Why is so much time being wasted by people on AML
Recently a 65year old client cashed in his long standing pension fund to clear his mortgage. This started a month of investigation by his bank. He produced his pension statement and letters from his pension company, but they wanted more. He then had to produce the rent agreements for the 8 house he rented out, plus other information. At one stage they even froze his bank account, without telling him. He only found out when somebody phoned him to ask why his cheque had bounced
Eventually, they gave him a clean bill of health.
The big problem was that in the old days the cashier at the bank would ask politely where the money had come from and make a note on your file. Now, with nobody behind bars to serve you, this dose not happen, so everybody's time is wasted, and the client ends up with an Accountant bill for the time I had to spend on it.
Why have a go at the small accountants. It is not them that keep getting fined millions of pound for [***] ups on big audits. You should remember that the small accountants look on and treat their clients as friends, and not money cows. They probably know more about their clients personal life than the big boys do with their clients, hence they are in a better position to spot money laundering
Thanks for the advice - will keep away from bus's. Many of my clients are of pension age and struggle to use a mobile, never mind a computer.
I have not found any programmes that deal in real northern money - cash, with many programmes only working as a glorified copy bank statement.
If you can recommend a good simple one, then please do so.
The last thought in my mind re my business is a selling value - I put my clients first before that point. I have done so for the last 40 plus years, many clients having been with me that long. I hope to eventually pass on my remaining clients for FREE to another like minded Accountant, rather that a money orientated one who see's their clients as a cash cow
Sorry, but I will not be setting my clients up until the last minute for several reasons.
1) I only have 2 clients currently with a turnover over £50000 - so wait until 2026
2) Less than half will/are in the £30000 to £50000 bracket - so wait until 2027. Several may have retired by then or will adjust their trade to be below £30000
3) It looks like those under £30000 will not have to join MTD until 2028 - if then - so wait and see
4) I might have retired by the time this silly MTD affair comes in
I am getting rather fed up of people/firms trying to sell me MTD programmes which are not needed for several years yet. Why try and put my clients and myself to costs now for something which may not be needed in the future. Try selling that to clients that they need to set up MTD now, but the Revenue do keep putting the dates back. Oh, and remember that you might have retired by then, so it will all have been a waste of your time and money
Please lets remember, the small self employed person does not need to employ an accountant to do his Tax Return, so how will you regulate for that type of person.
What amount of fees will the big boys charge them for doing the work. The same big firms we see in the paper basically every month being fined vast sums for not doing their work correctly.
If the Revenue are not happy with any Tax adviser/Accountants, then start investigating them. Some years ago, a Taxman said to me, why do all the rough businesses in his area go to a certain local accountant. My response was, and why do so many Revenue staff socialize with this firm of Accountants owners
I remember starting out as an Accountant some 40 years ago. Over the next few yeas all 14 local districts investigated at least one of my client's each. Nothing as ever found wrong. I have never lost an investigation. As a result, I can not remember the last time I had a client investigated. In fact, over the years I the Revenue have suggested to unrepresented being investigated to contact myself to help them sort their affairs out. Not bad for somebody without paper qualifications
I personally have had 3 reminder letters. My Tax Return went in in April 2022.
I had 5 clients who's Tax Returns had gone in in May/June, been accepted, but not processed. Strange, none of them got a reminder letter.
Mind you, I am still smiling that MTD has been delayed 3 years for most of my clients, so I should look on the bright side
PS - What are computer programmers going to do for the next few years, and will they now produce programmes that will actually work come the big day or will they still claim that they are waiting for information from the Revenue
Just what I hoped for. After 50 plus years in Accountancy, I intended to retire before 2024 as I do feel that I would be able to cope putting computer systems in for many of my elderly clients (probably some 40% of my clientele) who do not own a computer or smart phone. 95% of my clients have turnovers under £.30000, so will now not need to join until after 2027. When a date is set for small turnover clients to join, we will all retire together. Mind you, I rather expect some of my tradesmen clients will officially retire and then go for cash only jobs, with a result of Tax loss to the revenue. By then I will be retired and out of money laundering membership, so nothing to do with me
Looking at the programmes available for MTD, why do so many only work via bank transactions. Up north we still work in real money - cash.
If they are really intent on bringing in the system, why not start at £85000 and reduce that figure by £10000 each year. Hopefully this would help the Revenue and accountants to work on it successfully.
At the moment, I am still waiting for the Revenue to process five Tax Returns I have submitted, going back to June, two with Tax Refunds owing to my clients So, what chance have we got with MTD returns.
Never mind the phone waiting time, how about the IR sorting out their paperwork
Of the Tax Returns I have submitted online, and been shown as received on the Gateway site, I am still waiting for them to process 8 out of the last 25, this being for the May/June period.
In one case the Revenue are still chasing a client for £870 when in fact they owe him £2300. I have a case of submitting a husband and wife Tax Returns at the same time. The wife's was processed promptly, but the husbands has not been dealt with. He is owed £170 back.
Never mind the phone waiting time, how about the IR sorting out their paperwork
Of the Tax Returns I have submitted online, and been shown as received on the Gateway site, I am still waiting for them to process 8 out of the last 25, this being for the May/June period.
In one case the Revenue are still chasing a client for £870 when in fact they owe him £2300. I have a case of submitting a husband and wife Tax Returns at the same time. The wife's was processed promptly, but the husbands has not been dealt with. He is owed £170 back.
My answers
Why is so much time being wasted by people on AML
Recently a 65year old client cashed in his long standing pension fund to clear his mortgage. This started a month of investigation by his bank. He produced his pension statement and letters from his pension company, but they wanted more. He then had to produce the rent agreements for the 8 house he rented out, plus other information. At one stage they even froze his bank account, without telling him. He only found out when somebody phoned him to ask why his cheque had bounced
Eventually, they gave him a clean bill of health.
The big problem was that in the old days the cashier at the bank would ask politely where the money had come from and make a note on your file. Now, with nobody behind bars to serve you, this dose not happen, so everybody's time is wasted, and the client ends up with an Accountant bill for the time I had to spend on it.
Why have a go at the small accountants. It is not them that keep getting fined millions of pound for [***] ups on big audits. You should remember that the small accountants look on and treat their clients as friends, and not money cows. They probably know more about their clients personal life than the big boys do with their clients, hence they are in a better position to spot money laundering
Thanks for the advice - will keep away from bus's. Many of my clients are of pension age and struggle to use a mobile, never mind a computer.
I have not found any programmes that deal in real northern money - cash, with many programmes only working as a glorified copy bank statement.
If you can recommend a good simple one, then please do so.
The last thought in my mind re my business is a selling value - I put my clients first before that point. I have done so for the last 40 plus years, many clients having been with me that long. I hope to eventually pass on my remaining clients for FREE to another like minded Accountant, rather that a money orientated one who see's their clients as a cash cow
Sorry, but I will not be setting my clients up until the last minute for several reasons.
1) I only have 2 clients currently with a turnover over £50000 - so wait until 2026
2) Less than half will/are in the £30000 to £50000 bracket - so wait until 2027. Several may have retired by then or will adjust their trade to be below £30000
3) It looks like those under £30000 will not have to join MTD until 2028 - if then - so wait and see
4) I might have retired by the time this silly MTD affair comes in
I am getting rather fed up of people/firms trying to sell me MTD programmes which are not needed for several years yet. Why try and put my clients and myself to costs now for something which may not be needed in the future. Try selling that to clients that they need to set up MTD now, but the Revenue do keep putting the dates back. Oh, and remember that you might have retired by then, so it will all have been a waste of your time and money
Please lets remember, the small self employed person does not need to employ an accountant to do his Tax Return, so how will you regulate for that type of person.
What amount of fees will the big boys charge them for doing the work. The same big firms we see in the paper basically every month being fined vast sums for not doing their work correctly.
If the Revenue are not happy with any Tax adviser/Accountants, then start investigating them. Some years ago, a Taxman said to me, why do all the rough businesses in his area go to a certain local accountant. My response was, and why do so many Revenue staff socialize with this firm of Accountants owners
I remember starting out as an Accountant some 40 years ago. Over the next few yeas all 14 local districts investigated at least one of my client's each. Nothing as ever found wrong. I have never lost an investigation. As a result, I can not remember the last time I had a client investigated. In fact, over the years I the Revenue have suggested to unrepresented being investigated to contact myself to help them sort their affairs out. Not bad for somebody without paper qualifications
I personally have had 3 reminder letters. My Tax Return went in in April 2022.
I had 5 clients who's Tax Returns had gone in in May/June, been accepted, but not processed. Strange, none of them got a reminder letter.
Mind you, I am still smiling that MTD has been delayed 3 years for most of my clients, so I should look on the bright side
PS - What are computer programmers going to do for the next few years, and will they now produce programmes that will actually work come the big day or will they still claim that they are waiting for information from the Revenue
Just what I hoped for. After 50 plus years in Accountancy, I intended to retire before 2024 as I do feel that I would be able to cope putting computer systems in for many of my elderly clients (probably some 40% of my clientele) who do not own a computer or smart phone. 95% of my clients have turnovers under £.30000, so will now not need to join until after 2027. When a date is set for small turnover clients to join, we will all retire together. Mind you, I rather expect some of my tradesmen clients will officially retire and then go for cash only jobs, with a result of Tax loss to the revenue. By then I will be retired and out of money laundering membership, so nothing to do with me
Looking at the programmes available for MTD, why do so many only work via bank transactions. Up north we still work in real money - cash.
If they are really intent on bringing in the system, why not start at £85000 and reduce that figure by £10000 each year. Hopefully this would help the Revenue and accountants to work on it successfully.
At the moment, I am still waiting for the Revenue to process five Tax Returns I have submitted, going back to June, two with Tax Refunds owing to my clients So, what chance have we got with MTD returns.
Never mind the phone waiting time, how about the IR sorting out their paperwork
Of the Tax Returns I have submitted online, and been shown as received on the Gateway site, I am still waiting for them to process 8 out of the last 25, this being for the May/June period.
In one case the Revenue are still chasing a client for £870 when in fact they owe him £2300. I have a case of submitting a husband and wife Tax Returns at the same time. The wife's was processed promptly, but the husbands has not been dealt with. He is owed £170 back.
Is this problem being caused by WFH?
Never mind the phone waiting time, how about the IR sorting out their paperwork
Of the Tax Returns I have submitted online, and been shown as received on the Gateway site, I am still waiting for them to process 8 out of the last 25, this being for the May/June period.
In one case the Revenue are still chasing a client for £870 when in fact they owe him £2300. I have a case of submitting a husband and wife Tax Returns at the same time. The wife's was processed promptly, but the husbands has not been dealt with. He is owed £170 back.
Is this problem being caused by WFH?