louise tarpy hmrc head of software collaboration• digital business records • quarterly summary...

BASDA Annual Summit 14th May 2019

Louise TarpyHMRC Head of Software Collaboration


Chief Operating Officer and Finance

Shaping Technical

Future

Customer Services Group

Customer Compliance

Group

Customer Strategy and Tax Design

Group

Corporate Services Group

Valuation Office Agency (VOA)

Group

EU Exit

Chief Data Officer’s Group

Application Platform Services

Technology Platform & Services Network

Cloud Services

Architecture & Innovation

Cyber Security & Information Risk

Customer Groups Major Programmes

CDIO Group new operating model


Software Developer Collaboration

CDIO

Application Platform Services (Enterprise Integration Services)

API Platform Team

Software Developer Collaboration Teams

Software Developer Support Team (SDST)

Digital Relationship Management Team (DRM)

DRM ServicesDRM

AccountsSDST

Indirect Tax

SDST

Direct Tax

Software Developer Collaboration (SDC) Teams consist of 2 key teams, Software Developer Support Team (SDST) and Digital Relationship Management Team (DRM). These teams are split into smaller squads. There are currently 6 squads.


Our API partner support model


Digital transformation in action

HMRC’s traditional ‘one size fits all’ no longer fit for purpose

Customers seeking multi-functional, personalised solutions capable of evolving with them/ their business

PAYE was first big regime to transform to third party software (99%)

MTDfB seeks similar for VAT, SA and CT

VAT mandation introduced, as planned, Apr 19

Long-term, collaborative relationships with our API consumers key to success


+4000

Software developers registered

+25 Banks/ Fintechs

6 large agents

MTD+2000 VAT developers

+20 ITSA developers

+300 PAYE developers

+140 CIS developers

XML services

40 ITSA developers

+40 CT developers +100 VAT

Other Government Departments (VOA, DWP, Home Office

etc.)

Large Business/

Public Bodies in-house software

Our API partners


Improving developer support: our new CRM tool

Phase 1 – rolled out Apr 19

• The end of ‘Dear Developer’

• SDST emails tracked as cases

• Auto acknowledgments

• Automatic channel routing

• Holistic view of developer contact (DRM can see queries logged with SDST and vice versa)

Phase 2 – pending sign off

Developer portal, access to key data and communications, forums etc.

Our Goal

Streamlined efficient, digital service that underpins future scalability and long-term, sustainable collaboration with our API Partners.


Improving developer support: API Developer Hub

Lots of changes since last summit:- Terms of use updated to incorporate

fraud header requirements- Fraud prevention data can be found

here- Making Tax Digital E2E customer

journey’s converted to ‘service guide’ format

- Xml documentation now accessible from the developer hub (note links go to existing locations)

- Improved accessibility.


Terms of Use

• Terms of Use were formerly

Terms of Collaboration – renamed

following extensive User

Research with developers who

found ToU more meaningful

• Any 3rd party wishing to connect

to our APIs must agree to our

Terms of Use

• Not static, need to change to

keep pace with changing

legislation, technologies etc.


Service guides replace E2E journeys


Transaction monitoring

HMRC

GDPR…Fraud

APIs create powerful two way street of data –with power comes responsibility… • HMRC had to provide developers with

lawful basis to process data under Article 6(1)(c) GDPR.

• SI introduced Apr 19 to provide that lawful basis and enable developers to commence implementation

• Tax legislation, such as this, always carries a penalty for non-compliance

• Our focus is on enabling developers to comply during transitional period

• Not our intention to use this provision during this transition

• Both charging of penalty and switching off access to APIs is last resort, after all other avenues exhausted.


MTD VAT: the story so far…

+400 developers successfully

submitted in live

+300 products available now

+500 product prototypes

reviewed and given production

credentials

+17 developers self-certified as

having fully accessible products

A number of developers have

expressed an interest in building

a Welsh product

+104K MTD submissions

received


MTD VAT: Error messages in a nutshell

403 (Client_Agent not authorised) – agent has missed a step in the agent journey or used wrong credentials

New: 403 (Forbidden) – user is trying to submit a return for a period not yet closed

404 (not found) – user is trying to call back information for non MTD years

500 (internal server error) – user has not waited the 72 hours for their record to migrate to MTD

New: 8508 (InvalidTraderVRN) – user has either tried to submit a return via the old xml route or it’s a genuinely invalid VRN

Important:We’ve identified an increase in product automation meaning error messages being returned over and over. We urge developers to stop or reduce this type of automation in order to prevent users getting repeated errors and reduce levels of calls to the platform.

Note: the reasons above are not exhaustive but have been found to be the root cause in 90% of cases


MTD VAT: we need your help

Make sure users are clear on how to join MTD – sign up AND connect enabled software, existing xml software is NOT compliantImportant: make sure last xml return filed before attempting to join MTD

Direct agents and customers to the step-by-step guides wherever possible:Business: Use software to submit your VAT ReturnsAgents: Agents: use software to submit VAT Returns

Encourage customers and agents s to use the correct support channels. www.gov.uk/government/organisations/hm-revenue-customs/contact/vat-online-services-helpdesk

https://www.gov.uk/guidance/use-software-to-submit-your-vat-returns

https://www.gov.uk/guidance/agents-use-software-to-submit-vat-returns


Software Choices

• Static list of available software with a limited amount of features.

• Increasing amounts of listed products.

• Difficult for users to be able to make a choice.


Accessibility: Our Approach

Step 1

• Software developer approaches HMRC

• We determine if product is online/ offline

Step 2

• Online products sent WCAG 2.1 Checklist

• Offline products sent EN 301 549 Checklist (Pending)

Step 3• Developer self declares compliance to standard in 4

areas of need Visual, Hearing, Cognitive and Motor

If the online product is fully compliant with WCAG 2.1 AA for any area of need, it is added to the software choices page


Accessibility: MTD VAT

3 products listed as fully accessible

with other products fully accessible for

those with hearing and motor needs.

Further products pending final

application checks and developer approval to be

listed

Expected that the list will grow as

more developers on board or

update existing products

SoftwareChoices


SDC – our expectations for the year ahead

• Increased industry collaboration (including high-level, cross-cutting working group, more user research, invites to workshops, webinars etc. Q – should this be a cross body group?

• MTD VAT: on board final developers, support developers/ customers through transition, iterate roadmap, delivery for deferred group.

• MTD SA – next steps• Implementation of Customs Declaration Service• Continued support for established xml services (PAYE, SA, CT etc.)• Software choices: continue to iterate/ improve• Work with industry to increase levels of accessible and specialist products• CRM database: phase 2• Developer Hub: continuous improvements• More cross government working • API innovation and exploitation to the advantage of all UK citizens• EU Exit


Rebecca HuttonHMRC MTD: CREST


Agent Services Account (ASA)

Agent Services Account (ASA)


• Create an agent services account

• Link client relationships

• Sign clients up to MTD

• Authorise software

Actions required:


• Firm’s UTR

• Existing Government Gateway credentials

• Agent codes

• Firm’s AML details

• Firm’s name, address and contact details

Information required:


• Existing clients:Link dynamically“link your current Self Assessment and VAT clients to this account”

• New clients:Can authorise through ASA“Ask a client to authorise you”

Linking clients to ASA


ASA – things to note

• Most online services remain on HMRC online services for agents

• ASA is an evolving platform

• No client list in ASA

• Keep credentials safe – take screenshots

• Use correct credentials to access – does it say agent services account at the top of screen?

• Creating your agent services account and linking client relationships is not the end


Signing clients up to MTD

• Clients have to be signed up individually

• Have client details to hand

• Do not do this until the business is ready to submit using MTD compatible software

• Sign up window for DD customers

• Agents should plan the timing of this carefully – stagger? filing frequency? deferred? DD payer?


Customer Support Model

Customer Support Model


Agents

• VAT Notice 700/22

• Making Tax Digital for VAT as an agent – step by step

• GOV.UK

• VAT Helpline

• Agent Dedicated Line

• Agent Forum

• Agent Updates

• Webinars (via Agent Talking Points)

• Software provider


Businesses

• Agent

• Making Tax Digital as a business – step by step

• GOV.UK

• VAT Helpline

• Small Business Forum

• Webinars

• CCM’s (Large Business)

• Software provider


• We’ve already delivered functionality that caters for approx. 1m sole traders and landlords

• Last week, we added support for bank interest, dividends and charitable giving.

• Digital business records• Quarterly summary to HMRC• Add personal income at the

end of the year• No need to submit an SA

return

• Learn lessons from MTD VAT

• Aim to give certainty to the market about future mandation.

• Work with vendors to run a successful voluntary pilot in the interim.

MTD – Income Tax


▪ Supporting businesses to meet their MTDfB for VAT requirements

▪ Deliver solution for the deferred population

▪ Monitor compliance and measure benefits

▪ Decision on future mandation

▪ ITSA

▪ VAT registered businesses under £85k

▪ Corporation Tax

What’s next for MTD for Business?

louise tarpy hmrc head of software collaboration• digital business records • quarterly summary...

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