Making Tax Digital – Volunteers Wanted
HMRC is looking for businesses who are willing to take part in its Making Tax Digital for VAT pilot which starts in April 2018. At DEB, we think that this is newsworthy as it is a clear indication that Making Tax Digital, as an initiative, is starting to move, in anticipation of the April 2019 starting date.
The MTD Pilot
The proposed pilot will start in April 2018 with a selected number of businesses being given the opportunity to submit their VAT returns via the new system. HMRC will then monitor the process to ensure the system is working as expected before rolling it out.
Why take part?
Few people are likely to volunteer to take part, primarily due to the fact that there is very little software around capable of doing this. At DEB we feel that the quality of the means of communication with HMRC over testing leaves a lot to be desired. HMRC will only allow email queries and they are very slow to respond.
We feel that businesses, in general, will not wish to take part at the moment as the system hasn’t been properly tested, but there’s nothing to stop them doing this if they have software capable of linking with HMRC’s system.
The most likely problem is that the new system will contain lots of bugs that need fixing which could mean it takes you longer to file a VAT return than before. But HMRC says it will address any “technical hiccups” swiftly. If, however, anyone taking part finds that they no longer want to take part in the trial, they can leave at any time.
DEB at the front of innovation
As we feel it is important to be at the front of new initiatives that will impact upon our clients, we have made contact with HMRC so that we can be involved. By this means we may, in a small way, be able to help shape the way that the system is being developed.
Making Tax Digital is Coming
Whether you like it or not. Making Tax Digital is coming, and it will have a big impact on all businesses, sooner or later. At DEB we are providing our clients with lots of alternatives for them to cope with MTD, including free software, the superb QuickBooks online software, and even taking the burden of bookkeeping off business owners and doing it for them. We are also providing free seminars to explain what is involved with MTD and how businesses can cope with it. If we can help you at all, give us a call on 01226 245824.