Member Since: 27th Mar 2002
12th Aug 2020
If there was a real desire to reform the logical step would be to abolish NICs altogether and raise the rate for income tax. Current age exemptions could be overcome by a fixed level of age allowance. Ignore the screams of, "unfair to x,y znd z" the only people who think tax is fair are those who do not have to pay it. It would leave the thorny issue of employer's NIC but look at the simplification on the individuals' side, no need to discriminate between employed, self employed, non-employed, no parallel collection structures for tax and NIC, no distinction between earnings for tax and earning for NIC.
It will not happen because no Government is going to grasp the nettle and call NICs a tax.
23rd Oct 2017
There is some logic to HMRC's argument about the funding but legitimate expectation should prevail here.
If this was a company with loans from shareholders and those loans were repaid from refinancing, there would be no argument that you cannot repay more than the original shareholder loan. I know it's not he same but it ilustrates a mindset.
What happens if there is a fall in property prices leading to an overdrawn capital account? If BIM47500 applies in reverse the relief reduces. If the gov.uk guidance applies, the entire loan interest is relieved because it was only ever for property purchase.
I wonder if this is an effect of interest no longer being a business expense but a relief against profits. If it is not an allowable expense, does the relief face a tougher test?
3rd Aug 2017
Since I first used spreadsheets, DOS Supercalc 4, and a portable computer was too big for hand luggage, I have been frustrated by users who are unaware of ROUND or how to use it.
There is nothing to distract you more from considering the content than seeing by row 3 that 2+2 produces 5.
14th Jul 2017
Try taxing consonants as there are not enough vowels.
14th Jul 2017
Is it also true that the abbreviation for Her Majesty's Revenue and Customs is to be changed from HMRC to SNAFU?
The Public Accounts Committee and National Audit Office should be licking their lips over the examination of the politicians and civil servants over the public money wasted on this ill considered fiasco and then take it wider as to the time and costs incurred by taxpayers in trying to prepare for implementation in 2018 when it was never free from doubt as to exactly what they were expected to do.
If SNAFU is charged with the care and management of revenue under s5 CRCA 2005 and cannot correctly calculate a personal tax liability it surely has to address not what it would like to do in the future until it has cleared up its present mess?
10th Jul 2017
I read the comment, "Ellis confirmed that BTCSoftware would need about six weeks to programme and test any new software standards provided by HMRC for the 2016/17 tax returns" with growing dismay.
His firm, like others, were amongst those finding the errors in HMRC's software. Reading this implies, the real testing is not carried out by HMRC but left to Rob's and other firms to see if it works.
Reminds me of two songs, both of which reflect my age, "Welcome back, my friends to the show that never ends.
We're so glad you could attend! Come inside! Come inside!" Emerson Lake and Palmer 1974 ; "And common sense is ringing out the bell. This ain't no technological breakdown, Oh no, this is the road to hell" Chris Rea 1989
1st Jun 2017
I have noticed a fall off in the use of carrier bags by clients since the 5p charge was introduced.
I suspect we will receive a glut of ill considered spreadsheets prepared by clients no matter what we advise, recommend, cajole or provide, which range from a single column that does not add up correctly to colour coded monstrosities, that require Raybans and paracetamol to look at (fuschia and rose, apricot, peach, lime and raspberry are flowers and fruits, not colours for use in Excel) until HMRC forces the use of applications.
Funny enough I have a non-client in his 80's who prepares his tax calculation manually, takes into account different rates of tax, dividends, overseas pensions relief and gift aid relief, sends it to HMRC and then spends several months explaining to them why they are wrong and he is right (He is invariably). He is concerned that MTD will be beyond him.
29th Mar 2017
Only thing being that, if you have the return rejected then it's not submitted, so you have not done everything correctly. In order to get the return through the digital gateway you correctly have to do everything incorrectly, or is it you incorrectly have to do everything incorrectly or incorrectly do most things correctly but somethings incorrectly.
1st Feb 2017
A measure to tackle aggressive abuse?
123,000 affected taxpayers, yield £130,000,000. About £1,060 per head; the yield judging from past experience rarely matches the prediction and the reduction in VAT yield under FRS is partially offset by income tax or corporation tax + (PAYE receipts or dividend) tax.
Compare to profits parked as interest paid to a group member operating out of Luxembourg? Agressive abuse probably but not micro or SME.
1st Feb 2017
It's rather unfair to say HMRC did not listen. Of course it listened and then decided to take damn all notice. As for teh Birtspeak, "and we found broad and general support for the direction of travel in terms of a digital vision to build a transparent and accessible tax system." If most of the responses were the multiple choice type then you had little opportunity to do little else, it might have well as asked, "DO YOU AGREE WITH MTD?" Available answers,
1 Somewhat; or
2 Somewhat more so; or
I am just going to check my pension fund to see if I can throw in the towel.