Member Since: 27th May 2011
18th Nov 2019
I also disagree with you but understand why you think that.
The link between NI and the NHS was broken a LONG time ago. NI is just tax no different to dividend or corporation tax - of which a Contractor operating via their own limited company can pay a substantial amount of.
The Employer has driven this mess with BBC and HMRC themselves insisting that contractors could only be ‘employed’ via their own companies.
You can’t argue with organisations that big so if you have children to feed and a mortgage to pay what choice do you have. The ‘employee’ gets off without paying Employers NI or pension contributions or holiday pay with the irony being the contractor takes the hit on penalties and back taxes if deemed to be operating as an employee.
That’s the bit that annoys me and the new rules are a step towards fixing it (though yet another plaster rather than ripping the whole thing up).
Hence why the same companies are surprise surprise insisting they now become employees as they won’t take on the risk themselves.
15th Nov 2019
Why does HMRC keep using taxpayers money to take numerous IR35 cases to court when they have little chance of winning?
Even if they did win, the recalc of CT tax etc means the difference in tax take is not as high as the headline figures suggest (outside of penalties), especially since the introduction of Dividend tax.
It's like some IR35 department was programmed to set forth and investigate cases 10 years ago then the powers that be closed the door on their tiny office and have forgotten they are still there......
30th Aug 2019
I take it by your user name that you haven't been in Practice long.
That may be a textbook answer but I've been in this game a long time and the real world is not as straightforward as that.
7th Aug 2019
When you go down to the shops do you pay in Groats, or just barter ones own sheep?
31st Jul 2019
That’s Xeros fault not hmrc. Or yours.
The second you submit an MTD return the next obligation date is available.
This can be proved via logging into the clients BTA or using software like EasyVat.
In QBO the next quarter appears immediately.
Under MTD the very second after the return is submitted it appears in full in the clients BTA, with the next obligation (stagger) shown.
There are a lot of myths, lies and incompetence displayed by the vat helpline. Don’t believe them.
Lots of any answers on AWeb if you search.
31st Jul 2019
Without wishing to labour the point, it is wrong:
The key dates for stagger two and stagger three businesses are:
Stagger two – VAT return for quarter to 30 April is due 7 July, the direct debit should have been taken on 10 July. The business must sign up to MTD to submit the VAT return for period to 31 July by midnight on Thursday 29 August 2019.
Stagger three – VAT return for quarter to 30 May is due by 7 August, the direct debit will be taken on 9 August. The business must sign up to MTD to submit the VAT return for the period to 31 August by Friday 27 September 2019.
Quarter end 30th April vat return is due 7th JUNE, not July.
Quarter end 30th May vat return is due 7th JULY, not August.
You then state different vat quarter ends for sign up, hence the confusion.
Sorry to nit pick as I value your contributions, but you have replied incorrectly rather than checking your own info.
30th Jul 2019
Fair enough and it wasn’t aimed at you.
My comment is aimed at this sort of article which I think is scaremongering in a typical Daily Mirror / Sun ‘worlds going to end because it’s hot today’.
Didn’t help with the DDR confusion (clients do not have to click anything) and the incorrect deadline dates for stagger 2 and 3 in the article.
30th Jul 2019
Rebecca, you’ve got the stagger 2 and 3 dates wrong. You’ve added a month to both.
And really, as I’ve said elsewhere this is not that difficult.
We’ve had 4 months to sign up the first mandated clients. If you’ve waited until now for those then more fool you.
All 50 ish of my MTD mandated clients are signed up across all three stagger / quarter ends.
I initially had problems with a few obligation dates not being correct at hmrc side once signed in but plenty of time to sort and all in place now.
8th Jul 2019
Ah, but that is a BIG problem if MTD.
MTD pushes the obligation dates to your software.
In the past you could amend the dates in the software to cover the full six months then submit.
Or use the gateway and type your 6 month figures in.
But now the software dates must match the hmrc stagger dates otherwise you are blocked from filing.
Hence phone calls to get hmrc to firstly recognise the problem (which they have now done) and then amend the dates on their side.
‘No timescale on that Sir, but good news is there is a soft landing on penalties’. He said that without any tone of sarcasm.
Of course I could use a bridge product, type in the 9 boxes to excel then file but then that would mean the whole MTD transition has been utterly pointless as they aren’t getting transaction level data.
8th Jul 2019
On the whole out of 40 clients transitioned to MTD only 3 with issues.
Trying to get HMRC to fix those three is near impossible. Daily phone calls to VAT helpline and being continually fobbed off.
It is a relatively simple problem. The three clients in question have the wrong obligation (or VAT Stagger) dates at HMRC side. (Confirmed via MTD software and client Business Tax Account).
So HMRC have 'lost' April / May/ June VAT request and are asking for July to Sep.
My software simply states to amend the dates to match HMRC – brilliant, so all three clients miss a quarters VAT (about £15k).
How many 'customers' would just do this and plead ignorance. Of course as an Accountant I'm hounding HMRC to fix it so I can actually submit a return, but they don't seem that bothered.