UK specific: MTD - Making Tax Digital

[John Ralls]

> On Apr 17, 2017, at 3:50 AM, Alain Williams <addw at phcomp.co.uk> wrote:
> 
> Question: Are there plans for GnuCash to work with the UK Tax edict MTD ?
> 
> MTD (Making Tax Digital) is the UK Inland Revenue (HMRC) mandating that every
> business (& some others) use accounts software in the glib assertion that it
> will make life easier for every business.  Part of this is that all will need to
> upload transaction information to HMRC computers every quarter + annual reports.
> 
> This will start in April 2018, although most people have not yet heard about it
> and the specifications/requirements have not been finalised.
> 
> I do not use accounting software as my business is simple and small enough that
> paper is easier. I am looking from something that will run on my Linux boxes
> that will keep the monkeys in HMRC happy. I would be prepared to join in a
> project to help make this happen.
> 
> 
> 
> 
> Some background info on MTD
> 
> Overview
> https://www.gov.uk/government/publications/making-tax-digital
> 
> https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/494821/Making_Tax_Digital_-_myth-buster.PDF
> 
> https://www.fsb.org.uk/docs/default-source/fsb-org-uk/fsb-mtd-pwc-report.pdf?sfvrsn=1
> FSB has estimated the average cost across all small and medium sized businesses
> of introducing mandatory quarterly reporting would be £2,770
> 
> http://www.taxresearch.org.uk/Blog/2015/12/14/hmrcs-digital-accounting-will-become-the-biggest-obstacle-to-small-business-growth-in-uk-history/
> HMRC’s digital accounting will become the biggest obstacle to small business
> growth in UK history
> 
> https://www.icas.com/technical-resources/making-tax-digital-in-ten-all-you-need-to-know

No plans because as usual this is the first we've heard of it.

Until HMRC releases technical specifications we won't be able to do anything anyway. If we're lucky they'll use an existing data format like mt940 and a straightforward communications and authentication protocol. The worst-case for UK GnuCash users is that they have a few software vendors with whom they're working and all businesses will be required to buy software from one of them. Unfortunately the latter seems to be the more common mode for government projects like this.

Regards,
John Ralls