Member Since: 19th Mar 2014
26th Apr 2017
Ha ha, this is so spot on, certainly brightened my morning! x
29th Sep 2016
The MTD Team really are in a little world of their own, although they are probably entirely convinced their proposals are right. I can just imagine this team at work, lots of love between them and a group hug at the end of each day, just before their parents come to take them home.
Exactly - made me laugh but very true!
29th Sep 2016
Couldn't agree more - what does it matter as long as the records are accurate and taxpayers are paying the right amount of tax. We have a client who still uses the big ledger books and his totals balance to the penny and another on all singing and dancing software with his van posted to motor expenses and his drawings in wages and salaries. As long as we as their agents are verifying the records and submitting them digitally what is the issue?
22nd Mar 2015
I do hope that I am worrying unduly and that the Self Assessment Tax Return is abolished in what would amount to name only. The thing is though, I am worried and judging by the above, so are a hell of a lot of people. Was there need to spread this panic without further explanation? In my opinion, no. Like I said in my original post, I know who I WON'T be voting for.
When are we likely to find more information?
20th Mar 2015
Lots of concerns
Do the HMRC really think that each and every small traders has a business bank account, have they even thought of the taxi drivers, market traders, takeaways,plumbers, builders etc who still do their business on cash basis mostly to save the ugly bank charges. .
These are my thoughts exactly - a lot of our clients use personal credit cards to pay for expenses and as you said, some don't use a bank at all - have just done a market traders set of accounts - all takings were cash and he pays his suppliers in cash.
Also on larger sets of accounts are we going to have to incorporate debtors and creditors each month? How will capital allowances be claimed? How about private addbacks on telephone and motor? What about partnerships where the profits are split amongst five partners and then one of those partners has several rental properties? Losses brought forward etc etc - the list could go on.
I think they are just thinking of client's who bank all their takings and only use one bank source for expenses - all nice and neat, but in reality, this isn't the case for most incomplete records accounts.
In 1997 I thought there would be a big loss of business when people would be doing their own tax returns, but it actually created more business as prior to that you could just send typed accounts and a computation in to HMRC whenever you felt like and didn't even have to fill in a tax return.
Many client's haven't got computerised records because they don't like doing books which is why they come to us. They don't like getting their books together once a year, let alone monthly, so not sure how that would pan out.
The only benefits I can see so far are being able to access employment information, as now you have to ring to request it if they have lost the P60 and also the pensions received information should be better as sometimes it's hard work getting client's to find the information on what they received.
Also, how can a bank automatically code everything without someone checking these entries - for example if you go to Homebase you could buy decorating materials, cushions for your private dwelling, houseplants - it's not as simple as saying Homebase is always material overheads.
19th Mar 2015
So will most small accountancy practices switch to a monthly billing system for their clients?
Most of ours are annually billed for accounts and tax returns.
Seems like there will be more administrative work involved in keeping up with all that.