Member Since: 12th Dec 2011
12th Mar 2021
That's a good point and I am not sure if these types of transactions in the City of London fall under the real-time gross settlement (RTGS) transactions.
FWIW I got my figures from this page: https://www.bankofengland.co.uk/payment-and-settlement/payment-and-settl...
12th Mar 2021
It doesn't but a 0.2% transaction tax would reduce the appeal of cryptocurrencies because why bother unless you are doing something illegal.
Anyway, the current tax system isn't exactly set up to effectively tax cryptocurrencies.
12th Mar 2021
According to the Bank of England, the average daily RTGS values for 2020 were £752,532m. That gives a yearly total of approx £275 trillion in electronic transactions. HMRC's tax take is £640b p.a. approximately.
Therefore a 0.2% transaction tax on every electronic transaction would cover HMRC's tax take. Shopping, wages, loan payments, cash with drawals etc all taxed at 0.2%. Levy applied by banks and credit card companies. It would solve the issue of online retail. It would be a negligible cost that no one would notice except traders doing very high volumes and minuscule margins.
Do away with all taxes and HMRC.
I'm sure someone with a bigger brain than mine would be able to pick holes in my argument. But the tax system more or less was designed in an age of cash payments. Now that we have moved on from that why not change the system to match modern reality?
11th Feb 2019
Out of interest, does anyone know how Propel by Deloitte is doing?
Looked good initially but the website has less information than it used to.
7th Feb 2019
The department must be in a pretty sorry state as they seemingly didn't even try and sell it. Not sure how many clients they had but a staff complement of 200 means it would have been a pretty sizeable number. Nice add on for someone like Crunch et al.
28th Nov 2018
Is this only for SA returns filed online using HMRCs software. If you used third party software to submit, will your clients still be affected?
5th Oct 2015
Not sure home many people will do it themselves
A few of my clients are accounting contractors. Some of them I trained with whilst doing articles. They are more than capable of doing their own returns, I have even offered to give them access to my software so that they could cost effectively do it themselves (they are friends and I would rather they did their own accounts) and they are just not interested.
So whilst the advent of technology may cause many to do it themselves, many will not.
I could easily wash my own car but I still pay someone to do it and I think the principle is the same. It would be far quicker for me to do it if I took the time it takes to drive to the carwash into account but I still don't / won't.
28th Aug 2015
Disruptive yes - not only in their own heads
Actually, while others might choose to describe Xero as being a disruptive technology, we generally tend to avoid that label ourselves.
Whilst you may not use that term yourselves I do believe you have been disruptive (in a positive sense) otherwise I do not think that you would have had the uptake that you've had.
26th Aug 2015
None of the above
Personally I am of the sell up now and leave the industry frame of mind. I just don't see the point of staying in the industry much longer or having it as my main income.
The three biggest risks are:
1. Technological change reducing need for accountants. A lot of clients are not interested in the value add. They are just too small and a lot of them don't want to grow at all. There is a need for value adding accountants but value added services will not sustain us all as compliance dwindles.
2. Flood of new entrants as large companies automate financial function / outsource offshore leaving trained accountants who can't find work and so start accounting businesses.
3. Legislation changes that will reduce the amount of contractor clients. Whilst i don't market to this group, it is by far the biggest area of my business that has grown via word of mouth. There is little value you can add to compliance services in this area.
It is easy to say I will leave and do something else but a lot harder to do in reality. However possibly the time is now right to honestly assess the future for accountants. I am a huge admirer of what Xero has done to the industry and I don't even think they have fully grasped how quickly this industry will change going forward (maybe they have and just don't want to frighten us).
But I am conscious of the whole boiling frog syndrome.
26th Aug 2015
I like Xero but
I use Xero for all my clients and I also dabble with ReceiptBank and CrunchBoards. I like cloud accounting because it gives me flexibility. It is not the solution for everyone but it is for me and my clients.
However, I do have an uneasy feeling that us accountants are the pawns in our own demise. As bookkeeping and compliance are automated, Xero et al say we must add more value to our clients. Fine, but how long before intelligent software takes even that away from us (or auditors)? As 'big data' grows, software will be able add 95% of the value we provide clients, the remaining 5% being, being able to pat the client on the back and say everything will be OK.
I recently told my account manager at one of my cloud accounting software providers (I wont say which) that I wasn't their salesman, I had spoken to my client about their software and the client didn't want to use it, period. He couldn't get it and got frustrated with me because I wouldn't push his product. And for me it was a real eye opener on how the cloud solution providers see us accountants.
Business development takes a huge amount of energy (well for me it does) and I am wondering whether spending my most productive years building something (a cloud based accounting practice) that is ultimately leading to its own demise, is worth it.