Member Since: 26th Oct 2005
22nd Jul 2019
And the big problem is I have yet to find a builder who knows how to "include the value in Box 6 of your VAT return", or indeed any box.
The software issue of how to do it is actually the complicated one, and worse still your letter, while excellent, is only half of what they have to do, in the sense that they also need to amend their invoices to show the VAT amount without including it in the total. Xero has a function that comes close to doing it, Kashflow has a pair of work-runarounds, but I cant get Quickbooks to do it properly on both invoice and VAT return without double invoicing everyone, and Sage's help lines suggested solution actually breeches MTD rules.
And has anyone else noticed that the Statutory instrument bringing this in does not actually mention CIS, but applies to all construction work. It is a HMRC policy issue to only apply it to CIS work, which I know is nearly all construction work, but not actually all.
12th Jul 2018
And the follower notices can be on tenuous grounds. A client had one claiming they had used on the loan back schemes, but he had never actually taken the money, he used the "umbrella company" but only for payments and took 85% of the profit in salary, the rest in dividend and only used the scheme because his "employer" insisted on an umbrella company. Demand for 30K tax that eventually turned out to be zero. The policy argument is valid but only if they keep to the spirit of the law and chase actual tax evasion rather than suspected.
3rd Jul 2018
So, have I got this right. Using Excel is OK if I attend a course given by someone whose qualification is that they were self taught (or better still that they hold a qualification issued by the people selling the software and with a vested interest in you using it).
The fact that I am self taught and have been using it for longer than the instructor on the course has been alive, have written a software package using Excel that sold many thousand copies across England Ireland and Germany and because of my Maths degree actually understand the principles and formulae used in spreadsheets, is not as a good as attending a course that does not have any validated exam!
The words twaddle and self-interest are very mild but I can not think of anything stronger that the moderator will leave.
20th Apr 2018
First to be prosecuted, not the first to be reported. messy divorce client of our one director filed 38 false amendments at Companies House, their response was "this is not something that Companies House has any power to look at"!
5th Apr 2017
who remembers schedule a b c d(I to VI) and E returns,all done separately, before my time but the textbook refers to them. They were dropped because it was considered more efficient to have 1 return for all income.
Who remembers separate VAT registrations for separate businesses, my text book does, abandoned because of added complexity.
Making tax digital is reinventing a wheel that has been got rid of because it did not work, and will use a system taht is not tested and manifestly cannot work for everyone. Sure some will benefit, more will lose out. What we MUST do as a profession is tell people and get them ready, or as ready as they can be.
17th Mar 2017
The estimates for the cost per client are exactly that estimates, and as accountants we all know how they can change and still be wrong, and yest they do seem high at £2K a client, but consider the new client in today. Turnover £100K, 3 staff currently entirely done on paper records (old style simplex book, great to still see occasionally). No computer no phone line (they sell sandwiches from a caravan) no computer experience. Cost of putting phone line in £450 quote from BT, computer £450ish, software that works, £120 a year, £300 a year in line rental and broadband. They will then need staff time to do it quarterly rather than being able to do it all in the winter when there is spare capacity, so say 2 hours a month for 10 months £200 plus in the first year, some extra cost from us training their staff and answering questions, say £300 comes to £1840,+VAT gives £2200. East to see how such estimate can be made for even a small business
Many will be a lot less I agree, but that just shows the unfairness of the system. Having a tax of £2K because you live in a rural area and run a seasonal business sounds unfair
8th Dec 2016
why don't we, as professionals working at least in part in the public interest put our money where our moths are, and sign up for the trail. and convince some of our more paper based client to as well. That would allow us to put our point across very strongly.
I floated this idea at a networking meeting recently and at least 2 business were so horrified by the proposal taht they were willing to be included in the trial (to be fair they are both people I have been badgering to buy a computer for a couple of year, this would be the tipping point) .
Also professional bodies being very quiet on this front?
8th Sep 2016
I have a client who uses the second biggest cloud based accounting program. his accounts balance, and the software is happy with everything.
The only problem is he has entered every single expense in the first category available which happens to be plant and machinery capital assets. all sales are similarly entered as cash sales.
Last year his spreadsheet was big and unwieldy but it worked perfectly and the tax return was far quicker to do and more accurate
8th Sep 2016
I have just done a complicated Indian tax return for one of my three clients who do overseas tax returns. The entire Indian tax system is a spreadsheet. There is no tax software, just a very big spreadsheet. each company enters their information into a spreadsheet and submits that spreadsheet.
If spreadsheets are sufficient for one of the largest and fastest growing economies, and indeed their only way, why can we not use them
30th Aug 2016
Also just remember that HMRC VAT systems totally separate from all their other systems. At present our agent details for VAT have wrong name and address and they are unable to correct these despite the government minister personally speaking to chief executive of HMRC.
So if everything is digital but their digital system cannot even cope with a change of name or address what hope is there.