41–50 of 50 posts
Why cant the tools be made on Java so that they run everywhere? They dont need to be pretty just run.
Agreed, .jar is an underrated deployment mechanism. Or, you know, make the darned thing a web app.
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I'm really surprised the software isn't simply a fully online webapp... This is designed for small employers - they want something easy like a website, not specialist software they need to install with a database that must be backed up manually. For those businesses with extreme corner cases ("we don't have internet", "we only pay employees on the full moon", etc), let them continue to use the old paper forms.
I think pretty much 100% of companies just use the online portals provided by the tax software vendors. Companies without direct access to the internet just file their VAT via their accountant, or manually file them through physical mail.
Don't think HMRC accepts this in 2024.
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The API is open to anyone who can demonstrate compliance via the test API. Approval takes 10 working days and there is no cost to the developer. There are currently 544 approved vendors. The barrier to entry is intentional but low. HMRC specifically does not want people typing numbers into webforms, for perfectly legitimate reasons. https://developer.service.hmrc.gov.uk/guides/vat-mtd-end-to-... https://www.tax.servi…
> for perfectly legitimate reasons. Could you elaborate?
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> for perfectly legitimate reasons. Could you elaborate?
I guess it's to reduce the validation workload at their end. They'd rather receive numbers generated and validated by a piece of software, rather than numbers that may or may not make sense.
It might help slightly against accidental typos in the 7 numbers. But I really doubt that the transferring of 7 numbers from one bit of software to another once per year is a substantial contributor to accounting errors, when you compare that to hundreds or thousands of invoices/bills that need to be entered into the accountancy software.
Earlier quoted context omitted.
The API is open to anyone who can demonstrate compliance via the test API. Approval takes 10 working days and there is no cost to the developer. There are currently 544 approved vendors. The barrier to entry is intentional but low. HMRC specifically does not want people typing numbers into webforms, for perfectly legitimate reasons. https://developer.service.hmrc.gov.uk/guides/vat-mtd-end-to-... https://www.tax.servi…
> for perfectly legitimate reasons. Could you elaborate?
Earlier quoted context omitted.
> for perfectly legitimate reasons. Could you elaborate?
See the third link, but the short answer is that businesses that keep digital tax records make fewer errors on their returns and pay more in tax. HMRC's analysis suggests that the transition to mandatory digital accounting will reduce underpayments by nearly £400m per year, without imposing disproportionate costs on businesses. The API functionally mandates some level of digitisation, but it's extremely flexible - sm…
Conversely, businesses that only earn £50 a year probably can have their accounts done in 5 minutes on a napkin, which is why those businesses are less likely to use accounting software and pay less tax on average...
Forcing them to use accounting software won't suddenly make them earn more or pay more taxes. In fact, if the effort of running a tiny business goes up too much, many of them will just shut down.
Earlier quoted context omitted.
I think pretty much 100% of companies just use the online portals provided by the tax software vendors. Companies without direct access to the internet just file their VAT via their accountant, or manually file them through physical mail.
> Companies without direct access to the internet Don't think HMRC accepts this in 2024.
Earlier quoted context omitted.
You have to update, though not automatically. New versions are required to handle changes to the PAYE tax rules, which have changed every few months recently. There was a change announced this month which takes effect next month. If you don't use the updated version, you'll calculate and pay the wrong monthly tax to yourself and your employees.
I'm really surprised the software isn't simply a fully online webapp... This is designed for small employers - they want something easy like a website, not specialist software they need to install with a database that must be backed up manually. For those businesses with extreme corner cases ("we don't have internet", "we only pay employees on the full moon", etc), let them continue to use the old paper forms.
They're actually going in the opposite direction. It was possible to file VAT on HMRC's website a couple of years ago, but they've taken that option away. Now you have to use 3rd party software to file VAT.
It's because they added requirements that your filing software is linked to whatever system you use for business accounts, even if it's a spreadsheet for now.
For PAYE, you can use HMRC's tool described in the article, if you're a small enough business, or 3rd party tools, which could be a webapp or not, or your accountant's services.
I agree, a webapp would be much more sensible for PAYE, as it could keep up with the monthly rule changes. If you have a registered business, you already have the login, form-filling support etc you would need, as it is used for other taxes and admin on HMRC's site. In a twist, the HMRC tool the article is about is actually a webapp that runs locally.
For Corporation Tax, you have to use 3rd party software or services. That's been true for a long time. Historically this software was expensive, so most people ended up using an accountant's services even if just to be able to file Corporation Tax after doing their own accounts. It's more accessible now. You can file it on HMRC's website if the company accounts are simple enough. You can file it at the same time as the Companies House statements, if you're organised enough.
For Income Tax from your business, that's going to change to require your filing software to be linked to the system you use for business accounts too, in 2026 or 2027 depending on size of business. I guess that might mean you won't be able to file income tax on HMRC's website any more.
Earlier quoted context omitted.
See the third link, but the short answer is that businesses that keep digital tax records make fewer errors on their returns and pay more in tax. HMRC's analysis suggests that the transition to mandatory digital accounting will reduce underpayments by nearly £400m per year, without imposing disproportionate costs on businesses. The API functionally mandates some level of digitisation, but it's extremely flexible - sm…
> businesses that keep digital tax records [...] pay more in tax. Conversely, businesses that only earn £50 a year probably can have their accounts done in 5 minutes on a napkin, which is why those businesses are less likely to use accounting software and pay less tax on average... Forcing them to use accounting software won't suddenly make them earn more or pay more taxes. In fact, if the effort of running a tiny bu…
I was one of the (presumably few) people who used the Linux version, until it stopped working for some reason, a few years ago. After that, I got used to booting into Windows one a month to run my little payroll. TBH, I don't think they should be spending resources on this port. PS : hi Liam, we met at Fosdem a few weeks ago!
I do. I don't think the government should be requiring Windows; nor do I think they should be outputting any Excel or Word files at all. All ODF files or PDFs. We shouldn't be paying money for HMRC to use it to pay Microsoft for tools that encourage us all to buy more Microsoft products. That sort of thing seems much more basic than "should Apple be allowed to decide what store is on their phones?"