Gov.uk announcements

Free software for MTD

The terms of the software development agreement – that will drive the collaboration between developers and HMRC were published today. Here.

The closing comments of the document caught my attention, they say:

Eligibility for free software will apply where the business meets all these conditions:

  • they’re unincorporated (for example self-employed persons or landlords)
  • they have a turnover, within the scope of MTDfB, below the VAT threshold
  • they have no employees
  • they use cash basis accounting

Other Considerations

HMRC wouldn’t require free software to link or integrate with an Agent product

This would seem to imply two things:

  1. That HMRC will be encouraging smaller traders to use cash accounting, even if this results in a higher tax charge for businesses that can ill afford to lose cash flow, and
  2. The independence from agent software will further distance smaller businesses from seeking the professional advice that will help them develop their businesses. It fosters a DIY approach.

 

Leave a Reply

Your email address will not be published. Required fields are marked *