Princess Pooper
Member
- Location
- East Mids
https://www.gov.uk/government/publications/making-tax-digital
Is anyone else taking part in this? For those that are not aware, HMRC are soon going to be requiring all but the smallest businesses to submit business records and pay tax on an ongoing basis, not just after the end of your year when the accounts have been completed. For a business such as agriculture where we have little control over our sales price, often have a long period between incurring costs and generating a profit, might make substantial capital investments which would reduce our liabilities, or claim farmers averaging, use herd basis or BEN valuations, and of course may have our profits wiped out by bad weather etc, this is extremely concerning. And that is without the hassle/cost of the additional time in administering. For that reason, I have signed up for the voluntary trial, which gives them a chance to test the software and think about the implications for different sectors. I'm not up and running yet, but have done the first questionnaire where they ask you some basics to then send you the right software.
Anyone else doing it, so that we can compare experiences?
This WILL be coming to affect almost everyone who runs a business, so I thought I'd better get my head round it at the earliest opportunity. I can drop out at any time during the trial and none of the data submitted for the trial is used by HMRC for tax purposes.
They aim for tax calculations and eventually payments to be closer to 'real time' - and that means earlier and having to pay tax earlier (even if it is to be refunded later), brings cashflow implications.
Is anyone else taking part in this? For those that are not aware, HMRC are soon going to be requiring all but the smallest businesses to submit business records and pay tax on an ongoing basis, not just after the end of your year when the accounts have been completed. For a business such as agriculture where we have little control over our sales price, often have a long period between incurring costs and generating a profit, might make substantial capital investments which would reduce our liabilities, or claim farmers averaging, use herd basis or BEN valuations, and of course may have our profits wiped out by bad weather etc, this is extremely concerning. And that is without the hassle/cost of the additional time in administering. For that reason, I have signed up for the voluntary trial, which gives them a chance to test the software and think about the implications for different sectors. I'm not up and running yet, but have done the first questionnaire where they ask you some basics to then send you the right software.
Anyone else doing it, so that we can compare experiences?
This WILL be coming to affect almost everyone who runs a business, so I thought I'd better get my head round it at the earliest opportunity. I can drop out at any time during the trial and none of the data submitted for the trial is used by HMRC for tax purposes.
They aim for tax calculations and eventually payments to be closer to 'real time' - and that means earlier and having to pay tax earlier (even if it is to be refunded later), brings cashflow implications.