A late answer but perhaps useful to those who stumble upon this as I did...There is a claim form which is relevant to both the self-employed and company Directors.
For Directors you state the daily pay which is salary + divs. I took the annual amount and divided by 260 working days per year to get the total for my client. This was well in excess of the daily max so all seemed good.
Got an exemption for a client trading over VAT threshold on the first lap of this nonsense. 1st letter rejected but my appeal letter accepted. My client is in late 70's, doesn't know how to use a computer in any confident way, maintains good quality cashbooks and the volume of transactions meant it would be expensive to pay for someone to do this for them which would have no gain other than to enable them to comply with MTD. Told HMRC all that and won after 2nd 2 page letter. Expect a fight but demand to win! (clearly i'm having a bold Monday!)
I have alighted on Opera3 software which is produced by Pegaus and this purports to offer multi currency, drill down functionality, extensive reports etc. Any one used this or considered it too?
Well firstly, thank you all for taking the time to reply to this. I hadn't entertained the thought that the pension scheme could treat the 'fee payer's' contribution as a personal contribution. I have asked my client for a statement from their pension scheme to see. My client is working behind the camera in the TV industry. The pension scheme in question is Now pensions so not something bespoke for creatives etc.
I agree that we are coming to conclusions here based on principles rather than legislative references but, having looked, I don't think we have much choice.
I am now comfortable with the idea of the 'fee payer's' contribution being added to my clients turnover (additional reward) and being included as a personal pension contribution in their return IF the scheme operates as Equity's does as (i.e. fee payer's contribution treated as net and tax relief added to the pension pot). However my gut says Now pensions wont be doing this and my inclination if they are treated as gross contributions is not to include the amounts as turnover. I am working on the basic principle here that pension contributions (within limit) get tax relief. I cant include the amount as taxable turnover therefore if i also cant give it relief as a personal contribution.
In a community discussion board on Intuit's website there are now totally contradictory responses by Intuit employees as to what is happening from 1st Feb 2023 onwards. 2 say you can still enter transactions, run report and even file MTD VAT returns, 1 says you can only do this if you bought it outright (I didnt think that was even an option) and 1 now says noone can do anything at all and we all need to export the data out completely by this time!!!!! Come on Intuit, this is becoming a joke and a massive worry!
I can echo all the things said above! Your original post Fiona was exactly what I was going to post before I saw this thread!
I feel totally abandoned by Inuit (only got my email today at exactly the same time as my clients). QBO is not a viable alternative; by comparison to desktop it is very poor (lack of features, prone to falling over, slow to use). For what it is worth I called the support line this morning to express my dissatisfaction. They have email me to acknowledge and at the same time provide me with the email address for which to raise a written complaint. I would recommend anyone who care about QuickBooks being discontinued to do the same. If we dont make a very big noise about this they wont realise how significant it is.
Try not to lose sleep over this. Things like this happen, even with the best of intentions. I am assuming you are not the one responsible for the budget for the job, the procedures of your firm in general checking or the client training inherently in place re them getting involved in the returns/reviewing. Completely agree on the joint responsibility of the partner; if they want the right to criticise then they need to tool you sufficiently to do your part (adequate budget perhaps, insisting of verification against the bank, company policy to discuss unusual results with client). The amount of money here is not significant enough to warrant lost sleep. Use this as a positive event to make a personal commitment to how you will check returns in future to avoid such mistakes slipping through again, to appraise how your partner values you or as a reminder to add to your own or the company processes to verify results with the client maybe. This event has the opportunity to make you (and your practice) better; don't waste that opportunity by lingering on the short term and small mistake that many of this forum will have made to in some form.
My answers
Yes please!
Annual payroll for me for all directors. PITA re furlough but couldn't be foreseen.
A late answer but perhaps useful to those who stumble upon this as I did...There is a claim form which is relevant to both the self-employed and company Directors.
https://www.gov.uk/government/publications/form-certificate-of-loss-of-e...
For Directors you state the daily pay which is salary + divs. I took the annual amount and divided by 260 working days per year to get the total for my client. This was well in excess of the daily max so all seemed good.
Got an exemption for a client trading over VAT threshold on the first lap of this nonsense. 1st letter rejected but my appeal letter accepted. My client is in late 70's, doesn't know how to use a computer in any confident way, maintains good quality cashbooks and the volume of transactions meant it would be expensive to pay for someone to do this for them which would have no gain other than to enable them to comply with MTD. Told HMRC all that and won after 2nd 2 page letter. Expect a fight but demand to win! (clearly i'm having a bold Monday!)
I have alighted on Opera3 software which is produced by Pegaus and this purports to offer multi currency, drill down functionality, extensive reports etc. Any one used this or considered it too?
Well firstly, thank you all for taking the time to reply to this. I hadn't entertained the thought that the pension scheme could treat the 'fee payer's' contribution as a personal contribution. I have asked my client for a statement from their pension scheme to see. My client is working behind the camera in the TV industry. The pension scheme in question is Now pensions so not something bespoke for creatives etc.
I agree that we are coming to conclusions here based on principles rather than legislative references but, having looked, I don't think we have much choice.
I am now comfortable with the idea of the 'fee payer's' contribution being added to my clients turnover (additional reward) and being included as a personal pension contribution in their return IF the scheme operates as Equity's does as (i.e. fee payer's contribution treated as net and tax relief added to the pension pot). However my gut says Now pensions wont be doing this and my inclination if they are treated as gross contributions is not to include the amounts as turnover. I am working on the basic principle here that pension contributions (within limit) get tax relief. I cant include the amount as taxable turnover therefore if i also cant give it relief as a personal contribution.
In a community discussion board on Intuit's website there are now totally contradictory responses by Intuit employees as to what is happening from 1st Feb 2023 onwards. 2 say you can still enter transactions, run report and even file MTD VAT returns, 1 says you can only do this if you bought it outright (I didnt think that was even an option) and 1 now says noone can do anything at all and we all need to export the data out completely by this time!!!!! Come on Intuit, this is becoming a joke and a massive worry!
I can echo all the things said above! Your original post Fiona was exactly what I was going to post before I saw this thread!
I feel totally abandoned by Inuit (only got my email today at exactly the same time as my clients). QBO is not a viable alternative; by comparison to desktop it is very poor (lack of features, prone to falling over, slow to use). For what it is worth I called the support line this morning to express my dissatisfaction. They have email me to acknowledge and at the same time provide me with the email address for which to raise a written complaint. I would recommend anyone who care about QuickBooks being discontinued to do the same. If we dont make a very big noise about this they wont realise how significant it is.
Try not to lose sleep over this. Things like this happen, even with the best of intentions. I am assuming you are not the one responsible for the budget for the job, the procedures of your firm in general checking or the client training inherently in place re them getting involved in the returns/reviewing. Completely agree on the joint responsibility of the partner; if they want the right to criticise then they need to tool you sufficiently to do your part (adequate budget perhaps, insisting of verification against the bank, company policy to discuss unusual results with client). The amount of money here is not significant enough to warrant lost sleep. Use this as a positive event to make a personal commitment to how you will check returns in future to avoid such mistakes slipping through again, to appraise how your partner values you or as a reminder to add to your own or the company processes to verify results with the client maybe. This event has the opportunity to make you (and your practice) better; don't waste that opportunity by lingering on the short term and small mistake that many of this forum will have made to in some form.
I agree. It is this sort of decency and support we need on this forum more!