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Making Tax Digital

  • Associate
  • Practice Licence
  • 8 posts
  • # 115299

HMRC - Making Tax Digital


quote from their website:


"These changes are therefore being introduced gradually, starting in 2018 with Income Tax for businesses, self-employed people and landlords with annual turnover above the VAT threshold. In 2019-20 we will extend the Income Tax elements of Making Tax Digital to all businesses, self-employed people and landlords with annual turnover above £10,000. We will then move on to VAT (2019) and Corporation Tax (2020)."


Any thoughts on this from anyone would be appreciated, I would like to hear opinions.

  • Associate
  • Practice Licence
  • 38 posts
  • # 115358

Hello

I'm just starting up in practcie and am trying to think about what the implications of MTDI and MTDB are, so thank you for raising this topic.. As a brand new bookkeeper I don't feel qualified to comment but am keen to know what others think. 

Best wishes, naomi. 

  • Associate
  • Practice Licence
  • 8 posts
  • # 115361

Naomi Griffiths said:

Hello

I'm just starting up in practcie and am trying to think about what the implications of MTDI and MTDB are, so thank you for raising this topic.. As a brand new bookkeeper I don't feel qualified to comment but am keen to know what others think. 

Best wishes, naomi. 


 Thanks Naomi, glad I finally got a response. 

My gut feel is either people have fully read up on this and therefore do not feel compelled to comment and share , or, people have literally not thought about this at all and are probably unaware that this will significantly impact next year.

Re not being "qualified"; I would say that no-one is qualified as yet regarding MTD other than those who have read the fairly scant stuff from the HMRC website, plus wild articles and misleading PR from some dodgy accountants, as well as some very good stuff from extremely solid accountants. 

This is why I posted this, there is no concensus, so maybe the ICB club could shed light and some guidance.

My thoughts are this could be a boom time for us as there will be a mandatory requirement to properly document digital records that can be distributed instantly on request; thus the era of shoebox year end is made obsolete.

Watch this space.

Gary

  • Member
  • Practice Licence
  • 33 posts
  • # 115365

Hi Gary

HM Treasury released statement 13th July confirming changes to MTD.

From April 2018 VAT reg businesses above threshold will have to keep digital records and update quarterly for VAT (not tax).

Small businesses below threshold will not be required to keep digital records or update quarterly for tax until at least 2020.

 

IMHO even then think it will be voluntarily initially.

Although a temporary respite should give everyone bit more time to prepare for inevitable - not least HMRC

See Aweb HMRC and Policy section for good read

 

Trish

  • Associate
  • Practice Licence
  • 38 posts
  • # 115369

Hello again

I'm trying to prepare for MTD by applying for an agent code through HRMC. I'm still waiting for this after applying  ten days ago or so. Once I get this I'll be able to open up an agent account with HMRC and then I'll be able to link client accounts to that and do the bookkeeping through this portal. Is everyone else doing the same? 

I have a question if anyone can help. Does anyone know if it will be possible for clients to use the MTD services voluntarily if they don't fit the criteria for compulsory enrolment. I only have one client so far (launching practice on 1st August) who has promised to use my practice. He only turns over around £3,000 per year as it's a part-time self-employment and he also works in employment full time. I'd like to use the MTD systems as it'll give me a chance to get used to them. 

I know the FSB are calling for trials rather than blanket introductions to MTD as they don't think people are ready for this and they are predicting chaos. I think this is a sign that we should be facing up to this and getting prepared. 

One final point, HMRC are doing webinars on MTD. You can join a live session or watch a recording. Hope someone might find this useful. 

Good luck all. 


  • Member
  • Practice Licence
  • 33 posts
  • # 115375

Sorry for typo - should have read from April 2019 for VAT reg businesses not 2018

  • Fellow Companion
  • 82 posts
  • # 115384

Last week HMRC announced a revised and deferred timetable for implementation - there is an update article in the News section of our website.

  • Associate
  • Practice Licence
  • 38 posts
  • # 115414

Jacquie Mount ICB said:

“Last week HMRC announced a revised and deferred timetable for implementation - there is an update article in the News section of our website.”

 Thank you Jacquie for that. I'll have a look on the website. 

Regards, Naomi. 

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