Or should that be whom? Our West Country general practitioner is not impressed either way.
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28 April - Just taken delivery of the firm's annual Budget brochures. Am I the only one who wonders if these are ever worth the money? It has always seemed to me that anyone interested in the Budget will get what they need on the day or the day after, especially with the Internet. I wonder how many people are actually going to read our guide.
I have had a better response this year from simply emailing a dozen key clients with a couple of highlights from the Budget that might be of particular relevance to them. They appreciated someone else sifting through all the detail and pointing out the bits that relate to them. I did it on the day of the speech and the following morning too, while it was still hot news. Frankly, this week I don't think many people are interested any more.
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27 April - Thanks for the Addendum Stephen, it's obviously me being thick! I have logged in again using the client's online VAT filing credentials and I still can't see where to go to appoint an agent! When I have the time and inclination I'll have to phone the HMRC support line and get them to talk me through it.
My assistant has just passed me the latest VAT Notes which came with a client's recent VAT Return. I wasn't aware that from next year all new VAT registrations irrespective of turnover level all other and businesses turning over £100,000+ will have to file VAT returns online and pay their VAT by DD. Is this really going to happen, or are they assuming accountants and bookkeepers will be doing more of this in future? I don't see much evidence that businesses want to pay for it.
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23 April - After reading the small print I'm not impressed. This sounds like a Budget from a Government that isn't bothered about getting re-elected. How can the Chancellor stand up and claim that the economy will start to recover later this year when everyone else disagrees? When his economic forecasts are blown out of the water where is is going to get the money from? Maybe he doesn't care.
Many of my clients down here in the sunny West Country are disappointed at the abolition of the furnished holiday property tax regime. The letting season in the UK is very short, it is virtually impossible to make a profit down here, so the tax reliefs made it a viable proposition. I predict the holiday letting business will be seriously hit by this.
Reading the Budget paper on Delivering a new relationship with business there's a worrying development on page 12, where it refers to "General Tax Practitioners (HMRC officers trained in direct, indirect tax and employer compliance) or teams
of experts (depending on the size of the business) carrying out a single integrated compliance check rather than separate checks for each regime."
Nice idea, but as a general practitioner with a tax bias I'm not sure I like the name.
Earlier on the report discusses the benefit of raising the threshold for 3-line accounts disclosure on SA returns to the VAT reg threshold. It says: "This change will deliver
administrative burden savings of an estimated £54 million per annum." Maybe for you, but there's no benefit to taxpayers, except the possible attraction of unwelcome enquiries - more often than not only aspect enquiries, which aren't covered by most professional fees insurance policies! We will continue to submit full, line by line, self employment information on SA returns for even the smallest traders - I can't see why anyone who has done the accounts worldn't.
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22 April - I'm worried about the Chancellor. He says "... as the economy recovers and wages start to grow again, it is right that we take additional steps. I believe that it is fair that those who have gained the most should contribute more." They do anyway. That's a natural consequence of tax being a percentage of your income - the more you earn, the more you pay. Didn't he do percentages at school?
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20 April - Budget this week. I have long ceased to try to predict what the Chancellor is planning to do. My one plea is just a simple one - if he has to change tax and VAT rates - and one assumes he is going to have to sooner or later, to balance the books - then can we PLEASE have rates that are easy to work out in your head. The No.1 Practitioner Rule of tax rates is a simple one - never a prime number. Rates like 19% and 23% were a nightmare! I know 19% VAT might be tempting next year, but 18% would be much easy all round. Yes, I know 20% would be even easier, but would the public stomach a 5% hike straight after Christmas? A good idea if Labour doesn't want to get re-elected ...
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17 April - I'm going to persevere with this. I'll submit a VAT-only 64-8 for my client and see what happens. Presumably a new option will appearwhen I log on to the VAT for agents section of the HMRC site. It's a shame because online VAT registration works a treat, but of course that's just a one-off - what I really need is easy access to VAT return filing for clients - I live in hope!
PRACTITIONER TIP: Here's a handy tip I picked up at a recent seminar. If you're not VAT registered and want to use VAT online for your clients - forget it! The HMRC system currently only allows agents to register for this service if they themselves are VAT-registered. Illogical I know, but that's how some dork programmed the system originally and they can't change it immediately. They plan to change it somethime in the future, but in the meantime I'm afraid it's an exclusive club for VAT-Registered agents only.
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14 April - Mike - I wish it was that simple! I'm pretty sure clients can't "through that system authorise you to do it" - but I may be wrong!
I have resorted to using Stephen's approach - get the client's own login details and submit the returns using them, rather than via our agent login.
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10 April - It's no good, I think the HMRC system has defeated me. I have tried clicking on the link for "Authorising an agent", which then takes you to the taxpayer login. I logged in using the online user name and password that my client has provided - but there's nowhere to authorise an agent! In fact, a search on the HMRC website reveals that:
"At the moment you can't use the online agent authorisation service to get authorisation to act on behalf of your client for VAT. You'll have to ask your client to give their authority on form 64-8.
Once form 64-8 has been processed, we'll be able to deal with you direct on specific matters. But we'll carry on sending letters about VAT to your client.
However, you can register for the VAT Online for agents service. You'll then be able to send us your client's VAT returns online."
Well, that last sentence may be factually correct, but it ignores the hurdles and considerable time delay before you get to that position! What a rubbish system.
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6 April - OK, first problem. Just how do you set up your HMR&C online agent's account to enable you to file clients' VAT Returns online? I like the online VAT registration system, but it beats me how you're meant to set clients up to file their returns. It looks like we either need to file 64-8s with the VAT section filled in, or try to get them to authorise us online. I'll persevere and let you know how I get on.
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3 April - This month I'm determined to crack on with the various online services that are meant to be there to help practitioners. I'm going to try swapping my trusty loose-leaf books for an online reference service (if the tax publishers ever get their act together) and we're going to see if we can use every HMR&C online service they have to offer. I bet it's not half as easy as they make out.
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Last month our West Country general practitioner coped with a deluge of tax correspondence, closed a tax enquiry and contemplated mobile technology - there's more in his March diary.