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How is MTD for property income going to work?
For example, take the following scenario, which is based on a real-life situation:
A client (a pensioner) owns some properties jointly with her husband (and he keeps the records), plus one property in her own name (and she keeps the records), plus one property jointly with her brother (and he keeps the records).
In order to do her self assessment tax return, she has to collate the income from 3 different sources, so she has to wait for her husband and her brother to supply her with the necessary information about the jointly owned properties.
It would be a nightmare to have to do this on a quarterly basis, within a 30-day time limit, when it depends on getting information from records held by other people. Also, what would the software requirements be? Presumably she, her husband and her brother would all need to take out separate software subscriptions, and then she would need software capable of combining figures from 3 different sources (and possibly from different software systems). This would be both costly and time-consuming - and for what benefit?
In the original proposal, what I think happens is the record keeper files and names your client. Of course that's going to happen smoothly!
In practice its going to be a cluster kcuf of huge proportions.
Why on earth anyone would volunteer I simple don't know given you still have to file an SA and there seems no way to do the "perido 5" corrects to de-kcuf the clients data
at least mtd for property icome has an "opt in" option and can be done instead of the self assessment return. my guess is there will be a very slow voluntary transition
there is no awareness or appreciation of the complexity of some ordinary peoples affairs and mtd will make it even more complicated with additional complexities
A step in the right direction? How is that then? I think our professional bodies should listen to their members.
They listen hard to some of their members,vinylnobbynobbs.
Unfortunately the ones who work for the Big 4. They are way too busy doing bent audits and fiddling taxes in Panama to have even noticed MTD yet.
The HMRC list may include IRIS but IRIS does not yet do VAT Returns so cannot be used for MTD for VAT. Also re API and 'bridging software' none is yet available for all those (mostly smaller) businesses who rely on excel spreadsheets to complete their VAT returns (and annual accounts) despite mandation of VAT MTD in less than a year's time. They (we) are all stuck in limbo.....
J'Accuse!
Some of you might know where that headline comes from.
MTD is a fraud being perpetrated on the taxpayer by unelected "Un-civil servants" most of whom would not know a tax return if it hit them on the face.
And:
Who are not prepared to lose face by admitting what a dog's dinner it is.
I am prepared to back this statement in from of any tribunal. Dear Tom Herbert, I would send you my paper on the subject but I do not know how to get it through to you.
My recollection is that the early mtd guidance suggested that landlords with more than one let property would have to account for each separately which would be interesting to say the least for most landed estates which might have dozens of let properties and several expenses common to all of them eg insurance legals accountancy office and staffing costs. I do not recall any amendment to this initial guidance and have since retired. Do others know the current position?
My recollection is that the early mtd guidance suggested that landlords with more than one let property would have to account for each separately which would be interesting to say the least for most landed estates which might have dozens of let properties and several expenses common to all of them eg insurance legals accountancy office and staffing costs. I do not recall any amendment to this initial guidance and have since retired. Do others know the current position?
hello tom , do you know will agents need separate mtd filing software for small businesses having to file their vat returns online? using hmrc software?
If it all does go ahead next April all VAT Returns will have to be submitted using 'appropriate' new software which supposedly will include 'bridging software' for records kept in eg Excel - though as noted above not much is yet known about this let alone anything yet actually available on the market!
HMRC have said they will NOT be making available any free software for the purposes of MTD for VAT. The only exceptions will be small businesses with turnover under the VAT threshold - who can continue to use the existing VAT online filing system - and a very small number of other specific exemptions - eg some religious issues and those living in remote areas without any broadband.