{"id":2953,"date":"2017-07-31T13:23:09","date_gmt":"2017-07-31T13:23:09","guid":{"rendered":"http:\/\/my-brains.co.uk\/jackross\/?p=2953"},"modified":"2017-09-27T15:54:15","modified_gmt":"2017-09-27T15:54:15","slug":"managing-digital-revolution","status":"publish","type":"post","link":"https:\/\/my-brains.co.uk\/jackross\/managing-digital-revolution\/","title":{"rendered":"Managing the Digital Revolution"},"content":{"rendered":"<div style=\"mso-element: para-border-div; border: none; border-bottom: solid #4F81BD 1.0pt; mso-border-bottom-themecolor: accent1; padding: 0cm 0cm 4.0pt 0cm;\"><\/div>\n<p class=\"MsoNormal\"><i>Ensuring the smoothest transition for your business. <\/i><\/p>\n<p class=\"MsoNormal\">\u00a0Making Tax Digital (MTD) will mean most businesses and taxpayers access their tax affairs online through digital tax accounts in the near future. But what impact will MTD have on your business?<\/p>\n<p class=\"MsoNormal\"><span style=\"color: #98012e; font-size: 14pt;\"><b><span style=\"line-height: 115%; font-family: Cambria, serif;\">What is Making Tax Digital?<\/span><\/b><\/span><b><\/b><\/p>\n<p class=\"MsoNormal\">\u201cTax really doesn&#8217;t have to be taxing\u201d, said former chancellor George Osborne as he announced plans at Budget 2015. MTD is intended to replace the self-assessed tax return and usher in a new quarterly digital reporting regime. It\u2019s arguably the biggest change to UK taxation since the introduction of PAYE in 1944.<\/p>\n<p class=\"MsoNormal\">The new system will ultimately change the way the majority of businesses keep their accounting records, how they report their income to HMRC and the services required from their accountants or tax agents.<\/p>\n<p class=\"MsoNormal\">It will also offer self-employed taxpayers the opportunity to pay tax through optional \u2018pay as you go\u2019 instalments, based on the data submitted with HMRC under the new digital initiative.<\/p>\n<p class=\"MsoNormal\">Businesses will eventually be required to use relevant software to keep their tax records, provide quarterly summaries of tax data and submit a finalised year-end position to HMRC. At least five tax returns (four quarterly updates and one annual declaration) will need to be filed each year.<\/p>\n<p class=\"MsoNormal\">These reforms, according to the government, are designed to make the task of managing, reporting and paying tax simpler. It requires most business owners to maintain digital records using (as yet unspecified) compatible software and it will enable HMRC to potentially recoup more than \u00a38 billion a year in what it deems to be \u2018avoidable\u2019 lost tax revenues.<\/p>\n<p class=\"MsoNormal\">The timetable for rolling out the changes has been far from smooth. A significant twist in the tale arrived when MTD was shelved from Finance Bill 2017 following prime minister Theresa May\u2019s decision to call a snap general election. Ministers then confirmed the Finance Bill will be reintroduced sometime after parliament returns on 5 September 2017.<\/p>\n<p class=\"MsoNormal\">In July 2017, the government announced a new timeline for implementation. Although this pushes the start dates back, the switch to digital accounts is still going ahead.<\/p>\n<p class=\"MsoNormal\"><span style=\"color: #98012e; font-size: 14pt;\"><b><span style=\"line-height: 115%; font-family: Cambria, serif;\">What we already know<\/span><\/b><\/span><b><\/b><\/p>\n<p class=\"MsoNormal\"><span style=\"background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial;\">The government\u2019s previous stance was that mandatory quarterly reporting\u00a0would come into force from April 2018 for businesses with turnover above the VAT threshold that paid income tax and national insurance.<\/span> But, in light of recent developments, we now know the following:<\/p>\n<p class=\"MsoListParagraphCxSpFirst\" style=\"text-indent: -18.0pt; mso-list: l0 level1 lfo2;\"><!-- [if !supportLists]--><span style=\"font-family: Symbol; mso-fareast-font-family: Symbol; mso-bidi-font-family: Symbol;\"><span style=\"color: #98012e;\">\u00b7<\/span><span style=\"font-variant-numeric: normal; font-stretch: normal; font-size: 7pt; line-height: normal; font-family: 'Times New Roman';\"><span style=\"color: #98012e;\">\u00a0<\/span>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><!--[endif]-->MTD will be available on a <b>voluntary basis<\/b> for the smallest businesses<\/p>\n<p class=\"MsoListParagraphCxSpMiddle\" style=\"text-indent: -18.0pt; mso-list: l0 level1 lfo2;\"><!-- [if !supportLists]--><span style=\"font-family: Symbol; mso-fareast-font-family: Symbol; mso-bidi-font-family: Symbol;\"><span style=\"color: #98012e;\">\u00b7<\/span><span style=\"font-variant-numeric: normal; font-stretch: normal; font-size: 7pt; line-height: normal; font-family: 'Times New Roman';\"><span style=\"color: #98012e;\">\u00a0<\/span>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><!--[endif]-->businesses and landlords with a turnover below the\u00a0VAT threshold (currently \u00a385,000) will be able to choose when to move to the new digital system<\/p>\n<p class=\"MsoListParagraphCxSpMiddle\" style=\"text-indent: -18.0pt; mso-list: l0 level1 lfo2;\"><!-- [if !supportLists]--><span style=\"font-family: Symbol; mso-fareast-font-family: Symbol; mso-bidi-font-family: Symbol;\"><span style=\"color: #98012e;\">\u00b7<\/span><span style=\"font-variant-numeric: normal; font-stretch: normal; font-size: 7pt; line-height: normal; font-family: 'Times New Roman';\"><span style=\"color: #98012e;\">\u00a0\u00a0\u00a0\u00a0<\/span>\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><!--[endif]-->businesses are not required to provide <span style=\"color: #0b0c0c; background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial;\">updates to\u00a0<\/span>HMRC<span style=\"color: #0b0c0c; background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial;\">\u00a0more regularly than they already do<\/span><\/p>\n<p class=\"MsoListParagraphCxSpLast\" style=\"text-indent: -18.0pt; mso-list: l0 level1 lfo2;\"><!-- [if !supportLists]--><span style=\"font-family: Symbol; mso-fareast-font-family: Symbol; mso-bidi-font-family: Symbol;\"><span style=\"color: #98012e;\">\u00b7<\/span><span style=\"font-variant-numeric: normal; font-stretch: normal; font-size: 7pt; line-height: normal; font-family: 'Times New Roman';\"><span style=\"color: #98012e;\">\u00a0\u00a0\u00a0<\/span>\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><!--[endif]--><span style=\"color: #0b0c0c; background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial;\">all businesses and landlords will have at least two years to adapt to the changes before being asked to keep digital records for taxes other than income tax.<\/span><\/p>\n<p class=\"MsoNormal\">In addition, the following details have been confirmed:<\/p>\n<p class=\"MsoListParagraphCxSpFirst\" style=\"text-indent: -18.0pt; mso-list: l1 level1 lfo1;\"><!-- [if !supportLists]--><span style=\"font-family: Symbol; mso-fareast-font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-language: EN-GB;\"><span style=\"color: #98012e;\">\u00b7<\/span><span style=\"font-variant-numeric: normal; font-stretch: normal; font-size: 7pt; line-height: normal; font-family: 'Times New Roman';\"><span style=\"color: #98012e;\">\u00a0\u00a0\u00a0<\/span>\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><!--[endif]-->firms will be able to use spreadsheets to record their receipts and expenditure<\/p>\n<p class=\"MsoListParagraphCxSpMiddle\" style=\"text-indent: -18.0pt; mso-list: l1 level1 lfo1;\"><!-- [if !supportLists]--><span style=\"font-family: Symbol; mso-fareast-font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-language: EN-GB;\"><span style=\"color: #98012e;\">\u00b7<\/span><span style=\"font-variant-numeric: normal; font-stretch: normal; font-size: 7pt; line-height: normal; font-family: 'Times New Roman';\"><span style=\"color: #98012e;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<\/span>\u00a0\u00a0 <\/span><\/span><!--[endif]-->quarterly updates will not apply to charities<\/p>\n<p class=\"MsoListParagraphCxSpLast\" style=\"text-indent: -18.0pt; mso-list: l1 level1 lfo1;\"><!-- [if !supportLists]--><span style=\"font-family: Symbol; mso-fareast-font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-language: EN-GB;\"><span style=\"color: #98012e;\">\u00b7<\/span><span style=\"font-variant-numeric: normal; font-stretch: normal; font-size: 7pt; line-height: normal; font-family: 'Times New Roman';\"><span style=\"color: #98012e;\">\u00a0\u00a0<\/span>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><!--[endif]-->accounting for income\/expenditure on a \u2018cash in, cash out basis\u2019 will be extended.<\/p>\n<p class=\"MsoNormal\"><span style=\"color: #98012e; font-size: 14pt;\"><b><span style=\"line-height: 115%; font-family: Cambria, serif;\">Who is likely to be affected?<\/span><\/b><\/span><b><\/b><\/p>\n<p class=\"MsoNormal\"><span style=\"background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial;\">Businesses, self-employed people and landlords who earn more than \u00a310,000 a year were initially required to keep digital accounts. However, under the amended timeline, MTD will only affect businesses with a turnover above the VAT threshold. They will need to keep digital records for VAT only from 2019.<\/span><\/p>\n<p class=\"MsoNormal\"><span style=\"background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial;\">As a result three million small <\/span><span style=\"background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial;\">businesses will not be asked to keep digital records, or update the taxman quarterly, until at least 2020. The same exemption applies to those in <\/span>employment and pensioners with secondary incomes of more than \u00a310,000 per year from either self-employment or property.<\/p>\n<p class=\"MsoNormal\"><span style=\"color: #98012e; font-size: 14pt;\"><b><span style=\"line-height: 115%; font-family: Cambria, serif;\">Timeline <\/span><\/b><\/span><b><\/b><\/p>\n<p class=\"MsoNormal\">Digital accounts, which will unite each taxpayer\u2019s details in a single place \u2013 much like an online bank account, are due to start being phased in from April 2020.<\/p>\n<p class=\"MsoNormal\">This table shows what has changed and what your business can expect:<\/p>\n<table class=\"MsoTableGrid\" style=\"border-collapse: collapse; border: none; mso-border-alt: solid windowtext .5pt; mso-yfti-tbllook: 1184; mso-padding-alt: 0cm 5.4pt 0cm 5.4pt;\" border=\"1\" cellspacing=\"0\" cellpadding=\"0\">\n<tbody>\n<tr style=\"mso-yfti-irow: 0; mso-yfti-firstrow: yes; height: 13.7pt;\">\n<td style=\"width: 104.7pt; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 13.7pt;\" valign=\"top\" width=\"140\">\n<p class=\"MsoNormal\" style=\"margin-bottom: .0001pt; line-height: normal;\"><span style=\"color: #98012e;\"><b>Annual turnover<\/b><\/span><\/p>\n<\/td>\n<td style=\"width: 120.45pt; border: solid windowtext 1.0pt; border-left: none; mso-border-left-alt: solid windowtext .5pt; mso-border-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 13.7pt;\" valign=\"top\" width=\"161\">\n<p class=\"MsoNormal\" style=\"margin-bottom: .0001pt; line-height: normal;\"><span style=\"color: #98012e;\"><b>Quarterly tax reports<\/b><\/span><\/p>\n<\/td>\n<td style=\"width: 106.3pt; border: solid windowtext 1.0pt; border-left: none; mso-border-left-alt: solid windowtext .5pt; mso-border-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 13.7pt;\" valign=\"top\" width=\"142\">\n<p class=\"MsoNormal\" style=\"margin-bottom: .0001pt; line-height: normal;\"><span style=\"color: #98012e;\"><b>New timeline<\/b><\/span><\/p>\n<\/td>\n<td style=\"width: 120.5pt; border: solid windowtext 1.0pt; border-left: none; mso-border-left-alt: solid windowtext .5pt; mso-border-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 13.7pt;\" valign=\"top\" width=\"161\">\n<p class=\"MsoNormal\" style=\"margin-bottom: .0001pt; line-height: normal;\"><b><span style=\"color: #98012e;\">Old timeline<\/span><\/b><\/p>\n<\/td>\n<\/tr>\n<tr style=\"mso-yfti-irow: 1; height: 13.7pt;\">\n<td style=\"width: 104.7pt; border: solid windowtext 1.0pt; border-top: none; mso-border-top-alt: solid windowtext .5pt; mso-border-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 13.7pt;\" valign=\"top\" width=\"140\">\n<p class=\"MsoNormal\" style=\"margin-bottom: .0001pt; line-height: normal;\">Over \u00a385,000 + VAT registered<\/p>\n<p class=\"MsoNormal\" style=\"margin-bottom: .0001pt; line-height: normal;\">\n<\/td>\n<td style=\"width: 120.45pt; border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.0pt; mso-border-top-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 13.7pt;\" valign=\"top\" width=\"161\">\n<p class=\"MsoNormal\" style=\"margin-bottom: .0001pt; line-height: normal;\">VAT only<\/p>\n<\/td>\n<td style=\"width: 106.3pt; border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.0pt; mso-border-top-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 13.7pt;\" valign=\"top\" width=\"142\">\n<p class=\"MsoNormal\" style=\"margin-bottom: .0001pt; line-height: normal;\">1 April 2019<\/p>\n<\/td>\n<td style=\"width: 120.5pt; border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.0pt; mso-border-top-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 13.7pt;\" valign=\"top\" width=\"161\">\n<p class=\"MsoNormal\" style=\"margin-bottom: .0001pt; line-height: normal;\">1 April 2019<\/p>\n<\/td>\n<\/tr>\n<tr style=\"mso-yfti-irow: 2; height: 13.7pt;\">\n<td style=\"width: 104.7pt; border: solid windowtext 1.0pt; border-top: none; mso-border-top-alt: solid windowtext .5pt; mso-border-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 13.7pt;\" valign=\"top\" width=\"140\">\n<p class=\"MsoNormal\" style=\"margin-bottom: .0001pt; line-height: normal;\">Over \u00a385,000: all businesses\/landlords<\/p>\n<p class=\"MsoNormal\" style=\"margin-bottom: .0001pt; line-height: normal;\">\n<\/td>\n<td style=\"width: 120.45pt; border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.0pt; mso-border-top-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 13.7pt;\" valign=\"top\" width=\"161\">\n<p class=\"MsoNormal\" style=\"margin-bottom: .0001pt; line-height: normal;\">Income tax and national insurance (NI)<\/p>\n<\/td>\n<td style=\"width: 106.3pt; border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.0pt; mso-border-top-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 13.7pt;\" valign=\"top\" width=\"142\">\n<p class=\"MsoNormal\" style=\"margin-bottom: .0001pt; line-height: normal;\">At least April 2020<\/p>\n<\/td>\n<td style=\"width: 120.5pt; border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.0pt; mso-border-top-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 13.7pt;\" valign=\"top\" width=\"161\">\n<p class=\"MsoNormal\" style=\"margin-bottom: .0001pt; line-height: normal;\">6 April 2018<\/p>\n<\/td>\n<\/tr>\n<tr style=\"mso-yfti-irow: 3; height: 13.7pt;\">\n<td style=\"width: 104.7pt; border: solid windowtext 1.0pt; border-top: none; mso-border-top-alt: solid windowtext .5pt; mso-border-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 13.7pt;\" valign=\"top\" width=\"140\">\n<p class=\"MsoNormal\" style=\"margin-bottom: .0001pt; line-height: normal;\">\u00a310,000 to \u00a385,000*<\/p>\n<p class=\"MsoNormal\" style=\"margin-bottom: .0001pt; line-height: normal;\">\n<\/td>\n<td style=\"width: 120.45pt; border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.0pt; mso-border-top-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 13.7pt;\" valign=\"top\" width=\"161\">\n<p class=\"MsoNormal\" style=\"margin-bottom: .0001pt; line-height: normal;\">Income tax and NI<\/p>\n<\/td>\n<td style=\"width: 106.3pt; border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.0pt; mso-border-top-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 13.7pt;\" valign=\"top\" width=\"142\">\n<p class=\"MsoNormal\" style=\"margin-bottom: .0001pt; line-height: normal;\">At least April 2020 \u2013 and voluntarily<\/p>\n<\/td>\n<td style=\"width: 120.5pt; border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.0pt; mso-border-top-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 13.7pt;\" valign=\"top\" width=\"161\">\n<p class=\"MsoNormal\" style=\"margin-bottom: .0001pt; line-height: normal;\">6 April 2019<\/p>\n<\/td>\n<\/tr>\n<tr style=\"mso-yfti-irow: 4; mso-yfti-lastrow: yes; height: 14.4pt;\">\n<td style=\"width: 104.7pt; border: solid windowtext 1.0pt; border-top: none; mso-border-top-alt: solid windowtext .5pt; mso-border-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 14.4pt;\" valign=\"top\" width=\"140\">\n<p class=\"MsoNormal\" style=\"margin-bottom: .0001pt; line-height: normal;\">All companies<\/p>\n<p class=\"MsoNormal\" style=\"margin-bottom: .0001pt; line-height: normal;\">\n<\/td>\n<td style=\"width: 120.45pt; border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.0pt; mso-border-top-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 14.4pt;\" valign=\"top\" width=\"161\">\n<p class=\"MsoNormal\" style=\"margin-bottom: .0001pt; line-height: normal;\">Corporation tax<\/p>\n<\/td>\n<td style=\"width: 106.3pt; border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.0pt; mso-border-top-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 14.4pt;\" valign=\"top\" width=\"142\">\n<p class=\"MsoNormal\" style=\"margin-bottom: .0001pt; line-height: normal;\">At least April 2020<\/p>\n<\/td>\n<td style=\"width: 120.5pt; border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.0pt; mso-border-top-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 14.4pt;\" valign=\"top\" width=\"161\">\n<p class=\"MsoNormal\" style=\"margin-bottom: .0001pt; line-height: normal;\">1 April 2020<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p class=\"MsoNormal\"><i>*Small business threshold to be confirmed.<\/i><\/p>\n<p class=\"MsoNormal\"><b><span style=\"font-size: 14.0pt; line-height: 115%; font-family: 'Cambria','serif'; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin; color: #365f91; mso-themecolor: accent1; mso-themeshade: 191; mso-fareast-language: EN-GB;\"><span style=\"color: #98012e;\">Software<\/span><\/span><\/b><\/p>\n<p class=\"MsoNormal\"><span style=\"background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial;\">The identity of the accountancy software to lead the government\u2019s digital tax overhaul is unknown. The MTD pilot scheme began in April 2017 and, as such, is nowhere near ready<\/span>.<\/p>\n<p class=\"MsoNormal\"><span style=\"background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial;\">What we do know is this new breed of software will connect to an HMRC application programming interface (API), which will enable a piece of commercial software to share data with HMRC\u2019s servers. These APIs may be ready for testing by December 2017.<\/span><\/p>\n<p class=\"MsoNormal\">Free MTD software has been discussed, but the vendors have not found a business model to make this viable. This means you or your business should budget for any potential costs involved in making the transition. \u00a0HMRC previously estimated MTD to cost around \u00a3280 per business, although this is subject to change.<\/p>\n<p class=\"MsoNormal\">It\u2019s worth bearing in mind that your accounting software needs to suit the size of your business \u2013 not just in 2017 but in the future. Factor in projections for three years after your business begins the digital switch to ensure the smoothest transition in the long term.<\/p>\n<p class=\"MsoNormal\"><b><span style=\"font-size: 14.0pt; line-height: 115%; font-family: 'Cambria','serif'; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin; color: #365f91; mso-themecolor: accent1; mso-themeshade: 191; mso-fareast-language: EN-GB;\"><span style=\"color: #98012e;\">Topical issues<\/span><\/span><\/b><\/p>\n<p class=\"MsoNormal\"><span style=\"font-size: 13pt; line-height: 115%; font-family: Cambria, serif; color: #98012e;\">Cyber security<\/span><\/p>\n<p class=\"MsoNormal\"><span style=\"background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial;\">With many more individuals keeping digital accounting records and electronic interactions between taxpayers and HMRC poised to soar in the near future, cyber criminals are expected to recognise an opportunity to target taxpayers and their agents. It is therefore imperative to take steps to protect your business from this growing threat. <\/span><\/p>\n<p class=\"MsoNormal\"><span style=\"background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial;\">If using cloud-based digital accounting software, ensure you have the utmost confidence in your cloud provider and where your information is being stored. Passwords should be strong and changed regularly, while you need to be wary of suspicious \u2018phishing\u2019 emails and make sure you have the latest anti-virus software installed on all your systems. <\/span><\/p>\n<p class=\"MsoNormal\"><span style=\"font-size: 13pt; line-height: 115%; font-family: Cambria, serif; color: #98012e;\">Priorities and distractions<\/span><b><\/b><\/p>\n<p class=\"MsoNormal\">Already distracted by ongoing factors like Brexit, there were fears businesses were ill-equipped to handle the reporting requirements. It was these same fears that prompted the government to cave in to pressure and tone down its MTD plans to allow smaller businesses more time to prepare.<\/p>\n<p class=\"MsoNormal\"><span style=\"font-size: 13pt; line-height: 115%; font-family: Cambria, serif; color: #98012e;\">Accurate records<\/span><b><\/b><\/p>\n<p class=\"MsoNormal\">Despite the uncertainty surrounding MTD, it\u2019s more important than ever for your business to maintain accurate accounting records. The digital changeover will be challenging enough without the additional worry of disorganised records and potential penalties that come with it.<\/p>\n<p class=\"MsoNormal\"><span style=\"color: #98012e; font-size: 14pt;\"><b><span style=\"line-height: 115%; font-family: Cambria, serif;\">What happens next?<\/span><\/b><\/span><b><\/b><\/p>\n<p class=\"MsoNormal\">Now the ink has dried on a political pact between the Conservatives and the Democratic Unionist Party, we can expect digital accounts to be revisited in a second Finance Bill 2017.<\/p>\n<p class=\"MsoNormal\">At the time of going to print, software developers were due to meet to discuss the progress of the pilot scheme. We know they have tested agent registrations, but not the quarterly uploads process.<\/p>\n<p class=\"MsoNormal\">In the meantime, businesses need to think about preparing for the upcoming changes. Given the scale of MTD and the millions of taxpayers it will ultimately affect, it would be wise to keep an eye on developments and stay informed \u2013 standing still would be the worst thing to do.<\/p>\n<p class=\"MsoNormal\">Failure to start the transition now could result in HMRC expecting quarterly updates while you may be learning the basics of online record-keeping and trying to sign off tax returns. MTD will launch soon and will eventually impact on almost all businesses, landlords and taxpayers.<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Ensuring the smoothest transition for your business. \u00a0Making Tax Digital (MTD) will mean most businesses and taxpayers access their tax affairs online through digital tax accounts in the near future. But what impact will MTD have on your business? What is Making Tax Digital? \u201cTax really doesn&#8217;t have to be taxing\u201d, said former chancellor George&hellip;&nbsp;<a href=\"https:\/\/my-brains.co.uk\/jackross\/managing-digital-revolution\/\" class=\"\" rel=\"bookmark\">Read More &raquo;<span class=\"screen-reader-text\">Managing the Digital Revolution<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":2788,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"neve_meta_sidebar":"","neve_meta_container":"","neve_meta_enable_content_width":"","neve_meta_content_width":0,"neve_meta_title_alignment":"","neve_meta_author_avatar":"","neve_post_elements_order":"","neve_meta_disable_header":"","neve_meta_disable_footer":"","neve_meta_disable_title":"","neve_meta_reading_time":""},"categories":[145],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.8.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Managing the Digital Revolution - Manchester Chartered Accountants<\/title>\n<meta name=\"description\" content=\"Ensuring the smoothest transition for your business. \u00a0Making Tax Digital (MTD) will mean most businesses and taxpayers access their tax affairs online\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/my-brains.co.uk\/jackross\/managing-digital-revolution\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Managing the Digital Revolution - Manchester Chartered Accountants\" \/>\n<meta property=\"og:description\" content=\"Ensuring the smoothest transition for your business. \u00a0Making Tax Digital (MTD) will mean most businesses and taxpayers access their tax affairs online\" \/>\n<meta property=\"og:url\" content=\"https:\/\/my-brains.co.uk\/jackross\/managing-digital-revolution\/\" \/>\n<meta property=\"og:site_name\" content=\"Manchester Chartered Accountants\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/jackrosstax\" \/>\n<meta property=\"article:published_time\" content=\"2017-07-31T13:23:09+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2017-09-27T15:54:15+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/my-brains.co.uk\/jackross\/wp-content\/uploads\/2014\/06\/anthony-delanoix-43713-e1506527635395.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1000\" \/>\n\t<meta property=\"og:image:height\" content=\"667\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Umar Memon\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Umar Memon\" \/>\n\t<meta name=\"twitter:label2\" content=\"Estimated reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"6 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/my-brains.co.uk\/jackross\/managing-digital-revolution\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/my-brains.co.uk\/jackross\/managing-digital-revolution\/\"},\"author\":{\"name\":\"Umar Memon\",\"@id\":\"http:\/\/my-brains.co.uk\/jackross\/#\/schema\/person\/890f768e5ff3e5664eda31546d21b6e8\"},\"headline\":\"Managing the Digital Revolution\",\"datePublished\":\"2017-07-31T13:23:09+00:00\",\"dateModified\":\"2017-09-27T15:54:15+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/my-brains.co.uk\/jackross\/managing-digital-revolution\/\"},\"wordCount\":1242,\"publisher\":{\"@id\":\"http:\/\/my-brains.co.uk\/jackross\/#organization\"},\"articleSection\":[\"Making Tax Digital\"],\"inLanguage\":\"en-GB\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/my-brains.co.uk\/jackross\/managing-digital-revolution\/\",\"url\":\"https:\/\/my-brains.co.uk\/jackross\/managing-digital-revolution\/\",\"name\":\"Managing the Digital Revolution - Manchester Chartered Accountants\",\"isPartOf\":{\"@id\":\"http:\/\/my-brains.co.uk\/jackross\/#website\"},\"datePublished\":\"2017-07-31T13:23:09+00:00\",\"dateModified\":\"2017-09-27T15:54:15+00:00\",\"description\":\"Ensuring the smoothest transition for your business. \u00a0Making Tax Digital (MTD) will mean most businesses and taxpayers access their tax affairs online\",\"breadcrumb\":{\"@id\":\"https:\/\/my-brains.co.uk\/jackross\/managing-digital-revolution\/#breadcrumb\"},\"inLanguage\":\"en-GB\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/my-brains.co.uk\/jackross\/managing-digital-revolution\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/my-brains.co.uk\/jackross\/managing-digital-revolution\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"http:\/\/my-brains.co.uk\/jackross\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Managing the Digital Revolution\"}]},{\"@type\":\"WebSite\",\"@id\":\"http:\/\/my-brains.co.uk\/jackross\/#website\",\"url\":\"http:\/\/my-brains.co.uk\/jackross\/\",\"name\":\"Jack Ross Chartered Accountants Manchester\",\"description\":\"Manchester Accountants &amp; Manchester Xero Accountants\",\"publisher\":{\"@id\":\"http:\/\/my-brains.co.uk\/jackross\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"http:\/\/my-brains.co.uk\/jackross\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-GB\"},{\"@type\":\"Organization\",\"@id\":\"http:\/\/my-brains.co.uk\/jackross\/#organization\",\"name\":\"Jack Ross Chartered Accountants\",\"url\":\"http:\/\/my-brains.co.uk\/jackross\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-GB\",\"@id\":\"http:\/\/my-brains.co.uk\/jackross\/#\/schema\/logo\/image\/\",\"url\":\"http:\/\/my-brains.co.uk\/jackross\/wp-content\/uploads\/2019\/10\/Jack-Ross-Chartered-Accountants-Logo-Main.jpg\",\"contentUrl\":\"http:\/\/my-brains.co.uk\/jackross\/wp-content\/uploads\/2019\/10\/Jack-Ross-Chartered-Accountants-Logo-Main.jpg\",\"width\":776,\"height\":889,\"caption\":\"Jack Ross Chartered Accountants\"},\"image\":{\"@id\":\"http:\/\/my-brains.co.uk\/jackross\/#\/schema\/logo\/image\/\"},\"sameAs\":[\"https:\/\/www.facebook.com\/jackrosstax\",\"https:\/\/twitter.com\/JackRossTax\"]},{\"@type\":\"Person\",\"@id\":\"http:\/\/my-brains.co.uk\/jackross\/#\/schema\/person\/890f768e5ff3e5664eda31546d21b6e8\",\"name\":\"Umar Memon\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-GB\",\"@id\":\"http:\/\/my-brains.co.uk\/jackross\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/5430569879b99458cabfb580b2d9ad11?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/5430569879b99458cabfb580b2d9ad11?s=96&d=mm&r=g\",\"caption\":\"Umar Memon\"},\"url\":\"https:\/\/my-brains.co.uk\/jackross\/author\/umar\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Managing the Digital Revolution - Manchester Chartered Accountants","description":"Ensuring the smoothest transition for your business. \u00a0Making Tax Digital (MTD) will mean most businesses and taxpayers access their tax affairs online","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/my-brains.co.uk\/jackross\/managing-digital-revolution\/","og_locale":"en_GB","og_type":"article","og_title":"Managing the Digital Revolution - Manchester Chartered Accountants","og_description":"Ensuring the smoothest transition for your business. \u00a0Making Tax Digital (MTD) will mean most businesses and taxpayers access their tax affairs online","og_url":"https:\/\/my-brains.co.uk\/jackross\/managing-digital-revolution\/","og_site_name":"Manchester Chartered Accountants","article_publisher":"https:\/\/www.facebook.com\/jackrosstax","article_published_time":"2017-07-31T13:23:09+00:00","article_modified_time":"2017-09-27T15:54:15+00:00","og_image":[{"width":1000,"height":667,"url":"https:\/\/my-brains.co.uk\/jackross\/wp-content\/uploads\/2014\/06\/anthony-delanoix-43713-e1506527635395.jpg","type":"image\/jpeg"}],"author":"Umar Memon","twitter_misc":{"Written by":"Umar Memon","Estimated reading time":"6 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/my-brains.co.uk\/jackross\/managing-digital-revolution\/#article","isPartOf":{"@id":"https:\/\/my-brains.co.uk\/jackross\/managing-digital-revolution\/"},"author":{"name":"Umar Memon","@id":"http:\/\/my-brains.co.uk\/jackross\/#\/schema\/person\/890f768e5ff3e5664eda31546d21b6e8"},"headline":"Managing the Digital Revolution","datePublished":"2017-07-31T13:23:09+00:00","dateModified":"2017-09-27T15:54:15+00:00","mainEntityOfPage":{"@id":"https:\/\/my-brains.co.uk\/jackross\/managing-digital-revolution\/"},"wordCount":1242,"publisher":{"@id":"http:\/\/my-brains.co.uk\/jackross\/#organization"},"articleSection":["Making Tax Digital"],"inLanguage":"en-GB"},{"@type":"WebPage","@id":"https:\/\/my-brains.co.uk\/jackross\/managing-digital-revolution\/","url":"https:\/\/my-brains.co.uk\/jackross\/managing-digital-revolution\/","name":"Managing the Digital Revolution - Manchester Chartered Accountants","isPartOf":{"@id":"http:\/\/my-brains.co.uk\/jackross\/#website"},"datePublished":"2017-07-31T13:23:09+00:00","dateModified":"2017-09-27T15:54:15+00:00","description":"Ensuring the smoothest transition for your business. \u00a0Making Tax Digital (MTD) will mean most businesses and taxpayers access their tax affairs online","breadcrumb":{"@id":"https:\/\/my-brains.co.uk\/jackross\/managing-digital-revolution\/#breadcrumb"},"inLanguage":"en-GB","potentialAction":[{"@type":"ReadAction","target":["https:\/\/my-brains.co.uk\/jackross\/managing-digital-revolution\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/my-brains.co.uk\/jackross\/managing-digital-revolution\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"http:\/\/my-brains.co.uk\/jackross\/"},{"@type":"ListItem","position":2,"name":"Managing the Digital Revolution"}]},{"@type":"WebSite","@id":"http:\/\/my-brains.co.uk\/jackross\/#website","url":"http:\/\/my-brains.co.uk\/jackross\/","name":"Jack Ross Chartered Accountants Manchester","description":"Manchester Accountants &amp; Manchester Xero Accountants","publisher":{"@id":"http:\/\/my-brains.co.uk\/jackross\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"http:\/\/my-brains.co.uk\/jackross\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-GB"},{"@type":"Organization","@id":"http:\/\/my-brains.co.uk\/jackross\/#organization","name":"Jack Ross Chartered Accountants","url":"http:\/\/my-brains.co.uk\/jackross\/","logo":{"@type":"ImageObject","inLanguage":"en-GB","@id":"http:\/\/my-brains.co.uk\/jackross\/#\/schema\/logo\/image\/","url":"http:\/\/my-brains.co.uk\/jackross\/wp-content\/uploads\/2019\/10\/Jack-Ross-Chartered-Accountants-Logo-Main.jpg","contentUrl":"http:\/\/my-brains.co.uk\/jackross\/wp-content\/uploads\/2019\/10\/Jack-Ross-Chartered-Accountants-Logo-Main.jpg","width":776,"height":889,"caption":"Jack Ross Chartered Accountants"},"image":{"@id":"http:\/\/my-brains.co.uk\/jackross\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/jackrosstax","https:\/\/twitter.com\/JackRossTax"]},{"@type":"Person","@id":"http:\/\/my-brains.co.uk\/jackross\/#\/schema\/person\/890f768e5ff3e5664eda31546d21b6e8","name":"Umar Memon","image":{"@type":"ImageObject","inLanguage":"en-GB","@id":"http:\/\/my-brains.co.uk\/jackross\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/5430569879b99458cabfb580b2d9ad11?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/5430569879b99458cabfb580b2d9ad11?s=96&d=mm&r=g","caption":"Umar Memon"},"url":"https:\/\/my-brains.co.uk\/jackross\/author\/umar\/"}]}},"_links":{"self":[{"href":"https:\/\/my-brains.co.uk\/jackross\/wp-json\/wp\/v2\/posts\/2953"}],"collection":[{"href":"https:\/\/my-brains.co.uk\/jackross\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/my-brains.co.uk\/jackross\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/my-brains.co.uk\/jackross\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/my-brains.co.uk\/jackross\/wp-json\/wp\/v2\/comments?post=2953"}],"version-history":[{"count":2,"href":"https:\/\/my-brains.co.uk\/jackross\/wp-json\/wp\/v2\/posts\/2953\/revisions"}],"predecessor-version":[{"id":2955,"href":"https:\/\/my-brains.co.uk\/jackross\/wp-json\/wp\/v2\/posts\/2953\/revisions\/2955"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/my-brains.co.uk\/jackross\/wp-json\/wp\/v2\/media\/2788"}],"wp:attachment":[{"href":"https:\/\/my-brains.co.uk\/jackross\/wp-json\/wp\/v2\/media?parent=2953"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/my-brains.co.uk\/jackross\/wp-json\/wp\/v2\/categories?post=2953"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/my-brains.co.uk\/jackross\/wp-json\/wp\/v2\/tags?post=2953"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}