I have seen no commentary on the income tax/nic lost reducing the benefit of the legislation.
My client has withdrawn from FRS into standard VAT and his tax liability @ 40% will fall significantly. I have yet to quantify the overall impact but am surprised people have not commented that the so-called windfall was still taxable at potentially a higher level than VAT.
Re VAT FRS - where does it say Labour only?
I have looked at explanatory note, and draft legislation, and the Impact note and all I can see is that labour only businesses are an example of a restricted trader, not that only labour only traders are affected.
@NH
freeagent for Ltd £29 + vat a month after 6 months, £24 for partnership, and ££19 for sole trader.
then at least 1 hour a month my time to review, more if corrections needed,
I expected moving clients onto Openbooks would reduce my year end time but that wasn't the case
Survey is not working properly.
The question as to the main benefits of MTD didn't recognise that I had put a long comment in the Other section as I don't believe any of the options offered apply. It said no selection. To submit I had to tick the exemptions answer so don't know if they will even see my comment
Morning John
I am sorry to see the responses to some of our reactions to the new site. Is this the only UK version in your list?
First of all I am very disappointed in your flippant reaction to our concerns over the site layout, font and graphics.
My rural broadband - I have apparently got the best available with Infinity 2 - cannot cope easily with the site anymore. It is slow and cumbersome, freezes and buffers, jumps around a lot so you think you have go down to the actual text to read when all of a sudden you are back at the top of the adverts you don't want to read twice again.
Getting back to a thread you thought you were reading literally means going back to the beginning and trying to scroll down more slowly... and often failing.
If the font size really bothers you ??????
What a derogatory comment. All of us have expressed dissatisfaction. I use 3 different monitors.
The portrait monitor takes 26 page downs just to get from top to bottom of the home page. It also wraps the end of the previous line over the beginning of the next e.g. the keyword search box shows at the beginning of the next line.
Okay - switch to a landscape laptop- now it only takes 14 page downs but the screen distortion is still there.
Finally, move to my extra wide landscape monitor - used for side by side viewing of two different programmes - and it is back to giant pictures as it fills the screen with the same number of items as opposed to showing more items.
If I change the view %age to make the screen more sympathetic for viewing I have to change it back anytime I want to use a different website - settings are not kept per site - and forget being able to have two sites side by side
Secondly, finding other members is now virtually impossible - the inbox no longer shows if someone is online and I can't find a search facility anymore.
Thirdly, while I hate to be negative, I can't see a good outcome for the current users. Obviously going forward the site will only attract repeat visits from new users that like the layout etc but I am sad to see the quality of posters already missing.
I am trying to persevere but as an old person, who likes to think I am not too bad at IT or Tax, the effort required is not diminishing and my browsing sessions have fallen significantly I think.
Sorry this turned into a treatise but it is a sign of how much we valued the resource we had and can see disappearing into the distant past that so many of us are ranting on.
I do hope you manage to achieve the objectives you value but feel that that future may well not include me
Self employment Where an individual is self employed we may account for each business separately but there is only one self employment from a tax or nic point of view. This means that the application of one set of 10,000 miles makes perfect sense.
but next time they talk to someone will being unable to help you have put them off or actually motivated them to find out?
Inspectors being partially trained came in in the eighties - well before our current problems started. Finding the one Inspector in your local district who understood the topic, or a fully trained Inspector, was like finding gold dust. Insolvency in itself is a specialist subject out here as well as in HMRC with a myriad of different rules and exceptions.
I think it is important that we approach each contact with HMRC as if it is going to be exactly what we need. I am sorry if you think that is naïve but I know that you reap what you sow.
If you talk to one of the many helpful staff that are there, the last thing we want is for them to be disillusioned with us by our attitude.
At the weekend I spoke to a very helpful lady who, during our conversation as to which department I should talk to, advised me that within each 'team' every member was looking to take on certain specialties as well as SA and hers was payments. My response that on my next call I wished I could get through to her again (I had thought they could only deal with one taxpayer per call) she said we could cover as many issues etc as I wanted as long as they were within her area. We talked about P60 details, PAYE payment allocations, and underpayment coding issues.
If I could, like Amazons emails, I would have liked to send back a thank you very much, great service feedback. As it is I just hope that, even if she gives answers we don't like, one or many of us don't treat her badly enough to stop her being as helpful in the future.
Carolelmcarre is right to say that at least we are still talking to UK people - having had a very frustrating Christmas and New Year talking to India (BT and Barclaycard) because my answers didn't fit the script - things could be a lot worse!!
Back in the mists of time, in order to align the Collectors system for the introduction of self assessment either software developers or HMRC misunderstood the rules on repayment set offs. Instead of calculating repayment supplement on the full repayment it used the refund after the set off.
Our query went to technical division who confirmed that legally the full refund should be used but it would be too expensive to correct the programme so it was up to each individual to spot and query each incorrect refund. As in the main refunds were only pennies out most agents, and certainly all unrepresented taxpayers didn't even notice - no computers to calculate how much should have been received then!! But I am sure if you added all the shortfalls together over the years...............
My answers
I have seen no commentary on the income tax/nic lost reducing the benefit of the legislation.
My client has withdrawn from FRS into standard VAT and his tax liability @ 40% will fall significantly. I have yet to quantify the overall impact but am surprised people have not commented that the so-called windfall was still taxable at potentially a higher level than VAT.
Re VAT FRS - where does it say Labour only?
I have looked at explanatory note, and draft legislation, and the Impact note and all I can see is that labour only businesses are an example of a restricted trader, not that only labour only traders are affected.
@NH
freeagent for Ltd £29 + vat a month after 6 months, £24 for partnership, and ££19 for sole trader.
then at least 1 hour a month my time to review, more if corrections needed,
I expected moving clients onto Openbooks would reduce my year end time but that wasn't the case
Survey is not working properly.
The question as to the main benefits of MTD didn't recognise that I had put a long comment in the Other section as I don't believe any of the options offered apply. It said no selection. To submit I had to tick the exemptions answer so don't know if they will even see my comment
@Francois
I wanted to look at Rebecca's interview but despite it saying look below: I can't see how to
Morning John
I am sorry to see the responses to some of our reactions to the new site. Is this the only UK version in your list?
First of all I am very disappointed in your flippant reaction to our concerns over the site layout, font and graphics.
My rural broadband - I have apparently got the best available with Infinity 2 - cannot cope easily with the site anymore. It is slow and cumbersome, freezes and buffers, jumps around a lot so you think you have go down to the actual text to read when all of a sudden you are back at the top of the adverts you don't want to read twice again.
Getting back to a thread you thought you were reading literally means going back to the beginning and trying to scroll down more slowly... and often failing.
If the font size really bothers you ??????
What a derogatory comment. All of us have expressed dissatisfaction. I use 3 different monitors.
The portrait monitor takes 26 page downs just to get from top to bottom of the home page. It also wraps the end of the previous line over the beginning of the next e.g. the keyword search box shows at the beginning of the next line.
Okay - switch to a landscape laptop- now it only takes 14 page downs but the screen distortion is still there.
Finally, move to my extra wide landscape monitor - used for side by side viewing of two different programmes - and it is back to giant pictures as it fills the screen with the same number of items as opposed to showing more items.
If I change the view %age to make the screen more sympathetic for viewing I have to change it back anytime I want to use a different website - settings are not kept per site - and forget being able to have two sites side by side
Secondly, finding other members is now virtually impossible - the inbox no longer shows if someone is online and I can't find a search facility anymore.
Thirdly, while I hate to be negative, I can't see a good outcome for the current users. Obviously going forward the site will only attract repeat visits from new users that like the layout etc but I am sad to see the quality of posters already missing.
I am trying to persevere but as an old person, who likes to think I am not too bad at IT or Tax, the effort required is not diminishing and my browsing sessions have fallen significantly I think.
Sorry this turned into a treatise but it is a sign of how much we valued the resource we had and can see disappearing into the distant past that so many of us are ranting on.
I do hope you manage to achieve the objectives you value but feel that that future may well not include me
Self employment
Where an individual is self employed we may account for each business separately but there is only one self employment from a tax or nic point of view. This means that the application of one set of 10,000 miles makes perfect sense.
True
but next time they talk to someone will being unable to help you have put them off or actually motivated them to find out?
Inspectors being partially trained came in in the eighties - well before our current problems started. Finding the one Inspector in your local district who understood the topic, or a fully trained Inspector, was like finding gold dust. Insolvency in itself is a specialist subject out here as well as in HMRC with a myriad of different rules and exceptions.
No preconceptions
I think it is important that we approach each contact with HMRC as if it is going to be exactly what we need. I am sorry if you think that is naïve but I know that you reap what you sow.
If you talk to one of the many helpful staff that are there, the last thing we want is for them to be disillusioned with us by our attitude.
At the weekend I spoke to a very helpful lady who, during our conversation as to which department I should talk to, advised me that within each 'team' every member was looking to take on certain specialties as well as SA and hers was payments. My response that on my next call I wished I could get through to her again (I had thought they could only deal with one taxpayer per call) she said we could cover as many issues etc as I wanted as long as they were within her area. We talked about P60 details, PAYE payment allocations, and underpayment coding issues.
If I could, like Amazons emails, I would have liked to send back a thank you very much, great service feedback. As it is I just hope that, even if she gives answers we don't like, one or many of us don't treat her badly enough to stop her being as helpful in the future.
Carolelmcarre is right to say that at least we are still talking to UK people - having had a very frustrating Christmas and New Year talking to India (BT and Barclaycard) because my answers didn't fit the script - things could be a lot worse!!
Not a new attitude
from HMRC.
Back in the mists of time, in order to align the Collectors system for the introduction of self assessment either software developers or HMRC misunderstood the rules on repayment set offs. Instead of calculating repayment supplement on the full repayment it used the refund after the set off.
Our query went to technical division who confirmed that legally the full refund should be used but it would be too expensive to correct the programme so it was up to each individual to spot and query each incorrect refund. As in the main refunds were only pennies out most agents, and certainly all unrepresented taxpayers didn't even notice - no computers to calculate how much should have been received then!! But I am sure if you added all the shortfalls together over the years...............