It would be interesting to look back through our client and external communications to see exactly when Ryecroft Glenton made our client base alert to the implications of MTD, although we can certainly say that we had been working with our clients for a long time before that to implement robust cloud based accounting systems which MTD is now likely to rely on. Either way, it has been a long time, but HMRC, the creator and controller of MTD, has only just stepped up its communication plan to make MTD-affected business alert to their looming – April 2019 – obligations.
That’s right, until 17 September, HMRC’s communication of MTD to affected businesses has been light to non-existent, instead seemingly relying on us and our profession to spread the message. Then, the opening communication came in the form of a Tweet from HMRC’s Twitter account. Great, that demonstrates that HMRC exists in the digital world. Indeed, @HMRCgovuk has 374,000 followers on Twitter, so their Tweet may have been seen by a great many people, but with an estimated 1.2mllion VAT registered businesses with turnover above the registration threshold [the ones affected by MTD], even with the best will in the world HMRC’s initial message will not impact on its target.
Fear not as we understand HMRC is planning to increase its social media and PR activity around MTD, and will also send a letter to all MTD affected businesses, even though no dates have been set for this activity. On the other hand we will be at Hexham Auction Mart all day on Thursday the 27th and Friday the 28th of September to answer your MTD queries and to give direction on how your business can meet its 2019 MTD obligations, so please do come along and take advantage of our knowledge and expertise in this area.
With only six months to go before MTD becomes compulsory for the first wave of affected business, has HMRC left it too late? And what has spurred them into action now? Not wishing to be overly cynical, might it have been the House of Lords Economic Affairs Committee making a call for evidence in relation to MTD on 12 September? The Committee is seeking to understand how prepared are HMRC, affected businesses and software providers, and what the likely cost will be to those businesses in complying with MTD. Interesting questions!
The ICAEW has just published research that shows 40% of businesses affected by MTD are not yet aware of it despite the looming April 2019 commencement. So whatever action HMRC takes going forward will be positive. However, if you would like to understand your obligations now, face to face, rather than via Twitter, get in touch with us or visit us at the Mart later this month.