Daily Insight: PwC's blockchain deal; the search for MTD clarity!
Last week Daily Insight dipped its toes into the world of blockchain and cryptocurrencies, saying that accountants of the future would need to be well versed in both.
You'd expect the Big Four accountancy to firms to be well along the way in their preparations to offer their clients blockchain technology. And, if PwC's US operation is anything to go by, they are.
Things seem to be accelerating a bit though. At the end of last week PwC struck a blockchain technology partnership deal with Northern Trust, a Chicago-based asset management group.
Private equity audits
The ICAEW reports that the deal will allow PwC to access to fund data and carry out private equity audits using blockchain.
"This new private equity system gives firms access to their own 'blockchain node', which will allow for the audit of events in real time using the emerging distributed ledger technology.
"The technology grants PwC Channel Islands and other firms in Guernsey access to the fixed and unchangeable record of the fund data, which they can then transfer into their own applications to audit specific events as they happen." Interesting times.
The quest for MTD clarity
The quest for closure over Making Tax Digital continues. Will it ever end? AccountingWEB's global editor John Stockdyk makes his latest foray into area with a piece entitled "Software companies push for clarity on MTD."
The big groups had a catch-up last month with Mel Stride, financial secretary to the Treasury. Stockdyk reports that Stride's position was the same as it was last July when MTD for income tax was delayed. "He would not make any decision on extending MTD until the government had a chance to assess how well the VAT for MTD transition worked during its first year.
"That would mean that MTD for income tax will not get the green light until 2020 at the earliest. The government would need a year to lay the groundwork, and current protocol would suggest another consultation cycle would be needed to finalise the details and give businesses time to prepare for the move. That timetable would put the likeliest start date back to April 2022."
Push back the deadline
The VAT pilot will start next month with 14 software developers expected to be on board. The article quotes Sage vice president of product management Adam Prince. “We’re concerned about whether the regulations will change... we heard about a possible extension to the Brexit transition period and there’s always the possibility of a general election. There are lots of things that could be disruptive to business and push back the deadline.
“Two weeks ago the government launched a consultation on changes to the VAT threshold. That means you have to think about what a really small business would need to do too keep up with the VAT record keeping requirements. Sage wants to wait until there’s more clarity. We don’t want to come out and say anything until we know it’s mandated.”
