Member Since: 20th Mar 2018
8th Oct 2019
Resurrecting this post in the hope others have some experience too. Per my comment 2 Sep 2019 and to summarise: Client sales are almost exclusively services sold to European countries. Turnover is therefore Outside of Scope. Any services sold to UK customers are well below £85,000. THIS CLIENT IS THEREFORE EXEMPT FROM MTD and yet -
he's now received a letter (in addition to previous email) "Your business missed a VAT filing regulations deadline on 7 September" with details of "what you need to do now".
Seemingly they've no system to identify businesses that are exempt and opt-them-out of such communications. Any experience or ideas of how best to proceed?
17th Sep 2019
Yes this is a regular issue. I keep detailed PAYE reconciliation records during SMP claim periods. And one reason I charge for additionally for SMP claims - keeping fee to about the same as the 3% compensation
10th Sep 2019
In such cases Wave used to be my go-to. Now it's Pandle. Should suit you for now with an eye on moving to Xero in future.
2nd Sep 2019
In my case client received email "We notice that you still haven’t signed up to Making Tax Digital despite our previous communications.
We want to help you get it right so we are sending you this reminder.
You should act now, so that your next return can be submitted through the new system."
However this client has chosen not to register for MTD being that his turnover (sale of services to EU) is Outside the Scope. Box 6 therefore exceeds VAT reg threshold so I imagine that's the prompt for the email.
Just to report to community - I phoned VAT General Enq and have had the response "well, client should probably register-MTD as that's what we want all to do ultimately. We have no ability to mark the file and stop the letters".
Anyway, I asked that a note was made on file for client's reason not to sign-up and client will start to ignore those letters. Best I could do but it doesn't feel comfortable and as has happened before - I wonder if it leaves client doubting my guidance.
23rd Aug 2019
Having gone through the Partnership Tax Return Guide (SA850) I thought I'd share my thoughts if it helps anyone.
The guide is all over the place and can be understood almost anyhow you wish! I've literally highlighted and made notes "FOR/AGAINST" declaring a time-apportioned period or £NIL profits.
Anyway, the clincher for me was PTGR page 10, heading "Box 3.10 - Tick box 3.10 if the partnership has succeeded to a business previously carried on by a sole trader and that person has included the accounts information in their tax return (read the notes on Page PTRG 9 of this guide on ‘Changing between self-employment and partnership’). If you tick box 3.10 you do not need to fill in boxes 3.14 to 3.93 and boxes 3.99 to 3.115” (I.E. DO NOT NEED TO DECLARE PROFITS)
AND, Box 3.11 - Tick box 3.11 if the partnership’s accounts do not cover the period from the last accounting date or if no accounts end in 2018 to 2019. Explain why in box 3.116 ‘Additional information’, on page 3 of the Partnership Tax Return."
Leading me personally to the conclusion that because last year ended 31 July 2018 is declared on husband's (as sole-trader) Tax Return then we've no need to declare any profits on this first year's SA800.
I'd also point out PTGR page 8 “In some situations you may need to combine or divide the figures to fit the standard format It’s quite possible that there may be more than one acceptable way of doing so. Whichever method is adopted, be consistent from one year to the next. If you want to explain any figures in more detail make a note in box 3.116 ‘Additional information’, on page 3 of the Partnership Tax Return”. Make sure that you transfer all the entries from your accounts, and that you include them once only. – I.E. DO WHAT YOU WANT BUT DON'T CONFUSE US AND INCLUDE FIGURES TWICE.
23rd Aug 2019
I’m hoping to finalise the job this morning and I’m still not sure which way I’ll be going. With partnerships becoming more common I’ll look out for this question cropping up again
22nd Aug 2019
So let’s say I go down the route of including 8 months figures on 2018/19 SA800. I’d include the husbands share on that and yet not on his personal ITR? And that doesn’t seem to cause questions from HMRC? Thanks for interesting discussion
22nd Aug 2019
Thanks for reply. We will time apportion profits (therefore 2018/19 is 248 / 365 days). I wasn't sure that overlaps were dealt with at all on the Partnership Return. I had considered only declaring the wife's first 248 days of profits on her personal 2018/19 Return and that alone.
Sorry, what's "SAI"?
29th Jul 2019
A sole trader client has been using it and taken to it very well. Made year end easier. I’d recommend
29th Jul 2019
Each member will be taxed on their share of gain under CGT rules