Making Tax Digital

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  • WEEN_NASTY
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    Are you aware that 5,300,000 minus 1 does not equal 5,299,000?

    Thanks for that. (Must not shoot off replies).
  • TheCyclingProgrammer
    TheCyclingProgrammer Posts: 3,702 Forumite
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    edited 11 October 2016 at 5:20PM
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    WEEN_NASTY wrote: »
    Good for you. Were you aware that there are 5,299,000 other small businesses in the UK?

    Did you want our opinions or did you just want everyone to agree with you?

    If you want to run a business, you have a responsibility to at least learn the basics of how to keep records and do things like submit a tax return. Or pay an accountant to do it all for you. There are lots of good online accounting packages that can help too and they aren't all complicated.
  • WEEN_NASTY
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    Did you want our opinions or did you just want everyone to agree with you?

    If you want to run a business, you have a responsibility to at least learn the basics of how to keep records and do things like submit a tax return. Or pay an accountant to do it all for you. There are lots of good online accounting packages that can help too and they aren't all complicated.


    Where did I say you weren't entitled to an opinion? I was pointing out to you that there are other businesses that do not have the digital skills that you obviously do. By the way what is your profession if you don't mind me asking?
    Many businesses do have the basic skills required for bookkeeping its current format. Bookkeeping that have served them accurately for many years. If you try and empathise you may realise that not every taxpayer has digital skills or has the finances to pay an accountant.
  • Apodemus
    Apodemus Posts: 3,384 Forumite
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    If you want to run a business, you have a responsibility to at least learn the basics of how to keep records and do things like submit a tax return. Or pay an accountant to do it all for you. There are lots of good online accounting packages that can help too and they aren't all complicated.

    I agree, but there is more to it than that. For the very smallest businesses (and this includes a lot of small not-for-profit companies limited by guarantee), a quarterly return and accountants fees would be disproportionate to the level of activity in the enterprise.

    If the Government's view is that these enterprises should either close or convert to another legal form, then fair enough. However, I view these as valuable stepping stones in building entrepreneurial spirit and experience and would rather the Government reduced red-tape barriers to entry. I believe that the public benefits in terms of open-ness and accountability of the Ltd company format are such that we should encourage as many smaller entities to adopt that legal form as possible - quarterly tax reporting, using expensive software will work against this.
  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
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    Apodemus wrote: »
    I agree, but there is more to it than that. For the very smallest businesses (and this includes a lot of small not-for-profit companies limited by guarantee), a quarterly return and accountants fees would be disproportionate to the level of activity in the enterprise.

    If the Government's view is that these enterprises should either close or convert to another legal form, then fair enough. However, I view these as valuable stepping stones in building entrepreneurial spirit and experience and would rather the Government reduced red-tape barriers to entry. I believe that the public benefits in terms of open-ness and accountability of the Ltd company format are such that we should encourage as many smaller entities to adopt that legal form as possible - quarterly tax reporting, using expensive software will work against this.

    maybe the answer is cheap software
  • Pennywise
    Pennywise Posts: 13,468 Forumite
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    edited 12 October 2016 at 7:54AM
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    Apodemus wrote: »
    I believe that the public benefits in terms of open-ness and accountability of the Ltd company format are such that we should encourage as many smaller entities to adopt that legal form as possible - quarterly tax reporting...

    But it's not limited companies that are being affected here. It's landlords, sole traders and partnerships, those businesses who are less likely to have skills to do their own book-keeping or use software!

    Illogically, the MTD regime for limited companies (generally larger and more able to weather additional hassle/costs) will come in later.

    It's one of the many points made to HMRC by accountants etc that they've got this the wrong way round. Usually, fundamental charges are made to those best placed to manage it, i.e. larger businesses, and then it trickles down to smaller firms once the inevitable glitches have been ironed out, but in this case, they're doing it "bottom up", starting with the people least able to have the time/money to be guinea pigs.
  • System
    System Posts: 178,094 Community Admin
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    Won't they have to guarantee proper internet connection to every single property before this can be made mandatory?
    Or are they trying to encourage the cash-only black economy in rural areas?
  • Apodemus
    Apodemus Posts: 3,384 Forumite
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    CLAPTON wrote: »
    maybe the answer is cheap software

    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.
  • strongboes
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    I have signed up here, it is new and seems pretty cool and super cheap. What do people think?

    https://taxodapp.com/
  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
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    Apodemus wrote: »
    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.

    that may well be a valid point : I don't know the detail but only commenting upon the 3 monthly submissions
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