Making Tax Digital
Comments
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strongboes wrote: »I have signed up here, it is new and seems pretty cool and super cheap. What do people think?
https://taxodapp.com/
The two issues here are will that software interface with HMRC's new system? The software companies currently at the trough appear to be the ones.
Secondly, HMRC has requested free software to be made available but it cannot demand it. Free software will only be available to a point. When you hit a certain point, certain turnover or amount of invoices, you get to pay too.
All a bit grim.0 -
Perhaps, but there is not a lot wrong with the current HMRC software, so why force people to use third-party software at all? The current joint filing to Companies House and HMRC is a welcome simplification for smaller entities.
Unfortunately, the initial soundings from HMRC are that their software is to be withdrawn and third party software will be the only way to submit. In particular, at the moment, you can calculate your VAT return figures any way you want (paper, spreadsheet, software, back of fag packet) and just put the figures onto the HMRC input screen on their website. With MTD HMRC have already said that the existing VAT return system will be scrapped and submission directly via software will be the ONLY option! That's going backwards! Similar with payroll RTI submissions - currently HMRC provide a simple online calculation/submission tool for payroll - again, plans are that it's to be scrapped and every employer will have to use third party software. People just don't realise what's about to hit them!0 -
Every self employed person I've spoken to to date did not know anything about MTD. It's shocking that HMRC have settled with Press releases on their site and YouTube videos to promote the plan. I'm sure the outcry to MP's and Treasury Select Committee would be greater if they knew. Like the 16/17 dividends tax, people will only make a noise when it hits. Big shock coming.0
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I do the books for a friend (just to keep my hand in!) and I can forsee this being an absolute nightmare. Bank transactions would be fine but his cash transactions can take me WEEKS to sort out. Along the lines of 'well he paid me the £50 a week due last week but the 2 weeks before that he didn't pay'. When he found out about RTI he cut down on the work he did and sacked his 2 employees. I used to do the wages for him a couple of weeks in advance and then a couple of weeks in arrears - not acceptable via RTI.
My guess is that if this comes in the cash transactions will just "stop" and I will only be told about the bank ones. Either that or he will finally retire and if he does I don't expect he will last 2 years & HMRC will have lost at least £10k a year.
The software companies will also realise that they have you over a barrel and their charges will escalate.0 -
Here's a previous thread about making tax digital:-
http://forums.moneysavingexpert.com/showthread.php?t=55118280 -
Here's a previous thread about making tax digital:-
http://forums.moneysavingexpert.com/showthread.php?t=5511828
Thanks for the link.
Incredible that there is only one page of discussion.
The comments suggesting that self employed should pay tax on a real time system should also remember that business owners do not get paid holidays or sickness, no pensions or benefits. They also have to find business, deal with staff, produce bookkeeping etc. As mentioned in my initial post, small business is an important part of the economy and it is in the best interests of everybody to ensure that they flourish. They certainly shouldn't burdened with administration in this flawed digital crusade.0 -
I don't know why everyone is so worried. This HMRC video shows how simple it's going to be...free app for your smart phone, scan your receipts, hey presto no more bookkeeping. Even "John the plumber" can use it. They obviously haven't met my husband who's idea of filing receipts involves keeping them in his work trousers and me putting them through the wash!
Seriously though, we have to do VAT returns every quarter so keeping up with the paperwork isn't going to be a problem, it's when the accountant asks us for extra money for the three extra submissions he'll have to do.
https://www.youtube.com/watch?v=So1U0RzUGcs0 -
WEEN_NASTY wrote: »The two issues here are will that software interface with HMRC's new system? The software companies currently at the trough appear to be the ones.
Secondly, HMRC has requested free software to be made available but it cannot demand it. Free software will only be available to a point. When you hit a certain point, certain turnover or amount of invoices, you get to pay too.
All a bit grim.
I emailed them to ask, they said yes it will, they have the api or something for it and have made filings already.0 -
It can be worse.... In Latvia VAT submission every month, by 15th of next month. If you can't do a quarter, chances are your end-of-year books have patchy receipts for the first quarter and possibly overpaying VAT. Every receipt for business expenses that is "put through the wash" is lost money.0
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I can see this being a nightmare with so many people playing DIY bookkeeper/accountant0
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