Making tax digital

charlies_mum

Someone was talking about the new HMRC rules coming into force next year I think and they were saying that returns will have to be completed online quarterly detailing every transaction a business makes

Apparently spreadsheets are not acceptable and only software approved by HMRC will be accepted

Has anyone looked into this ?

RFW

Latest I've read is that tax returns will be April 2020 at the earliest, which tends to mean much later. It is due to apply to VAT returns in April 2019.

RFW

If anyone has experience of any of the acceptable programs, recommendations would be appreciated.
It looks as though you can use a spreadsheet but better options seem to be available.

ballisticbrian

"detailing every transaction a business makes"

seriously? My accountant hasn't spoken a word to me about anything like that. This apply to Limited Companies?

charlies_mum

ballisticbrian wrote: »

seriously? My accountant hasn't spoken a word to me about anything like that. This apply to Limited Companies?

No idea. The person who told me is pretty clued up but he could be wrong. The thought of detailing every single eBay transaction is awful

Like RFW I could do with some recommendations regarding which software to use.

RFW

charlies_mum wrote: »

No idea. The person who told me is pretty clued up but he could be wrong. The thought of detailing every single eBay transaction is awful

Like RFW I could do with some recommendations regarding which software to use.

There's a list of those that are allowed on HMRC site https://www.gov.uk/guidance/software-for-sending-income-tax-updates


There's some that are quite pricey, but some have mobile apps that could save me a fair bit of time. Still looking for recommendations though, otherwise I'll go for Sage as a name I know and used years ago.

charlies_mum

Just had a look a Sage and for the basic package it's £6 + VAT a month, so a lot cheaper than using an accountant

kangoora

From https://www.gov.uk/government/publications/making-tax-digital/overview-of-making-tax-digital

Having listened to concerns about the pace of change, particularly for small businesses, the government announced in July 2017 that the pace of mandation would be slowed and that Making Tax Digital will not be mandated for taxes other than VAT until at least April 2020.

So, if you are VAT registered it appears to be from April 2019 (this coming tax year).

If you are self employed and only pay income tax then, yes, it looks like April 2020 it will start.

You have to laugh at the utter BS wording used. Making Tax Digital is a key part of the government’s plans to make it easier for individuals and businesses to get their tax right and keep on top of their affairs. .

How on earth can this be easier, having to submit quarterly returns on all your business? It's purely, as usual, a money grabbing exercise demonstrating a lack of trust in the existing system and payees. If it catches out tax dodgers all well and good but the majority of honest people will just get extra work (probably also have to buy extra software) for little or no benefit.

ballisticbrian

Thanks for the link. Nothing for corporation tax then? So for a non VAT registered Ltd company, it would explain why my accountant hasn't mentioned it?

RFW

ballisticbrian wrote: »

Thanks for the link. Nothing for corporation tax then? So for a non VAT registered Ltd company, it would explain why my accountant hasn't mentioned it?

I'm a VAT registered sole trader and I didn't know I needed to sort it by April. Not a big deal as I was looking at using some accountancy software anyway so this has given me a kick up the bum.


I can see it being a disaster though. I won't mention it in detail but I've had an ongoing problem with HMRC due to a problem with their system. Online says to call them, when I call they say to write and when I write they eventually tell me to try online!

RFW

ballisticbrian wrote: »

Thanks for the link. Nothing for corporation tax then? So for a non VAT registered Ltd company, it would explain why my accountant hasn't mentioned it?

As far as I can tell it wouldn't make too much difference if you use an accountant. They should have everything filed how HMRC want it and all the accountant has to do is submit a couple of extra spreadsheets.