Making Tax Digital
Discussion
Eric Mc said:
dvs_dave said:
Eric Mc said:
They don't have VAT in the US. What have they been doing digital for years?
Annual tax returns/self assessments, both on the federal and state level. Everyone has to do one, it’s the law.Btw, for those crowing little Englanders, I’m not American, just a Brit living here so have experience of both systems. I’m not an accountant or anything, just highlighting the fact that consumer grade electronic tax filing platforms are already out there. Tried, tested, and accurate for an arguably far more complex tax system than the UK’s.
Smart money UK tax accountants should be jumping all over Intuit TurboTax systems and the like and adapting them for HMRC use.
dvs_dave said:
Via phone apps....unlikely?
Btw, for those crowing little Englanders, I’m not American, just a Brit living here so have experience of both systems. I’m not an accountant or anything, just highlighting the fact that consumer grade electronic tax filing platforms are already out there. Tried, tested, and accurate for an arguably far more complex tax system than the UK’s.
Smart money UK tax accountants should be jumping all over Intuit TurboTax systems and the like and adapting them for HMRC use.
There are quite a few iOS and Android apps for SA submissions. Btw, for those crowing little Englanders, I’m not American, just a Brit living here so have experience of both systems. I’m not an accountant or anything, just highlighting the fact that consumer grade electronic tax filing platforms are already out there. Tried, tested, and accurate for an arguably far more complex tax system than the UK’s.
Smart money UK tax accountants should be jumping all over Intuit TurboTax systems and the like and adapting them for HMRC use.
Eric Mc said:
Nothing can be done about integrating software with HMRC systems without HMRC authorising such integration. HMRC sets the integration criteria.
Of course, that goes without saying. But just because it’s not possible now doesn’t mean it can’t be changed.That begs the question, why isn’t the association of UK tax accountants (or whatever such organisation there is) lobbying HMRC to do it? Bit of a duff organisation if they’re not already.
Although the plans to replace Self Assessment with a Making Tax Digital submissions were postponed, it is still likely to happen in the not to distant future. HMRC are still working towards setting up their systems for the multiple and separate submissions that will replace the current single Self Assessment Tax Return. My software provider (Iris) is getting their act together to be ready for when the change happens. Here is what is going to be required for sole traders and landlords -
IRIS now caters for a full end to end MTD submission
EOPS – End of period Statement (HMRC live - Oct 2018): With the addition of the EOPS submission it is now possible to complete an end to end submission for Self-employment (Sole trades) and UK Property for MTD.
An EOPS is an end of year declaration which is required to be submitted for each source of business income.
End OF Year Submission EOYS (HMRC live – Oct 2018): A new area added to the digital tax hub which allows you to crystallise a client’s end of year position (replacement to submitting a Tax Return).
Crystallisation is the process that allows you to finalise a client’s end of year position, this will involve submitting other income and reliefs and finalising the client’s final tax calculation.
Other income and reliefs (HMRC live – Dec 2018): It is now possible to submit an individual’s savings, dividends and charitable giving data from the digital tax hub (Within the ‘End of year submission’ section).
Note that a separate EOPS is required for each sole trader and rental activity. So, a sole trader with two separate businesses needs to complete two EOPS. A sole trader with two separate businesses and rental income needs to complete three EOPS.
You will have to get used to the terms EOPS and EOYS as the next important acronyms when it comes to handling your tax affairs.
IRIS now caters for a full end to end MTD submission
EOPS – End of period Statement (HMRC live - Oct 2018): With the addition of the EOPS submission it is now possible to complete an end to end submission for Self-employment (Sole trades) and UK Property for MTD.
An EOPS is an end of year declaration which is required to be submitted for each source of business income.
End OF Year Submission EOYS (HMRC live – Oct 2018): A new area added to the digital tax hub which allows you to crystallise a client’s end of year position (replacement to submitting a Tax Return).
Crystallisation is the process that allows you to finalise a client’s end of year position, this will involve submitting other income and reliefs and finalising the client’s final tax calculation.
Other income and reliefs (HMRC live – Dec 2018): It is now possible to submit an individual’s savings, dividends and charitable giving data from the digital tax hub (Within the ‘End of year submission’ section).
Note that a separate EOPS is required for each sole trader and rental activity. So, a sole trader with two separate businesses needs to complete two EOPS. A sole trader with two separate businesses and rental income needs to complete three EOPS.
You will have to get used to the terms EOPS and EOYS as the next important acronyms when it comes to handling your tax affairs.
Eric Mc said:
Although the plans to replace Self Assessment with a Making Tax Digital submissions were postponed, it is still likely to happen in the not to distant future. HMRC are still working towards setting up their systems for the multiple and separate submissions that will replace the current single Self Assessment Tax Return. My software provider (Iris) is getting their act together to be ready for when the change happens. Here is what is going to be required for sole traders and landlords -
IRIS now caters for a full end to end MTD submission
EOPS – End of period Statement (HMRC live - Oct 2018): With the addition of the EOPS submission it is now possible to complete an end to end submission for Self-employment (Sole trades) and UK Property for MTD.
An EOPS is an end of year declaration which is required to be submitted for each source of business income.
End OF Year Submission EOYS (HMRC live – Oct 2018): A new area added to the digital tax hub which allows you to crystallise a client’s end of year position (replacement to submitting a Tax Return).
Crystallisation is the process that allows you to finalise a client’s end of year position, this will involve submitting other income and reliefs and finalising the client’s final tax calculation.
Other income and reliefs (HMRC live – Dec 2018): It is now possible to submit an individual’s savings, dividends and charitable giving data from the digital tax hub (Within the ‘End of year submission’ section).
Note that a separate EOPS is required for each sole trader and rental activity. So, a sole trader with two separate businesses needs to complete two EOPS. A sole trader with two separate businesses and rental income needs to complete three EOPS.
You will have to get used to the terms EOPS and EOYS as the next important acronyms when it comes to handling your tax affairs.
Something to look forward to. Gah, makes me want to sell my share of the practice and retire. IRIS now caters for a full end to end MTD submission
EOPS – End of period Statement (HMRC live - Oct 2018): With the addition of the EOPS submission it is now possible to complete an end to end submission for Self-employment (Sole trades) and UK Property for MTD.
An EOPS is an end of year declaration which is required to be submitted for each source of business income.
End OF Year Submission EOYS (HMRC live – Oct 2018): A new area added to the digital tax hub which allows you to crystallise a client’s end of year position (replacement to submitting a Tax Return).
Crystallisation is the process that allows you to finalise a client’s end of year position, this will involve submitting other income and reliefs and finalising the client’s final tax calculation.
Other income and reliefs (HMRC live – Dec 2018): It is now possible to submit an individual’s savings, dividends and charitable giving data from the digital tax hub (Within the ‘End of year submission’ section).
Note that a separate EOPS is required for each sole trader and rental activity. So, a sole trader with two separate businesses needs to complete two EOPS. A sole trader with two separate businesses and rental income needs to complete three EOPS.
You will have to get used to the terms EOPS and EOYS as the next important acronyms when it comes to handling your tax affairs.
At heart, what they are doing is bringing back the way things used to be done before Self Assessment was introduced in 1995.
Before SA, sole traders submitted their trading accounts separately to submitting the actual tax return. SA was supposed to be a streamlined "one stop shop" approach to notifying HMRC of your profit(s) loss(es) situation for the tax year. 25 year on HMRC has decided that SA was a failure and they are reverting to the old methods - the difference being that the submissions are more frequent and carried out digitally rather than on paper.
Round in circles we go.
Before SA, sole traders submitted their trading accounts separately to submitting the actual tax return. SA was supposed to be a streamlined "one stop shop" approach to notifying HMRC of your profit(s) loss(es) situation for the tax year. 25 year on HMRC has decided that SA was a failure and they are reverting to the old methods - the difference being that the submissions are more frequent and carried out digitally rather than on paper.
Round in circles we go.
So, out of 1.2m businesses, a mere 1.17m of them are yet to sign up for MTD. 
https://www.accountancydaily.co/117m-businesses-st...
https://www.accountancydaily.co/117m-businesses-st...
LeighW said:
So, out of 1.2m businesses, a mere 1.17m of them are yet to sign up for MTD.
https://www.accountancydaily.co/117m-businesses-st...
If they've already signed up that would be for the MTD pilot as you don't have to register for MTD until your first quarter end after 31 March. Also, I wonder how the registration figures take into account agents signing up on behalf of their clients.https://www.accountancydaily.co/117m-businesses-st...
We've advised our clients we won't register them until they have to submit MTD returns. Reason being, once you signed up for the pilot there was no going back. So, being prudent, as good accountants should be
, we thought it best to let others sort out the teething problems. uknick said:
We've advised our clients we won't register them until they have to submit MTD returns. Reason being, once you signed up for the pilot there was no going back. So, being prudent, as good accountants should be , we thought it best to let others sort out the teething problems.
Same here. Amusing statistic non the less., we thought it best to let others sort out the teething problems. Amidst all the furore about Brexit yesterday, the Chancellor's Spring Statement did not get much coverage. Buried within the speech, were some interesting points about Making Tax Digital -
Perhaps one of the most significant announcements in today’s statement was the reference that the government will not mandate MTD for any new taxes in 2020
George Bull, senior tax partner at RSM, said: “Previously, we were expecting MTD to be extended to income taxes and corporation taxes from 2020, but this now appears to have been deferred to an as yet unknown later date. It’s likely that HMRC will want to fully assess how MTD for VAT, which comes into force in 2019-20, is working in practice before committing to an extension.
“This is a far cry from the ‘end of the tax return’ we were promised back in Budget 2015.”
As for MTD for VAT, of which the deadline is less than a month away, Adrian Rudd, Chair of CIOT/ATT, said: “While some of the requirements of MTD apply from 1 April 2019, this is not the deadline for enrolling into MTD. For many businesses the deadline for signing up may be nearer the beginning of August 2019.
“Businesses need to enrol into MTD for VAT at the right time, and only when they are confident that they can submit their next VAT return using MTD-compatible software, otherwise significant problems can arise. We have produced a guide to the sign up ‘windows’, to help businesses transition into MTD as smoothly as possible.”
Perhaps one of the most significant announcements in today’s statement was the reference that the government will not mandate MTD for any new taxes in 2020
George Bull, senior tax partner at RSM, said: “Previously, we were expecting MTD to be extended to income taxes and corporation taxes from 2020, but this now appears to have been deferred to an as yet unknown later date. It’s likely that HMRC will want to fully assess how MTD for VAT, which comes into force in 2019-20, is working in practice before committing to an extension.
“This is a far cry from the ‘end of the tax return’ we were promised back in Budget 2015.”
As for MTD for VAT, of which the deadline is less than a month away, Adrian Rudd, Chair of CIOT/ATT, said: “While some of the requirements of MTD apply from 1 April 2019, this is not the deadline for enrolling into MTD. For many businesses the deadline for signing up may be nearer the beginning of August 2019.
“Businesses need to enrol into MTD for VAT at the right time, and only when they are confident that they can submit their next VAT return using MTD-compatible software, otherwise significant problems can arise. We have produced a guide to the sign up ‘windows’, to help businesses transition into MTD as smoothly as possible.”
Eric Mc said:
Amidst all the furore about Brexit yesterday, the Chancellor's Spring Statement did not get much coverage. Buried within the speech, were some interesting points about Making Tax Digital -
Perhaps one of the most significant announcements in today’s statement was the reference that the government will not mandate MTD for any new taxes in 2020
This is hardly a surprise as lots of HMRC resource have been re-targeted towards a no deal Brexit. Perhaps one of the most significant announcements in today’s statement was the reference that the government will not mandate MTD for any new taxes in 2020
Eric Mc said:
“Businesses need to enrol into MTD for VAT at the right time, and only when they are confident that they can submit their next VAT return using MTD-compatible software, otherwise significant problems can arise. We have produced a guide to the sign up ‘windows’, to help businesses transition into MTD as smoothly as possible.”
Good! I have sadly succumbed to the absurd 'pay forever' model for a spreadsheet/calendar in the cloud as it will help my accountant who hasn't upped his fee 5 years. However it still doesn't work for the bank feeds despite a few go's and the accountant's Xero rep being on it. I won't have time to suss it all out for the next VAT return even if it is all fixed and working so good to know I can continue pigeon couriering an Excel sheet as usual . Ho hum. Gassing Station | News, Politics & Economics | Top of Page | What's New | My Stuff