Member Since: 4th Aug 2009
11th Oct 2021
2. Tax estimates - This probably the most fallacious excuse of all the excuses being trotted out by HMRC and software developers. While it may well have some relevance for the self-employed it will produce tax estimates which are actively misleading for those with rental income.
How many private landlords have their rental profits as their only or main source of income? I suspect very few, I have not yet met one and over a long career I have acted for a fair number of clients with rental income all of whom have also had combinations of PAYE earnings, pensions or dividend income which would make the MTD tax estimate too low. In my experience landlords who own enough properties to actually make a living om renting generally do so via a limited company.
I suggest a campaign to remove rental income from the proposed MTD regime.
6th Oct 2021
'female senior HMRC officers' 'these silly women'
Inference in your post is that all would be OK if the job had been given to men.
I must say I am not convinced about that. Or maybe I am reading too much into misogynist language?
9th Sep 2021
Sophocles and Plutarch both wrote wise words about the consequences of being the messenger who brings bad news and I doubt whether their messengers were also trying to up their fees.
6th Sep 2021
I agree applying for exemption would be a sensible approach and if we all did this on a wholesale basis then maybe HMRC would think again about this stupid project.
I'm not sorry to say that I'm actually taking the coward's way out and I'm facilitating the handover of these clients to another firm.
Planning to close down my part time micro practice in order to spend more time addressing the bigger issues of food miles, soil degradation, carbon capture, climate change etc by tending my allotment.
So well done HMRC, another tax adviser (ICAEW and CIOT qualified) you have pushed into retirement.
5th Sep 2021
I have a family of 5 as clients, parents and 3 adult children. Between them they own or part own 5 rental properties. The rent splits on those properties are all different, no 2 properties have the rents split in the same proportions between the same combination of family members. Some family members will have total rents over £10k but at least one won't. Different family members manage and keep the accounts for different properties.
I will be really interested to see the software that copes with recording the transactions, dividing the results in the correct proportions, assembling the quarterly totals for each family member and filing the quarterly returns where required, all seamlessly, digitally, without human manipulation etc.
And yes I do realise that it is all doable by building an excel workbook with a spreadsheet cashbook for each property feeding into summary schedules then exporting the right bits into bridging software but that's not really the concept that HMRC and the software houses are trying to sell us.
And what happens in this scenario when one of the group decides to use another accountant? One of them is already self employed so that adds to the complexity and increases the possibility of another accountant becoming involved.
I wonder whether in a few months time we will be told that properties in joint ownership will each be treated as a separate partnership? But then how does the end of year reporting work? Each co-owner has earnings, dividends, capital gains etc that still need to be reported on a tax return.
If you started from scratch you really could not make this up, it would be too fantastical. At the very least it should have been extensively war gamed in advance by a combination of HMRC and tax professionals.
But no, HMRC are making it up as they go along, on the hoof, in the middle of a pandemic which is causing most of their staff to work from home with obvious gaps in their training and support and many accountants ditto with the added stress of dealing with an increasing dysfunctional tax service.
What could possibly go wrong?
1st Sep 2021
I am surprised that this article does not mention that:
'All employees have the legal right to request flexible working - not just parents and carers.
This is known as ‘making a statutory application’.
Employees must have worked for the same employer for at least 26 weeks to be eligible. '
A webinar for ICAEW in June by a leading employment lawyer suggested that after a year of working remotely employers might find those requests difficult to refuse.
1st Sep 2021
Hmmm, I can see the irony in this post but I'm struggling to find any humour.
Surely it is not meant to be straight faced and serious?
23rd Aug 2021
On an admittedly quick read through I fail to see why this case is just a quibble on how much to allow and what % deduction appropriate in penalty.
Looks to me like a prosecution for attempted tax fraud would be more appropriate but maybe the relatively small amounts involved versus difficulties over burden of proof / costs of court action make that non viable.
11th Aug 2021
So we are going to have 2 separate systems - MTD ITSA which will largely comprise taxpayers currently submitting SA returns and Self Assessment as we know it for high earners, people with investment income, foreign income, residence issues et al?
I presume the current tangle of P800s and Simple Assessment will also continue.
The SA and PAYE systems don't communicate properly with each other so one can have a P800 issued on a SA taxpayer and the links between 30 day CGT filing and SA returns are sketchy (at least as far as payments are concerned). What confidence can we have in HMRC databases coping with this further complexity?
So come April 2023 does HMRC sort SA clients into those who had self employment and rental income over £10k in the previous year and the rest and send out different notices to file based on that split?
What if your rental or trading income has increased or decreased, how do you change category?
What are the chances that taxpayers will be charged late filing penalty in one category when they are filing up to date in another?
Shitshow in the making even without the huge concerns about workload.
Not difficult to foresee that MTD ITSA filing may not cancel the notice to file on a SA return, especially if the MTD filing is caused by new income sources.
Has HMRC done an analysis of latest filed SA returns to see how many people they will be switching to MTD ITSA? There must be vast numbers of small businesses and landlords affected but do they know whether it is in the thousands, tens or hundreds of thousands, millions even?
If we assume that 12 million SA returns are filed each year and maybe 25% of those will be caught for MTD ITSA that is 3 million taxpayers suddenly having to do quarterly online filing from often non existent digital records. A not insubstantial portion of those will also be looking for new accountants because of the rush to retirement.
Once the late filing notices start piling up they are going to be easy pickings for the less scrupulous end of the business. How many will get taken in by 'accountants' who file guesstimated figures for several quarters at a generous fee before leaving them in the lurch when the EOPS needs to be filed with real numbers. Sobering prospect.
14th Jul 2021
Shouldn't / couldn't the Office of Tax Simplification have something to say about this manifest clusterf*** or have they been totally neutered?