We are proud to say that Eazitax (the company of which Securtax is a product) is on both the HMRC Making Tax digital Pilot for VAT and Income Tax. We were the first practice in the country to submit clients tax returns through the new MTD portal and continue to be ground breaking in protecting our clients interests by taking on the tough stuff first.
We therefore go on (without apology) about The HMRC’s Making Tax Digital.
According to The HMRC;
“MTD is a key part of the government’s plans to make it easier for businesses to get their tax right and keep on top of their tax affairs. HMRC’s ambition is to be one of the most digitally-advanced tax administrations in the world, modernising the tax system to make it more effective, more efficient and easier for customers to comply. Keeping digital records and providing updates to HMRC directly through MTD-compatible software will help reduce errors, cost, uncertainty and worry. This streamlined digital experience will integrate tax into day-to-day business record-keeping, so that businesses can view their tax position in-year and be confident that they have got their taxes right”.
Making Tax Digital is the government’s plans to make individuals and businesses bring together individual customer’s information in one online place. It forces customers to access the service from a digital device and will be in full use by 2020. Some firms such as my own are currently involved in the pilot. Why? Because this is an inevitability and we would rather be in it for our clients to win it…
It has already dawned on us some time ago that for Making Tax digital (MTD) there is such a technical hill there is to climb, with regard to what we lovingly call our ‘shoebox’ clients. Those of you who still think that tax is about putting your bills and receipts in a box and delivering them to our door, like an abandoned puppy on the steps of Battersea Dogs Home, hoping that it will all be “alright in the end”. We want to be the people that will make it alright, however that means a big investment in time and software helping you meet the obligations of the taxman.
MTD will be the single largest change in our relationship with the HMRC since Self-Assessment. All of our information will eventually be held ‘for us’ by the HMRC and our job will be to tell them what we are doing every quarter. And yes, that is every one of us 12 million tax payers.
HMRC says that accountants will be able to click a button and download the relevant information for tax returns. The information will initially be: A list of employment and self-employment during the tax year, employer names. Income (pay) from each source of PAYE employment. Income from private pensions, benefits such as working tax credit and job-seekers allowance, and of course our previous years self-assessment earnings. We will also be able to access normal benefit, tax and National Insurance information.
Like everything, this can be a good and bad thing. The days of loose invoices will eventually be a thing of the past, with all the information readily available for us to access and put into a tax return for you. This also means that penalties are (statistically) less likely because ‘mistakes’ are harder to make.
However, the self-employed and the “non-registered” will have all of their information in one checkable source, with us updating it every three months on your behalf. No more holding on to those income sheets and invoices until the last day of January. there will be nowhere to hide.
Come and see us to learn what we can do for you and what we can teach you to do for yourself. Also, sometimes we just must accept the inevitable with good grace. So, let us get your house in order.
Welcome to the future, you have been warned.