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MTD ITSA bootcamp

Get bootcamp fit for MTD ITSA

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Making Tax Digital for income tax self assessment is looming ever closer, but there’s still time to get prepared with our series of practical MTD Bootcamp webinars.

27th Jul 2022
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In spite of the loud protests from many accountants, HMRC is pushing on with plans to introduce Making Tax Digital for income tax self assessment (MTD ITSA) for all sole traders and landlords with income over £10,000 from April 2024.

HMRC has expanded the scope of the pilot scheme and recently released some further details on the technicalities of MTD ITSA, although there are still many questions outstanding.

So, to make sure you make the most of the time left, AccountingWEB has teamed up with AutoEntry, FreeAgent and Xero to bring you a series of practical MTD Bootcamp webinars. These will include technical experts and accountants in practice, and focus on key areas of preparation that you should be considering now. They’ll get you “bootcamp fit” to make sure you and your clients are ready for the new ways of working that will be needed.

You can hear from fellow accountants about their plans and ask questions to build your knowledge and confidence to tackle the challenges ahead. If you need a refresher course at any point in the future, all three bootcamp webinars will be available for viewing on demand for anyone who registers now by following the links below.

Episode one: Sole trader micro solution and landlord roundup – 2 August

We’ll start our MTD fitness regime with one of the biggest challenges facing HMRC and practices. With sole trader businesses and landlords being brought into MTD ITSA when their total income from all sources is above £10,000 there will be potentially millions of people needing to keep digital records for the first time. 

One of the biggest problem areas for many accountants is likely to be those clients who are most price-sensitive, who want to continue using Excel, or are blissfully unaware that they will be affected by the new rules (for example, accidental landlords). We’ll discuss how practices can manage these clients, looking at cost-effective solutions that will allow these clients to be compliant. 

We’ll cover:

  • Technical complexities of multiple income sources
  • Landlord solutions that can help clients
  • Bridging software options for spreadsheet users 
  • The pros and cons of spreadsheets for practices
  • Affordable software options.

Register now

Episode two: Bookkeeping and MTD opportunities – 9 August

One of the critical areas of MTD ITSA will be the importance of helping clients manage their bookkeeping, keeping records digitally and ensuring there are digital links between the records and HMRC. We’ll look at some of the different options for your different client segments. 

We’ll explore how:

  • Bringing bookkeeping into your accountancy practice could be a good MTD solution for clients who can’t or won’t cope with the tech
  • Partnering with or outsourcing to a bookkeeper could be another way to manage the transition
  • To make the most of the potential opportunity to gain new clients as unserved sole traders look for help with MTD ITSA
  • If done efficiently, in-house bookkeeping can boost revenue and profits from new clients and expand services (and fees) among existing clients
  • Forward-thinking firms moving into online bookkeeping are reaping the benefits of more accurate, timely client data to offer outsourced finance services such as management reporting, forecasting and cashflow management.

Register now

Episode 3: MTD ITSA guidance dissected – 23 August

We’ll finish our 2022 summer MTD Bootcamp with a technical update. With the April 2024 mandation date fast approaching we’ll take the opportunity to dive into the detail of what HMRC has actually published so far and what is still to be clarified. 

We’ll cover:

  • What was in the latest updates and when can we expect more? (MTD guidance note with legislative force and consultation was released 1 July.)
  • Mandation dates, penalties/soft landings and MTD project roadmap (or lack of) 
  • With the recent announcement that the MTD ITSA pilot will be expanded from July, should you put clients forward? We’ll cover the logistics and conditions for participating in the pilot
  • Basis period reform and how it interacts with MTD ITSA: what to do if you have clients with accounting periods that don’t match the tax year dates
  • A look beyond MTD ITSA – what is likely to be next, and what can we expect to happen for partnerships and Corporation Tax?

Register now

So if you’re looking for inspiration and guidance on how to get your practice and clients ready for MTD ITSA, sign up for our free webinars now.

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Replies (7)

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By Hugo Fair
27th Jul 2022 15:12

Stalin would be proud of the logo you've adopted for this!

More seriously, have you asked HMRC to be involved (or even to comment on the materials you plan to use - something I did at the equivalent stage of pre-RTI launch)?
Otherwise it's just a bunch of software vendors who probably score lower on the trustworthy index than politicians right now.

As a simple example ... "there will be potentially millions of people needing to keep digital records for the first time".
But it's not keeping records that will be a shock to most of them, it's the need to do so as part of a 'digital chain' and that is therefore likely to:
* use software that will cost them more (in the middle of a surge in inflation);
* use it in ways that suit the software designers but are incomprehensible to the user;
* put a bigger block/hurdle between the taxpayer (represented or otherwise) and HMRC;
* deliver them no business benefit whilst consuming time in which they could have been earning.

As of today HMRC are still unable or unwilling (I don't know which is worse) to provide categoric answers to most practical questions - as opposed to woolly statements of policy intent. And I for one would not go in front of clients to tell them what's necessary when it's all likely to change again.

Thanks (6)
Replying to Hugo Fair:
Jake Smith, AccountingWEB
By Jake Smith
27th Jul 2022 16:49

Hi Hugo, we thought the logo was suitably tongue in cheek!
We debated asking HMRC to appear at these sessions, but HMRC doesn't seem to have any further details around implementation they are willing to share currently.

However, the vendors involved have been working closely with HMRC on building their solutions and we believe the practical tips that the vendors and accountants involved will be able to offer will help practices get their plans ready.

Our technical session on 23rd has experts from ACCA and ATT who have gone through all the info currently available with a fine tooth comb, as well as Stuart Miller from Xero who has been closely involved with their work with HMRC. It should be a really interesting debate as there do appear to be different interpretations of the legislation vs the technical guidance.

We are going to have HMRC representatives in person at AccountingWEB Live Expo on 30 November/1 December and we have a wish list of information and questions that we're trying to get answers to which will be covered in multiple sessions.

As soon as there is more concrete information we'll be reporting on it and will likely follow up with further webinars.

Thanks (0)
Replying to Jake Smith:
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By Hugo Fair
28th Jul 2022 00:57

I'll be generous and take your word that the logo was intended to be humorous ... but a tad insensitive then, given that many regard the project as authoritarian both in concept & in delivery.

Far more worrying is "but HMRC doesn't seem to have any further details around implementation they are willing to share currently" - although this is no surprise to me.

When RTI was moving towards the Pilot stage (not after it) HMRC were happy to work with us on our workshop materials for those prepared to join the Pilot - and indeed purloined (with our blessing) some of our ideas for their wider audience.
The same happened with the move towards Auto Enrolment, where TPR not only assisted us in preparing checklists and default templates for those scheduled to Stage in the early batches - they also sent an expert to attend some workshops with clients (on the basis that everyone, including them, could learn something on the day).

And we were just one software developer (an early mover but not particularly large) who I doubt were receiving preferential treatment.

So are HMRC less willing or just less able to provide similar support 10 years later?

If, as I suspect, they know that there's lot of questions to which they have (as yet) no answers - then it's not a good look to be 'helping' people towards a set of known unknowns!

Thanks (3)
Replying to Hugo Fair:
Tornado
By Tornado
27th Jul 2022 17:04

'But it's not keeping records that will be a shock to most of them, it's the need to do so as part of a 'digital chain' and that is therefore likely to:
* use software that will cost them more (in the middle of a surge in inflation);
* use it in ways that suit the software designers but are incomprehensible to the user;
* put a bigger block/hurdle between the taxpayer (represented or otherwise) and HMRC;
* deliver them no business benefit whilst consuming time in which they could have been earning.'

I think it is your second point that will be the biggest problem to millions of people who have little understanding of Accounting and Taxation and have even less understanding of Accounting Software. Without massive hands-on assistance from the software developers, HMRC or other Government departments, they will be completely out of their depth and unable to deal with the complex tasks (to them) that they are being asked to do.

And, as Hugo suggests, a logo that points an accusing finger at you just about sums up the arrogant and authoritarianism attitude that this whole project exudes.

Thanks (3)
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By HarryB
27th Jul 2022 16:08

Just an observation (or two):

Referring to it (whatever 'it' is) as a 'bootcamp' just seems a bit aggressive in this context - it just smacks of forced labour....

.....which, thinking about it, is what MTD ITSA is going to be like for most people..... if it comes to pass.

Secondly, unless the software houses know more than we do, as Hugo says, so far HMRC have produced next to nothing in terms of concrete statements and real, practical guidance.

This is a far cry from the excellent run up to the change from PYB to CYB in 1996/97.

Thanks (2)
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By GHarr497688
27th Jul 2022 18:17

Tried to get boot camp ready : so far used Xero:Clearbooks:Sage one and Free Agent.
Utter garbage and as good at the user/software vendor in unison . I could have done my Accounts quicker and more accurately with something called a pen and paper ( apparently soon to be a thing of the past) . It's state control at it's worse. The people who thought the idea up won't have to comply or use this crazy initiative . Thank goodness I can retire albeit too early .

Thanks (2)
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By Open all hours
28th Jul 2022 06:56

Congratulations on the logo. The clients need us, accountants, so not software companies who have shown how little they understand. Certainly not an overbearing HMRC who have shown that they know nothing about how small business works.
And yes, the accusative finger says it all. War is peace, Freedom is Slavery, and especially with MTD, Ignorance is Strength.

Thanks (0)