Member Since: 22nd Feb 2006
7th Sep 2019
This would be a nightmare scenario. It would rely on a Cis type reporting system being operated by any business who used a self employed person. We all know how difficult it is if the Cis reclaim doesn't agree with HMRC systems. It's putting the emphasis on businesses reporting the deductions correctly. Self employed people can work for lots of different people and could potentially end up with hundreds of deductions each year. How would the deduction work Paye deduction on the whole invoice or just on the labour element? How would people earning less than their personal allowance be treated? All this working alongside the benefits system isn't considering the individuals. It's just making sure HMRC has first dibs on people's income. It will cause hardship due to cash flow, people will still have legitimate business expenses and their personal allowance. It's putting unnecessary burdens on business. We all know that HMRC systems won't cope with the level of complexity that the scheme would bring.
10th Jul 2019
HMRC are too timid when dealing with the rich and famous, but as others said very brave when dealing with someone who owes a few hundred pounds. They need to spend money on getting a team of the best people possible to deal with cases like this. There is no point dropping a file on an inspectors desk and hoping they can deal with it along with everything else. What are they frightened of? If they have a sound case they have nothing to lose. There is too much at stake £84m is a lot of lost revenue.
25th Apr 2019
Has he got all the insurances, money laundering supervision, registration with the information commissioner like the rest of us? If he's not he might find that the various authorities are taking an interest after his story appeared in the paper.
16th Apr 2019
A tad harsh. As accountants we will still do our best of our clients within the law. We will fight for them if they've done nothing wrong and if they have made a genuine mistake we will do our best to mitigate to consequences. What we can't do is help someone who is purposely involved in dodgy dealings.
9th Apr 2019
I have to agree with the previous posters on this. When accountants come across things that they aren't comfortable with our course of action is send a report and disengage the client.
It would be nice if we at least got an acknowledgement when we sent in a report that is was being looked at. There is no need to divulge the outcome.
What happens now - in all likelihood nothing and the dodgy dealings continue to the next accountant and the next.
We can follow what ever processes are in place, have all the necessary monitoring by our accountancy bodies but nothing will change until HMRC start to act on our reports.
1st Mar 2019
I've just (yesterday) had several tax returns withdrawn and penalties removed. The client hadn't been self employed in my case he had always been PAYE until he lost his job. He had therefore no reason to expect to complete a tax return. The client became homeless, was sleeping rough and in hostels and eventually was sectioned. Initially HMRC refused the exceptional circumstances but following this case we tried again and were successful. Presumably unknown to us HMRC were waiting the outcome of this case. You might get a different response if you try again.
5th Dec 2018
These schemes are still being peddled to unsuspecting contractors particularly to people new into contracting. That is were the clamp down should start. A friend who had lost her PAYE job had started to sign up with agencies. One of these agencies had passed her details to a company who was promoting one of these loan schemes. They gave her the hard sell and she contacted me for my opinion because paying no tax seemed to good to be true. The company had told her it was all approved by HMRC and quoted the registration number from HMRC. I sent her the info about loan schemes and pointed out HMRC would be after her for tax and NI plus she would have to pay the loan companies fees. Happily she declined to have anything to do with that agency and the company selling the loan scheme.
30th Oct 2018
It was interesting to hear that HMRC will now become a preferential creditor when businesses run into difficulties. I worry that it could be an incentive to push businesses that have assets over the brink rather than negotiate time to pay agreements. It could also make credit and loans harder to get.
25th Oct 2018
I listened to the MTD webinar yesterday and put a question forward that wasn't answered. Can anyone here help?
Some of my clients use book keeping packages others will be over the £85k threshold but only raise around 10 invoices a year and have very little expenditure. Their accounting fits very comfortably on a small spreadsheet - typically 50 lines. I was going to use bridging software to keep costs down.
The speaker yesterday said that we would have to link our accounting software package to our agent services account. My question was simply could we link several different software packages or are we limited to using one?
3rd Apr 2017
I worry about the reliance HMRC are placing on people using the apps correctly to do the book keeping. All good if the book keeping is really straight forward. In my experience what is going in still needs thinking through. A new client last year used an app which cost £14 a month to do his bookkeeping by being linked to his business bank account. The information he proudly presented to me was complete rubbish. The bank didn't balance, no account was taken of his drawing cash and making purchases. Cash purchases weren't accounted for, some entries were just in suspense accounts. We do book keeping for a lot of builders who have accounts at various trade accounts at builders merchants, use Sub Contractors in CIS etc. I fear there would be a lot of double counting if these clients were left to their own devices. I imagine that they would use the app for the invoice they receive when they go the builders merchant and then use it again when they receive the monthly statement for payment. I think HMRC will find rather than close an imagined tax gap it would probably increase it. I also can't wait to tell pensioner clients who don't have mobile phones let alone computers or broadband "It’s a question of capability, not preference.”