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I made tentative cost enquiries to a well-known software provider to be told I cannot buy the software, but can rent cloud space to record accounts at the special initial offer rate of £7 per month for the client and £7 a month for the agent. Seems like we can't OWN anything anymore.
As for printing hard copy why bother its all in the ether.
The OTS has just published its Review of VAT. There is now a stong link to MTD. The OTS is looking at reducing the VAT threshold to £20K, is the £10k MTD threshold going be say £20k. Forcing hundreds of thousands of businesses to register for VAT would demolish the idea of estimated quarterly submissions. There is a darker picture going on here and we are not being told. What is certain is that all these changes, certain and proposed, could have a devastating impact on the small business landscape and eventually the economy of the state.
We seem to sing from the same hymn sheet, Silver Birch. Comments I made elsewhere on Aweb;-
https://www.accountingweb.co.uk/any-answers/ots-bring-vat-threshold-down
Forever the cynic and, taking on board the bigger picture of MTD (the making tax difficult project) one could reasonably see the Vat registration threshold reducing down to £10,000? Or, am I looking for the conspiracy theory, which might not exist? Time will tell.
Extending the theme and, with MTD at the top of the agenda, at the moment, would it be too early for reference to me drawn, in next weeks Budget, to a general and substantial reduction in the Vat registration thresholds?
There is no point in reducing the VAT threshold. The only way something like that might work is if you have all business register for VAT. That way HMRC would have their 1/4 figures and can then go on to put the smaller ones on RTI, which I'm sure is their intention.
This is brilliant. The OTS, Office of Tax SIMPLIFICATION saying that business with turnover over £20K should be VAT registered. What a contradiction. You are right Silver Birch there is definitely something going on and it stems from getting rid of small business. Business rates is just one example.
If this carries on any decent negotiations for brexit will not save the Tories from annihilation at the next election.
One thing not mentioned is account years. if the client has a year end 30 April 2018 then for 2018/19 only part of the first quarter would be relevant. Are HMRC going to change the basis to actual tax year rather than the present CY system for Self Employed?
When self assessment came in HMRC missed the ideal opportunity to change the tax year end to 31 March. They also brought in a further calculation to move the self employed from PY to CY basis.
With VAT a number of businesses quarter ends do not tie up with their accounting year. Does this mean 9 returns a year for these businesses?
As I see it, come MTD, you can choose your own basis period. There will be no annual return therefore no need for an annual "year end". Quite what lenders will make of this will be interesting. I cannot see that annual accounts will not be prepared