I agree sending the HMRC computer an electronic request for a letter to go to the deceased's home can work initially, but HMRC usually cancel this a week or two later and then I have to do the paper 64-8. Also the deceased's home is usually empty when the HMRC letter with the authorisation code arrives so we never get the code to activate.
I am not aware of any other method other than to get HMRC to send the authorisation code to the deceased's home or a paper 64-8. If there is, I would be grateful for advice.
We still have to complete paper 64-8's for deceased cases as HMRC has not brought in a system for executors. Also non-SA cases we still have to complete a paper 64-8. It is about time HMRC went digital, but naturally not MTD which will hinder rather than help.
I agree with Steve, it will be impossible for MTD to close the tax gap as it can only widen it. In my 40+ years in the profession I have never once seen any self-employed or landlord under declare their income, but I frequently see small amounts of expenditure going unclaimed. These in the main are small stationery items and postage stamps and not claiming all their car expenses. I tend to find these out 2 or 3 years later when I am presented with old receipts. Where the tax lost to HMRC is less that £50-£60 clients tell me it is not worth amending the earlier year due to costs. If MTD achieves its objectives and nobody misses so much as a postage stamp of expenditure, then HMRC will lose that £50-£60 per year from each of my clients and then add to that extra software and accountancy costs, the tax yield from each self-employment and landlord will fall. I naturally accept that HMRC will get a little extra tax from software providers and us accountants (if we have to charge more), but I do not see how this can be measured against the loss that HMRC will sustain from their self-employment and landlord taxpayers. All in all, I find it impossible to accept that HMRC will achieve any extra tax yield then add to that HMRC's costs of creating and running MTD you have an increase to the National Debt.
Spreadsheets is the only solution for small landlords and the self-employed. I have designed a template for my client's to complete and make the quarterly submissions.
The big problem here is that MP's do not understand the chaos that MTD or Basis Period "Reform" will cause. I have tried my own MP endlessly without response. MP's have been told by HMRC how wonderful it is going to be and that has been sufficient for them to vote in favour of it; this together with the fact that MP's are exempt from MTD along with everyone else whose tax affairs are handled by Public Department 1.
I have had dozens of these situations. Put the gross dividend in box 9.10 and the dividend's tax deduction in box 9.8 (yes combining it with tax deductions on interest) My Taxcalc software has no problem with it and neither does HMRC when it is electronically submitted.
I agree with all the responses. I used AMLCC which was great, but a little too involved for my simple small business. When their prices increased I moved to Taxcalc which I already used as their ML package is less expensive so Taxcalc wins.
My understanding is that Royal Mail do not deliver to HMRC and instead HMRC go to Royal Mail and collect their sacks of post. They will sign for a whole sack of recorded delivery mail with one signature for the lot and Royal Mail then copy that around to each senders records.
I always enter the "gross" dividends in box 9.10 and then enter the tax deductions from the dividends in box 9.8. I find the calculation is then correct. My software lets me enter a tax deduction in box 9.8 even if I have nothing else to include in 9.7 or 9.9
Was it a SA900 Trust Return? I used to get dozens of erroneous penalty notices for returns electronically filed from 1 November to 31 January. HMRC seem to have now fixed that problem after I claimed lots of compensation for my clients.
My answers
I agree sending the HMRC computer an electronic request for a letter to go to the deceased's home can work initially, but HMRC usually cancel this a week or two later and then I have to do the paper 64-8. Also the deceased's home is usually empty when the HMRC letter with the authorisation code arrives so we never get the code to activate.
I am not aware of any other method other than to get HMRC to send the authorisation code to the deceased's home or a paper 64-8. If there is, I would be grateful for advice.
We still have to complete paper 64-8's for deceased cases as HMRC has not brought in a system for executors. Also non-SA cases we still have to complete a paper 64-8. It is about time HMRC went digital, but naturally not MTD which will hinder rather than help.
I agree with Steve, it will be impossible for MTD to close the tax gap as it can only widen it. In my 40+ years in the profession I have never once seen any self-employed or landlord under declare their income, but I frequently see small amounts of expenditure going unclaimed. These in the main are small stationery items and postage stamps and not claiming all their car expenses. I tend to find these out 2 or 3 years later when I am presented with old receipts. Where the tax lost to HMRC is less that £50-£60 clients tell me it is not worth amending the earlier year due to costs. If MTD achieves its objectives and nobody misses so much as a postage stamp of expenditure, then HMRC will lose that £50-£60 per year from each of my clients and then add to that extra software and accountancy costs, the tax yield from each self-employment and landlord will fall. I naturally accept that HMRC will get a little extra tax from software providers and us accountants (if we have to charge more), but I do not see how this can be measured against the loss that HMRC will sustain from their self-employment and landlord taxpayers. All in all, I find it impossible to accept that HMRC will achieve any extra tax yield then add to that HMRC's costs of creating and running MTD you have an increase to the National Debt.
Spreadsheets is the only solution for small landlords and the self-employed. I have designed a template for my client's to complete and make the quarterly submissions.
The big problem here is that MP's do not understand the chaos that MTD or Basis Period "Reform" will cause. I have tried my own MP endlessly without response. MP's have been told by HMRC how wonderful it is going to be and that has been sufficient for them to vote in favour of it; this together with the fact that MP's are exempt from MTD along with everyone else whose tax affairs are handled by Public Department 1.
I have had dozens of these situations. Put the gross dividend in box 9.10 and the dividend's tax deduction in box 9.8 (yes combining it with tax deductions on interest) My Taxcalc software has no problem with it and neither does HMRC when it is electronically submitted.
I agree with all the responses. I used AMLCC which was great, but a little too involved for my simple small business. When their prices increased I moved to Taxcalc which I already used as their ML package is less expensive so Taxcalc wins.
My understanding is that Royal Mail do not deliver to HMRC and instead HMRC go to Royal Mail and collect their sacks of post. They will sign for a whole sack of recorded delivery mail with one signature for the lot and Royal Mail then copy that around to each senders records.
I always enter the "gross" dividends in box 9.10 and then enter the tax deductions from the dividends in box 9.8. I find the calculation is then correct. My software lets me enter a tax deduction in box 9.8 even if I have nothing else to include in 9.7 or 9.9
Was it a SA900 Trust Return? I used to get dozens of erroneous penalty notices for returns electronically filed from 1 November to 31 January. HMRC seem to have now fixed that problem after I claimed lots of compensation for my clients.