending updates to HMRC. I want to be clear that these updates are not tax returns. They will just be a simple summary of income and expenditure drawn from the digital records you are already keeping, without the need for lots of reworking. Adjustments for tax purposes are made in an end of period statement at the end of the year and may be used to correct any inaccuracies in quarterly updates.

The core purpose behind quarterly updates is to bring record keeping more up-to-date. When a business keeps paper receipts throughout the year, the information in the resulting tax return is often incomplete and inaccurate. Receipts may have gone missing or simply a business may not remember the context of an expense. Keeping more up-to-date records will reduce those errors and give a better indication of how the business is performing.

Time to prepare

We continue to communicate with businesses and agents to raise awareness of these changes. It is vital that not only do they understand what will be required of them, but also that they are reassured that for the vast majority, this will be a fairly straightforward transition. It will bring their interaction with the tax system up-to-date and more in line with what they come to expect from the other digital services they rely on to run their business, as well as in their day-to-day lives.

The emerging evidence from our experience of MTD for VAT is that MTD is working as intended. It is cutting down on errors, making tax management easier to get right for businesses, and bringing more money into the Exchequer, which can be spent on our vital public services.

Now that we have additional time to prepare for MTD ITSA, HMRC is redoubling our efforts to take full advantage. We will work closely with businesses, agents and software suppliers to ensure we get this right and deliver a digital tax service fit for the 21st century.

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Hear from HMRC at AccountingWEB Live Expo 

Giles McCallum, along with HMRC’s chief executive Jim Harra and other HMRC representatives, will be speaking at AccountingWEB Live Expo on 1-2 December. This will be your chance to to put your questions to HMRC. Register to attend the event by clicking the link below.

Replies (228)

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Replying to davidross:
the sea otter
By memyself-eye
22nd Oct 2021 17:06

Refusniks?

like the folks that didn't believe Saddam actually had weapons 'of mass destruction'? Or those that think HS2 is a complete waste of money? or those that warned us not to invade Afghanistan?
If so, I'm one.....comrade

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By arthvirg230
20th Oct 2021 10:28

Complete and utter nonsense from HMRC ..... or should we use the good old anglo saxon phrase?

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By RobertD
20th Oct 2021 10:33

“ The emerging evidence from our experience of MTD for VAT is that MTD is working as intended. It is cutting down on errors”
This isn’t true according to HMRC

MTD fails to reduce the tax gap
https://www.accountingweb.co.uk/tax/personal-tax/mtd-fails-to-reduce-the...

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Replying to RobertD:
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By Paul Crowley
20th Oct 2021 10:45

How can HMRC know this?
How can HMRC know what errors supposedly would have been made but the clever software spotted them?
How did they test it?
This clearly is an insult to the intelligence of the stupid Aweb reader and the kind of twaddle I would expect from the idiot on Instagram, or Tik-Tok

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By Duggimon
20th Oct 2021 10:39

Why doesn't this article addressing the concerns of those in practice regarding HMRC's plan for Making Tax Digital address any of the concerns of those in practice regarding HMRC's plan for Making Tax Digital?

We are in practice and fully understand and appreciate the benefits to accountants, bookkeepers, businesses and to HMRC of digital record keeping and filing of taxes. The idea that it is universally beneficial is stupid though and HMRC have never done anything other than wave vague platitudes around to demonstrate the reason for this thinking.

I am 100% behind Making Tax Digital, I think it's a bold move and is exactly the kind of steps we need to take to improve the tax system in our country for everyone. There is no justification whatsoever for making it mandatory though, the implication is that HMRC thinks people are too stupid to understand the benefit unless they are forced into it. It's patronising and wrong.

Instead, make the system available to everyone and all those who benefit from it can adopt it and all those who have businesses with twelve transactions a year don't need to treble their accountancy fees because there's nothing wrong with how they keep records now and no efficiency to be gained.

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By colinstewart
20th Oct 2021 10:40

Oh dear! we all seem to be on the same side here! Giles - listen mate: if you want to bring MTD in then you have the power to do it so just get on with it, we all know it is coming as we do with quarterly payments - it is a no brainer: but please do not insult our intelligence by wrapping it up in the claptrap of 'research', we deserve better than that.
You have no idea what we have been through in the last 18 months, it does not need cross your event horizon because the decision has been made. Your only problem is that you do realise that you need us if you are to get any level of public compliance.
You need to realise that most of your software is of poor quality, it is not intuitive, and it often does not work: a few days ago I signed up for the Gov.uk survey - the email I got included link, which went to a 'Page not found'! Argh, is that really the standard to which you aspire?

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By Michael C Feltham
20th Oct 2021 10:44

Quote: "As part of the FST’s announcement, we also released our estimate of the likely costs of complying with MTD ITSA. These estimates were produced following a period of consultation with stakeholders, including business and accountancy representative bodies".
No doubt CCAB and a couple of the big boys, such as PwC and KPMG.

Which have little if any face-to Face experience of the bottom tier of the SME sector.

Yet Governments OWN stats confirm 48% of the UK's GDP (Private Sector) is generated by SMEs on the lowest level: i.e. Class Size Zero, being one man bands.

And it is these who are going to be hardest hit by all this incompetent nonsense.

I loved this arrant rubbish! Quote: "The emerging evidence from our experience of MTD for VAT is that MTD is working as intended. It is cutting down on errors, making tax management easier to get right for businesses, and bringing more money into the Exchequer, which can be spent on our vital public services."

Demanding usage of MTD ITSA be used by the bottom tier of small businesses will result in two realities:
1. More small traders working "On the Black" ; and,
2. Far GREATER incidence of error when Joe the Plumber actually believes he can run his records on the fly, using his Not So Smartphone!

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By Brian2611
20th Oct 2021 10:49

This is the first piece of fiction I have read in ages!

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Replying to Brian2611:
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By Ben Alligin
20th Oct 2021 10:53

I hate science fiction!!

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By moverend
20th Oct 2021 10:51

Before we start making a mess of MTD for individuals is there any chance HMRC could take a look at RTI for payroll because I am sick to death of spending hours on the phone raising data disputes because the HMRC systems don't seem to be able to receive and process data correctly?

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Replying to moverend:
Chris M
By mr. mischief
20th Oct 2021 19:14

And not just RTI. I have 2 separate clients where the system has fallen over for MTD for VAT. So I am doing VAT returns on paper, which HMRC have been ignoring since November 2019. Now under formal Case review. Fix the effing stuff you've already put in please HMRC. RTI and MTD for VAT - neither of them works properly yet.

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By DMS
20th Oct 2021 10:53

Just sophistry. Everything written here about the need to do it and the benefits from it are lies, and the author knows it. It is all about the drive towards government control, and articles like this are just trying to create a fig leaf to hide behind. First quarterly, then monthly, then direct access to records, then direct access to the bank account as they determine how much you should pay.

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Replying to DMS:
Tornado
By Tornado
20th Oct 2021 11:55

Perhaps the biggest lie was that it was the end of the Tax Return.

Now we have a much more complex and time consuming process to prepare a 'Tax Return' with no obvious benefit and the probability of more errors due to the complexity of the process.

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Replying to Tornado:
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By Wanderer
20th Oct 2021 16:25

Tornado wrote:

Perhaps the biggest lie was that it was the end of the Tax Return.

Same as when RTI came in:-

They told us no P46s!!! - No just replaced by new starter form & procedures.
They told us no P11s!!! - No just replaced with 12 / 52 / 64 FPSs + (up to) 12 EPSs + duplicated on the P60 anyway.

This was one where I actually followed advice & wrote to my MP. Just got back what was clearly a cut & paste of HMRC platitudes.

Still, not to worry, one of the benefits of RTI, as per the post implementation review, was "a net saving in administrative burden for employers of £292m per annum" - utter twaddle

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Replying to Wanderer:
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By Agutter Accounts
21st Oct 2021 09:10

Personally, I have had few problems with RTI for PAYE. But I either use HMRC Tools for one or two person payrolls, and Sage Payroll for slightly larger ones.

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Replying to Agutter Accounts:
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By Hugo Fair
21st Oct 2021 10:15

Well you either don't run many payrolls or have been very lucky then.

The main problems with RTI (that create incorrect records within HMRC systems and result sometimes in the invalid unleashing of the debt collectors) have nothing to do with either the payroll software used (or indeed the user) ... they are caused by poorly designed software at HMRC's end that still has defects waiting to be fixed!

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Replying to DMS:
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By Agutter Accounts
21st Oct 2021 09:06

That will surely give a massive boost to the so-called "black economy".

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By StephenGuy
20th Oct 2021 10:57

Duplicate post removed

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By petestar1969
20th Oct 2021 11:05

Hmm, I've already decided to retire from accountancy in April 2024 unless this nonsense is dropped or changed significantly. but....

It seems to me the biggest complaint is about the £10,000 threshold being too low. I thought, unless the published tax gap information is inaccurate, that the lower end is where most of the "lost" tax is to be found.

Surely, increasing the MTD ITSA threshold to match the VAT threshold would mean that all those business owners who perennially lie about their turnover being a couple of thousand under the VAT threshold, so don't register or VAT and don't pay enough Income Tax and NI and possibly also claim benefits, would continue to do so? Sounds counter-productive to me.

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By lh3f9764bg1g
20th Oct 2021 11:13

What's going to happen is that (A) many taxpayers won't be able to cope and will suffer the penalties and (b) most of the others will be submitting a load of gumph through one of the big software houses and claiming, due to their uneducated notions and the inability of the software to separate the wheat from the chaff and to jump to conclusions about the allowability of transactions from suppliers it has categorized before, disallowable expenses as being allowable. Just because a transaction for £18 from ACME Garages Ltd was allowable doesn't mean that the one for £18,000 is allowable also. And have you ever noticed how many times a packet of [***] are bought at the same time, and on the same invoice, as the £20 of diesel? There's a reason why the VAT take has fallen since the introduction of MTD for VAT - but nobody seems to care about that and given the hundreds of thousands of taxpayers involved and the millions upon millions of transactions involved there's no chance that anybody will ever be able to check them. HMRC should examine the effects of what they have done so far and war game the consequences of what they intend to do in the future before they commit to this. There's no point in basing their assumptions on the volunteers - they need to try to understand the consequences of compulsion. They'd also be wise to listen to the words of those with some understanding of the subject who are advising that this is going to end up being an unmitigated disaster rather than throwing their hands up five years from now as if there was no way they could ever have understood that it would have ended up being the debacle that it is going to be.

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By why always me
20th Oct 2021 11:28

Nonsense!!
It is driven by the need to get tax in the door quicker. Just be honest, then by all means change to calendar year and 6 months to get returns in, then monthly POA's and you save hundreds of thousands of small business extra grief

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By Nickob
20th Oct 2021 11:30

Dear Mr McCallum

As a chartered accountant with many years' experience of dealing with clients both large and small, I find it particularly tragic that HMRC adopt such a patronising and arrogant attitude towards the taxpayer. The inescapable inference is that the business community needs to be told how to maintain their records to make accurate returns of income; that without MTD, understatement of income will continue unchecked. The entire concept is fundamentally flawed and will only serve to impose a greater level of cost and administration on businesses, many of which will struggle for some time in the wake of the the Covid pandemic.

You clearly have little or no understanding of the care that goes into preparing and submitting returns of income. One commentator has offered to spend the day with you, to show you how we work. I urge to accept that offer. If businesses and/or their accountants are currently falling short of the standards expected, MTD is not going to instil in them a greater sense of responsibility.

The estimates of the extra costs involved with MTD were nothing short of risible. A figure of £6 suggested for this extra work, and I'm wondering who you think might be prepared to undertake such a task for what would amount to a few pence an hour?

HMRC's greatest ally is the accountancy profession, particularly the smaller practices like ours that deal with the range of clients that would be affected by MTD. Instead of soliciting advice from the large practices, who have no experience of dealing with small businesses, listen to the practices that do care for them, and which do an excellent job in ensuring that they pay the correct amount of tax.

Nick O'Brien
Kime O'Brien, Macclesfield

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Replying to Nickob:
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By Open all hours
20th Oct 2021 16:20

An excellent response which should be taken very seriously by Mr McCallum and his team. Thank you.

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Replying to Open all hours:
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By Paul Crowley
20th Oct 2021 16:28

+1

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Replying to Paul Crowley:
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By Jo Nokes
20th Oct 2021 17:43

well said

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By thomas34
20th Oct 2021 11:30

As I've practised accountancy for 57 years I think I've learned a little along the way. The writer's C.V. appears to be impressive as far as IT implementation is concerned but there's no evidence that he has any experience in accountancy. This lunacy of a plan won't affect me as I'm closing the doors on 31 March 2022. I have a cunning plan which has some merits although may cost the client a little more. I would suggest that all taxpayers (who don't have rental income) to incorporate before MTD for IT and protect their state pension by running a payroll up to the lower earnings limit. I understand that MTD for CT won't be introduced until 2026. In practice this will mean a lower tax yield for HMG because there are unfortunately unscrupulous taxpayers who abuse the benefits of limited liability. Self-employment certainly doesn't seem attractive
at this point in time.

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Tornado
By Tornado
20th Oct 2021 11:37

To be fair, Giles is the Director of Making Tax Digital and is obviously going to sing its praises. His article also highlights the fact that he is working is a bubble of like minded people and is unable to see the big picture that most of us in practice or otherwise working at the front line can see.

It is clear that the MTD stomps all over Accounting Standards which are designed to accurately calculate profits and thus enable accurate tax calculations, there is no way that quarterly reports will provide any benefit to anyone as it will be impossible to calculate any sort of tax figures from the information submitted, and there is also no pragmatism in accepting that by making all of this so complicated, that many people will be unable to deal with this or just not bother. Blind faith in technology or gullibly accepting everything the Software salesmen tells you (see current accounting software adverts) is not a responsible way to progress with a project as complex as this.

There is absolutely nothing wrong with the logical principles of the current Self Assessment system and the MTD 2000 Million plus pound budget would have been much better spent in fine tuning this system to make it truly world beating. MTD for ITSA is a chaotic system that relies on HMRC foraging for information that may or may not be correct and will almost certainly be incomplete. With Self-Assessment, a single Tax Return is submitted that can be anything upwards from 20 pages that contains all relevant information and at the press of a button, the total tax (NIC, Capital Gains, etc) liability is calculated in an instant. Amendments can be made if required after checking and the tax calculations will also amend instantly (something that HMRC software was/is unable to do in certain situations). What could be simpler than that. MTD for ITSA makes this process much more complex and prone to errors.

The aspect of Self Assessment that is slowly improving is the availability of information through the API that draws information into the Tax Return from the HMRC Database. This has great potential but is sadly lacking at the moment as only some information is available (not even State Pension details) and is usually only available several months after the tax year end.

I think this whole plan needs to be reviewed to see if it is really better than the current Self Assessment system that has been running for over 20 years and works well.

Thanks (6)
VAT
By Jason Croke
20th Oct 2021 11:38

One reason for such negativity towards MTD, is because the sales pitch from HMRC is aimed at making accounts easier and more accurate for taxpayers, the big sell is that MTD will benefit the business.

In reality, MTD exists to benefit HMRC, HMRC have to cut staff numbers and switch to digital solutions to allow them to carry on their inspections and compliance checks. Those checks take up a lot of time if it is a carrier bag of receipts, MTD makes HMRC's job easier and easier for HMRC to transition away from employing thousands of people.

The benefits for the taxpayer are an after thought, tacked on to pretty up what is very much a HMRC objective for HMRC's benefit and that is one reason why MTD is such a tough sell. It's like when a train company puts up their prices and proudly announces this is because they are investing in better trains and more reliability for YOU... yeah, sure you are.

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Replying to Jason Croke:
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By Paul Crowley
20th Oct 2021 16:40

Well put
This is for HMRC benefit only
As such the never to be looked at quarterly returns is an unedifying level of extra stupidity.
MTD, and old fasioned SA TR digitally delivered tax returns, and SA TR paper returns will all be operating at the same time for decades.
HMRC volunteering for that daft arrangement is fine, but leave the taxpayer to choose the system that is best for the taxpayer
And that system would the easist and cheapest to operate
The already in MTD VAT taxpayer may well choose MTD

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VAT
By Jason Croke
20th Oct 2021 11:40

One reason for such negativity towards MTD, is because the sales pitch from HMRC is aimed at making accounts easier and more accurate for taxpayers, the big sell is that MTD will benefit the business.

In reality, MTD exists to benefit HMRC, HMRC have to cut staff numbers and switch to digital solutions to allow them to carry on their inspections and compliance checks. Those checks take up a lot of time if it is a carrier bag of receipts, MTD makes HMRC's job easier and easier for HMRC to transition away from employing thousands of people.

The benefits for the taxpayer are an after thought, tacked on to pretty up what is very much a HMRC objective for HMRC's benefit and that is one reason why MTD is such a tough sell. It's like when a train company puts up their prices and proudly announces this is because they are investing in better trains and more reliability for YOU, trying to dress up a price rise as a benefit when it only benefits the train company.

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Bee
By May bee
20th Oct 2021 11:39

Utter nonsense. HMRC can't find good reasons for MTD so they can decide to churn out paragraphs of round in a circle general comments on how change simply must be good etc. The article proves that HMRC are utterly out of touch with taxpayers (they are not customers), the accountancy profession and what businesses actually do. The fact that HMRC and the other powers that be are too deep in now to imagine turning back is what is driving this on, not a single actual benefit to taxpayers, the UK tax take or the efficiency of the tax system. Please stop, be sensible and properly consider this and any sane person will realise it is nonsense!

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Bee
By May bee
20th Oct 2021 11:41

Duplicated post

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Replying to May bee:
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By Paul Crowley
20th Oct 2021 16:59

But it NEEDED saying more than once

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By Catherine Newman
20th Oct 2021 11:47

As we speak I am having to talk through a CGT 30 day reporting set up for H&W. I am getting the "with what purpose?". "Do I really have to do this?" "Surely a lot of people just don't declare it". It is asking for my Government Gateway number. Is that what you have given me? (I gave his UTR). He is a salesperson for a massive aircraft engineering company.

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By johnjenkins
20th Oct 2021 11:53

"He has directed digital transformation programmes across multiple industries including telecoms, utilities and oil and gas."
Giles, Accountancy is a profession not an industry. You need to deal with the people that are at ground level not at the top.
Surely Aweb can set up a meeting with some of us and Giles. Then perhaps he might think spending a day with one of us would give him an insight as to why we are against quarterly updates for those under £85K turnover.

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Replying to johnjenkins:
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By Ben Alligin
20th Oct 2021 12:18

John are you suggesting for one moment that HMRC recruitment strategy for senior executives is a little awry?

The same selection process that gave us former HMRC Director and El Supremo Lin Homer?!!!!

Someone at HMRC has a very twisted sense of humour.

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Replying to Ben Alligin:
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By johnjenkins
20th Oct 2021 12:23

If there is a selection process it would be interesting to find out who the other candidates were and who appointed him.

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Replying to johnjenkins:
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By Catherine Newman
20th Oct 2021 12:19

Count me in.

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By Nick Graves
20th Oct 2021 11:58

What a load of old boilerplate.

The real reason is to drive out the small businesses and the sole practitioner/front-room accountant in favour of big business and big beancounter, whilst permitting a totalitarian micro-management of the financial affairs of every peon left standing.

I'll move myself and my family aside
If we happen to be left half alive
I'll get all my papers and smile at the sky
Though I know that the hypnotized never lie

We don't get fooled again...

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By anthonystorey
20th Oct 2021 12:04

Most of my clients hand over paper records and we process them without any problem. A handful use software packages and to be honest they are an absolute nightmare. It takes us longer sorting out the incorrectly imputed data than it would for us to list the paper records ourselves from scratch. And then there is the argument about why the actual profit is a lot higher than the one computed by the client's software package. Bearing in mind that those who have chosen to use software reckon to be tech savvy, god help us when the digitally illiterate are forced to use software as well. What planet are HMRC on if they think that MTD is going to work for everyone. It will be an absolute disaster.

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By David Gordon FCCA
20th Oct 2021 12:08

It is not for HMRC to decree how taxpayers should run their businesses.
Their remit is to administer and supervise the tax system as set by Parliament.
I could say much more, and will but Accounting Web is not the appropriate place.
The Emperor has no clothes.
The simple accounting equation is:

If you substitute four pages for one page, or four returns for one return, this is gross administrative overkill. It is collecting information "Because we can", not because it is needful
The security with personal data implications are frightful.
It is not acceptable to say this is digital not paper. The overkill remains in place.

Sadly through default of Parliament HMRC has destructively evolved and is evolving from Administrator and collector, into Rule maker, judge, administrator, dictator of business practices, and so forth. All because they can, and not because of any evil intent whatsoever.

There are excellent cogent reasons why we do not allow the Police to make Law, and why we supervise them with eagle eyes.

HMRC whose daily doings affect 99% of the population ought to be subject to similar scrutiny.
They are not so subject.

It is said that 15% of Taxpayers pay 85% of UK taxes.

If that is so then 85% of taxpayers, pay only 15% of UK taxes
This MTD nonsense therefore mostly affects that 85% and is a further exercise in moving the administration of the tax system from the Civil Service to the tax payer. AS such the cost of it is in effect an additional tax on the taxpayers least able to cope with such overbearing diktat from on high.
Quis custodiet ipsos custodies?
as an end note:
I was taught, in 1979, that the second rule of rule of computing is "Garbage in = Garbage out", first please fix what we have.

The first rule?? Turn the machine on.

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By Peter-S
20th Oct 2021 12:16

So is Giles effectively implying that for all those clients with up to date digital records we don't need to check anything in future as they must have been accurate in the first place? If that's not true then what is the point of forcing digital record keeping on to tax payers? All it would mean is that they are still making mistakes just in a different format so submitting that information quarterly would be pointless. But if we don't need to check anything anymore then potentially life becomes easier.
Maybe Giles would clarify this.

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Replying to Peter-S:
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By Paul Crowley
20th Oct 2021 17:01

That is why the accountant need only spend 6 minutes to submit the quarterly return

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Donald MacKenzie
By Donald MacKenzie
20th Oct 2021 12:21

Oh dear oh dear.

This is patronising rubbish from an HMRC that is systematically making itself hard to deal with. As agents, we face longer delays in getting through to HMRC on the 'phone, months of delay in getting replies by post and, far from being "digital", HMRC seem incapable of embracing email.

Like others, I invite Giles to visit my practice. I will explain how the supposed cost estimates are rubbish. Nothing worthwhile can be done in 6 minutes if it involves opening software, loading a file, passing security and doing actual work.

It is just silly to suggests MTD will bring benefits to business. People in business would already do quarterly accounting using digital software if it was to their benefit. Those who would benefit from keeping their numbers up to date, already account for things quarterly.

Visit some real accountants to see what real agents do day in, day out, to get the right numbers in. Visit my elderly client with a property as her pension income source. She would not gain anything from reporting quarterly, except more costs. She KNOWS what is coming in and going out.

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Replying to Donald MacKenzie:
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By sammerchant
21st Oct 2021 17:14

As most accountants will confirm, clients aren't interested in the past (which is what their tax returns embody). They have already moved on and apart from wanting to know what their tax bill is going to be, they are not very interested in the accounts and tax returns we produce.

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Tornado
By Tornado
20th Oct 2021 12:40

Self Assessment is logical : MTD is chaotic.

I think I am right.

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Replying to Tornado:
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By johnjenkins
20th Oct 2021 12:44

"MTD is chaotic" only in the hands of HMRC.

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By colinstewart
20th Oct 2021 12:41

..... and another thing! We all belong to professional bodies, trade unions if you will: where are they when it comes to representing us in a robust manner. Giles is just laughing at us - look at his photo! We are of no consequence, he is no more likely to visit any of our practices as he is to resign for incompetence. So, ICAEW, ACCA, CIOT, etc,etc get on an stand up for your members - we are dying a slow death out here under the weight of people telling us.... 'all you've got to do is.....'.

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Replying to colinstewart:
Tornado
By Tornado
20th Oct 2021 12:56

'We are of no consequence'

I think you are undervaluing yourself. We are in fact everything and the bottom line is that MTD will not work without our co-operation.

Giles will need to acknowledge that if he wants to keep a smile on his face.

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Replying to Tornado:
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By colinstewart
20th Oct 2021 13:14

Been doing this for 46 years! - HMRC ain't listened so far, I am of no consequence, I know my place :)

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