Making Tax Digital – Making Sense of the Mess and the Madness

Doing the right thing in the wrong way can have disastrous consequences. Doing the right thing at the wrong time is equally destructive. Doing the right thing, in the wrong way and at the wrong time is what we have seen as HMRC role out their Making Tax Digital (MTD) plans.

Thankfully, in July, HMRC has agreed to delay the roll out to give the industry more time to prepare and get themselves and their clients ready. This is a stay of execution, not a repeal; MTD is still going ahead.

We understand and hear what’s going on in the profession because we engage with literally thousands of firms every single month by phone, through live MTD webinars and events.

That means that every single day we speak to scores of partners and practice managers. Many are confused, angry, disappointed, afraid and some even despairing of what’s happened with MTD, in particular the way it’s been managed.

Nobody likes to be forced into doing something – least of all when the communication is so poor and goalposts have shifted so much! Add to that the risk that HMRC would be very happy if some of your clients go to them direct rather than going through you, it can feel very threatening.

It’s caused some to reflect on early retirement, or selling up quick in order to avoid the assumed upheaval and change ahead. But it doesn’t have to be like this; in fact, it doesn’t need to be scary at all. At MyFirmsApp we’ve been working incredibly hard to develop an HMRC approved solution that handles the problem for you; that takes away the fear, removes almost all the on-boarding or client training worries and handles the MTD compliance requirements at the touch of a button. MTD may be a little further away, but it’s still coming and this delay means you now have time to prepare.

There is a short-term price to be paid

There is of course a short term price to be paid today, and we would encourage you to embrace it, to accept the changes and respond positively today. Because once you are through the pain, there will be many positives for you, your clients and also new ways to charge your clients in an appropriate way.

Your clients need you now more than ever

Today, your clients need you more than ever. They need you to respond to MTD and provide them with a simple solution that will work for them. A single solution, that uses technology they are most familiar with (as there will be varying degrees of technical ability). A solution that will work for all types of businesses affected; for the hairdressers, taxi drivers, contractors, gardeners, farriers, consultants, freelancers etc.