ACCA continues to consult with practitioners on HMRC’s plans for MTD.
Thank you to all members who have sent in comments responding to the briefing note ACCA sent in August, where we invited your comments and asked for your business insight and expertise. These comments are invaluable and help ACCA to highlight the impact of the proposals.
The overwhelming majority of your comments highlight the cost to business and that Making Tax Digital (MTD) will take up management time and prevent businesses from looking at new opportunities. The feedback from businesses included a comment from a practitioner who stated ‘I have been contacted by a number of my clients recently who are universally horrified at these proposals.’
The areas we discussed in the note were:
calculation of profits.
Please continue to send your comments on any of the questions in the consultations, together with any other thoughts on MTD, via email to firstname.lastname@example.org
As a reminder the six consultations making up the suite are open for comment until 7 November:
HMRC’s position is clear in the consultations and is illustrated by the statement ‘we believe that the full benefits of digital capability can only be delivered for all parties by mandating the use of digital record keeping software that links to and updates businesses' digital accounts with HMRC'.
Clearly its view is that businesses must record business information in the form HMRC requires and that it must be sent to HMRC each quarter. Failure will result in a penalty.
HMRC also makes it clear in paragraph 8.15 of Bringing business tax into the digital age that user testing is already due to take place in the second half of 2016 and throughout 2017!
It is still important though to make sure your voice is heard and we would encourage you to comment on the merits of MTD and consider some of the key questions in the consultation document.