Member Since: 2nd Oct 2002
1st Apr 2020
The Government has supplied taxable income to the taxpayer.
1st Apr 2020
You're probably right, but I hope HMRC clarify this as soon as possible. Another £50,000 threshold, regarding Child Benefit entitlement is of course based on net adjusted income, with pension contributions and Gift Aid payments being taken account of. Presumably this won't apply, but certainty is required so that we can advise clients.
In addition, how will a loss be treated in the three year averaging calculation, zero or the actual negative figure?
And if we really want to complicate things, what is the VAT status of any taxable payment received by a taxpayer using the Flat Rate Scheme....
28th Mar 2020
Yes, difficult times. We will end up doing a great deal of additional work for zero fee income and anticipate struggling to get paid when we complete 19/20 accounts and tax returns.
We still have a significant proportion of clients who have manual records. Given the lockdown rules, it seems to me that it would be wholly wrong to allow clients to visit the office. So we shall have a spell where we are billing very little.
I am also very frustrated that we do not have the necessary detail with regard to the self-employed support to be able to to tell clients what they might get. No definition of income, how will losses be treated in the averaging calculation, might there be a clawback provision.
We need full details ASAP so that we can advise clients.
26th Mar 2020
Indeed. It's almost like they are making announcements without thinking things through first.....
26th Mar 2020
1) How is the £50,000 computed? Adjusted net income as per the Child Benefit entitlement calculation?
2) "Have lost trading/partnership trading profits due to COVID-19". So this must imply the likelihood of a clawback if the 20/21 income exceeds the average for 16/17 through to 18/19?
For the record, I didn't like his "threat" about raising taxes for the self employed in the future. Outrageous.
22nd Nov 2017
Yes, we provide them with full details, to the penny. But sadly it is beyond some to follow very clear guidance!
And yes, I always point out they have had a letter/email confirmation already, which is of course further time expended.
18th Apr 2017
"Does a snap election give accountants leverage?"
No it doesn't. It means that MTD will almost inevitably now go ahead without significant change.
There is no way that MTD will be an issue in this campaign. It will be about Brexit and what a shambles Corbyn and the Labour party are.
We have already notified all our clients and urged them to contact their Members of Parliament. We have provided a suitably worded draft letter to those clients who wanted one. Although clients are almost exclusively against the MTD proposals, I think we'll be lucky if any more than 5% will actually complain.
If the Parliament had run full term to 2020, the situation might have been different. By then the impact of MTD would have been felt and it would have become a big issue for those affected.
Unfortunately this early election will mean MTD will now become a horrible reality. Bad news.
28th Mar 2017
Yes, they are making it up as they go along.
Another contributor on another thread reminded me how before self-assessment and the current year basis were introduced (back in 96/97) HMRC produced two very thorough, accurate guidebooks (SAT 1 and SAT 2) which provided comprehensive and accurate guidance full of worked examples. These were very useful and well written documents.
If you contrast that approach with the current shambles you can see just how much HMRC have deteriorated, or possibly just how much the Government/Civil Service have declined. This is going to be an epic balls up.
I am currently exchanging emails with Theresa Middleton (Director of MTD at HMRC). I have asked her to confirm that my client with self employed income (31st August y/e) and rental income will move to making eight quarterly submissions per year plus at least one annual adjustment instead of one tax return. Once she has confirmed this is correct, I shall ask her to confirm that she believes this will save my client money.
24th Mar 2017
Since the advent of Self Assessment, we have sent clients a checklist at the time they receive their tax returns/tax return notices to assist them in gathering the necessary information.
Some respond quickly, many take quite a few months and many of course leave it until the last minute.
We do 500 SA returns a year (two of us), so we are keen to get cracking as soon as we can with those clients who are willing/able to provide information promptly.
So, it's not a "rush", but an attempt to make my December/January slightly less awful.
24th Mar 2017
I thought that in previous years HMRC released the tax return before the tax year end. I would like to view the return so that I can ensure the tax return checklists we send out to clients are as useful as possible.
Obviously there will be some changes from 15/16, given the different interest and dividend rules.