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Should you be repeating the opening comments
if we did you would rap our knuckles, is it right to defame HMRC and others by implication? I am certainly not saying they are above accountability only the ways and means you are reporting this as there appears a case to answer , but CONSPIRACY?
.....of Silence
If there's a bug in the calculations and neither HMRC nor any of the software developers have brought it to our attention, 'Conspiracy of Silence' seems a perfectly acceptable label. Presumably the software developers write the code as they see fit with regards to the legislation, then check the resulting calculations against HMRC test data and results? If so and there's a discrepancy, the only way it can work is by the developers deliberately recreating the HMRC error. Alternatively, if HMRC provide the 'logic' so the developers don't need to look at the legislation, then there absolutely has to be an outside independent review before it's released.
Like most of us (I suspect), I sub-consciously check the results of tax calculations for sensibility but I've never considered the need to manually re-perform the calculations as a check. When I have spotted anomalies, it's invariably been my guesstimate that's been wrong, so I'm fairly confident that the software is solid in most cases, but nontheless it can't just rely on HMRC's interpretation.
I must say though that if HMRC discovered an error had slipped through in their favour, I have absolutely no doubt that they would in fact correct it.
SA Loss Relief
This year (2015) I have noticed that my software will not allow me to carry forward brought forward losses to the following year and that the b/fwd losses have been set against my client's 2015 taxable income. Since her income is less than the PA I want to carry forward her losses to the following year. Is this a software problem or have HMRC changed the rules?
The majority of my clients are artists and I have been dealing with loss relief claims for many years and I have often carried forward losses in the past, even when the client made a profit in one year, if it was beneficial to the client.
Losses
This year (2015) I have noticed that my software will not allow me to carry forward brought forward losses to the following year and that the b/fwd losses have been set against my client's 2015 taxable income. Since her income is less than the PA I want to carry forward her losses to the following year. Is this a software problem or have HMRC changed the rules?
The majority of my clients are artists and I have been dealing with loss relief claims for many years and I have often carried forward losses in the past, even when the client made a profit in one year, if it was beneficial to the client.
Er, isn't that the way the law is framed?
Unless I've totally misunderstood this post, are you saying that loss relief has been deferred to a year in which it's beneficial from a tax point of view?
Yes, in answer to your question. I have just been talking to a friend who informed me that I was wrong, that losses must be utilised against profits from the same business.
Amendment time.
This year (2015) I have noticed that my software will not allow me to carry forward brought forward losses to the following year and that the b/fwd losses have been set against my client's 2015 taxable income. Since her income is less than the PA I want to carry forward her losses to the following year. Is this a software problem or have HMRC changed the rules?
The inference I would draw from this is that for several years you HAVE been failing to correctly offset brought forward losses against the earliest trade profits and have, presumably, filed quite a number of later year returns with understated profits. Will you be going back and amending all those returns, I wonder, and advising your clients to cough up the additional tax. Of course you will be, so brava.
And in this case, well done for the software developers who have at least put correct validation into the software, highlighted the issue, and thus enabled you to go back and correct all those earlier mistakes. I hope you'll be sending them a thank you note.
loss c/fwd
You have to use income losses b/fwd against the next available profits from the same source. This has always been the case as far as I remember
Conspiracy?
Is anyone surprised that an organisation which uses bully-boy tactics, equates legitimate tax avoidance with evasion and uses retrospective legislation in contravention to the Human Rights Act, is silent about software problems which are advantageous to it? I think it is time "Carnmores" had a grasp of the reality of the current UK tax system!
Not a new attitude
from HMRC.
Back in the mists of time, in order to align the Collectors system for the introduction of self assessment either software developers or HMRC misunderstood the rules on repayment set offs. Instead of calculating repayment supplement on the full repayment it used the refund after the set off.
Our query went to technical division who confirmed that legally the full refund should be used but it would be too expensive to correct the programme so it was up to each individual to spot and query each incorrect refund. As in the main refunds were only pennies out most agents, and certainly all unrepresented taxpayers didn't even notice - no computers to calculate how much should have been received then!! But I am sure if you added all the shortfalls together over the years...............
Extract above
There are probably lots of other errors with the HMRC tax software standards that have not come to light.”
Oh my gosh, just goes to show your you accountancy software is really good but like all technology it has its floors, and no one wants to admit it has floors. Thats why whenever on this site some folk talk up the merits of the Cloud etc....I have my doubts to all of it, more security than performance.
Floors
Can software really have "floors" if it is in the cloud?
Very funny, soft lad.
You wait, time will vindicate me.
Tirade?
Not a tirade-Simply my experience of being an Accountant in Practice in the UK today? Maybe you do not have the dubious pleasure of dealing with these people?