Are you capable of submitting things without being checked?
Are you happy to submit business information to HMRC without it being checked by an expert ?
With the advent of the new government proposals you need to be asking yourself “Are you capable of submitting things without being checked?” Or would you be better off both time wise and indeed in financial terms enlisting the help of a company such as ours with a proven track record?
The move to MTD works on the premise that either taxpayers have a fair degree of computer literacy or have enlisted the help of an agent (accountant), or a combination of both. How all of this will work in practice is not yet entirely clear. There is a considerable debate about who will be providing what software, and how much it will cost.
The software will help taxpayers check before submitting to HMRC and in theory avoid costly mistakes. But many taxpayers will have little or no experience of this level of responsibility.
Businesses will have to send HMRC information direct from their software. As HMRC do not plan to produce their own software, taxpayers will have to choose from commercial providers. Free software is only promised for those with the ‘simplest’ affairs. A simple spreadsheet (currently used by many businesses) is unlikely to meet HMRC’s future requirements.
Helping people to ‘go digital’ – HMRC plan to provide some ‘digital assistance’ (and perhaps even financial support) for people to move to the new system. They also anticipate that some people will get help from the tax profession, friends and family and the Voluntary Community Sector.
Exemptions for disabled people, older people, those in remote locations and for other reasons will be available, though the detail of what alternative services will be provided for those who are exempt is not clear at this point in time.
So if you have not enlisted the help of an accountant yet perhaps now is the time to contact us. We are here to help ease the worry of the looming transition.
Further details to follow…