Member Since: 14th Jun 2010
Nothing in this profile is actualy true. Or is it? Who knows, who cares.
22nd Jun 2021
Anyone who cant put the salient points of a business plan down on 2 sides of A4, cant do business plan.
22nd Jun 2021
Business failure is little to do with advice.
its mainly to do with people learning how to run a business, and often finding out they cant.
or trying something and it falling.
Most of our "failed" business clients are still clients, they just do something else next time, often better the 2nd or 3rd time. One of my biggest clients set up young (early 20's), failed (twice), went into employment for 5 years, came back and now has a huge business. It happens. We have acted for them the whole time.
Quite frankly if you need to buy software to "ask the questions an experienced business adviser would to establish client needs" then you have a really really inexperienced and poor accountant on board. No wonder your clients never come back for the next business.
Get a proper accountant who can act as a sounding board to your business. Its a key part of the accountant/business owner relationship.
17th Jun 2021
@Mr Mischief, I have long said the only commercial way for us to file all our landlords quarterly would be to just whack some data in a spreadsheet from the prior return, randomise it a bit, and dribble it out to HMRC every quarter and then file the difference on the 5th return.
So long as we meet all the filing deadline that should keep HMRC off our backs for several years until hopefully the farce has ended.
Otherwise we are looking at a £300 return being £700 if we charge £100 per quarter for the drivel filing and £300 as now. With the poo flicker we might be able to file for £50 for the 4 time waster returns.
17th Jun 2021
So your clients have been forced to do this, so by definition you have 'self selected' clients willing and able to using cloud software.
By doing so you have excluded all those who are not, so your client sample is self selecting and limited to those happy with cloud.
For those outside of those criteria (and I would conjecture is by far the greatest number in pure volume terms) for whom I am speaking up. There is always a choice to be made.
17th Jun 2021
Whilst there is undoubtedly considerable upside for many business keeping digital records, something I pursue with some vigour amongst my relevant clients. However there is no upside for ALL businesses and compulsion in terms of record keeping is massively overstepping the mark in terms of government's reach and private freedoms and choices.
Forcing landlords with a £1,000 rental income to file quarterly (apart from the year in which they have a 3 months void) is hugely over zealous and creates a massive admin headache and huge volumes of extra red tape.
It used to be the UK was looked on as an easy place to run a small business, and part of the reason why we have so many micro businesses is the ease in which you can do this, compared to most of Europe. All this seems to be being sacrificed at the alter of "digital is best".
16th Jun 2021
The OTS has been either (a) ignored when it comes out with anything sensible, or (b) used by politicians to drive through their hobby horses. Its genuine successes are few and far between.
The tax system has become considerable more complex in the past 5-10 years.
We now have:
1. Daft nil rate bands and cliff edge taxes for dividend and savings incomes
2. Round sum allowance for expenses for property and sole traders (so you often have to work out out both ways)
3. Cash and accruals accounting to be computed for sole traders/property tax (again doing it twice)
4. Ridiculous CGT reporting in year which is a huge time drain
5. Transferrable married couples allowance for a pittance, along with repayable child benefit
6. Class 2 NI abolished then not abolished leaving a broken system
7. Agents being actively excluded
8. Different bands of student loans which never work properly at the end of the loan
9. HMRC replacing front line staff with call centres and referrals rather than just "doing stuff" there and then. See Corporation Tax rebates as a prime example
10. Tax payers being forced to increasingly engage with the hated personal tax accounts which not everyone can set up
And coming over the horizon, the bonkers thing of all - MTD for income tax.
The OTS seems to have done virtually nothing to really influence any of this, or reverse the flow.
14th Jun 2021
my guess is exactly that. They have a system. its cumbersome and doesn't work properly. Everyone hates it (HMRC staff as much as us and clients).
Guaranteed to be the chosen method.
Presumably this will then be an excuse not to post out the data to clients - having previously stopped us calling up to ask, which we wouldn't do if the data downloaded in the first place!
14th Jun 2021
If the "digital" handshake requires the clients to have an SA record online, then the precise clients for whom it is helpful to have access to what HMRC holds (ie the poorly organised and digitally excluded, and generally cant be bothered with all this rubbish) are going to be left out again.
Introducing ANOTHER layer of complexity on top of the current agent authorisation system is just going to make things much much worse.
How about fixing the current half finished system for seeing what data HMRC hold on basic P11D and P60 figures? This seem to have been abandoned now.
11th Jun 2021
Give the clients two options: £250+ in software, learn a new system and be compliant,
or have us type in the numbers into excel, bridge software, sorted, and take the (currently only theoretical) risk of a fine.
I am in the business of helping clients pay the right amount of tax not worrying about petty compliance issues.
10th Jun 2021
They paid the correct tax on time, it was none of HMRC's or anyone elses business how they kept records.
That is one the points I made the House of Lords select committee a couple of years about MTDfVAT
Its massive overreach for government to dictate HOW the books are kept. Thats our concern. Their only interest ought to be that the right amount of tax is paid, and there are comprehensive records to back that up.
had HMRC dictated how books were kept in the 1990's SAGE would not have existed. Had they dictated how books were kept in the early 00's, cloud computing would be a strange novelty with the data then pushed through 'approved' methods of 20 years earlier. All this does is tie everything down to the 2020's methods, and in 20 years time innovation will be stifled.