| Pages in topic: < [1 2 3] | Major changes coming for UK-based self-employed translators Thread poster: Tom in London
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Tom in London
United Kingdom
Local time: 11:22
Member (2008)
Italian to English
TOPIC STARTER
No doubt these new arrangements are being forced on HMRC partly because of the savage staff cuts that the government has made to HMRC funding.
| | | | Huw Watkins 
United Kingdom
Local time: 11:22
Member (2005)
Italian to English
+ ...
| Thanks Steph | Apr 10, 2017 |
Steph Lewis wrote:
Hi,
The CIOL and eCPD ran a live webinar about this last week (on the 6th), with input from an accountant specialising in small business matters - it was called "Making Tax Digital". Obviously the webinar has now finished so you can't register for information any longer, but you might be able to email the organisers and I also have a handout if anyone would find it useful - please let me know if you want a copy.
What I gathered from the webinar is that HMRC will accept any method of online data entry, providing it's done through their online system, so those of us who currently use a simple Excel spreadsheet, for example, will be able to continue recording our income & expenses that way, rather than buying any new software (assuming you already have a spreadsheet program, that is, but I think a basic Office package is a pretty standard requirement for our line of business anyway so I'd be surprised if many people don't already have something like that). Predictably, the government haven't yet released information on what the precise compatibility requirements will be (a report was due in March but it's been delayed), but I don't think they will be able to force people to pay for new software just so they can use the new system. It sounds as though there will be a way of linking up your records to their website - as long as they are computerised and not on paper.
It seems that in essence they're trying to phase out paper accounting, so all the required admin will be done online only. The main annoyance therefore will be the extra work involved if they do succeed in imposing quarterly returns, although with any luck if enough people complain they might end up scrapping that idea - only time will tell... For the moment it looks like they have a lot still to finalise so I'm just holding out hope that certain aspects will prove more complicated than they planned so they'll have to simplify the way it will work.
[Edited at 2017-04-10 09:38 GMT]
I already do a pretty basic monthly spreadsheet so that is now sounding less daunting than I initially thought. I also submit everything online already (I imagine most people do). I quite like the current format as the online form is very comprehensive and pretty easy to use. The amount of information you currently have to send to HMRC is pretty minimal and it works well in my opinion. Clearly they want a greater degree of oversight and transparency in the whole process (and more tax if they can get it).
[Edited at 2017-04-10 10:02 GMT]
| | | | Michael Beijer
United Kingdom
Local time: 11:22
Member (2009)
Dutch to English
+ ...
| I'm not all too worried | Apr 10, 2017 |
Huw Watkins wrote: Steph Lewis wrote:
Hi,
The CIOL and eCPD ran a live webinar about this last week (on the 6th), with input from an accountant specialising in small business matters - it was called "Making Tax Digital". Obviously the webinar has now finished so you can't register for information any longer, but you might be able to email the organisers and I also have a handout if anyone would find it useful - please let me know if you want a copy.
What I gathered from the webinar is that HMRC will accept any method of online data entry, providing it's done through their online system, so those of us who currently use a simple Excel spreadsheet, for example, will be able to continue recording our income & expenses that way, rather than buying any new software (assuming you already have a spreadsheet program, that is, but I think a basic Office package is a pretty standard requirement for our line of business anyway so I'd be surprised if many people don't already have something like that). Predictably, the government haven't yet released information on what the precise compatibility requirements will be (a report was due in March but it's been delayed), but I don't think they will be able to force people to pay for new software just so they can use the new system. It sounds as though there will be a way of linking up your records to their website - as long as they are computerised and not on paper.
It seems that in essence they're trying to phase out paper accounting, so all the required admin will be done online only. The main annoyance therefore will be the extra work involved if they do succeed in imposing quarterly returns, although with any luck if enough people complain they might end up scrapping that idea - only time will tell... For the moment it looks like they have a lot still to finalise so I'm just holding out hope that certain aspects will prove more complicated than they planned so they'll have to simplify the way it will work.
[Edited at 2017-04-10 09:38 GMT] I already do a pretty basic monthly spreadsheet so that is now sounding less daunting than I initially thought. I also submit everything online already (I imagine most people do). I quite like the current format as the online form is very comprehensive and pretty easy to use. The amount of information you currently have to send to HMRC is pretty minimal and it works well in my opinion. Clearly they want a greater degree of oversight and transparency in the whole process (and more tax if they can get it). [Edited at 2017-04-10 10:02 GMT]
I really don't think it's going to be as bad as some people think it will be. I'm currently using UK-based ClearBooks (an online accounting and invoicing system), and I fully expect them to come up with some kind of integration with the new HMRC system, whatever it ends up being.
ClearBooks is already HMRC compatible re other tax stuff (see e.g. https://www.clearbooks.co.uk/tour/tax/ ), and has great "bank feeds" (all the transactions in my two Barclays bank accounts are automatically sucked into my ClearBooks account, where I can link them to my invoices, business expenses, etc.). I think they will probably be able to connect our ClearBooks accounts to the HMRC system relatively easily via some kind of API.
Michael
| | | | Tom in London
United Kingdom
Local time: 11:22
Member (2008)
Italian to English
TOPIC STARTER | Nobody knows | Apr 10, 2017 |
Let's try to avoid speculation. No official information has been released about the software (or anything else)
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Michael Beijer
United Kingdom
Local time: 11:22
Member (2009)
Dutch to English
+ ...
| I posted a question re MTD (Making Tax Digital) on the ClearBooks forum (see below)! | Apr 10, 2017 |
My question:
"Will ClearBooks be integrated with new Making Tax Digital software/system/ self assessment quarterly reports?
Question asked by Michael Joseph Wdowiak Beijer 20 hours ago
A bunch of colleagues of mine (fellow freelance translators) are currently discussing how the new Making Tax Digital is going to affect us, and in particular, the software we use for accounting/invoicing. Does anyone from clear books have information on the new software/sy... See more My question:
"Will ClearBooks be integrated with new Making Tax Digital software/system/ self assessment quarterly reports?
Question asked by Michael Joseph Wdowiak Beijer 20 hours ago
A bunch of colleagues of mine (fellow freelance translators) are currently discussing how the new Making Tax Digital is going to affect us, and in particular, the software we use for accounting/invoicing. Does anyone from clear books have information on the new software/system HMRC will soon be using? Will ClearBooks be integrated with it?
We are currently discussing it here: //www.proz.com/forum/money_matters/313448-major_changes_coming_for_uk_based_self_employed_translators-page2.html
Regards,
Michael"
Their reply:
"Hi Michael
MTD is ver much in our minds but we are in early discussions with HMRC about how this is going to work. More official announcements will be released on our blog and newsletter as soon as begins to develop.
John Fouracre
ClearBooks Staff"
@ https://secure.clearbooks.co.uk/community/questions/19130/will-clearbooks-be-integrated-with-new-making-tax-digital-software-system-self-assessment-quarterly-reports ▲ Collapse
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Just curious, what are the penalties for not filing quarterlies under this new law? Here in the US, the penalty (at least as far as I can tell, and I've consulted an accountant about this) for not filing quarterlies is just interest, which really comes out to almost nothing for a low-earning business because of how low interest rates are. So even though the US asks for quarterly payments, not paying them and waiting until April of the next year really doesn't result in major issues (someone plea... See more Just curious, what are the penalties for not filing quarterlies under this new law? Here in the US, the penalty (at least as far as I can tell, and I've consulted an accountant about this) for not filing quarterlies is just interest, which really comes out to almost nothing for a low-earning business because of how low interest rates are. So even though the US asks for quarterly payments, not paying them and waiting until April of the next year really doesn't result in major issues (someone please correct me if I'm wrong), as long as you ultimately pay what you're supposed to (with the added small amount of interest). So does this new law actually have "teeth" to enforce payment of quarterlies?
[Edited at 2017-04-10 17:06 GMT] ▲ Collapse
| | | | Dan Lucas
United Kingdom
Local time: 11:22
Member (2014)
Japanese to English
| Might the bar be set lower for quarterly returns? | Apr 10, 2017 |
Huw Watkins wrote:
I already do a pretty basic monthly spreadsheet so that is now sounding less daunting than I initially thought.
If all one's transactions are already recorded in software somewhere (for example, you use a spreadsheet, Michael records transactions in an online accounts package, as do I) then it hopefully will not be too onerous. Still, it's an unwelcome change. All my tax is already done online. The potential problem is providing quarterly returns in addition to the annual return.
It does occur to me that, if the quarterly returns can be adjusted retroactively in the final annual tax return, that could provide a loophole. By that I mean that maybe the quarterly returns will not have to be "the final word" and would not need the attention of an accountant.
Currently my VAT returns take me about 10 minutes once a quarter, without the intervention of my accountant, because the software works it all out automatically. If a quarterly tax return were no more arduous to complete then it would not be a major issue.
Fingers crossed.
Dan
| | | | Huw Watkins
United Kingdom
Local time: 11:22
Member (2005)
Italian to English
+ ...
| From the *leaked* Labour manifesto | May 12, 2017 |
"We will also protect small businesses by reintroducing the lower small profit rate of corporation tax. We will also exclude small businesses from costly plans to introduce quarterly reporting – and take action on late payments."
The official manifesto is not out yet so obviously this may not be Labour's final position on the matter. It's a good indication of how they feel however.
[Edited at 2017-05-12 13:04 GMT]
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