At a small business reception at 11 Downing Street, Philip Hammond asked Gary Turner, managing director at software company Xero, about Making Tax Digital and Xero’s preparations to which Turner confirmed that Xero are ‘all sorted’ and are working with HMRC on the project.
From 1 April 2019, VAT registered businesses earning above the current VAT threshold of £85,000 are mandated to keep digital records and submit VAT returns using MTD-compatible software.
Xero is one of many software providers who are providing compatible software for businesses to use come April 2019.
Now whilst this is all well and good, as far as the Chancellor hearing what he wanted to hear, there is rather a large fly in Hammond's ointment, as espoused by Damon Anderson, director, partner and product at Xero, who told Accountancy Daily:
‘Our research has shown that 25% of small businesses currently are not even aware of Making Tax Digital and these that are only 23% realise it’s compulsory, so it is important for us to make sure that everyone is aware that it is coming up very soon.Yup, there are a lot of businesses that are not ready for MTD...is HMRC?
People have been able to file VAT in Xero for a long time, but we have taken the opportunity to upgrade the experience and have added 30 new features so Making Tax Digital for VAT is taken care of. We are not worried about our ability to prepare for Making Tax Digital we are more concerned about people realising that it is something they have to do.’
Tax does have to be taxing.
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Until it turns to shit, which it will, if those percentages are correct. Then the arse covering begins. The grey haired weasel might be out of a job in a few weeks at this rate.
ReplyDeleteIn other political news concerning HMRC, the House of Lords Economic Affairs Committee's report is quite damning about how HMRC unfairly treats taxpayers:
ReplyDeletehttps://www.bbc.co.uk/news/business-46431167
Further, the report "has also recommended that Parliament considers how it can improve the scrutiny of the powers being given to HMRC and oversight of how it carries out those powers."
This will resonate with accountants, taxpayers and those more independently-minded HMRC staff who will have observed how HMRC rides roughshod over people's fundamental human rights contrary to basic legal principles.
While the unfair treatment of taxpayers is a separate matter to the oft quoted problems of HMRC's violent staff bullying culture, the two issues do show an unprofessional, thuggish organisation that is out of control to such a degree that it believes it's above the law; indeed lawbreaking with the HMRC is scarily frequent and seemingly accepted by the Chief Executive.
When also considering HMRC's instinct to cover up staff violence, and departmental failures, we have a tax department that is dishonest to the core, and going right to the very top of senior management, and in which the public will have no trust or confidence.
What will it take for those in power to bring the unelected senior civil servants mismanaging HMRC to heel?