What will happen to all of the cash only businesses when Make Tax Digital becomes a requirement for all businesses?

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Mail-Malone@reddit

What are you on about? Tax has been digital for years. If you participate in tax evasion then nothing will change.

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TylerD958@reddit (OP)

I'm self employed, tax doesn't go digital for me until next year. I didn't know that it had been for other businesses already.

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Mail-Malone@reddit

I’m self employed and tax has been digital for decades.

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jambor100@reddit

*you* have been filing your tax digitally. Soon, all sole traders will be required to use a software such as xero or quickbooks. There's a big difference between the 2

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Anxious-Guarantee-12@reddit

There is no difference in practise.

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Mail-Malone@reddit

No they won’t, nothing from HMRC saying that will be the case, can’t see why it would even as the current online SA works well.

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You should review that - it's coming in soon for highish turnover self employed, and it's already in place for VAT. The end result is that they want closer to real time reporting which means book keeping with API enabled software

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badgersruse@reddit

Yes, that is what I’ve had: a letter this week saying l won’t be able to file directly with HMRC any more but must use external software.

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rev-fr-john@reddit

They'll carry on exams they do now, how you pay your tax has nothing to do with how you receive money.

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KeyJunket1175@reddit

Back home 10 years ago it became a requirement for all shops and third sector businesses to install a cash register linked to our tax authority via internet. Every transaction goes to them automatically. Everyone MUST give a receipt to their customer after payment. Everyone except for barbers. I guess the government didn't want to mess with this huge grey market. But strange how the other grey markets, e.g. car mechanics, didn't get the exemption. So what happened? People complained for a bit, then they realized automation makes their life easier in the long run. So nothing.

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Ned-Nedley@reddit

The digital returns timeline is based on your returns. If you’re only putting through £12500 you can keep going indefinitely.

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LNGBandit77@reddit

Nothing about tax. I’d be more interested in when they look at the future of CBDCs

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kuda09@reddit

They will go out of business.

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OldLondon@reddit

They will keep being cash only. It’s entirely unrelated to filing of taxes with HMRC

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spectrumero@reddit

It's only about tax filing, it doesn't make it impossible to accept cash or be cash only.

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DannyNic8@reddit

What? MTD digital has been around for ages. It won't stop cash businesses taking cash, it just means their returns will be online (like they probably already were)

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Personal_Stranger_52@reddit

I feel like you’re asking for help to evade tax?

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TylerD958@reddit (OP)

No, I simply misunderstood what MTD was actually about. I'll leave this post up as a reminder to people to do their research first, unlike me.

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Psychological-Fox97@reddit

It's not clear to me why there would be a difference really. Might be a bit more paper work but that's about it. Digital tax doesn't mean you can't accept physical currency right?

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cgknight1@reddit

That is to do with their records - just makes the fantasy a bit more time consuming...

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What will happen to all of the cash only businesses when Make Tax Digital becomes a requirement for all businesses?

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21 Comments

Mail-Malone@reddit

TylerD958@reddit (OP)

Mail-Malone@reddit

jambor100@reddit

Anxious-Guarantee-12@reddit

Mail-Malone@reddit

JuatARandomDIYer@reddit

badgersruse@reddit

rev-fr-john@reddit

KeyJunket1175@reddit

Ned-Nedley@reddit

LNGBandit77@reddit

kuda09@reddit

OldLondon@reddit

spectrumero@reddit

DannyNic8@reddit

Personal_Stranger_52@reddit

TylerD958@reddit (OP)

Psychological-Fox97@reddit

cgknight1@reddit

AutoModerator@reddit