One important change missing or at least not emphasized from above article and presumable from proposed consultation document is to use NI number for directors and to interact with HMRC. This would make checking name, address and date of birth more feasible. I realise this will be of no use with overseas directors but I am sure that both Co House and HMRC would find it very useful. I realise of course that the NI number would not be available to the public.
I just hope they issue the revised coding to the tax payer and if the taxpayer has an agent make them accessible to the agent.
Having suffered HMRC informing the employer but not the employee I think we will have a lot more wrong codings for tax payers who have income from other sources as well as payrolls.
I have thought for many years that as well as date of birth directors should be obliged to give their NI number. I am sure the government could authorise access between HMRC and Co House to check that name, date of birth and home address match. The NI number like the home address could be kept out of public domain.
This would allow Companies House to perform a policing function rather than just clerical and could be useful for HMRC as well.
I can see why the law states all debts must be paid to use the DS01 but if a socially responsible director/shareholder has ensured all trade and government creditors has been paid this may result in the director being owed a few thousand and the company being insolvent. As the only creditor is the director/shareholder why should there be a legal objection.
I have always viewed that the directors stating there are no debts does not include them.
From A VAT point of view great unless private purchases included!
From An accounts point of view dangerous to permit client to think that they do not need invoices. Analysis of expenses and identifying capital items not possible from statement.
Also for cut off, invoice may indicate time of supply different from invoice date.
As a one person practice change is usually a nuisance. I have been following Aweb posting. Seems lots of people are struggling to enrol themselves, their clients etc.
I just do not feel like starting.
We were told that it was to improve the tax collection but as in small businesses' I would suggest that the loss of tax will be unregistered businesses' as those intentionally under-declaring takings I can not see MTD will help at all.
Example 4 seems to suggest that a business that would not be issuing detailed invoices, cafes hairdressers, dress shops etc can have sales up to £102,000 before registering for VAT as if you calculate the VAT on the gross it would reduce net sales to below £85,000. Can you confirm.
I note that 'cutting and pasting' between sheets is not permitted. I was looking at one of the excel bridging products to day and note that the process is to high light the box on your spread sheet and the box on the filing sheet. Just like 'copy and paste'.
Other than it is within the purchased software it seems the same. I am mystified!
HMRC need to understand that
A many individuals are not at all internet savvy, even those that use it for a limited range of uses.
B Most people really do not understand accounts or tax and need an agent to act for them.
Therefore HMRC need to allow a system where individuals appoint an agent, and that agent ensures that the information is collated and submitted to HMRC.
This week I had failed to register a new techno fob client with pension & rental income by submission of a SA1.
I decided to get him to phone HMRC in my office. Had I not been there instead of issuing a UTR the HMRC employee wished to assume that the rental income would be constant and wanted to adjusted my clients PAYE coding.
HMRC need to realise that agents are the interface between HMRC and the tax payer, and with out us they will receive a lot of very inaccurate information