Approximately 120,000 self-employed people have failed to meet the first deadline for filing their MTD tax returns.
Since April, the vast majority of small businesses with a turnover above the £85,000 VAT threshold have been required to submit returns online using third-party applications.
In total, 1.2 million businesses will be forced to comply with the new regime. About 490,000 should have completed their first return by August 7 but 120,000 have yet to register with HMRC.
The Telegraph reports that in normal circumstances those who had failed to comply would have received a fine of at least £100. However, it is choosing not to enforce these penalties during the first year.
The Federation of Small Businesses (FSB) called on HMRC to extend this policy for a further year, allowing businesses to fully prepare for the possibility of a no-deal Brexit.
Tax does have to be taxing.
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I suppose HMRC don't want the bad PR for the sake of £12 Million in fines. PR Poli would have to earn her keep.
ReplyDeleteHMRC aren't exactly flavour of the month at the minute.
They slashed offices and jobs on the back of this digital revolution. Having businesses do their work for them or forcing them to pay an accountant through the nose to enter the return through a portal.
It was a dogs dinner to begin with. Poorly planned with vague announcements. Businesses have a hard enough time trying to keep afloat without all this as well. I would look at this as a dry run for Brexit in 10 weeks. We all know what's coming.
MTD should have been phased in or ran in parallel to existing VAT returns. Giving business the option to submit online if they wanted too. Like they do with Self Assessment. Making the process as easy as possible so that businesses would want to use the online systems. Instead of the gunboat diplomacy we have seen too often and a £100 fine.
Then again, when does common sense apply to HMRC initiatives.
VAT should never have gone online for turnover <£85,000.
ReplyDeleteIt was far quicker to er write a cheque, fill in 8 numbers on a one page form, sign and post it.
The c***s accused me of being a tax defaulter after I had extreme trouble with online VAT forms.
Since we don't yet have universal working broadband in the UK, WTF do we have universal online taxation?
If the first name starts with "Theresa". You are guaranteed a pile of horseshit in their reply.
ReplyDeletehttps://www.bookkeepers.org.uk/resources/news/mtd/mtd-vat-service-progress-update-/a/8033
"Thank you for your continued support..."
It's not like they had much of a choice really is it.
Here here at 13.14 . That's grounds for appeal me thinks. Floodgates opening ...
ReplyDelete