HMRC were due to release more information in July, after the referendum, to give more detail on the move to quarterly reporting.
The initial document released by HMRC on quarterly reporting stated;
“By 2020, most businesses, self-employed people and landlords will be required to keep track of their tax affairs digitally and update HMRC at least quarterly via their digital tax account. These changes will be introduced for some businesses from April 2018, and will be phased-in by 2020, giving businesses time to adapt.”
Smaller businesses are being required to move to “Making Tax Digital” before larger businesses. We believe that the first quarterly updates will be required by non-VAT registered self-employed businesses and landlords with an accounting period starting after April 2018. All VAT-registered businesses will be brought in from April 2019 and companies from April 2020.
There are many unanswered questions and we were hoping that the consultation due out in July would shed some light on some of the issues that have been raised. So far, the understanding is that in effect, a huge number of people that currently submit tax returns yearly and use spreadsheets, will have to start using software and submitting information quarterly to HMRC.
HMRC said that “following the early change of prime minister, HMRC’s executive leadership will need to be available to ministers at all times during the remainder of the week. “Unfortunately, this means that we will have to postpone the HMRC Stakeholder Conference on Thursday 14 July. We’re sorry for the short notice and inconvenience, and we will be in touch with a new date as soon as we can.”
“The political landscape has rapidly changed this week. We currently intend to publish the MTD consultation documents in the summer but understandably it won’t be this week.”
There has also been suggestions that the dates tax payments are due will change. This question has been put to the treasury to which the response was “no decision has yet been made about changing payment dates.”
So for the moment, we will have to wait for the update to see if there is more information from HMRC on quarterly reporting. We have been in discussion with Quickbooks to see what options are available for clients who currently use spreadsheets, to make sure that we can get the most cost effective solution.
Please let us know if you have any questions.