The regulatory body’s failure to properly regulate their members, especially at audit level, should be penalised not rewarded. They should be paying a percentage of the fine imposed on the member; and the fine should be paid out as compensation to those who suffered as a result of those failings.
Nearly £34m surplus suggests ICAEW have lost sight of their purpose as they obviously have the capacity to do far more regulating …… but why bother if they get the cookie jar when it goes wrong.
No wonder the systems broken. Just implement joint culpability. That should shake things up.
So that's a massive own goal to HMRC or whoever dreamed up public service IR35.
Less than a year in from its announcement the income tax computation programming is wrong; the deadline for beta testing MTD has quintrupled and HS2 is heading for the buffers. What next one wonders, and what platitudes will they come up with to cover the real reason.
Gordon Brown's £10k zero rate band for CT pales into insignificance when one considers unforeseen consequences.
1. Are cloud accounting companies updating their software so it works for month ends on the 5th?
2. The legislation says that MTD reports have to be submitted every three months, but does it say that these have to fit in with the business's year end? Otherwise I will divide my clients into three groups regardless of their year end date so I can spread the work evenly between the months and have some hope of surviving. I can see some distinct advantages if the two don't tie up, and no disadvantage, as I can do the yearend with the next quarterly submission.
3. I think I read somewhere that the overlap relief fiasco will disappear come MTD. Did I imagine that? If it has I can spread my clients' yearends over January, February, and March, spreading the workload, maximising the time frame for final accounts and making question 2 irrelevant.
4. Is there anything in the legislation, pipeline, or HMRC guidance regarding arbitrarily changing yearends?
fb - polite abbreviation of FUBAR? Maybe someone at HMRC has had a premonition!
I can't imagine dealing with HMRC is any easier for software developers than it is for accountants, especially after the fiasco of the 2017 tax returns. More than happy to hide at home and let you do the head banging Matt. Just keep us posted .............: and let us know if you need a contribution towards padded headgear.
The problem is that the PAYE record the call centre staff look at isn't the same as the record you see. Your's has been entered manually by someone who can't see the call centre record.
It's a long time since I calculated a deemed payment but I seem to remember pension and benefits were deducted as well as 5%. So if the PSC wants to support the government's pension initiative and make a £40k contribution to the employee's pension scheme it will reduce the actual deemed payment and the tax and ni due. If the agency or client are only going to deduct 5% before calculating tax and ni they will be working on a higher deemed payment figure so there will be an excess tax credit even if all available funds are paid out of the PSC as salary. Will we be able to adjust his tax code to absorb the excess?
I had two lads in the office last week who couldn't register for self-assessment online because they don't do email. Well one of them might have but he's never used it and the other thought he could go to the library and get someone to help him set one up. They're just out of school and I'm more technologically advanced. We went for the phone route. Finally got through to a real person at HMRC who took their details and will post their UTRs. They're going for the shoebox, pen and diary accounting system. What hope do they have with accounting software and MTD?
I'm hoping I've upset HMRC sufficiently over the years with my caustic letters that I'll be blacklisted and forced to retire. Stacking supermarket shelves seems preferable to MTD!
Some potential problems with scanning each receipt. Will business owners do it when even keeping the receipt is a chore? Will they do it consistently? Will they do it before it's sat on the dash and bleached in the sun or been screwed up in their back pocket all day? Will they care how the software categorises it? How will the software label the scan so you're able to identify it easily? Will the bank feed tie the scan up with the bank entry and cross reference the two? Now that will be impressive, especially if the business owner has a mixture of debit, credit and cash receipts.
How will the bank feed tie up customer receipts with invoices? Is it capable of allocating monthly payments against multiple suppliers invoices?
I had a client once with a Mac. She decided to go digital and scanned her receipts as word docs as she couldn't create pdfs on her Mac. Not saying a Mac won't only she couldn't. She labelled them obscurely and didn't link them to her accounting records. When you opened them the formatting was a mess and they were editable so totally unacceptable. I refused to work with them and we parted company.
My answers
The regulatory body’s failure to properly regulate their members, especially at audit level, should be penalised not rewarded. They should be paying a percentage of the fine imposed on the member; and the fine should be paid out as compensation to those who suffered as a result of those failings.
Nearly £34m surplus suggests ICAEW have lost sight of their purpose as they obviously have the capacity to do far more regulating …… but why bother if they get the cookie jar when it goes wrong.
No wonder the systems broken. Just implement joint culpability. That should shake things up.
I recommend adding a Malteser to each row as an early warning meltdown indicator, otherwise you risk getting your fingers burnt!
So that's a massive own goal to HMRC or whoever dreamed up public service IR35.
Less than a year in from its announcement the income tax computation programming is wrong; the deadline for beta testing MTD has quintrupled and HS2 is heading for the buffers. What next one wonders, and what platitudes will they come up with to cover the real reason.
Gordon Brown's £10k zero rate band for CT pales into insignificance when one considers unforeseen consequences.
No. Way beyond stunned. It's clinging to life in Intensive Care desperately hoping there's enough Personal Service cover to keep it alive!
Good thought provoking article. My questions:
1. Are cloud accounting companies updating their software so it works for month ends on the 5th?
2. The legislation says that MTD reports have to be submitted every three months, but does it say that these have to fit in with the business's year end? Otherwise I will divide my clients into three groups regardless of their year end date so I can spread the work evenly between the months and have some hope of surviving. I can see some distinct advantages if the two don't tie up, and no disadvantage, as I can do the yearend with the next quarterly submission.
3. I think I read somewhere that the overlap relief fiasco will disappear come MTD. Did I imagine that? If it has I can spread my clients' yearends over January, February, and March, spreading the workload, maximising the time frame for final accounts and making question 2 irrelevant.
4. Is there anything in the legislation, pipeline, or HMRC guidance regarding arbitrarily changing yearends?
fb - polite abbreviation of FUBAR? Maybe someone at HMRC has had a premonition!
I can't imagine dealing with HMRC is any easier for software developers than it is for accountants, especially after the fiasco of the 2017 tax returns. More than happy to hide at home and let you do the head banging Matt. Just keep us posted .............: and let us know if you need a contribution towards padded headgear.
The problem is that the PAYE record the call centre staff look at isn't the same as the record you see. Your's has been entered manually by someone who can't see the call centre record.
It's a long time since I calculated a deemed payment but I seem to remember pension and benefits were deducted as well as 5%. So if the PSC wants to support the government's pension initiative and make a £40k contribution to the employee's pension scheme it will reduce the actual deemed payment and the tax and ni due. If the agency or client are only going to deduct 5% before calculating tax and ni they will be working on a higher deemed payment figure so there will be an excess tax credit even if all available funds are paid out of the PSC as salary. Will we be able to adjust his tax code to absorb the excess?
I had two lads in the office last week who couldn't register for self-assessment online because they don't do email. Well one of them might have but he's never used it and the other thought he could go to the library and get someone to help him set one up. They're just out of school and I'm more technologically advanced. We went for the phone route. Finally got through to a real person at HMRC who took their details and will post their UTRs. They're going for the shoebox, pen and diary accounting system. What hope do they have with accounting software and MTD?
I'm hoping I've upset HMRC sufficiently over the years with my caustic letters that I'll be blacklisted and forced to retire. Stacking supermarket shelves seems preferable to MTD!
Some potential problems with scanning each receipt. Will business owners do it when even keeping the receipt is a chore? Will they do it consistently? Will they do it before it's sat on the dash and bleached in the sun or been screwed up in their back pocket all day? Will they care how the software categorises it? How will the software label the scan so you're able to identify it easily? Will the bank feed tie the scan up with the bank entry and cross reference the two? Now that will be impressive, especially if the business owner has a mixture of debit, credit and cash receipts.
How will the bank feed tie up customer receipts with invoices? Is it capable of allocating monthly payments against multiple suppliers invoices?
I had a client once with a Mac. She decided to go digital and scanned her receipts as word docs as she couldn't create pdfs on her Mac. Not saying a Mac won't only she couldn't. She labelled them obscurely and didn't link them to her accounting records. When you opened them the formatting was a mess and they were editable so totally unacceptable. I refused to work with them and we parted company.