Member Since: 14th Apr 2002
20th Apr 2020
We are having the same with many clients. Actually got through to HMRC on the phone but they have no clue. They did process a claim over the phone (took 35 minutes).
20th Apr 2020
We did not have that problem at just after 8 - must have been fixed.
However being told in multiple cases that long-standing employers had no employees as at 19 March! My wife got through in the phone but they have no answer.
We are wondering whether the system will only work for agents where only have their own online access. If so, nobody said that and we could have been setting this up over the last three weeks!
14th Feb 2020
Assuming that losses are under £10,000, then tell the client to take his accountant to the Small Claims Court. Any solicitor will ask for £1000 up front to open a file and the fees are not reclaimable so you start off a loser. Plus they rub their hands at a sniff of 'litigation' - £100s an hour plus VAT.
Remember that if the other side lawyers up, their fees will be irrecoverable from the client under the same Small Claims rule.
The claim should be easy to frame if it is a matter of late filing penalties and most of the process is paperwork. If there is a 'trial' it will be in a Judge's office - no wigs and gowns. Any half competent person should be able to state their case.
As soon as the accountant receives the claim, if they have PI insurance they must inform their insurer or not be able to claim. The insurer may want to cut its losses and offer a settlement.
The client has a responsibility to mitigate his losses so must not wait around letting things get any worse. So fire the accountant and move on to someone better.
11th Jul 2019
I see that no-one has answered your question, which I found when doing the same search! I don't think that MTD changes the way that "EC Sales Lists" (as they still seem to be titled by their pre-Super State designation) will be submitted.
But the only authority I can find online for this is from Dixon Wilson Chartered Accountants. It would be able to quote an official source when advising clients.
7th May 2019
"picks up his overlap relief bill" = tax on income he has not had
4th May 2019
My, you are touchy about this!
If course all self-employed people are alike, but if someone earns enough to pay Higher Rate in a Tax Year that is one thing - to have to pay Higher Rate because of accountant negligence is entirely another.
When Self Assessment was introduced most of our clients had 30 April as their Accounting Date. Foreseeing this problem and fearing the ire of clients many years down the road, we converted them all to 31 March by submitting 35 month Returns which were then averaged - a pretty painless process.
This involved a very heavy workload at the time and means that these days we have a 10 month filing deadline for everyone - work is not arranged for our convenience, but to the client's advantage. A side-effect is that, with one set of deadlines, they do not get overlooked.
I understand that you have ways of 'managing' the situation your clients find themselves in, but you are plugging a hole that should never have been there. I have had to do the same for clients we have inherited.
What do you do when a client dies rather than winding down towards retirement? What BS do you give to the relatives who have to pick up the bill?
3rd May 2019
"To abandon it at this moment would mean higher rate tax on the excess of actual profits over transitional relief"
There it is, you state the problem. This simply could not happen if the Accounting Date were aligned with the Tax Year. I hope you inherited the situation and did not create it
1st May 2019
That is one way out of a scandalous situation. Assuming this client was professionally advised, why on Earth does he still have such an accounting date?
29th Apr 2019
Sorry to see that Polly has also had this problem. We set up a second practice for MTD which has existed for 2 years but not done any business because of the delay in implementation. We cannot add new clients - which of course is a threat to livelihood.
HMRC has falsely accused us of letting our AML registration lapse and sent back a form highlighted 'old reference'.
Like Polly, I cannot find any phone line I could talk to to sort this out so have written to the 'agent maintainer team' in the hope that this gets sorted out.
29th Mar 2019
Thank you for the legislative guidance - I had missed that and clearly I DID break the CT Returns at the wrong point (lesson learned).
What does the community think about the practical aspects? Should we be filing estimated Returns for the 12 months as we wait for the end of the extended period (which could in theory run for 23 months).
And where can I find the rules about interest charges in such matters?