The demise of Self Assessment as we know it
And HMRC want to do away with the Self Assessment tax return and (presumably) the support of agents and advisers! They want people to enter their earnings and expenses online as they happen. Can you see a huge penalty trap opening up? People like the gentleman referred to above just will not cope without an accountant or agent.
Registered as a subcontractor - - - - or not?
Has anyone come across this one? When I phoned the Employeres Helpline to obtain a refund for one of my clients I was told my figures were agreed but HMRC couldn't refund as the company (Ltd) was not registered as a subcontractor. I pointed out that since it started 5 years ago the company had alwaysbeen both contractor and subcontractor. Also, if the company was not registered as a subcontractor how come it was being deducted tax on payments at 20% under the CIS scheme? The HMRC man was adamant and I had to get the Director of the company to reregister the company. What nonsense is that?
I have always gone with 3 and this year is no exception. It is easier this year because once the final submissions have been made under RTI for 2014/15 the value of the expected refund can be checked by phone using the Employers Helpline. I did this yesterday and apart from 1) a false start due to the machine misinterpretting what I had said and putting me through to Self Assessment and 2) a 25 minute wait to speak to a person once I had redialled, it was pretty plain sailing. The refund figure was agreed and the refund will be received by the end of May.