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Well he would say that wouldn't he. He's representing the vested interests of his members.
I have a fair bit of respect for Mr M and his organisation, but of late he is beginning to sound a bit like a whining teenager complaining that the world is ganging up on him.
Well said Tony!
Tony Margaritelli is one of the very few intelligent, experienced practitioners who step up and take issue with the abomination that is HMRC these days. Very glib of Tim Vane to rubbish this piece but how does pointing out the fact that this toolkit is pathetic and actually dangerous for the unrepresented become 'whining'? Might be more helpful of Mr Vane to comment on the subject matter rather than the messenger.
I am a qualified CA and can advise that my Institute remains helpless and silent on each and every new policy brought in by HMRC to discourage taxpayers from using agents at all - and at the same time making life more difficult for agents. The actual discipline of "accountancy" is being removed by HMRC, step by step. Three line profit & loss? Cash basis? Toolkits for the untrained? No more tax returns? Removing access for agents to HMRC software? All part of the process.
And no-one raising the slightest issue with this - except Tony M and ICPA. Well done sir!
And Tim Vane - you should now criticise me for this post, whining or something.
Risky Business
Its always risky telling a sole trader to treat the accounting profit as his taxable profit. We all know this is only the starting point but most sole traders, especially start ups, wouldn't have a clue. Add backs and capital allowances, to name but two, still have to be processed to arrive at the taxable profit. Does HMRC make it clear there's a difference? Doesn't sound like it from the OP. We always explain this to clients in our SAR covering letter.
Tony M from the ICPA 's is quite correct to point out any shortcomings with HMRC for the benefit of the profession and long may he continue to do so.
Topical!
I have just spent 10 minutes on the phone explaining to a new client why a tax "bill" for 2014-15 for £2,700 results in a payment of £1,050 on 31 January 2016 and another of £1,350 on 31 July 2016. The reason being that profits are down a little so he has already paid £3,000 on account.
I have this same conversation on average twice per month EVERY single month. Those in December - see my other posts as to why I have practically no clients filing in January - can be very fraught. Telling someone who expected to pay around £10k that in fact it is £15k is rarely a pleasant conversation.
I agree with Tony. HMRC should focus their time on answering the phone in less than 20 minutes, and answering a letter in less than 3 months. And if they are going to put up drivel like this ready reckoner, they should be just as prepared to accept the consequences of errors arising from it as we ourselves would be.
The simplification agenda
Come on guys we all know the truth. GDS churns out this rubbish to try and convince people that this government is simplifying tax when it is making our more complex all the time. New dividend tax, more NIC letters, rental income profit changes - the list goes on.