HMRC MTD Consultation

27th October 2016

Making Tax Digital: Prepare or man the barricades!
HM Revenue & Customs have just published their second webinar on their Making Tax Digital (MTD) project, including a plethora of questions and answers. While the tone was very touchy-feely, as the presenters talked about the HMRC’s “customers”, the underlying iron fist could clearly be sensed:

  • Yes, there will be some businesses that avoid the requirements, principally those with an annual turnover of less than £10,000. If your turnover is greater than that, you are in.
  • No Internet connectivity? Okay, you will not have to make quarterly submissions.
  • Connectivity but no computer? Tough, you are in.
  • Over 60? So what, you’re in.
  • And so on.
  • How will adherence to the new regime be imposed? By a new points-based penalty system. There’s a surprise.

It was admitted that the Brexit vote delayed the launch of the consultation period which, it was stated, HMRC were anxious not to shorten. A cynic might suspect that MTD is preordained and nothing short of insurrection will cause more than a little fraying at the edges of the proposals. So be warned. In 18 months time you will need to have a computerised bookkeeping system and be ready to submit quarterly data to HMRC – or be manning the barricades!

Cloud accounting packages represent the optimal way to address these issues but it would be unwise to put off their adoption until the last minute. If you are a sole trader or partnership or receive gross rental income of over £10,000, speak to one of our advisers about the changes and your options now.



 
Other items in Blogs
 
Amanda Newman
23rd August 2019 Changes in VAT for Contractors and Subcontractors

Confused by the new CIS reverse charge VAT rules that come into effect from 1 October 2019, then HMRC have issued further guidance at https://www.gov.uk/guidance/vat-domestic-reverse-charge-for-building-and-construction-services#overview.   The basics are as from 1 October 2019 if you are a VAT registered subcontractor working for a contractor you will no longer be paid for the VAT element…

Read More »

Ian Piper
23rd August 2019 31-Oct Brexit: How can SME’s prepare for no-deal?

As we edge ever closer to what looks more and more likely to be a ‘no-deal’ Brexit, SME business owners should now be readying their businesses.   There is clearly no certainty over quite how affected we shall all be by Brexit. However, there are sensible risk management mitigation steps that business owners may wish…

Read More »

Jaimie King
13th August 2019 Charity accounts assurance

Whether unincorporated, a charitable company or a CIO (charitable incorporated organisation), charities are required to have certain levels of assurance over their financial statements depending on their size. The limits are much smaller than companies, meaning that many charities require some sort of external scrutiny. The requirements by size are as follows: Income up to…

Read More »

Nick Edgley
24th July 2019 From April 2020 – 30-day Reporting and payment date on residential property disposals

From 6 April 2020 the Government is making some significant changes to the rules regarding the reporting and payment of Capital Gains Tax (CGT) when individuals, trustees and personal representatives dispose of residential property and it is important to be aware of these.   Currently such a disposal would be reportable on your tax return…

Read More »

Jodie Tarbin
23rd July 2019 Residential Property Tax News!

  Lettings Relief and Principal Private Residence Relief   Following my previous blog regarding the changes announced to the Principal Private Residence Relief (PPR) and lettings relief rules, the consultation period ended on 1 June 2019. You can view the consultation responses here.   HMRC have now published a policy paper on 11 July 2019,…

Read More »

Fiona Mann
22nd July 2019 Exam Success – World Beating Results!

  We’ve had some extraordinary exam results over the last few days – staff at Whiting & Partners have excelled themselves. Luke Bacon from St Ives office has achieved an outstanding result of 99% for the Financial Accounting and Reporting exam – coming joint first in the world.  This result has been recognised by the…

Read More »