The Budget, MTD, AML, Agent Registration – it’s not looking good, writes Tony Margaritelli.
It’s definitely not a great time to be in practice, whether as accountant, bookkeeper or tax specialist, as we roll inexorably into December and January – known for the hiatus that is the 31 January filing deadline. The recent Budget added layer upon layer to an already hard-pressed sector struggling with the imposition of MTD upon their smallest clients. And with all the relevant planning, explaining and testing taking up so much of their time and resources. As they are doing this they can see how the software and banking industry are rubbing their hands with glee as they plan just when to unleash their real charges after the current period of ‘free’ expires.
This is likely to be as soon as they think the ‘free’ promises will be forgotten, and all the time they must deal with HMRC’s ludicrous £16 additional cost burden.
Naturally, they will look to their institute for help, understanding and comfort and a recognition of requirements. But then, out of the blue, they find that all the accountancy and taxation institutes and associations have managed to lose their role of supervisor of their members for money laundering purposes. Almost as if to press the point home one of them (the ICB) are publicly censured and criticised for their failures in this area. Further, they were only saved from a financial penalty by the fact that there is no mechanism available to fine a supervisory body. So, the FCA will be taking over and undoubtedly that will mean additional costs and additional learning time.
As regards MTD, why was it that when virtually all its members in practice failed to accept that there were any benefits for their clients, all that was forthcoming from our bodies was muted acknowledgements, with no demonstrable kickback? Where was the strong condemnation of the terminology used – and continuing to be used – by HMRC and their staff to convince us that MTD is just the ‘click of a button’? Then, buried in the fallout from the Budget is the fact that our institutes have failed (again) to safeguard and protect their members’ interests by allowing the registration of agents to fall by the wayside and into the hands of HMRC. Here was a definite and some would say final chance to lay down exactly what qualifications were or were not allowed to interact with HMRC. It was the single biggest and best opportunity since the time the ICAEW were shot down in flames when they tried to garner the term ‘Accountant’, and they have lamentably failed to get the matter settled for their members once and for all.
Looking into my crystal ball I can see how the banks, aided by MTD and in turn HMRC, will position themselves as advisors to the self-employed and landlords. Finally, the term Self Assessment will become a reality, but only after MTD’s problems have been resolved by accountants and bookkeepers for little or no remuneration – but a whole lot of anxiety and pressure.
- Tony Margaritelli is the Publisher of HMRC EIP magazine