Member Since: 17th May 2007
17th Apr 2020
Its a rather naïve attitude to assume that all SME's have reserves to pay outgoings for many months with no income coming into the business and many small business owners operate with little reserves but have very consistent income and costs and don't make a huge profit but would rather do that and be proud business owners than be an employee for a company and the business may have been providing staff with a wage to look after their families for many years. I have businesses such as hairdressing salons that have operated for years on this basis and can't build up reserves but always have enough income to paid staff, overheads etc and provide the owner with a reasonable income but they now find themselves in this very usual situation which none of us would have envisaged and I don't think a bit of sympathy would go amiss as businesses struggle to find the money to pay staff which is exactly why the government is providing assistance as they know if they don't many businesses will go bust or make many staff redundant. Also, a business would only be insolvent if it is unable to meet its liabilities but in this instance the government reimbursement is essentially a debtor of the company as a guaranteed payment coming into the business and therefore the business wouldn't be insolvent due to being unable to pay furloughed staff wages and I wouldn't be advising a company to seek insolvency if that was the only issue.
18th Sep 2018
Thanks for your comment. There was a great deal of work involved going over the income generated by the business to in order to confirm all the figures supplied were legitimate and the consultant took a very active involvement in helping with this which helped to push the deal through.
20th Jun 2018
Thanks for your response and I am aware how EIS relief works. I don't understand your comment that the gain disappears i thought the whole point is that it is deferred. ie..if a higher rate taxpayer disposes of his residential rental property in 2016/2017 realising a gain of £500,000. After the annual exemption his gain would be 488,900 and tax at 28% would be £136,892. However if he invests £488,900 in an EIS shares which he later sells for £488,900 the deferred gain would be taxed at 20% (£97,780), a saving of £39,112 as opposed to disappearing.
This is the way it is detailed in various examples by providers and tax articles hence my question if other accountants had clients deferring residential gains in the same way.
23rd May 2018
Pretty much have the same reaction as everyone else. In the past we used PTP as a simple tax product without any issues and good support. Once PTP was aquired by IRIS we noticed an immediate drop in the level of service and increased costs and after a great deal of convincing from IRIS sales we moved to the IRIS cloud product IRIS Opentax as it was sold as the future. This proved a very bad move as the product had many bugs and issues and very poor support having to leave messages with no call back and we were not surprised to hear they ceased the product last year. We moved to taxfiler as a result and have been very happy to date and we were very disappointed to hear that IRIS has swallowed up another small competitor and can only hope it doesn't lead to increased fees and reduced support as previously experienced.
9th Mar 2018
I've recently called HMRC to chase up a repayment from loss carry back by amending a CT600 online and have been told it has to be done manually and the expected time for the responsible team to deal with it.....12 weeks. If only our clients were happy for us to reply to their requests within that time frame...not likely!!
Agree with general consensus below that by sending an email confirming you have received the clients email and giving a realistic time you will deal with it normally keeps the client happy.
18th Oct 2017
Thats for all the responses. I dont have much information other than what my client has told me as she was concerned that her sister was ignoring the letters from HMRC. I will tell my client that she should inform her sister that this needs to be dealt with ASAP and that HMRC wont just go away and she should speak to the legal representatives and hopefully she will do so before HMRC gets more aggressive.
18th Oct 2017
Thanks for comment and I agree that it is unlikely HMRC will just walk away without investigating where the proceeds have gone. I have asked my client to see if her sister can get as much paperwork together as possible relating to purchase and sale and hopefully with the various reliefs available the gain can be reduced significantly.
16th May 2017
He would be advising on both.
3rd Apr 2017
Great. Thanks for the advice....I will do as suggested.
2nd Apr 2014
The gross supplier invoice should be entered including the retention so that the full amount is entered on the profit and loss in the year the invoice was issued and this will leave the retention showing as creditor to the company on the balance sheet. When the retention is paid it will clear down the creditor balance.