Digital tax returns every quarter?

Reply to the comment left by "Jon Delorean" at "06/03/2017 - 03:33":

Yes, Jon, I know all about that as an IPSE member, but surely it's the agency you have to give the details to as they'll be responsible for paying you. Anyone who works in the public sector without a contract of employment (and employee benefits) from now on is an idiot. If the want employees, they should pay for them and not dodge their employers NI and pension payments. Just as if the government want homes to be provided they shouldn't try to tax private landlords out of existence. HMRC and the Treasury are getting completely out of hand and will end up destroying the economy - who on earth do the Tories think is going to vote for them when they've alienated most of the natural Tory voters: contractors (with IR35+), the self-employed (with MTD), small businesses (with MTD) and private landlords (with S24)?

Most do not work through an agency. So all PAYE and private details have to be handed over to the customer (the govt. agency) to be assessed for the payroll.

Agreed the Govt are making easy choices which are contrary to free enterprise.

Reply to the comment left by "Jon Delorean" at "06/03/2017 - 10:37":

Actually, nearly all public sector contractors work through agencies, as most of these bodies have a small set of preferred suppliers (aka agencies). Very few work direct and those are probably the only ones who have a chance of being treated as suppliers, not disguised employees.

quarterly tax returns.

I've been reading all the comments about completing a tax return each quarter having also listened to the BBC Moneybox program. I have now twice contacted HMRC about this and on both occasions I have been told it is not coming into place. The agents I spoke to checked their guidance and they have nothing. I can't believe all these accountants have got it wrong so can someone give me something definite I can give the HMRC next time I ring them which will pinpoint where they need to be looking.

thanks Peter

Reply to the comment left by "Peter Poupard" at "07/03/2017 - 12:02":

The official line is "it is not quarterly tax returns; it is providing quarterly trading updates".

The programme under which this is coming is "Making Tax Digital for Business".

Reply to the comment left by "Michael Barnes" at "07/03/2017 - 12:15":

Michael, since you seem to be clued up, would you be able to clarify, following:

Chancellor, announced on 8th Of March during Budget speech that, Small businesses and Landlords with income less than VAT threshold (£83000) will have Digital quarterly Tax returns delayed by addition 1 year to April 2019.

In case of husband and wife, is Threshold set at £166000 (£83000 x 2)? How would they determine your income in advance, or do they base it on previous Tax return figures?

Now another confusion is HMRC document outlines that threshold is increased to £150000 on Cash basis, does it mean jointly held properties between husband and wife will not be required to submit quarterly tax returns if their joint turnover is less than £300k?

Both Chancellor and HMRC have provided conflicting information.

Reply to the comment left by "Simon Hall" at "12/03/2017 - 13:21":

No idea, sorry.

I wonder if anyone received a similar letter (below in quote/unquote). They are asking to contribute our views.
Do we, as LLs, have an opinion about that? Any info will be welcome.
Thanks.
==quote==
Yesterday (20 March) HM Revenue and Customs published a further consultation relating to Making Tax Digital.
Making Tax Digital – sanctions for late submission and late payment is open for you to respond until 11 June 2017. The consultation seeks views on 3 possible models for late submission penalties and provides an update on penalty interest.
In our Summary of Responses to last year’s Making Tax Digital: Tax Administration consultation, the government committed to getting the late submission model right recognising that more work needed to be done. The government also stated that people will be given at least a year to get use to a new penalty regime in relation to their Making Tax Digital for Business obligations.
We’d like your help in getting the model right and although we don’t ask specific questions on penalty interest in this consultation, you are welcome to feed in any further views on that too.
Whilst the proposals for late submission penalties have been developed with the new Making Tax Digital for Business obligations in mind, the consultation also explores the suitability of the sanctions for other regular submission obligations such as for Corporation Tax, Income Tax and VAT.
Please take the opportunity to read our short consultation document and contribute your views.
Thank You

The Making Tax Digital for Business team
==unquote==

This is what our accountants posted in case it's any help:
The government published their responses to the six consultations on making tax digital (MTD).
In response to the consultations the government have decided the following:
• Businesses will be able to continue to use spreadsheets for record keeping, but they must ensure that their spreadsheet meets the necessary requirements of Making Tax Digital for Business (MTDfB). This is likely to involve combining the spreadsheet with software
• Businesses eligible for three line accounts will be able to submit a quarterly update with only three lines of data (income, expenses and profit)
• Free software will be available to businesses with the most straightforward affairs
• The requirement to keep digital records does not mean that you have to make and store invoices and receipts digitally
• Activity at the end of the year must be concluded and sent either by ten months after the last day of the period of account or 31 January, whichever of these is soonest
• Charities (but not their trading subsidiaries) will not need to keep digital records
• For partnerships with a turnover above £10 million, MTDfB is deferred until 2020 due to the complexity of their tax affairs.
The MTD consultations also specifically explored the appropriate level of the initial exemption and deferral for the self-employed, landlords and businesses. Given the range of views expressed on this matter from respondents to the consultation, the government has decided to take more time to consider these issues alongside the fiscal impacts. Final decisions will be made before the law is finalised later this year.
In addition, HMRC will begin piloting digital record keeping and quarterly updates for a full year from April 2017, building up to working with hundreds of thousands of businesses and landlords before rolling the services out more widely. The stated aim of this pilot is to ensure the software is user-friendly and give individuals and businesses time to prepare and adapt. Piloting of the system had been recommended by the Treasury Select Committee.
SELECT COMMITTEE'S FINDINGS
The Treasury Select Committee has urged HMRC to implement a series of wide-ranging pilots in order to better test the government’s plans for the new digital tax initiative, Making Tax Digital (MTD), before it becomes compulsory for the majority of taxpayers.
The report found that, while the government had already carried out trials of the new initiative, those businesses which took part had done so at HMRC's invitation.
The Committee stated that comprehensive pilots of MTD are 'essential', and that these need to be designed to collect information over the entire reporting cycle.
It also suggested that an evaluation of these pilots should be carried out before the full implementation of the scheme which is expected, for all but the smallest businesses to be implemented from April 2018 onwards.
Andrew Tyrie MP, Chairman of the Committee, said:
'Without sufficient care, MTD could be a disaster. Implemented carefully, with long transitional arrangements where necessary, and, having drawn on information from fully inclusive pilots, MTD could be designed for the benefit both of the economy and of the tax yield. But with a rushed introduction, it will benefit neither.'