Member Since: 23rd Aug 2017
15th Jan 2020
No way to avoid the penalty, best to file and pay it as soon as possible to avoid further charges or the company being struck off.
15th Nov 2019
Why not just be honest and say that you are unable to take on the job as you have no time for timewasters? These days you have to be blunt for people to understand why you said or did what you did, because a lot of them are born "thick".
Never be afraid to get rude with timewasters, that way they will be too scared to waste someone else's time after you have dumped them.
24th Oct 2019
As a matter of interest, just how much were the document retrieval fees?
14th Jun 2019
There is no legal course of action you can take other than issuing a first, second and final warning.
Most practice owners earn a lot and live in mansions and drive the latest BMWs and Mercedes Benz.
Are you sure you are not the employee in question ?
LOL I bet you are now going to say that you personally only drive a Reliant Robin 3 wheeler?
13th Jun 2019
Simple answer - NO. If that was possible, all employees in all companies would buy personal things through the company and pay back the net amount, thus effectively benefiting from a VAT refund.
This is kind of a basic question isn't it? I mean the expense is only allowed to a company if it is wholly, exclusively and necessarily incurred for its daily trading activities.
7th Jun 2019
There is not much you can do other than grin and bear it. It is no secret that accountants pay the least amount possible to each employee, relying on their desperation to stick to the job. It is also no secret that accountants have a very harsh tongue when they criticize their employees so it usually isn't long before someone with brains and guts decides to leave. I have witnessed part qualified staff being told off badly in front of others for being 5 minutes late to work and even for filling too much water in the kettle as it will take longer to boil. "Only fill the kettle with enough water for one cup of tea so that you can be at your desk sooner and it saves electricity", he used to roar. As for sitting on the toilet longer than 5 minutes, twice a day max - forget it. Every minute counts when you work for a practice and the practice owner has no problems in cracking the whip at each and every occasion.
You can console yourself by the fact that you paid him less than what he was really worth for the time that he was with you, so you have saved some money. That is the reason why he is leaving you. Now you can use some of those savings to offset his slow work at the end.
There is no legal course of action you can take other than issuing a first, second and final warning. If you want to go illegal, you could always warn him unofficially that his actions would affect the reference that you give him after he has left, but then that would be illegal and he might take you to the industrial tribunal for that. You are not allowed to give your employees a bad reference anyways by law unless they have committed fraud or committed a criminal offense but then we both know that bad references are very common over the phone nowadays.
So its just a matter of gritting your teeth and smiling till he leaves. Ever considered creating a happy, well paid environment within your practice so that your employees stay with you for years and years? Most practice owners earn a lot and live in mansions and drive the latest BMWs and Mercedes Benz. My last employer used to drive a Jaguar and used to live in a mansion with a swimming pool because he used to underpay all of us under the pretext that he was still training us to become proficient accountants some even 10 years later (those were the slow ones like in your case above).
Do update us how this situation ends when it eventually does. Good Luck.
24th May 2019
Lol how we accountants love to argue about definitions of "significant", "insignificant" and "negligible". We are like anxious sheep, so eager to apply the tax laws forced upon us by our useless government that we can spend days and months arguing over petty definitions. Sometimes we can't see the wood for the trees.
The solution to this one is very easy, just phone the HMRC and let them guide you over their own rules. No need to guess in case you get it wrong and they start charging fines and penalties due your erroneous judgement.
Don't forget, it is the HMRC's job to shake us down for each and every penny they can get out of us and as we eagerly concentrate on ensuring they get each and every miserable penny from our clients, most people fail to even notice how the government wastes our precious taxes.
I suppose worst case scenario, even if your client had to deduct 800 private miles out of 28k in total, it would hardly break his bank. I just hope your charges for researching this very vexing situation, do not amount to more than the tax he would have suffered on his 800 private miles. Good luck ;-))
28th Feb 2019
On the contrary I not only understood the info given but am more than familiar with tax rules regarding travel to work.
Hypothetically if he rents an office near home and uses it for the purpose of claiming travel expenses to his main job, I doubt HMRC can challenge it. They make not like it, but that is tough luck for them until they get it challenged in a court.
My point was that many accountants forget that their fees come from the client, not HMRC. It is therefore in their interests to come up with a reasonable excuse that will satisfy the taxman. It is not about keeping "mum", it is more about tax avoidance, which is what a clever accountant should excel at.
20th Feb 2019
I think if you consider who exactly is going to pay your fees at the end of the financial year, the decision as to whether it is tax evasion or just unethical will suddenly become crystal clear.
The second question to ask yourself is: Are you an unpaid policeman for HMRC or are you a tax adviser to your clients.
If you decide it is just unethical after that, you might even think up a very reasoned and logical excuse on behalf of your client if the taxman should query.
Clients don't mind paying a bit extra for accountants who can save them tax, legally.
14th Nov 2018
LOL, your client sounds like a very dodgy businessman. I mean who hires a QS in a pub, pays him cash and accepts fake invoices?
So the situation as far as the tax inspector is concerned is very simple. He will disallow the £9,500 payments made and will now scrutinize the accounts in greater detail to see if more payments have been made by your clients to other dubious people. Basically he will treat this as a fraudulent expense payment.
Will probably result in penalties with interest and all of his future accounts being looked at in more detail by the HMRC for the next couple of years.