Here we intend to share our journey though the development of a Making Tax Digital for VAT solution. As we go through it ourselves hopefully helping others who may be going through the same process.
We will be updating this blog regularly to try and keep you in the loop throughout so stay tuned and feel free to contribute!
Our plan is to complete the project by 13th July (day 40) by way of a successful submission
4th June 2018
The developers have been briefed on the concept of MTD as a whole.
We have studied the API road map and the status of each of the endpoints.
We are working through the end to end customer Journeys.
We are studying each of the API’s in the development hub.
It’s been just over a week since we returned from Accountex, all very tired after such a busy few days
For those of you who don’t recognise the name Accountex, it the leading exhibition for accountants at the London Excel where we have been exhibiting for the last 3 years.
The four hour car journey covered in merchandise and singing our favourite songs meant we arrived in high spirits, only to have our expectations exceeded by the many people we met
Making Tax Digital presentation
Our CEO John Whelan had the opportunity to talk about Making Tax Digital in the Tax now theatre. He promised to be entertaining and informative, and he did not disappoint, from software based jokes and retro theme songs, to informative advice that would be beneficial to all John attracted a large crowd with standing room only!
John chose Making Tax Digital as his discussion topic as it is only becoming increasingly important with less then a year until it is fully in force. Many in the audience were more resistant to the changes and wanted to know more about it and if it would affect them, John made sure to clear up any queries that anyone may have had whilst keeping it light-hearted and gaining a laugh or two.
If you have any queries about Making Tax Digital and would like to receive John’s presentation, email us at email@example.com
With the recent news coverage IR35 has become a question on many peoples minds, especially at Accountex, people asking if they are eligible or not? As we specialise in the temporary labour market the IR35 test is included in our software to help workers avoid receiving an-unwelcome call from the tax man due to poor IR35 advce. To find out more about the legislation click here – http://mydigitalaccounts.com/2018/05/18/ir35-cases-rise-to-prominence-again-as-contractor-wins-appeal/ or give us a call if you would like to find out how My Digital Accounts can help you..
We really stocked up on merchandise this year from cloud stress balls which were the most popular to branded calculators to power banks. We even had people coming over at the end of the show asking for power banks before the journey home. Hopefully this means our name and logo is now a staple feature in accounting offices up and down the country.
We had a fantastic time at Accountex this year and cannot wait for the next, only 334 days left!
IR35 Cases Rise to Prominence again as contractor wins Appeal
MDCM Ltd v Revenue & Customs Tier 1 Tribunal
HMRC were defending their decision in a Tier 1 tribunal that a contract between Mr Daniels’ personal service company MDMC Ltd, and Recruitment Agency Solutions, which provided his construction services to Structure Tone Ltd, should have been “caught by IR35”.
Amazingly, neither party was represented by a barrister – perhaps HMRC may choose to revisit this tactic going forward!
Read the full article here https://www.gov.uk/government/news/government-to-consult-on-tax-avoidance-in-the-private-sector
One of the main factors in the Tribunal decision centred on the fact that Daniels was not entitled to employment benefits, and therefore would not have been an employee if he had been engaged directly. HMRC rather confusing argument was that he got these rights by virtue of being an employee of his own company!
In evaluating the overall situation, the FTT decided that Daniels was not treated as an employee and IR35 did not apply. The case shows that one factor should not override all other factors (including whether someone is ‘part and parcel of the organisation’), and the relationship as a whole should be considered.
The tribunal found that there was mutuality of obligation, which has raised eyebrows but is unsurprising and the finding that Mr Daniels was outside IR35 rested on other factors.
The judge looked at the kind of rights that come from employment (pension contributions, sick pay, holiday pay etc.), saying that these were big differences when compared to what Mr Daniels would have got, were he an employee of STL.
On the face of it, it appears the Tribunal may have ignored some important elements of case law so HMRC may have grounds for appeal
Going Forward- what Steps should you take as an accountant or a contractor
The recent flurry of FTT cases, combined with last year’s Off-Payroll working in the public sector legislative changes only serve to underpin how difficult it is to navigate the intermediaries’ taxation legislation.
Worryingly things could become even more complicated if the Off-payroll Working legislation is extended to the private sector becomes reality, following the consultation issued on Friday the 18th of May.
One of the factors HMRC inevitably considers when determining whether to pursued a case of whether IR35 was considered at the inception of the assignment. It is important to record the reasons an “outside IR35” judgement was made and record these. It is there for My Digital Accounts unique IR35 tools allows the recording of the IR35 assessment and saves it against the contractor record.
It’s been a fantastic start to this new tax year with two industry articles featuring My Digital Accounts!
Our very own John Whelan wrote an article for FCSA on making tax digital, a subject which I’m sure has been burned into your brains since HMRC introduced the legislation. John’s article simply explains why it has been introduced and how this could be a huge benefit for businesses, illuminating 10 reasons why making tax digital will be a force for the good. http://www.fcsa.org.uk/resources/technical-briefings/simple-explanation-making-tax-digital/
In addition to this, John Stokdyk wrote a piece for Accounting Web stating how RBS’s buyout for FreeAgent has actually opened the door to My Digital Accounts. After talking to Whelan at Accountex North (we will also be at Accountex London in May) Stokdyke wrote a detailed article about how My Digital Accounts was started and what exactly makes us stand out in such a competitive market. https://www.accountingweb.co.uk/tech/accounting-software/door-opens-for-mydigital-accounts
We are incredibly delighted to be featured on such prestigious sites and hope to further storm the market over the next year, you will be hearing about us increasingly more.
Following on from this good news, we have also hired two new employees in our Wilmslow office, Hannah Brady our new Business Analysist and Hannah Powell the Admin and Marketing Assistant.
If this blog has interested you, come see more at one of our various social media sites (links are at the top of the page) and keep up with My Digital Accounts.
Happy New Year from everyone here at My Digital Accounts
May all your troubles last as long as your New Year Resolutions.
My Digital Accounts has a new look and feel.
Check out our new Practice Dashboard, this is your new landing screen when you log on to the software. We will be adding lots more Widgets for your most important KPI’s such as VAT Returns due this month, Number of Payrolls run this week and Number of Accounts due this month. So make sure to keep an eye out for upcoming feature additions!!
New. Sleek. Quick.
We have developed a brand new collapsible menu, enabling you to take advantage of a full screen mode, perfect for when you’re working with a small screen. Our new tab function makes it fast and easy to switch between screens.
Our new Task Calendar is amazing! It will help you organise your work day…everyday.
We have also added notifications to alert you when background tasks have been completed.
You can now produce company Management accounts from within the software – it produces the P&L for the current month, year to date month by month breakdowns and the balance sheet. If your month doesn’t start on the 1st however this isn’t a problem, you can set this to start on any day you want! We’ve also added boxes to add notes to the management accounts before downloading them as a PDF. Don’t tell your boss how easy it is to manage you accounts…spend your time swiping right instead.
Bulk bank adjustments are now even better, the software will now automatically predict transactions to match sales.
We’ve added a ‘Stop Payroll’ function which is applied at contractor level. This means that the contractor will not appear in the bulk payroll process so they do not need to be filtered out, reducing the risk of mistakes being made.
Manual Timesheets can now be saved as drafts and then can be edited multiple times before finalising.
We have introduced Hybrid Models which allows for the payment of self employed individuals who want to pay their tax throughout the year rather than at the year-end.
We have redesigned our Invoice and Search function to include contract names, assignment numbers and payroll status’. This allows you to see if payments are processed, pending or ‘not applicable’. We have also included a new search function which can be used to search all the fields.
We are now proud to announce we are a business partner with the FCSA, in case you missed this it was published to the FCSA website on the 19th December 2017, you can read the full article here:
Here’s some of our favourite features you may have forgotten:
Operational Margin as fixed amounts or percentages
Quick preview of notes
SDC and IR35 assessments
After almost a year long hiatus from the blog we’re back!!
…and our first piece of exciting news is we have a brand new update (just in time for Halloween) to share with you…
Through the World Wide Web!
- The Banking Screen can now handle bulk allocating of transactions. Handy if you have lots of the same expenses each week! (Bulk allocation of invoices and reimbursements etc. are coming soon!)
- You can now search the bank transactions by date, description or amount.
- In the General ledger you can now see a full description of the transaction, bank references, invoice numbers etc. and all the details pull through to the excel download report.
- We have added the ability to allocate reciepts to all available accounting codes directly from the bank (including Directors Loan Accounts!).
Why are ghosts such terrible liars?
Because you can see right through them!!!
- Under payroll settings there is now the ability to show income statement elements for contractor as employee and ability to select/deselect the various elements of the pay depending on what you want to show on the payslip
- Timesheet history/upload now have a quick view for invoice number and amounts and reimbursement number and amount.
- New report which shows the reason for the exception when trying to run payroll
- Ability to re-run payroll prior to verify stage to be able to amend any issues which arose in the initial run.
- Assignments are now automatically closed at the same date that the contractor is made a leaver.
Why don’t angry witches ride their brooms?
They’re afraid of flying off the handle!!!
- When organising your Businesses you will now only see the most recently worked on businesses. If you want to see a full list you can now quickly click on the Load all Businesses button.
- When performing a searching in the Businesses section it will now bring the whole business structure through including the Branches and Business Contacts.
- In the Add People screen fewer fields are mandatory for you to be able to save the record. The system will however prevent you from creating their record without all the necessary information in the payroll screen so your payroll team don’t get half the information passed through!
- Notes are now colour coded by their due date, Red for overdue, Green for today and Black for future tasks.
Were all constantly adding new features to our system and would love to hear what new features are most important to you.
Please leave a comment in the box below thanks
My Digital Accounts at the Business Show 2016
The Business Show Olympia http://www.greatbritishbusinessshow.co.uk/ was held on the 17-18 November 2016; this was the first time that My Digital Accounts attended. With over 25k visitors we were kept very busy!
It was really great to meet lots of new and established business, along with the professionals who support them. There was a huge amount of interest in our stand (which looked great btw – thanks Alicia & Harry!) and of course our LED name badges started lots of conversations! Even more than this, I was really encouraged by the interest and great feedback we received from those of you who took the time to watch a demo of My Digital Accounts- including the new Umbrella Payroll functionality we’ll be launching in the New Year.
I was personally honoured to be invited to speak at the Cash Flow theatre where I talked about Managing Cash Flow for Freelancers and Contractors. The theatre was full with small business owners eager to learn practical tips for their businesses. It was great to see the audience so engaged on a Friday afternoon; some really interesting conversations were started there.
Now we’re back at the office and the real hard work begins: contacting everyone who asked for more information and using your feedback to make My Digital Accounts even stronger.
Meet the My Digital Accounts Knowledge Base, the new way we’re helping our clients achieve accounting bliss!
We’ve launched the My Digital Accounts Knowledge base in order to increase our efficiency. More importantly, it allows customers to find the answers to simple questions and to share experience/learning among our team.
Taf, our latest addition to the team, has done some great work to help setup the My Digital Accounts Knowledge Base and create its first article regarding simple troubleshooting steps for failed FPS submissions – thanks Taf!
From our support page (https://mydigitalaccounts.atlassian.net/servicedesk/customer/portal/2) enter the topic you’d like to know more about in the dialogue box. The My Digital Accounts Knowledge Base searches for articles in a similar way to a google search. We can also add labels to help highlight key topics.
The My Digital Accounts Knowledge Base can also be accessed from our Service Desk software, to help My Digital Accounts staff when answering customer calls. Where a My Digital Accounts Knowledge Base article will resolve a service desk call, it can be linked to the ticket saving the support desk team time.
My Digital Accounts Knowledge Base is live now! Try it here by signing in: https://mydigitalaccounts.atlassian.net/servicedesk
After officially launching in March earlier this year, My Digital Accounts has endured a great first 6 months. You can see exactly what we’ve conquered and what’s to come in the coming months on our public road map located here: https://goo.gl/VoTn81.
To mark our 6 month anniversary, here’s a brief explanation of My Digital Account’s aims and aspirations:
My Digital Accounts is a software package specifically designed for the temporary labour market and Personal Service Companies (PSCs) or Micro entities.
Having operated in the market as accountants for many years, we were aware that normal accounting software packages do not cater for this market in any meaningful way with much of the accounting work being completed off-line (e.g. deemed payment calculations). We therefore decided to set up a specialist software design project and My Digital Accounts is the result! The software was launched in March 2016 and is specifically designed for accountants servicing the contractor and temporary labour market.
My Digital Accounts (MDA’s) Strategy can be summarised as follows:
- To embrace the government’s, and more specifically, HMRC’s digital accounts initiative
- Use bank transactions to automatically pre-populate accounting records
- Utilise cash accounting methods to reduce complexity
- Develop ‘Smart Software’ which intuitively “learns” the accounts to which transactions belong, reducing manual intervention
- Provide customers with ‘Real-Time’ (updated at midnight each day) showing what they can draw from their business bank account
- To facilitate Real-Time communication between customer and accountant and avoid the traditional time-lags associated with accounts preparation
- To develop sustainable software solutions for our clients, maintain dialogue with HMRC and provide proactive advice on practical responses to emerging legislation
Our intention is to embrace HMRC’s initiatives and make coping with the rules simpler for the users of our software.