I'm glad that this topic has come up, as I may have missed earlier answers to my query. When I first received details of the restricted interest relief, the HMRC wording is that finance relief was to be set against the rental income. However, on submitting a client's tax return, the relief was set against "taxable rental income " i.e after losses brought forward had been knocked off = no finance relief at all. Is this correct ? Seems harsh on small landlords who generally make losses in the early yeard.
Can't believe any accountant would seriously recommend Quickbooks.As my friend and colleague very recently said, and I quote, " Quickbooks is s***e ". Couldn't agree more. Any increase in their matket share is surely down to the large sums they must spend on TV adverts - unlike their competitors.
Apologies for late contribution,just catching up after a much needed holiday.My biggest complaint about CIS deductions ( apart from trying to get client's money out of the grasp of HMRC ) is the disturbing recent cases where HMRC are strictly applying the rule of applying the CIS calculation after deducting materials supplied ONLY. i.e. CIS tax is being collected by HMRC on overheads and profit, way in advance of when corporation tax is due. Seems immoral to me, and surely not in line with the original purpose of stopping labour only subbies walking away without paying any tax.
Does incorporation look better if couples ( + family ) are also shareholders and claim their dividend allowance ? Or is there a mechanism to prevent this being used.
The schedule of contractor deductions came from
NIC & EO, HM Revenue & Customs, BX9 1BX
Phone no. on their letter 0300 200 3200 Fax 0191 285 4332
Also try CIS helpline ( if you have a morning or afternoon to spare 0300 200 3210
I had communication from HMRC regarding a CIS refund due. They sent a schedule of all CIS deductions from my client's customers in the tax year - you see they do have the information every month from contractors returns. Therefore no excuse for constant demands for PAYE/NI that is not due. Unfortunately, when I pointed this out, the reply was that the left hand doesn't communicate with the right, so the those asking for your money can't access the monthly CIS returns of contractors. But obviously some departments can.
Ahh, what about EPS returns under RTI you might ask ?
Can anyone please advise how to submit an EPS for CIS deducted, when the information is provided past the 19th of the following month. Basic PAYE tools just doesn't want to know.
Also, is there anyone I can speak to at HMRC ( please don't laugh ) about applying for gross payments from contractors. I have a client who has been trading for a few years but the application form seems geared to new businesses.
I use a colleague with his own practice and appropriate letters after his name.
He knows the standard of my work but also reviews the figures and queries anything that doesn't look right. He bills the client direct.
Interesting that recently a good sized building society queried his qualfication - ICAEW - as it didn't appear on their list of approved accounting bodies. They did have - ICA - Institute of Chartered Accountants, which I told them I had never heard of.
To be or not to be
I always love this debate. This one seems more "real" than in the past with practical observations. I jumped ship from ICAEW many years ago when I realised the following :-
Only continuing for sentimental reasons over parental assistance & pride
Paying in substantial sums to a club that gave me nothing back (like joining a golf club but never playing)
Talking to others who signed on for a series of seminars to fulfill CPD conditions, signing in to the seminar, then going home.
Attending courses for subjects that I would never ever use.
Seeing from work taken over from ICAEW firms that my standards and knowledge were better.
Finally, I always remind people who query the quality and standard of defectors, WHO SIGNED OFF THE ENRON ACCOUNTS, MAXWELL EMPIRE ETC. ETC. ETC.
sole trader party
As a sole trader who employs his wife, can I claim £150 for her and her spouse ?
I fail to see any benefit from this for small businesses who might even be still using paper P11s for their payroll. Does it mean that EVERY employer will have to use payoll software in order to file online every week / month. Another task many businesses could without. Can it be done using HMRC PAYE basic tools ?
The cynic in me can only see this as another money making scheme for the government. Much like CIS returns which were switched from annual to monthly to boost the treasury coffers.