Making Tax Digital

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  • Pennywise
    Pennywise Posts: 13,468 Forumite
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    edited 31 March 2019 at 9:07AM
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    BorderCollie18 wrote: »
    I was seriously considering just deregistering for VAT and closing the business as I'm very near to retirement and there is no way I'm going to signup for this ludicrous 'recurring revenue' software scam whereby you 'rent' your software while forced into a bloody headlock by Intuit (QB) or whomever. I just refuse to use recurring revenue software - period!!

    Bit of a knee jerk reaction to give up what I assume is a profitable business to avoid paying a tenner a month for software isn't it? Presumably your business makes more than £120 per year profit?

    Or you could avoid MTD if your turnover is below the VAT threshold as it only applies to business breaching the threshold - if you're happy enough to close it on a whim, sounds like it's not that big anyway, so if turnover is under £85k, you can safely ignore MTD, even without deregistering from VAT.

    But anyway, there is free software such as VT's free cash book which will be MTD capable, so free desktop based software is an option and vt cash book is every bit as good, if not better, than quicken.
  • kevin_grey
    kevin_grey Posts: 13 Forumite
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    I think the problem with VAT submissions most people will only do them 4 times a year and it only takes a few minutes, MTD is only really a problem for people who dont keep any electronic records
  • BorderCollie18
    BorderCollie18 Posts: 3 Newbie
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    Thanks for your quick reply. I guess we are both on similar timescales. Everything I've read about MTD seems to indicate HMRC are going to be well out of their depth in terms of resources to enforce technical compliance but I'll bear your solution in mind for the future.
    Definitely won't be putting my accounting records in the hands of recurring revenue software publishers ..... EVER!!
  • BorderCollie18
    BorderCollie18 Posts: 3 Newbie
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    Pennywise wrote: »
    Bit of a knee jerk reaction to give up what I assume is a profitable business to avoid paying a tenner a month for software isn't it? Presumably your business makes more than £120 per year profit?
    The trouble I perceive with any type of RR software is that once you are in the headlock the price rises are something you either have to swallow or move to another application. That £120 'introductory' will become £300 per year before you know it and then the provider will nickel and dime you for the rest of your days.. No way will I rent my accounting software.
  • kevin_grey
    kevin_grey Posts: 13 Forumite
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    BorderCollie18 wrote: »
    The trouble I perceive with any type of RR software is that once you are in the headlock the price rises are something you either have to swallow or move to another application. That £120 'introductory' will become £300 per year before you know it and then the provider will nickel and dime you for the rest of your days.. No way will I rent my accounting software.

    I have looked at some of the software out and do feel a bit uncomfortable about using the 'cloud' based packages,this was the very reason I wrote my own desktop MTD VAT interface, it was a little bit of work but at least I have control and know whats going on.
  • neilsedaka
    neilsedaka Posts: 396 Forumite
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    kevin_grey wrote: »
    do feel a bit uncomfortable about using the 'cloud' based packages.

    Why are you uncomfortable with the cloud?

    How do you access your email?
  • kevin_grey
    kevin_grey Posts: 13 Forumite
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    neilsedaka wrote: »
    Why are you uncomfortable with the cloud?

    How do you access your email?

    Its about storing passwords on unknown servers?
  • neilsedaka
    neilsedaka Posts: 396 Forumite
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    kevin_grey wrote: »
    Its about storing passwords on unknown servers?

    It is very likely that you are doing just that multiple times already, without realising it. For example, your username and password that enables you to use this forum are probably stored somewhere on the cloud.

    Where do you think your email service is located?
  • gilbertthecat
    gilbertthecat Posts: 7 Forumite
    Combo Breaker First Anniversary
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    I work at a 'small business' and have, until now, happily used the HMRC portal to submit our VAT figures.

    We are like the vast majority of businesses - who are very used to this mechanism for submitting VAT returns and do not want to sign up for solutions which may not suit how they have operated for many years.

    With this in mind we have written a totally Free, HMRC recognised MTD VAT portal which will allow users to continue to submit figures in the way they have been used to.

    We do not ask for any sort of registration or sign-up and have made the software Free for anyone to use. Just need to sign-in with your Government Gateway account credentials at (https) vat.portico.openanswers.co.uk - or search for Portico on the HMRC Find software for Making Tax Digital for VAT page.

    I hope that people find this useful.

    Cheers, Jeremy
  • pvt
    pvt Posts: 1,433 Forumite
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    kevin_grey wrote: »
    I think the problem with VAT submissions most people will only do them 4 times a year and it only takes a few minutes, MTD is only really a problem for people who dont keep any electronic records

    I'm treasurer of an organisation that is a net reclaimer of VAT, and I submit returns monthly - did have to make a very small payment on a return about 4 years ago, but otherwise it's all reclaims, circa £30k per annum.

    I am using a package called TASBooks, now owned by Sage. TASBooks used to file VAT online up until a year ago, then stopped when HMRC closed the particular gateway it used, since then have had to file them all manually.

    I paid a "support" cost to Sage for TASBooks - it's about £500 pa. When I contacted them about MTD they said they could provide a module for TASBooks, but wanted a payment of £25 PER MONTH for it. So Sage want £300 pa on top of the support I already paid them.

    I have declined the invitation, and also now cancelled the support contract since, when I need their support, I seem to have to pay extra anyway. Simply disgusted at Sage's money grabbing approach to MTD.

    HMRC's handling of this whole debacle has been lamentable, and a House of Lords' Finance committee report published last November was damning:
    • HMRC has based their plan on optimistic and erroneous assumptions;
    • HMRC's view that it would have little financial impact on businesses was flawed;
    • Only 40% of the businesses affected by MTD had even heard of the requirement;
    • Asked why HMRC has not produced their own software package (as they have very successfully for PAYE);
    • Suggested the impending imposition of MTD should be postponed by at least a year.
    TASBooks works very well, I have absolutely no desire to change to an alternative package. But I regret Sage's greed may well force the issue.
    Optimists see a glass half full :)
    Pessimists see a glass half empty :(
    Engineers just see a glass twice the size it needed to be :D
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