The document outlines 3 key things accountancy firms need to do now to operationalize digital tax requirements in the UK.
1) Analyze their client base to identify which clients will be required to comply with the new digital tax regime and which may be exempt.
2) Determine the service offering around record keeping software, bookkeeping support, and early adoption options to assist clients in transitioning.
3) Evaluate staffing needs, which may require changes to recruitment or training, to support clients under the new digital requirements.
The document provides details on the new digital accounting record keeping and quarterly reporting requirements and timelines accountants need to prepare for. It emphasizes the importance of starting to analyze client needs
3. 3
The whole regime is driven by the accounting record requirement
The requirement for businesses to keep their accounting records
using digital tools.
• Once you have mastered this point the rest follows easily
• Digital tools might be software, apps or even spreadsheets
• BUT you will need software to support spreadsheet use
Getting a clear picture of what MTD really is
4. 4
ICAEW research February 2016
• 25% of small businesses use software for record
keeping
• 25% of small businesses use only manual records
• 50% use a combination of manual records and
spreadsheets
• HMRC’s relaxation of the rules makes very good sense
– But do you want to stick with spreadsheets?
Current use of digital tools for record keeping
5. 5
We do not have the full answer to that question yet!
Waiting on budget announcements
• Regard £10,000 as certainly exempt – both for landlords and traders
• Digitally excluded – “not reasonably practicable”
• No doubt you have clients with big changes to make
Who is likely to be exempt?
7. 7
NOT quarterly accounts; NOT quarterly tax return
From digital records just update HMRC with the totals
• Accruals / prepayments etc optional
• No need to reconcile – no penalties for inaccuracy
• Use headings on SA return for minimum analysis
– Even three line account must use these headings in the records
– More headings if desired
Quarterly updating – one month to do
8. 8
Ten months to finalise
• But books are already written up and available to you
• Can produce accounts more in “real time”
– More meaningful
– Better management tool
Annual final accounts for tax purposes
10. 10
Start work analyzing your client base
Identify certain “In” and certain “Out” clients
• In – over VAT threshold
• Out – digitally excluded and less than £10,000 turnover
• Now start thinking about their needs
– Who will struggle?
– Who is already nearly there?
Your clients
11. 11
What is your service offering?
Choice of record keeping software
• Cloud based?
• Bank feeds?
• How much will your firm be prepared to do?
– Think about re-work issues
– Time that is ordinarily low recovery and low profit
Your services
12. 12
What staff do you need?
Have you got them yet?
• Potential change in recruitment policy
• More focus on bookkeepers and enablers
• Training staff, train the trainer for clients!
Your firm
13. 13
Key decisions now!
• Software – free choice?
• Bookkeeping support offering
• Early “subscription” for clients?
• Early adoption – public beta?
• Communicate with clients
• SMILE – it will be fun!
Go and do it!
14. 14
April 2017 31 Jan 2020April 2018 July 2018 31 Jan 2019 Apr 2019
Timeline
Decision re
subscribing
clients
Public Beta opens
Register as an
agent for MTD
First tranche of
clients come into
MTD
Continue
migrating clients
to MTD
First quarterly
updates filed
Tax payment
reminders for
2017-18
Quarterly updates
continue – 31 Dec
quarters
Payment on
account
reminders for
2018-19
Final annual
confirmations for
clients with 5 April
year end
Preparing for
companies to
come into MTD
Start work on
2018-19 SA
returns
Start work on
2017-18 SA
returns
Continue work
on 2017-18 SA
returns
Complete work
on 2017-18 SA
returns
All non exempt
landlords come in
immediately
Last clients (31
March year ends)
come into MTD
VAT comes within
MTD
Start filing annual
confirmations for
early starts
Last SA returns
filed
Start work
analyzing your
client base
15. 15
1. Start work analyzing your client base
2. Determine your service offering
3. Have a look at staffing
and…
Go Do It! (Don’t forget to smile!)
In summary:
3 things to do now
17. Access the presentation materials via:
The QuickBooks Connect 2017 Conference App
or
Slideshare at: http://www.slideshare.com/tag/QBCUK17
Notes de l'éditeur
This is a sample INTRODUCTION using the 1-Column layout.
Placeholder text boxes that appear as part of the selected layout have predefined fonts, sizes and colors. To change the appearance of any line of text, on the Home tab, in the Paragraph group, click Increase Indent or Decrease Indent. The selected text will reformat to the predefined size according to its indent level.
Note: Any changes to the color, size, spacing or font in the placeholder text box will break its connection to the Master style. It will no longer automatically conform when switching between layouts or when imported into another presentation.
This is a sample INTRODUCTION using the 1-Column layout.
Placeholder text boxes that appear as part of the selected layout have predefined fonts, sizes and colors. To change the appearance of any line of text, on the Home tab, in the Paragraph group, click Increase Indent or Decrease Indent. The selected text will reformat to the predefined size according to its indent level.
Note: Any changes to the color, size, spacing or font in the placeholder text box will break its connection to the Master style. It will no longer automatically conform when switching between layouts or when imported into another presentation.
This is a sample INTRODUCTION using the 1-Column layout.
Placeholder text boxes that appear as part of the selected layout have predefined fonts, sizes and colors. To change the appearance of any line of text, on the Home tab, in the Paragraph group, click Increase Indent or Decrease Indent. The selected text will reformat to the predefined size according to its indent level.
Note: Any changes to the color, size, spacing or font in the placeholder text box will break its connection to the Master style. It will no longer automatically conform when switching between layouts or when imported into another presentation.
This is a sample INTRODUCTION using the 1-Column layout.
Placeholder text boxes that appear as part of the selected layout have predefined fonts, sizes and colors. To change the appearance of any line of text, on the Home tab, in the Paragraph group, click Increase Indent or Decrease Indent. The selected text will reformat to the predefined size according to its indent level.
Note: Any changes to the color, size, spacing or font in the placeholder text box will break its connection to the Master style. It will no longer automatically conform when switching between layouts or when imported into another presentation.
This is a sample INTRODUCTION using the 1-Column layout.
Placeholder text boxes that appear as part of the selected layout have predefined fonts, sizes and colors. To change the appearance of any line of text, on the Home tab, in the Paragraph group, click Increase Indent or Decrease Indent. The selected text will reformat to the predefined size according to its indent level.
Note: Any changes to the color, size, spacing or font in the placeholder text box will break its connection to the Master style. It will no longer automatically conform when switching between layouts or when imported into another presentation.