Digital tax returns every quarter?

Reply to the comment left by "Joel Davis" at "02/03/2017 - 10:23":

Even more wonderful comments on this post: http://www.accountingweb.co.uk/tech/practice-software/mtd-pilot-offers-escape-from-sa-returns

Might need to sign up to see comments, but it is free and worth every minute of the time

Reply to the comment left by "Kathy Evans" at "02/03/2017 - 14:33":

In slightly less aggressive language we are about to see a real life demonstration of a total catastrophic cascade failure.

This was featured on 'Monday Box' a few weeks ago. Some of their listeners commented that not every self-employed person is online.

My own problem is that I cannot register with HMRC because I cannot prove my identity. Needless to say, that has not stopped them collecting tax and NI for the last 30 years. (Passport, driving licence, car registration, tax + NI, property registered at Land Registry, etc all in my name, but online system won't accept it.)

Reply to the comment left by "Smithy @hotmail" at "04/03/2017 - 13:53":

Apparently they have improved the system so that it is easier to register as many people had the same problem. Haven't tried it though. I managed it via Experian eventually, even though I don't have a passport, which seems to be the killer.

As an aside, the self employed and Ltd Co Directors who perform any work for local govt (e.g., school, hospital, library etc) are required to give all their payroll info to the customer (the govt) from April this year.

So the information includes Name, DOB, Address, Amount Paid, Tax Deducted, Co. Payroll No, PAYE reference, start date and much more. Exactly as if the customer you are doing the work for is operating your payroll. This info is transmitted every quarter.
Of course, this info was private and internal to your Ltd Co but now it must be provided to the invoice payer.

The Govt have long had an issue with the self employed or contractors - they want to know everything and they want you on a payroll. So since the crisis and £1.1 trillion spent bailing the banks, the govt have just decided to impose their will anyway. So now you're on the payroll. Get used to it.

Reply to the comment left by "Joel Davis" at "02/03/2017 - 10:23":

What is this 'biro'?
And how do I connect it to my lap top?

Reply to the comment left by "Simon Hall" at "01/03/2017 - 13:20":

"I have just spoken to my Accountant again and he stands by his earlier confirmation that it will be for each property as opposed to whole lump in (as current). "

I have spent several hours researching this, and I have found in https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/545715/Making_Tax_Digital-Bringing_business_tax_into_the_digital_age-consultation.pdf (Making Tax Digital: Bringing business tax into the digital age Consultation document Publication date: 15 August 2016 Closing date for comments: 7 November 2016 ) at paragraph 3.18 the proposal for income and expenditure to be recorded by property.

I have also found the response to the consultation at https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/587433/Making_Tax_Digital_-_Bringing_business_tax_into_the_digital_age_-_Summary_of_responses.pdf.
Paragraph 30 states:
The government recognises the concerns that respondents have raised in connection with proposals to require property income and expenditure data be attributable to individual properties. The government confirms the only requirement (as regards multiple properties within one property business) will be to maintain property address details of each property in the digital record. Income and expenditure data can therefore be maintained in the software at the level of the property business as a whole rather than at the level of individual properties.

Therefore I ask again for you to obtain from your accountant reference to where the requirement to maintain tax records per property is defined.
If he cannot provide it, then you may want to find a better accountant.

Reply to the comment left by "Jon Delorean" at "05/03/2017 - 07:00":

Are you sure? I don't think that's correct, or Capita, HP, IBM. Fujitsu and all the managed service providers would be giving details of every employee they have to many government departments and local authorities..I think you are confusing this with the rule that came in a year or two ago that said that any business employing contractors not on PAYE had to give their details (but not that much) to HMRC every quarter, and the new rules about IR35 for off-payroll workers in the public sector.

Reply to the comment left by "Michael Barnes" at "05/03/2017 - 14:12":

Michael, I have not read the links you have posted but I am sure you can appreciate that, my Accountant's advice perhaps stems from your second paragraph in your very last post? There is every possibility that, he is yet to update himself with second last paragraph of your post and he jumped the gun prematurely? but you will have to agree even if the details you have provided are the details HMRC will work with still there was room for misunderstanding on both sides of the coin.

I will let him know that, there has been an update and see what he comes back with.

Kathy I'm referring to Ltd Co. small contractors, not Capita et al.

Yes, off-payroll - here in the HMRC bulletin this month - "These changes mean from April 2017 individuals working through their intermediary in the public sector will no longer be responsible for deciding whether the intermediaries’ legislation applies and then paying the appropriate tax and National Insurance contributions (NICs). This responsibility will instead move to the public authority client, agency, or third party that pays the worker’s intermediary, and they will also now become responsible for making sure that, where the rules apply, the relevant income tax and NICs are deducted and reported through PAYE in real time."

So you no longer choose to nominate yourself as self-employed - instead a Headteacher or Library official or Swimming Pool Manager etc will make that choice for you. In their narrow view you are effecticley an employee because - maybe you use their tools - maybe you go there a lot - maybe you use the staff canteen!

So if you work for an agency they will subtract your tax. If you work direct, the govt dept. records all of your PAYE and NIC details. I know because I have filled in such a form, with every detailed piece of personal and tax information you can imagine. This private info is held (insecurely on paper) by the govt. dept who then form a judgement. - about whether you are an employee or not and if tax such be withheld or not.

"The public authority client is required to tell any agency or third party its view as to whether the rules apply." Hilarious - "it's view" - what do the local staff know? No doubt by requesting IR35 info like your other customers and other criteria. They have no right to ask for this or form a judgement about an independant contractor's tax payments.

IR35, by the way, was ill-thought out legislation which tries to assess a PSC (personal service company) as an employee and limit expenses claims and put them on a payroll if so. For example, if more than 40% of your sales come from one customer, you can be deemed as effectively an employee of that customer and thus payroll applies.