Member Since: 1st Feb 1998
AccountingWEB’s Editor at large has been with the site since 1999, rising from news editor to editor in chief, global editor and head of insight. As a roving editor, he continues to investigate the profession's use of technology around the world. He devotes his spare time to technology history and an oddball collection of stringed instruments.
Editor at large AccountingWEB
17th Sep 2021
It may not replicate the situation exactly, but your situation rang a bell with incorrect tax calculations sent to PAYE taxpayers on P800 forms.
I'm not one to offer tax advice, but it appears that the SA route may be the best way to expunge the errors.
17th Sep 2021
If you haven't seen it before, Helen Thornley did a three-part article series on the tax treatment of the garden office:
Benefits in kind and business ownership are covered in part 3, in which she says the cash equivalent usually assessed by HMRC as a benefit each year will be 20% of the market value of the asset when first made available.
While she doesn't cover your specific question about avoiding BIKs, her concluding advice in that section is: "If the pod is to be kept long term, it might be better for the director who wants personal use to pay to install it privately. "
I'll alert her to your question and see if she can offer any further insights.
13th Sep 2021
Neil Warren has been prolific on this topic since the reduced rates were first introduced last year. His example was based around a pub meal of a sandwich, some chips and a beer.
His latest article goes into a bit more detail about how to get ready for the 12.5% rate: https://www.accountingweb.co.uk/tax/business-tax/get-ready-for-125-vat
Good luck everyone with implementing the latest changes. We really are getting to the far reaches of over-complication here (and don't mention all the post-Brexit EU trading VAT issues... thank your lucky stars the client won't be exporting the burger & twiglets!)
10th Sep 2021
Comments to this thread have now been closed.
10th Sep 2021
OK, back to your rooms - all of you. Nobody has come out well out of these exchanges, so we have had to close the comments and all of you taking part please think twice before engaging in playground style spats.
This is a professional forum that is intended to provide a platform for the friendly exchange of ideas and information about accountancy.
Please moderate your behaviour and if we see any repeats in the next few days we will escalate our response against members who break our community rules.
7th Sep 2021
Even as I type, the PM is unveiling his health and social care plan to MPs after getting the Cabinet to submit, sorry agree, to his proposals.
Basic facts so far reflect the pre-announcement leaks: a 1.25% increase in NICs from April 2022 to raise an extra £10bn to fund the health and social care system.
Responding to a snarky question from Labour shadow chancellor Rachel Reeves about imposing a tax on jobs, Rishi Sunak said no NICs were payable by those employing people under the age of 21, nor apprentices up to the age of 25, “nor on people who are going to be employed in new freeports”.
Adam's question about detailed implementation and closing potential loopholes is fascinating. However, from something apparently cooked up while Johnson, Sunak and Javid were on holiday, I suspect we're on track for another unnecessary tax complication.
Whatever happened to the growing consensus to merge income tax and NICs? Or, could we be seeing a U-turn from the same Chancellor who announced at the beginning of the pandemic programme, “It is now much harder to justify the inconsistent contributions between people of different employment statuses. If we all want to benefit equally from state support, we must all pay in equally in future.”
Richard Hattersley is hammering out a report on the planned increased now. Do comment below if there are any points you would like him to highlight.
6th Aug 2021
I thought it was a really interesting move when the CEO Adrian Blair explained the reasoning to me earlier in the week:
The user reviews on the app exchanges were also very good, with another user rating it as the best in its field. As I commented elsewhere, what intriguged me was the extent to which getting a mechanism in place to consolidate ecommerce revenue from big online platforms would position Dext for a big surge into the vacuum for microbusiness MTD for ITSA processing systems - especially online traders.
I'd be interested to know if you're benefiting from the "free trial" period for Dext Commerce as it's now called, and what happens to the pricing after that. Do let us know if anything changes significantly for you on that front.
6th Aug 2021
Thanks for this update, Rebecca - your detailed analysis should at least give readers some guidance based on the draft legislation to start planning around. Unless, of course, the ongoing discussions result in changes to the clauses.
But can I also respond to Tax Dragon and apologise for steering what was a simple poll on MTD RETIREMENT PLANS down a basis period rabbit hole.
If you want to debate the implications of the basis period arrangements, could I suggest you please follow the link to Rebecca's article so we can refocus here on Hugh Fair's original poll?
5th Aug 2021
I suspect it's never advisable to assume anything when it comes to MTD and tax legislation.
After Wednesday's MTD Bootcamp webinar, Rebecca Cave got increasingly agitated about the imposition of the basis period for 2023/24:
In Rebecca's reading of the legislation, the change is going to remove the delaying tactic many accountants thought would buy them and their clients an extra year.
She's just checking with other interested parties, so keep your eyes on our news pages over the next day or two... (it would be nice if she was wrong, but I wouldn't bet against her)
5th Aug 2021
OK, I was perhaps playing up the accusation for effect, and will happily accept your point about desktop integrations and the continuing gulf in our views.
One point I would like to add, though, is that if the complexity or volume of transactions is significant, the advantages start to weigh in of favour of cloud APIs. It may take more effort at the outset, but if you connect up the transaction sources to the ledger and are able to reconcile them (automatically in some cases) to bank account statements, you eliminate a lot of time and potential errors from the data input end.
This week Dext just bought a data gathering app called Greenback, which collects, standardises and consolidates transaction data from 16 ecommerce platforms. These are places where a lot of smaller businesses trade these days. So which tool would you prefer if you had clients with those circumstances, a cloud tech stack or manually inputting the data on a desktop system?