Ideas for future UK Quarterly Reporting

Is there any plan to support interface to UK HMRC when Quarterly Tax Reporting is introduced. I’m wondering whether I should stay with (which I love) or think about moving to something that will support the interface to HMRC.

This is not relevant for at least two years as the idea is still in proposal stage and might ultimately get thrown into the grass in the end as no taxpayer wants to be dealing with tax paperwork four times a year! You only have to be on this sytem by 2020 latest so whats the rush

It is relevant to me because I am reccomending to my Managing Director as a sensible choice of accounting system for a new small business and she is asking me whetehr it will work if and when the new HMRC rules come into operation, obviously not wanting to invest time in setting up only to have to switch horses in only 2 years.

I’m also considering moving Excel based accounting of dividends, CGT and rental property income to and I don’t want to waste time either switching in 2 years or less.

I am well aware of the state of the HMRC proposal as I’ve signed the online petition against the change to 3 month reporting and have had the goverments initial response. Seems to me like they might just ride roughshod over taxpayer objections so that they can get CGT earlier on sold rental properties and have more real time information re small business and person tax takes.

If there were an API to allow connection of to the online Business and Personal Tax Accounts API, perhaps someone (perhaps even I) might write a suitable interface if and when the need arises.

Manager API

As requested, there is a manager API. I have linked you to the topic.

You will have to ask the developer whether he thinks he will implement this new HMRC requirement into the program at some point in the future.

But to be really fair to Manager, he cannot really answer the question if HMRC are still in the proposals stage. This quarterly reporting may never actually come into place as HMRC will come to realise the logistical hurdles for getting this to work. I personally believe that HMRC will spend millions on the project - then realise it doesn’t work and then abandon it.

As such until HMRC have actually made it clear that a: these are the rules that will actually be implemented and b: the rules are actually implemented in law, I cannot see any accounting program let alone Manager bothering to implement this into their software unless this Quarterly reporting already applies to some business sector and secondly applies in several countries as most software developers will not drastically change the program just for one country. Thats just my opinion however and I am not one of the developers so I cannot say.

I just simply do not believe that this HMRC requirement will come to pass because HMRC will not be able to design their own software to get this work properly.

But Manager supports API functionality so you can write the API if you need to yourself.

This is trend occurring in many countries. And most likely this will be handled via Manager API.

So yeah, there will be solution when the time comes.

I know that this is offtopic @lubos but do you have any idea why any government wants to increase people’s time spent doing paperwork as they are hardly likely to be paying more tax as a result of the changes? I have done some reading on the matter, and I just cannot see how this will work because its impossible to determine tax obligations based on a quarter as virtually all businesses have quiet months and busy months. Anyway just wondered if you had any thoughts - I am hoping that this will not be introduced in the UK as I have enough work to do and despite what the HMRC say, this will not be a point and click option.

Tax authorities struggle to collect income taxes from self-employed and small businesses. Mostly because small businesses are often disorganized, don’t know how much to save for tax and when the tax bill comes, they are unable to pay.

I still think lodging an actual tax return 4 times a year is over the top. Most self-employed people or small businesses have the same taxable income year after year. HMRC could just estimate tax liability based on the previous year and then send bills to collect income tax for the next year in monthly installments.

I see the point. The problem that the government doesn’t seem to understand is that most small businesses and the self employed very often don’t have the time, so doing the tax return four times a year is not really going to help.

Just a heads up, I don’t think that they are expecting a tax return every quarter - but more in the lines of something like Real Time Information for PAYE. So its more like sending a statement of your current income and expenditure. Or at least, this is how I am reading the reports for the UK. I am still unable to determine what “most businesses” means as far as the HMRC is concerned - the implication being that some businesses will not be affected, but they don’t make it clear exactly which businesses. Oh well. We will see in a couple of years. My suspicion is that it will take a lot longer to come into force than they expect as they will suddenly discover that its not that simple to make it point and click!