Software developer collaboration. Making Tax Digital for Business

Transcription

1 Software developer collaboration Making Tax Digital for Business L 1

2 Lee Hawksworth Lee is HMRC s Head of Software Developer Collaboration. His teams support 75% of HMRC s 1.7 billion digital transactions which are completed through an API using a third party software product. Lee s current role is right at the heart of HMRC s Transformation Programme, delivering and operationalising HMRC s Third Party Tax Software and API Strategy. HMRC Chief Digital Information Officer Digital 3

3 Objectives Provide an update on HMRC s Digital transformation and API Strategy Explain how we d like to engage with the software industry and what the industry can do for us To provide you with an updated position on MTDfB, including the policy, legislation and delivery To discuss how we can work together to make MTDfB successful for you and the people you represent 3

4 API strategy Our vision is to promote API First strategy providing third party software developers with better and richer APIs that allow them to integrate with HMRC to bring new and more sophisticated software products to the market to generate greater competition in the software industry resulting in more choice for customers to help HMRC meet key objectives maximising revenue improving customer experience minimising costs API First Strategy published 1 September

5 Enabling third party software developers to build great services provides many benefits The ability to tailor services for those who use them means: Third party software developers can focus on making great products for their customers, such as agents/accountants HMRC can focus on developing APIs and specific web services where these are needed Customers want an integrated experience between software they already use and HMRC APIs are the best way to achieve this 5

6 APIs driving improved tax and business software Ongoing support to existing services (PAYE, CT etc.) Collaborative working to exploit future opportunities (CDS, Brexit, MTD etc.) Partners with 40 developers in pilots 54 million API calls since Apr 17 API First approach Community of 700 software developers 20 products using new APIs in live 7 OGDs 6

7 Digital Delivery Centres We have 6 digital centres spread across the UK The DDC at Shipley (from 2020 Leeds) is dedicated to the ongoing support of software developers. 7

8 Operating model Third party software provider 8

9 API developer hub Sandbox (External Test) Sandbox is a playground allowing developers to sign up, test APIs Doesn t link to back end systems so a safe environment Recent enhancements to Sandbox include the ability to create a test user User Research is underway now to identify further journey improvements for developers. 9

10 API Developer Hub - Production Houses live APIs and supporting documentation Anyone can access, see developer.service.hmrc.gov.uk/api-documentation Without registering you can still explore some documentation Private beta developers can access private API To use private APIs you have to be whitelisted. 10

11 API documentation Once developers have access, the hub contains all the documentation needed to build software 11

12 What s in the API pipeline Currently 60 APIs either in sandbox, production or planning. Among the headlines: CT API allows new companies to register for Corporation Tax MTD SA currently allows individuals to provide data relating to self employment and Income from Property, more end points to come MTD VAT allows business to send VAT data MTD CT allows business to send Corporation Tax data SA pre-pop APIs get NI summary/ tax year details, Individual Benefits, Individual Employment, Individual Income, Individual Tax PAYE Settlement Agreements submit PSA data, trigger charge epaye API view employer s PAYE data (as shown in Business Tax Account Create test user allows developers to create a test user in sandbox environment (unique because this API will never go into production). The API pipeline will be published in the deliver hub shortly. 12

13 What does engagement with the software industry look like? We re committed to building strong partnerships. We need you to come with us on our Digital journey - it s the key to success! To support the foundation for that partnership we ve introduced Terms of Collaboration which: are a code of practice, they are not intended to be contractual provide a framework of standards for developers to work to were published on Gov.UK 19 th July (Alpha version) will be published in the developer hub (shorter hub friendly version) were drafted with input from developers/ key stakeholders were issued to developers/ BASDA ahead of publication We will need new developers to sign up to the terms as part of the developer hub registration process. We will ask existing developers to sign up retrospectively. 13

14 What does engagement with the software industry look like? Creation of a cross-cutting, senior, high-level steering group whose collective voice can: - influence policy and strategy - contribute to solution design - troubleshoot issues Re-invigorate the BASDA/ IREEN/ BCS (BIB) group (PAYE) Provide continuous engagement and conversation through attendance at BASDA and other rep body forums such as ICAEW Expansion of Digital Customer Relationship Management team to develop long-term, collaborative, sustainable relationships with the industry, representing voice of the developer to internal HMRC stakeholders. Continuous improvement and expansion of the developer hub to become a one stop shop for developer needs Continued operational/ technical support from the Software Developer Support Team (SDST) 14

15 What do you think? We d welcome your feedback and suggestions on future engagement plans. us at the SDST mailbox 15

16 Making Tax Digital for Business: The view from the bridge! Outline of MTDfB provisions Phased approach Insights from the pilot Working with the software industry Helping your clients prepare Ted Comerford 16

17 Legislation Written Ministerial Statement in July 2017 announced that the pace of mandation will be slowed: VAT mandated April 2019 (above VAT threshold only) Voluntary option for smallest businesses to join MTDfB Scope will not be widened before 2020 MTDfB legislation will be introduced in the upcoming Finance Bill 17

18 Making Tax Digital for Business: Why change? Government listened to concerns from businesses, professional bodies and Treasury Select Committee about pace of change New timetable enables small businesses and landlords to move to digital at a pace right for them The changes will ensure smooth transition to a digital tax system It s a marathon not a sprint! 18

19 Why MTDfB? It will help customers get their tax right first time and significantly reduce the amount of tax lost through error It s how customers increasingly expect to do business not just with HMRC The technology will allow tax to be integrated into business records, meaning doing tax will be easier and more convenient Widespread agreement that digitisation is the next, natural step 2 million small businesses use accounting or filing software HMRC provided 1.1 million small business customers in 2014/15 with digital assistance 19

20 How? HMRC will provide the Application Programme Interfaces (APIs), but it won t be offering its own software solution Instead, software developers will provide a range of accounting packages and record-keeping apps to enable businesses to keep their records digitally HMRC is working with software developers to enable apps and software to link safely and securely to HMRC systems, which is covered by a publicly available Terms of Collaboration 20

21 How? Free software will be available for income tax for businesses with the most straightforward tax affairs HMRC will share some of its risk rules with software developers to help spot anomalies, giving businesses a chance to correct any errors before information is sent to HMRC 21

22 When? April 2016 April 2017 April 2018 April 2019 April 2020 ITSA May 2016 ITSA Private Beta launched April 2017 ITSA CGL launched Autumn 2017 ITSA Public Beta / ongoing pilot April 2020 Potential mandation for some/all of ITSA VAT Now - October 2017 Design, Policy, Legislation Autumn/Win ter 2017/18 VAT Technical Private Beta Spring 2018 VAT Public Beta April 2019 Vat Service Go Live (for those >VAT threshold) April 2020 Potential mandation (for <VAT threshold) CT Timings for CT to be confirmed April 2020 Potential mandation for CT 22

23 What have we delivered? Since April 2017 we have been conducting a live pilot with a controlled group of users. The services available through the pilot are: A web service to allow customers to sign-up to MTDfB A suite of APIs allowing software developers to provide customers, via their software, with the ability to submit data related to Self Employment and/or income from UK property to HMRC and receive a calculation of emerging tax liability A web service allowing Agents to subscribe to Agent Services, be assigned an agent s reference number and then map this to their existing agent s reference to access services through their third party software 23

24 What have we delivered? And; Access controls for income tax and MTDfB to ensure a client s data can only be accessed and updated by an appropriately authorised agent A web service allowing an Agent to subscribe their client to MTDfB A suite of APIs allowing agents to submit the same data to HMRC as their clients can 24

25 Income Tax pilot Targeting all eligible businesses and their agents to encourage voluntary take-up in a proportionate way Work with partners to achieve this, particularly professional and representative bodies, software developers and other public sector organisations Prioritise agents, new businesses and VAT customers Demonstrate the progress and benefits of MTDfB to the broadest audience Trade media GOV.UK Partnership communications materials Digital communications and support Events and engagement opportunities 25

26 What's next for businesses and landlords? We have created an API roadmap which gives a detailed view of the forward look for delivery. Some of the high-level deliveries coming up are: Functionality for customers to provide data on Emigration, Change of Circumstances, Class 2 NICs, Class 4 NICs and 3 Line Accounts. oapis will be available to test in September 2017 and will be live in November 2017 Functionality for customers to provide data on amending their update. oapis will be available to test in October 2017 and will be live in December

27 What s next for Agents? Some of the high-level deliveries coming up between now and Spring 2018, for agents are: A new client authorising an agent for MTDfB on their behalf A client confirming authorisation of an agent through their Digital Tax Account De-authorisation by an agent or client Agent access to register a client s new self-employed business with HMRC and sign them up to MTDfB Multiple agent authorisation per client s tax regime, with different authorisation levels 27

28 Example screen 28

29 VAT at a glance What businesses do now Keep records in a range of ways, including on paper 99% file their VAT returns online, mainly on a quarterly basis (either directly or through an accountant) Although many keep digital records, the vast majority calculate their VAT separately and submit their VAT returns using free HMRC product Alternative arrangements for the digitally excluded What businesses will do under MTD Keep digital records using software or app (option to use excel if it links to MTDfB enabled software) Generate and send quarterly updates - same 9 boxes of information as VAT return - direct from digital records Software can interact with agent software to allow them to check/send updates Alternative arrangements for the digitally excluded (follows current definition) 29

30 VAT road map? Agent Authorisation for VAT API available in Test Technical private beta begins 9 Box submission and Declaration APIs available in Test Get Obligations and Change of Circumstances APIs available in Test Autumn 2017 Make a Payment reminders delivered Gov.uk Guidance available Add transaction monitoring to APIs View and Amend previously submitted data in Test Winter 2017 / early 2018 Controlled go-live begins All APIs released into Live Subscribe to MTD for VAT web service delivered Public Beta begins Spring

31 Preparing for VAT Campaign activity to drive awareness of mandation obligations for VAT businesses starts with the launch of the VAT pilot Partner with professional and representative bodies and software developers to promote the pilot and the benefits of making the switch to digital Sign-post appropriate guidance, help and support for businesses, agents and stakeholders Continue to promote ITSA service Full campaign activity Direct communications National and trade media GOV.UK Partnership communications Digital communications Events and engagement opportunities 31

32 Preparing for MTDfB Think about Signing up to the developer hub for whitelisting Volunteering for our private beta pilots Clients software needs and the services you can offer Start to integrate your product with the APIs Engaging with HMRC to discuss development needs 32

33 Things to watch Finance Bill UK leaving the European Union Voluntary take-up of MTDfB 33

34 Making Tax Digital for Business Thank you HMRC Customer Readiness and Stakeholder Team More info on MTD: 34