Member Since: 4th Aug 2009
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?
1st Jul 2021
'Any accountant will know that a notice to file must be given before there can be a valid penalty for failure to file.'
This is an interesting point because frequently the notice to file is not 'given' to the taxpayer at all but sent to accountants who have at some point acted as agent. i.e. addressed to the taxpayer but at the accountant's office address as if that was the home address of the taxpayer. For several tax years I was getting hundreds of these each year, far too many to reasonably be expected to forward on to the taxpayer so they were being bundled up en masse and sent back to HMRC with a letter saying they were not properly served and needed to be re-sent to the taxpayer. I only eventually managed to stop them with the help of a CIOT 'working together' representative who took the matter up with a tax human with a brain. Seems it was a database error at HMRC.
12th Mar 2021
I too experienced fever and flu like symptoms after the AstraZeneca jab but it hit me almost immediately and wiped me out for a good 2 days so I would suggest planning to retire to bed on getting home from the jabbing centre. Certainly don't assume you can fill the rest of that day with work or zoom meetings. If you actually feel fine that will be a bonus.
21st Jan 2021
I suspect HMRC are reluctant to bring in any relaxation which would mean amending their computer software and given that it is only the automatic stuff at HMRC which seems to be operating effectively I would second that view.
Multiple appeals for clients against late filing penalties could be dealt with via a standard letter (covid, covid, blah blah blah) and mailmerge from a spreadsheet list of penalty notices. They could then all be mailed together.
A pain certainly but probably not as bad as many agents are predicting.
Much worse for the poor eejits at the other end having to consider and process them.
11th Jan 2021
The reasoning behind this may be that clients will be prompted into correcting other mistakes that HMRC would never have found out about.
I agree with earlier posters that it is best to call HMRC first thing when their lines open and that when faced with one of these letters about unspecified errors a call to HMRC will generally result in them providing more clarity on what they are looking for - always assuming that the HMRC letter had some sort of contact details on it.