HMRC’s consultation period for proposals to simplify accounting for companies below the VAT registration threshold ended on 22 June.
Since the proposals were first published the week after the March Budget, AccountingWEB articles on the subject attracted more than 15,000 readers and 150 accounts.
Tax editor Rebecca Benneyworth reviewed all of the comments and compiled them in to a formal response document that was submitted to HMRC.
In the introduction, she noted: “The majority of our members who chose to comment expressed the view that the proposals were not necessary, and indeed added complexity rather than reducing it.
“Those in practice were concerned that their client expectations would necessitate computing the income under both rules (cash and full accruals) to establish which basis provided the best outcome for tax purposes. This is counter to the underlying principle behind the proposals which is that of simplification.”
Other points, pro and con, were raised. You can download a copy of the AccountingWEB response here, or remind yourself of the original discussions on which the document was based:
Contributions from the AccountingWEB.co.uk editorial team.