Member Since: 23rd May 2011
27th Apr 2016
A HMRC bod actually advised me to search their website using google instead of their own search
HMRC asked us to call a client and ask them again to pay their payment on account. Pleased to overhear my colleague tell HMRC she would as soon as HMRC confirmed they had called the client and asked them to pay our fee.
9th Mar 2016
Farmers are a good example
The whole point of annual accounts is that they match income to costs according to the production cycle. Quarterly reporting will impose artificial cycles of production. Farmer Giles year end is 31 March. His sheep lamb and cows calve about then, so by the end of June he has a lot of lambs nearly ready to sell and some good sized calves. He will probably also have harvested much of his fodder for the winter - high stock valuation. However, at this point in his cycle he will be skint because he hasn't sold many lambs or calves and he has had to pay for the fertiliser used to make the crops grow, and the contractor who harvested the crops. He's also fed the sheep, lambs and cattle and had to pay for that. Now he has to borrow money to pay taxes to HMRC, so he can't afford the deposit on that equipment he was going to buy that would have wiped out any profit anyway. By the end of September he has sold most of his lambs and calves, but has now finished harvesting his crops for the winter so his valuation is still reasonably high, so probably neutral for tax. December and he has finished selling livestock and used half of his fodder. By the end of March his feed stocks are exhausted and he doesn't have any animals to sell yet, so he has lost money for this quarter. Hopefully whatever rules are in place then will allow him to reclaim the tax he paid 9 months ago.
By the way, he is one of the clients that brings in his VAT return figures each quarter on a piece of paper as he can't submit them online because he's never learned how to use a computer.
8th Mar 2016
Using strike off for tax planning
The extent to which companies that owe tax are being struck off with no official enquiry at all is worrying. If I was unscrupulous I would be advising clients to trade as a company for two years, charge customers VAT but not file any returns, not file any accounts or tax returns, then let Companies House strike off the company and start again.
I can't see any problems for people doing this. How are we supposed to persuade people to do the right thing? I told my MP this was happening, and the reply he got back from the treasury was that I should report any companies where I suspect this has happened.....and what about the others?
27th Nov 2015
Might shake things up a bit
We've a client who carries out most of his work for local authorities, NHS, and schools & colleges. He has difficulty getting them to pay within a quarter. This will either have to be a cash accounting tax system or the government will have to pay out quicker which will lose the advantage of getting the tax in quicker....bet they haven't thought of that one
10th Jul 2015
My inheritance depends on this
If my unmarried Dad falls off his motorbike in June 2017 leaving me his house valued at £300,000 and cash of £300,000, will IHT be due on £175,000 or £275,000? Which asset will use up his nil rate band first?
15th May 2015
Penalties don't achieve what they should
I can't see any fairness or justice in the system. On the one hand a small builder can be penalised £100 for being 1/2 an hour late with a nil CIS return trying to keep up with their book work at night.
On the other hand, a local company recently went into liquidation owing £400,000 to HMRC for VAT and PAYE having not submitted VAT returns for 4 years, 2 years late with their accounts, and incompetent enough to still be using tax code 647L in 2014 in their payroll. Never got more than a mr angry letter from HMRC and undercut competitors who were trying to do it properly.
17th Dec 2014
Is Seph Blatter helping HMRC
Apart from the corruption as I don't think anyone at HMRC is taking bribes, I get that deja vu feeling - FIFA?
12th Dec 2014
Sounds like a zero enforcement policy
How can solicitors claim they didn't know what income they had to pay tax on? If HMRC know a particular solicitor hasn't paid tax, why don't they just open an enquiry? Most solicitors I know are so thick skinned that if they haven't already declared income they are not going to be frightened into doing so now. I'll bet the yield on this one is paltry.
15th Sep 2014
Rules haven't changed but the implications have
I think the main gripe is not that the rules have changed but that previously there was a pragmatic and reasonable approach to enforcement so there was no need to complain. That seems to have been dispensed with resulting in a system that seems unjust and unneccesarily harsh.
15th Sep 2014
Paper Tax code notices
We're still getting tax codes notices posted to us which subsequently never appear online!! How can that be possible?