ESB Accountancy is helping a growing number of organisations in Gloucestershire with their Making Tax Digital (MTD) online filing with the HMRC.
Making tax digital (MTD) will have a disproportionate effect on sole traders and other small businesses (micro businesses) particularly if they are not VAT registered because it will introduce the need to report to HMRC quarterly and keep records electronically.
Currently only about half of our clients use a computer to keep their records (even if only on a spreadsheet) so this is not going to be as easy a transition as HMRC are trying to make out.
The consultation period on these proposals (in four sections) lasts until mid November. ESB Accountancy would encourage business owners and landlords to go on to the website and give a response to the effect that any requirement for non VAT registered traders to report quarterly is going to result in an increase in accountancy fees because “we” do not accept that direct interaction with HMRC quarterly without assistance from our accountant will be in our best interest no matter how simple HMRC claim to make the system.
The MTD exemption threshold for turnover at £10,000 is far too low.
This is different from Real Time Input for payroll (RTI) which requires monthly summaries to be submitted for all staff because the chances of making errors which affect profitability are significantly greater than with payroll.
In certain ways RTI is to be applauded, provided HMRC use information about delayed remittances of tax to them as a way of stopping delinquent organisations from building up large liabilities. Too many insolvencies have enabled he directors and shareholders to walk away from these liabilities and start up again even in industrial sectors that require licences to operate legally like security guards.
So if you would like some help with your online tax returns for your organisation from someone with several decades of financial experience here in Gloucestershire you can either ring us now on – email us on firstname.lastname@example.org or click the Contact Us buttonor please fill the form at the bottom of the contact us page.