Member Since: 2nd Dec 1998
12th Nov 2019
Not even vaguely ageist. Completely so.
27th Sep 2019
The point is not so much whether or not Brexit was a contributor to the demise of TC but how Mr Hancock would know better than the management, despite being untroubled by actual knowledge of TC, the travel industry, or even having an accounting background.
26th Sep 2019
Quote:Although the firm claimed Brexit was having an impact, health secretary Matt Hancock denied the firm's worries were related to Britain’s departure from the EU and uncertain trading conditions
Whatever you think of the management of TC, Mr Hancock must be a very smart guy to have a better insight into the causes of a company's problems than its own management.
26th Sep 2019
It seems that you do know something about audit. You are spot on when you say that forming an opinion on the business is not the role of the auditor.
Despite the best efforts of the profession, too many people blame auditors when a company fails. Whilst there are poor quality audits, the directors of a company are the people that run it and failure of a business is their responsibility.
25th Sep 2019
You're saying that disciplinary action for doing a bad job is an incentive not to maintain membership?
I guess that's true if don't care about the quality of your work - and you think your clients also don't care.
28th Aug 2019
This is bad writing and the advice confuses rather than clarifies.
Business brief 6/2019 makes clear that refunds include offset against an existing liability - which can include transactions other than the one being credited. Which is exactly what we all do when we issue credit notes.
This is essentially an anti-avoidance provision. There is no practical change for businesses which issue credit notes and account for the VAT thereon in a timely fashion - ie the vast majority of us.
22nd Jul 2019
19th Jul 2019
Oh dear. I’m not sure this really meets the brief of a simple explanation.
I do understand the new rules and I find that letter heavy going. If I were in practice, I would be doing something along the lines of:
NEW VAT RULES FOR BUILDERS
The way you need to deal with VAT is changing for VAT-registered builders and contractors.
WHAT YOU NEED TO DO DIFFERENTLY
- if you’re not VAT registered: Nothing. (reminder – you may need to VAT register if your income for labour and materials is more than £83,000 a year)
- if you are VAT registered
---- when paying sub-contractors who are not VAT-registered – nothing
---- when buying materials – nothing
---- when paying sub-contractors who are VAT registered – new rules apply
--- when billing contractors who are VAT registered – new rules apply
I’d then go on to explain the VAT accounting. I’d include an example invoice showing the reverse charge wording.
I’d also explain that this is just an admin change aimed at fraud prevention and that it doesn’t have any financial impact.
7th Nov 2018
With respect, I didn't say that VAT is not evaded. I said is it relatively difficult to evade.
There will always be those who evade a tax or whose interpretation of the rules differs from that of HMRC. Because VAT is levied on more or less every sale and purchase, it is much harder to manipulate a transaction to take it out of VAT.
7th Nov 2018
The Brexit spin on the story is unnecessary and brings about kneejerk responses.
Cross border business becomes easier when the VAT principles are the same - things like what counts as Exempt, Place of Supply rules for services, triangulation. That's Harmonisation.
Rules about rates act to limit the extent to which countries compete on tax rates.
The downside of both of these principles is that they constrain national sovereignty in setting actual tax rates.
There will be differing views as to whether the benefits are worth the costs. I think they are, and colleagues in Norway certainly feel the frustration of having a non-EU VAT regime. Others may have a different perspective.
As for reintroducing Purchase Tax. I don't think so. USA is the only OECD country not to have a VAT/GST system. VAT is relatively low cost to collect and is relatively difficult to evade. I doubt the Treasury would be willing to countenance a wholesale change to such an important tax