Just a heads up to those interested that HMRC have released 6 consultation documents over the new MTD, which is due to come into force from April 2018. I haven't read myself yet, but will do when I have some free ime.
I've found the one key paragraph that I was looking for in the second document (important bits to me are bold and underlined).
2.10. We expect the digital tools produced to meet the requirements of Making Tax Digital (hereafter in this consultation referred to as MTD compatible software) to cover a multitude of offerings. It could be any program or combination of programs, operating on a device (whether desk based computer, or mobile device such as smartphones and tablets) that allows the entry, storage (whether localor in the cloud), and transmission of data, sufficient to meet the minimum requirements discussed in Chapters 3 and 5 of this consultation. As data will be transmitted to HMRC via Application Programming Interfaces (API), the software will need to be capable of capturing and submitting data in specified formats and linking to the relevant API.(An API defines how one application talks to another application, allowing it to access a resource, some data or a service).
So in essence this is to be iXBRL #2 where tagged filing is needed for all entities, not just incorporated ones.
Fears of losing the ability to use my beloved VT to keep peoples books have diminished somewhat.
Thats the good news. The not so good news is that this whole thing seems geared towards eradicating bookkeepers and SME accountants as a lot of micro to small businesses will be doing everything themselves I assume on the assumption from HMRC that they will be getting it wrong so will be able to recoup their £1.3 billion investment faster.
That said, the micro market which is the primary market for people on here could be decimated by these changes. There will still be clients out there to be had but the ratio of bookkeepers to businesses will be heading in completely the wrong direction and thats going to affect market rates for that (the largest) market segment.
Seems that we are living in interesting times indeed!
All the best,
Shaun
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
I've just read the confirmation from VT over on Aweb that VT software will be updated to handle MTD (Making Tax Digital)... Once HMRC actually tell VT what the requirements are!
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Well that's good news. Even if they weren't going to, I could have used taxfiler.
The jury is still out as to whether clients will move over to doing their own accounts in the cloud. I expect to lose four at the most, that's 3 yearly subbies and a guy who puts everything in
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
Most of my clients come to me because either they don't have time or the inclination to do the bookkeeping themselves. I don't think it will be less work for bookkeepers necessarily. A lot won't want to learn how to use bookkeeping software in the same way they don't want to now. And if they have to keep it up to date I can see more work for bookkeepers as they won't be able to just think about it once a year.
