Way back when someone had a dream a vision of the future and realised that transformation to digital systems was inevitable. IT people were hired and work begun. Until the financial crisis. And many were then let go. Been an f~#k up since. Especially since the whole "apps" thing arrived. Someone's made a lot of money as usual. No-one should be sat in a van doing their books or tax on a mobile phone.
As the software companies and government algorithms and policies relentlessly encroach upon bread and butter legitimate accountancy work, more and more of such breaches of accounting standards will be packaged up and marketed on as "added value" products.
Two things struck me before losing the will to read further (no offence or reflection on Rebecca):
"These new regulations are quite different to the previous draft MTD regulations released on the developer hub, which software producers had been working to. " = recipe for disaster in itself
"All sole-traders and individual landlords who are in business on 5 April 2023 will have to comply with the MTD regulations from 6 April 2024, if their gross turnover (trading and property income) exceeds the MTD entry threshold of £10,000." = lol at this rate (fuel costs, labour costs, etc) I wonder what the value of £10,000 is going to be come 2024...
On the simplification of tax suggestion. I don't think this is the answer. The answer is for HMRC to employ staff who have a good understanding of the existing tax rules and who want to help ie career choice. If this is expensive then the tax rules can be changed... (not simplified)
Thank you. Contrary to some small minded beliefs not only NICs but quite a few other taxes are paid either by the company or the directors/shareholders. And the legal burden born by them is high. Tarnishing the reputation of small company directors in this way and the denial of help to them is small minded and smacks of entrenched beliefs and an inability to change and keep up.
Thanks Di. I have the 64-8 but will i need then an additional authority from client to set up a dd? I suppose I will have to bite the "unpaid" bullet and ring both the client for all their details and circumstances, get written authority and then ring HMRC. But how will HMRC know I have authority to set up a dd?
Erm I just did and I still think the idea is iffy - you're not supposed to pay yourself or your wife or your kids or any other shareholder, dividends out of non existent profits - the govt is backing loans here not providing income. Point out to me where I'm wrong don't just tell me to read things again ffs
My goodness There are an awful lot of peeps here having a pop at the writer. This is most odd imho. Clients are notoriously (in the nicest possible way) a) ignorant of tax and accounting detail and b) eager to save money. For the last year or so they have been bombarded with adverts for software that is not only going to make sure they are on the right side of HMRC but also going to simplify their accounting and save them money. Software developers are in heaven as businesses sign up thinking "expensive accountants" are a thing of the past. lol. Even I struggle to set MTD up. Never mind having the mindset or will to check and understand what VAT system I am or should be running. Full marks to the article writer. And HMRC has a temporary windfall. Hopefully the client will write it down to experience and next time ignore all the hype and gloss and happy clappy adverts and get someone to do it for him while he gets on with his business. Accountancy is our bread and butter. The software people and HMRC need to back off a bit.
My answers
Way back when someone had a dream a vision of the future and realised that transformation to digital systems was inevitable. IT people were hired and work begun. Until the financial crisis. And many were then let go. Been an f~#k up since. Especially since the whole "apps" thing arrived. Someone's made a lot of money as usual. No-one should be sat in a van doing their books or tax on a mobile phone.
As the software companies and government algorithms and policies relentlessly encroach upon bread and butter legitimate accountancy work, more and more of such breaches of accounting standards will be packaged up and marketed on as "added value" products.
Two things struck me before losing the will to read further (no offence or reflection on Rebecca):
"These new regulations are quite different to the previous draft MTD regulations released on the developer hub, which software producers had been working to. " = recipe for disaster in itself
"All sole-traders and individual landlords who are in business on 5 April 2023 will have to comply with the MTD regulations from 6 April 2024, if their gross turnover (trading and property income) exceeds the MTD entry threshold of £10,000." = lol at this rate (fuel costs, labour costs, etc) I wonder what the value of £10,000 is going to be come 2024...
On the simplification of tax suggestion. I don't think this is the answer. The answer is for HMRC to employ staff who have a good understanding of the existing tax rules and who want to help ie career choice. If this is expensive then the tax rules can be changed... (not simplified)
Thank you. Contrary to some small minded beliefs not only NICs but quite a few other taxes are paid either by the company or the directors/shareholders. And the legal burden born by them is high. Tarnishing the reputation of small company directors in this way and the denial of help to them is small minded and smacks of entrenched beliefs and an inability to change and keep up.
Thanks Di. I have the 64-8 but will i need then an additional authority from client to set up a dd? I suppose I will have to bite the "unpaid" bullet and ring both the client for all their details and circumstances, get written authority and then ring HMRC. But how will HMRC know I have authority to set up a dd?
Neil I was under the impression that only the client could do this?
Erm I just did and I still think the idea is iffy - you're not supposed to pay yourself or your wife or your kids or any other shareholder, dividends out of non existent profits - the govt is backing loans here not providing income. Point out to me where I'm wrong don't just tell me to read things again ffs
Erm because that would be against the Companies Act or whatever it's called - you can't pay a dividend out of non existent profits?
My goodness There are an awful lot of peeps here having a pop at the writer. This is most odd imho. Clients are notoriously (in the nicest possible way) a) ignorant of tax and accounting detail and b) eager to save money. For the last year or so they have been bombarded with adverts for software that is not only going to make sure they are on the right side of HMRC but also going to simplify their accounting and save them money. Software developers are in heaven as businesses sign up thinking "expensive accountants" are a thing of the past. lol. Even I struggle to set MTD up. Never mind having the mindset or will to check and understand what VAT system I am or should be running. Full marks to the article writer. And HMRC has a temporary windfall. Hopefully the client will write it down to experience and next time ignore all the hype and gloss and happy clappy adverts and get someone to do it for him while he gets on with his business. Accountancy is our bread and butter. The software people and HMRC need to back off a bit.