The new Making Tax Digital (MTD) tester initiative?
I was looking around my property related emails and came across a full government blurb on the MTD initiative and wondered………. after reading the benefits and the opportunity to be a tester. In their GOV.UKs words “download a MTD compliant piecevif software and after a few initial personal entry you can send test quarterly return which will allow easy transition from 2026/27 when it will be mandatory.”
After going through the list supplied by Gov.uk and there a few of MTD compliant software compiant companies. I chose a free one as I’m only testing!! I’m sure the paying one with fees will go up in time, but that’s another story. Anyway downloading didntvwork, pc issues I needed to fix and 2 hours later pc isn’t compliant to the software. Hmm.
So looking now with hindsight of this mornings “not helping HMRC or learning about the new MTD or ease of transition” I wondered has anyone else joined successfully, wasted time or money and are feeling like gingea pigs for HMRCs new toy.
I wonder ‘half jokingly’ is this likely to become another Post Office/Horizon scandle?
I do like to try to see if a system is working and that testing against previous years figures give the same answer etc. But really feel quite uncomfortable loading details, if I actually could were going to be giving an accurate set of results.
Any thoughts – and I know I don’t have to do it yet but it’s the future!!
Richard
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Member Since August 2014 - Comments: 39
12:02 PM, 26th April 2024, About 2 years ago
I tried Apari for 2022-23, which says it will be MTD compliant, but it was a real faff for just 5 residential and 1 commercial properties, particularly as I already input my financial data into Bank Tree, one of the better home banking programs. BT allows me to output all transactions relating to my properties (and split them where needed) into an Excel file which I can sort and present to my accountant by property, along with pension and interest payments and other taxable income. It worked well in 2023-24 and there were few errors.
If HMRC insist on me using third-party software to send them my quarterly accounts, that’s a whole lot of extra work as I have to input it all twice. Furthermore, many are far too complicated for my modest portfolio.
Member Since August 2016 - Comments: 1190
12:44 PM, 26th April 2024, About 2 years ago
There’s going to be loads more landlords throwing the towel in when they have to submit a tax return every three months.
Member Since March 2022 - Comments: 363
2:13 PM, 26th April 2024, About 2 years ago
Digital this, online the other. Don’t forget that by law the Government cannot compel you to do anything on line there must always be the option of a paper form. After all, not everybody has a private personal internet connection, not everyone is computer literate and not everybody can read and complete forms on screen, and just about everything is open to hacking and identity theft.
So if you don’t want to download Government spyware and do digital returns you don’t have to.
Member Since December 2023 - Comments: 1573
7:58 AM, 27th April 2024, About 2 years ago
I’m a database / spreadsheet / numbers geek and I’d love to test the new system. However, I’m also a somewhat disillusioned landlord. I intend to be under the threshold for MTD.
Member Since April 2019 - Comments: 42
9:04 AM, 27th April 2024, About 2 years ago
Reply to the comment left by Cider Drinker at 27/04/2024 – 07:58
To be honest you can go to Gov.uk. open it. You don’t need to personakise it to your account to take a look.
It’s a very basic, long winded set of excel spreadsheets that haven’t any formal at all. I opened in open office and I have a 5 Yr old who could produce more interesting useful set of sheets.
Be interested to get your view. I’m just borderline the exemption so might need to keep an eye on it.
Member Since August 2023 - Comments: 26
10:50 AM, 27th April 2024, About 2 years ago
Reply to the comment left by northern landlord at 26/04/2024 – 14:13
What do you do when there is no options for paper, don’t file?
Member Since August 2016 - Comments: 1190
11:42 AM, 27th April 2024, About 2 years ago
Reply to the comment left by Jimmy Smith at 27/04/2024 – 10:50
Even if there is a paper option (unlikely if they’re making it “digital”) you’re still going to need to file every 3 months. It won’t be annual otherwise everybody will take the paper option.
Member Since August 2016 - Comments: 1190
11:46 AM, 27th April 2024, About 2 years ago
The whole thing is a sh@t show. Lucky we don’t live in the US where the federal capital gains tax rate is going up to 45% !! Plus some states impose a local state CGT rate on top. In California the total CGT rate will be 59% !! In Minnesota 54% !! All part of the WEF plan …… as per their video “you will own nothing but be happy”.
Member Since March 2023 - Comments: 1506
12:08 PM, 28th April 2024, About 2 years ago
If you bank with Natwest (RBS) their Freeagent accounting software will handle up to 5 properties and is FREE as long as you hold an account with them. It is not yet ‘linked’ to HMRC but they say it will be – so my expensive SAGE software is going …