Just another warning about yet more change (and potential expense). I read an article over on Aweb about the change to move from the online filing that we are able to do for clients now and the new CATO system for joint accounts and tax filing.
Unlike the existing system where agents are able to download and use the HMRC software for free, CATO will not be available to agents on the assumption that all agents use third party tax filing software.
HMRC's reaction was that there are tax filing packages for under £250 so a small practice with 25 clients just needs to add £10 to each clients bill to cover it!!!
The (against the new HMRC rules) workaround is that you need to be able to gather the Userid's and Passwords of all of your corporate clients in order to file from their logons rather than under your agent logon!!!! Defeat s the object of being an agent really and as for breaking the rules... Simple, either don't make me pay £250+ to obey them or give me some software to replace that which your taking off us.
Ever get the impression that maybe HMRC is being sponsored by software industry?
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
They're playing a big game of buckaroo at the moment seeing how much more that they can load onto us before we all throw it all off and tell them to sort it out themselves as we're sick of it.
RTI, AE, DTA's, CATO... All new... Our one feint hope is that they run out of new acronyms sometime soon.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
VT does do some tax calculations for incorporated entities only but such is only for attaching a teax calculation to a tax return, it's doesn't have corporate tax returns functionality itself.
Thats reads badly and you sort of need to use it in order understand what I mean.
What we are losing is the CT600 to attach the calculation to.
Seems wrong doesn't it that HMRC are combining increasing the workload that they expect agents to do whilst simultaneously actually makes it more difficult to give them information where they should be attempting to make it easier for small agents to work with them.
It does sometimes feel as though the people advising HMRC are those with vested interests in getting rid of their own competition!
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Yes it is wrong, but it seems this time round it seems the Govt is determined to hit the small business hard. Additional costs are the minimum wage (1) AE and now this.
I was talking to one of my clients the other day and the minimum wage was brought up. It's going to be a huge cost to her business, and coupled with VAT which starts in September, I don't think she'll survive more than a couple of years at most. Whilst she can increase prices to a certain level, not to the extent needed. (VAT alone will mean a 15% increase just to pay the liability)
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
The number question for this year is : How do we get people off payroll?
Small business owners with under fifty employee's don't want to lose their staff but it's either get rid of the employee's or lose the business.
Words like outsourcing and offshoring are being bandied around now more than I've heard them wielded in over a decade.
When will people learn that sending you work off to India only works if you are the only one doing it. If everyone does it then who exactly is going to buy your products?
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Im hearing that one a lot - client of mine has ditched a few staff already and outsourced to India. They are only a very very small company and have the contacts out there already but Im still reserving judgment on whether it will work or not.
John - do you do the CT600s via HMRC online?
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
