As a member of the UK/Irish MYOB User Group we think it is important that you have your say about the latest Making Tax Digital (MTD) consultation.
In July 2017 the UK Government announced that MTD is being delayed. MTD will be not be mandatory until April 2019, and then only for VAT. From that date, businesses with a turnover above the VAT threshold (currently £85,000) will be required to keep digital records for VAT. This could create an inconvenience for those of us using Accountedge / MYOB who are vat registered. You can find out more about our strategy http://www.simpleaccounting.co.uk/services/making_tax_digital.php but we will write more about this next month. In the short term however we would like to ask you to object to a change in a government consultation that is still running.
If you are VAT registered we suggest that you write to your MP at https://www.writetothem.com/ and the HMRC at firstname.lastname@example.org before 10th November 2017 with your version of the following letter.
Here is a model response:
I am writing to respond to the consultation on Making Tax Digital for VAT. I wish to oppose the regulations given at: https://www.gov.uk/government/consultations/making-tax-digital-reforms-affecting-businesses/making-tax-digital-for-vat-legislation-overview#annex1.
The HMRC regulations are intended allow it to withdraw the HMRC Government gateway VAT portal for VAT return submission. This portal is how my company currently submits its vat returns.
My business is an XYZ business and we employ X people. My business uses MYOB/Accountedge software to keep our records digitally. We use this software for business management, cash control and invoicing reasons. The software also produces our VAT return information.
It is unreasonable is to expect our software to link directly to the HMRC via an API. This would require us to shift software. There would be a variety of disruptions and unreasonable costs to doing this.
There is a concession which is itself unreasonable. If our digital bookkeeping does not link directly to the API the HMRC expect us to use a second piece of software that does link to the HMRC’s API to submit the VAT MTD submissions. This is not reasonable because it would require quarterly transfer of data to a second piece of software. Red tape.
My company is entitled to use VAT annual accounting. We do not need to submit quarterly as the new regulations require, for us to determine our liability. You are wasting our time by forcing us to make these submissions –particularly as you are doing this merely as a way of confirming that we are using digital recordkeeping; which we are.
The MTD idea is flawed. It claims that there is some advantage to my business, the taxpayer, to file data more frequently. There is none. We do not want or need to submit data to the HMRC more frequently in order to fulfil our obligations. We do not want to have to use separate software to complete this unnecessary red tape. I demand that the HMRC removes the compulsion inside these regulations and reverses its threat to remove the VAT return webpage. We intend to continue to use the digital record-keeping software on which my business depends. And we expect the HMRC to make it easy for us to pay our VAT, not place obstacles in our way.