ACCOUNTING body UK200Group has moved to quash fears that HMRC plans to force SMEs and the self-employed into submitting quarterly tax returns. I have just read this, although I know the article in Accountancy Age was in January so can my wise friends on AW please confirm
* Has quarterly filing for small businesses been confirmed
* If so when will it become effective.
* Has the digital filing for small businesses been confirmed
* If so when will this become effective
I was about to embark on an exercise of advising all my clients about these life changing proposals but now I am not so sure I will know the answers if they ask any questions.
I look forward to the usual repartee and expert advice
Replies (5)
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Don't think anything's changed
As far as I'm aware, it's still all going ahead despite the concerns I've read about. I've been following TaxCalc's blog of late as they seem to talk about all of this a lot.
From what I understand, we're looking at our clients (or us I presume) having to keep some digital bookkeeping records of some sort. It's the accounting data, or a summary thereof, that's somehow sent to HMRC on a quarterly basis. I don't think there's any detail on this yet.
This is going ahead from April 2018 for sole traders and landlords and from 2020 limited companies too.
This quashing of fears thing is probably to do with four actual returns, rather than four digital updates. HMRC posted some mythbuster thing a few months ago after the petition kicked off.
I don't see the point to any of it other than to one day raise taxes quarterly.
Four returns
This quashing of fears thing is probably to do with four actual returns, rather than four digital updates. HMRC posted some mythbuster thing a few months ago after the petition kicked off.
It's still four returns if you only have self employed income. And, potentially, four penalties.
The fact that they have another name - digital updates - doesn't alter the work involved and is, quite frankly, insulting to taxpayers' intelligence.
so, will annual accounts still be required with a CT return once a year?
are we moving them all to cash accounting?
See Taxcalc blog
...as ming says Taxcalc blog is very interesting. At least we know that the software companies are being consulted even though we are not.
ICPA are holding their conference shortly (June for London) and they will be detailing what will happen, what we should be telling clients etc etc.
http://www.icpa.org.uk/conference1/icpa_conference_2016
Here at Accweb we will be on the look out for the consultation documents as published and will be responding with members views.
I'm not going to tell clients yet until I know exactly what is going on - I dont want to frighten them too much - everything might change (dont hope!!)