Here at APARI we’re always looking to broaden our knowledge about all things tax, so that we can best support our Landlord user base and LandlordZone readers.
So we were thrilled to attend the recent Accountex conference. The London based Accounting Expo gave APARI the unique opportunity to speak with hundreds of accountants about the upcoming changes to the Tax System with MTD and how they see this affecting Landlords in the UK.
We thought we would share a few of the valuable insights from the event.
1. Accountants are concerned about the impact of the cost of MTD on their end
Rising costs are a topic everyone has been hearing more about recently – with inflation rates creeping up, everyone is understandably worried about the increased pressures to raise prices to cope with this.
But this pressure is probably even more increased for Accountants and their clients – with MTD for income tax coming into effect soon, there is a deadline looming, and the big question begs to be – how will accountants charge for MTD?
With submissions going from once a year, to at least 5 times per year, depending on the clients tax affairs, there is no doubt that there is a chance that the workload per client will exponentially increase – and that prices will have to increase in parallel to this.
But most landlord clients will, understandably, not be willing to pay quadruple the amount they do currently!
2. There are things you can do as a landlord to mitigate some of these costs
The first thing you should do is speak to your accountant. They should have some sort of plan in place for how they are going to tackle MTD. If they don’t, then some gentle nudging from their clients should help them develop a system and guidelines for their clients to follow.
Having this plan in place is key to how they would be looking to price their services for MTD. For example, if you as a client agree to all the record keeping requirements and quarterly submissions, then your accountant could offer year end advice and checking like they have in previous years, which would have a smaller impact on their time, and their fees.
Getting started early with MTD could also help to reduce some of these costs – by getting to grips with MTD, and joining the pilot before it is mandated in 2024, you can contact your accountant when they are needed for the “tax stuff” rather than for admin work.
APARI have recently spoken with the Financial Times about our insights into the MTD pilot – unfortunately the eligibility criteria is still pretty narrow, but you can take our survey and find out if you could be eligible, or at least the reasons why you wouldn’t be eligible, here.
3. APARI are already supporting Accountants where we can.
Although APARI’s current platform is directed at you, the taxpayer, we are already working on a way to make it easier for you to allow your accountants secure access to your tax data, meaning that you can work on a hybrid approach to MTD.
We are also speaking with accountants regularly to understand their pressures, and build this platform around their needs, meaning that they can more efficiently support their clients i.e you the taxpayer, without changing the process for our end users.
Our aim is to be a support system for all those affected by Making Tax Digital for Income Tax – our unique insights from being one of the only HMRC approved softwares for MTD ITSA means that we can bridge the information gap between the legislation and the developers information published by HMRC.
So overall what have we learned? Well if you have an accountant, give them a call – ask them their plans, and ask them what you will need to do to get prepared for MTD as their client.
Unfortunately many accountants are still unsure about what their next steps should be. If this is the case, consider asking them to reach out to APARI – or join our community so that they can be the first in the know when it comes to MTD.