Peers to HMRC: Digital tax reforms 3 days after Brexit? Hold your horses, how 'bout 3 years...

From Window Tax to Windows Tax

"the Government should consider again the case for providing a basic, free software option"

I'm willing to bet that a free software option won't be available for a variety of operating systems. So am I going to have to buy a machine with windows?

In the 18th century, people used to reduce their tax bill by bricking up windows.....

I'm working on implementing a MTD solution for the company I work for.

I have to say most of our customers know nothing and are completely unprepared.

Since the go live is next year, they should already be making sure they hold all of figures needed to make submissions digitally.

I should also say that the HMRC test servers aren't great either. All of the documentation for MTD VAT is 'beta', meaning they can change it whenever they want, yet we are trying to create a piece of software that is supposed to go live next year. The test data/scenarios do not work flawlessly either. Because of the way the scenarios are implemented it's impossible to do a full walkthrough of the process using the test data. You have to stop and change the scenario half way through. Their test data/scenarios never work the way you want them to.

I'm also quite annoyed that they have implemented MTD via the HMRC API instead of using the Government Gateway (Transaction Engine) that is used for making year end payroll submissions and CIS submissions. The old system works fine for two way communications using XML. Now we have to suddenly start learning an API that uses JSON instead, for no apparent reason.

Nope

First I've heard of this to be honest, although I am registered on the Flat Rate scheme (which I assume it doesn't affect*).

Perhaps the figures relating to #businesses meeting the turnover threshold that are not on the flat rate scheme is a bit lower than the headline figures here (unless that's already been taken in to account).

*I'm trying to break the habit of assuming anyone/anything makes sense anymore, but it's a struggle.

Yeah, to upgrade my version of sage to the one that can do MTD means having to move to a subscription: £850 a year to file VAT returns :(

I was contacted by my accountants a few years ago to tell me that MTD was coming. They said they couldn't tell me much more because there wasn't any more information from the HMRC at that time. So I ignored it as I only rent out a flat and have some investments which could theoretically come under this. Then I heard more, that there were dates for introducing this to the wider populace so I made enquiries with the HMRC. The lady on the enquiries line basically said that if I wasn't party of the exercise that was being conducted then they couldn't talk to me about MTD. I asked if they could at least tell me what records I would have to keep? No not if you're not part of the trial then we can't tell you anything. I said it sounded like I was going to be paying my accountants for four pieces of work a year as opposed to just one. HMRC lady said that I could just do it myself and that it would be easy to do online. I said great what details will I need to enter? I can't tell you that unless you're part of the trial sir. She said I would be able to submit my digital records online to which I said you mean the PDF account statement that the managing agents send me each month? I think you're trying to get information out of me that I'm not supposed to give to anyone outside the trial participants. I asked if I only received an annual statement for my flat accounts could I just submit things annually like now? That information is only available for participants in the yada yada yada same response etc.

I asked if she could tell me what the fine would be for missing an information submission would be. I find it hard enough to get everything together once a year let alone every three months. Nope she couldn't do that either so I said it sounded like a shambles I would put money on the introduction deadlines slipping and wished her a pleasant afternoon. As it turned out the deadlines did get moved and I'm still waiting for more information. The HMRC website doesn't tell you anything about what you'll need to keep.

Wow, I’m really quite shocked that I hadn’t heard about this.

I’ve only been VAT registered for a few months. Why didn’t everything that I signed up for back in the Summer say in big letters “This is only temporary, you’re going to have to do it all differently from next year”? I might efen have postposed registering to avoid the re-learning. (I’m voluntarily registered.)

Currently I type about 4 numbers into a web page each quarter. I would have thought that that web page is a front end to some HMRC back-end system. Now they want me to talk directly to that back-end system, right?

What a total pain. If it was something involving more data (e.g. PAYE for a medium-sized business) then I could see the possible benefit - but for just a handful of numbers every few months... why?

As I understand it (from a brief conversation with my accountant) you are having to submit a lot more than boxes 1-9. He said all transactions involving a VAT element will need submission so presumably they can match the claimed refunds for one business against the sales for the other.

I said it sounded like a complete clusterfork and he basically agreed. I have used an excel workbook for 15 years - never had any issues or complaints, but now I am going to have to completely revamp it into an HMRC compatible format (I am told Excel is an acceptable method as long as the layout matches what they want). I reckon one day chargeable time used per quarter (at the moment I am 10 mins a week updating the workbook, then 15 mins a quarter pulling out the numbers for the return).

AAAARRRRGGGHHH!

Isn't that why I pay my accountant

I don't see what the problem is. I already pay my VAT bill quarterly whenever my accountant (Inniaccounts) tells me too. Well, in reality, the VAT man just grabs it via DD.

Not sure how this would change for me, but, I'm just a scumbag contractor.