Many small businesses keep handwritten records that align with the needs of the business and are more than sufficient to enable them to submit correct and complete tax returns.
All VAT-registered businesses will be brought in from April 2019 and companies from April 2020.
If the Government believes that record-keeping needs to be improved, then it would be helpful to understand the particular areas of concern and that HMRC should work with the professional bodies to see how improvements could be made.
Smaller businesses are being required to move to MTD before larger businesses.
As yet, we have no details of what these submissions might look like or contain, but they will be summaries rather than transactional.
We are, however, extremely concerned with the proposal to make quarterly digital reporting compulsory.We do not believe that the solution to poor record keeping is to impose a new requirement on the self-employed and businesses of all sizes to keep their records digitally (if this is the intent) and submit them to HMRC quarterly.