Nothing in this profile is actualy true. Or is it? Who knows, who cares.
The Chancellor has already killed off the flat rate scheme for small service businesses with unworkable rules in his first budget
One hopes his next foray into VAT will be more measured and balanced.
Surely it would be much cheaper to wait until the end of Feb before paying anyway, HMRC rates of interest are much lower than credit card rates.
If you plan on not paying the card off at the end of the month, then again the 5% would still seem attractive vs a couple of months of credit card charges.
Not sure what the problem is.
The private sector wont just roll over and assume IR35 applies to each and every contract as has occurred inside the public sector. We don't have a single client left on a public sector contract.
The most likely result is they will take a punt on it safe in the knowledge HMRC don't have the resources to hit them.
With the flat rate scheme, maybe
Without (and it is dead for service businesses) then this is an appalling idea and puts up the costs for small trades people for example, although i imagine many will just go 100% cash in hand.
I have just spent the past 6 months trying to teach 30-40 odd bright articulate clients formally on flat rate VAT how to do purchase VAT and its been a huge drain of time on them and me trying to explain it all.
Its a huge learning curve for clients to learn about VAT.
HMRC have not got a hope in hell in trying to get people with business of that size compliant.
FFS, another year of dicking about with class 2.
Who the hell actually cares about class 2, its such a pittance it can't possibly make any difference on the ground to anyone truly self employed.
Even HMRC dont seem to care about it given the apparent huge numbers of tax payers who have not been paying it despite filing SA returns for years.
I regularly sack clients and I cant say I have ever regretted it.
This is mainly for "emotional time", that is to say not actual time spent, but when you find yourself thinking about them "out of hours" or are forever having to spend 5 minutes here and there chasing up which then distracts from what you are supposed to be doing.
Those are the real stress clients for me, its not about the money, but be removing them you tend to be able to substantially increase fees in the time you have previously spent on them.
"We are not the right accountants for you" should be a key phrase uttered in the first 10-15 minutes of a prospect calling you up.
Of course if you get it wrong, you don't know as you didnt sign 'em up!
That all we need as I have been posting for some time.
Glad at least one firm is listening to their customers and not to the guff coming out of HMRC.
Hopefully an independent will take it on and add a macro for excel, just as VT does for filing with Companies House. Charge £40 a year single company, £100 a year multi use and you will have a £500k turnover as every firm in the country will buy it, and many individuals too, just as an "add on" to any other solution they have.
That presumably goes to show who little of this tagged data is actually used by HMRC if they simply haven't cared for 6 years about the data submitted.
Well worthwhile spending the time and effort getting it right out end then....
You don't revalue the properties, so current market value is irrelevant. Its what you paid.
I have taken HMRC on when they have made a similar statements to a (formally) unrepresented client.
We won by going through both HMRC's manuals and the legislation very slowly with them. It took a while for them to understand what was going on, but persistence paid off. I had to go right down to basics of balance sheets with them.
This was the let property campaign team so they ought to have known what they were doing quite frankly.