HMRC have recently released another update on their MTD blog which continues to push for agents to begin an early transition for those clients not currently keeping digital records.
There is also advice on how agents can create their own ‘Agent Services account’, which will enable them to sign clients up to MTD and access the clients’ accounts on their behalf.
As we know, the deadline of April 2019 for those businesses above the VAT threshold will soon be upon us and our clients will have no choice but to keep MTD compatible digital records.
Although it would not be surprising if the deadline were moved, it is nevertheless prudent to begin an early transition for certain clients. Our concern is that some clients, such as farmers, who in our experience maintain bespoke accounting packages or only use manual records, may need more time to implement digital record-keeping. With such clients at the greatest risk of failing to meet the deadline, we would recommend considering some of the suggestions in this latest blog.
There is also a link within the blog to one of HMRC’s ‘Talking Point’ webinars, which gives an overview of MTD that could be useful to send to clients. Finally, there is a push for accountants and clients to get involved in the pilot for VAT registered businesses.
Naturally, whenever these burdensome, but compulsory, changes are implemented, there is a positive side. Going back to our example of the farmer, MTD provides the opportunity to set up a meeting, or series of meetings, to show the client your preferred way of accounting. As we know, there are numerous ways of maintaining records and equally numerous accounting systems, and with these enforced changes, now may be the time to try to standardise your clients’ record-keeping in a way and format that you prefer. Such meetings may help address those small annoyances in the way certain transactions are dealt with, but which in isolation have not yet warranted a meeting.
Here is the link to HMRC’s recent MTD blog
If you have a VAT or Tax query why not contact the Advice Line on 0844 892 2470 to discuss the implications. Our team of experts have a wealth of experience and can also provide a written consultancy service at £180 per hour plus VAT.