I.T. MATTERS


BEN DYER: SOFTWARE SPECIALIST www.powerednow.com


Warning! How to avoid GDPR and MTD pitfalls


THERE is a lot of fuss and bother about GDPR at the moment but less about MTD, as most people haven’t heard of it yet.


Making Tax Digital (MTD) is the project from HMRC, designed to push all businesses into computerised record keeping. Business owners will eventually be required to report everything to do with tax electronically.


The fi rst impact on the trade will be from April 2019. This is when VAT registered businesses need to report their VAT returns on MTD - other tax aspects will follow in later years.


The fi ne details about MTD is as follows:


• You can’t just fi le your VAT return online, and the transactions supporting the VAT return must be available electronically too.


• Reporting will have wto be done with the same frequency you currently report VAT - and you must use MTD compliant software.


• The eventual aim is to collect more tax.


• HMRC say there is no chance the deadline will slip. However, they said that about a previous deadline, and this was put back substantially.


• My best advice is two-fold: don’t act too early, as there is a fi ghting chance MTD will be postponed again.


• Also, start talking to your accountant and/or book-keeper a few months before the deadline, as you don’t want to fi nd yourself at the deadline with no plans to conform.


GDPR


GDPR (the General Data Protection Regulations) is the new law on personal


20 TBH June, 2018


data, and is in force from 25 May 2018. Maximum fi nes are worrying, which has helped the scare-mongers.


However, the ICO (Information Commissioner’s Offi ce) who enforce it are a pragmatic bunch, and it is unlikely that a smaller trade business will get fi ned unless they do something really stupid.


Don’t think GDPR doesn’t apply. It applies to any business that holds personal details such as a phone number, whether on a computer, smartphone or paper (i.e. it applies to you).


Always use anti-virus software, and don’t leave personal data on memory sticks or laptops without a password.


Make sure all computers are secure, and it may be a good idea to get a local IT person to help.


Try to keep all software up to date (new versions fi x security fl aws), be sensible with passwords, and don’t use the same one on multiple accounts.


Also always use anti-virus software, and don’t leave personal data on memory sticks or laptops without a password.


If you are a bit bigger, your computer network should be 'locked down,' and you should get a penetration test ('pen test') performed by a third party to check your security.


Remember to report any loss of unencrypted personal details to the


ICO. Strictly speaking, GDPR requires you to embrace protection of personal information 'by design and by default'.


People whose data you hold, also have a series of rights which you must respect.


This is diffi cult for small organisations. You need to have a legal basis for processing personal information for each case where you do.


The four bases most likely to be used are: Contract, Legal Obligation, Legitimate Interest, and Consent. Some people only talk about Consent, which is wrong - all legal bases are equally valid.


My advice is to start by using the tips here, to make your computers secure and also look to your suppliers for help.


In summary


Both MTD and GDPR are compulsory and already in law, so it’s a waste of energy to rail against them. I hope this article has shed a bit of useful light on them, and what you need to do. It just remains for me to wish you good luck!


BEN DYER


BENJAMIN Dyer is the CEO of Powered Now.


Powered Now aims to take the pain out of admin and paperwork for


trade businesses.


Invoice, estimating and sceduling software for small businesses.


www.powerednow.com www.toolbusiness.co.uk


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