Widnes Model Centre Posted January 3, 2019 Share Posted January 3, 2019 Calling all fellow retailers. If you have a turnover of £85,000 you will need to prepare yourselves to be Digital Tax Ready. If like ourselves, you use an Accountant and thought you were okay, then think again. Those of us that are VAT registered will now need to have Digital records. That’s everything including Bank Statements, Takings Sheets, PayPal accounts etc. It has been suggested something like Quick Books will be needed in addition to our Accountant’s records. Moe expense argh. A word of warning, those who have been using so called ‘free software ‘ may find it is no longer ‘free’. This l am led to believe is part of HMRC’s crackdown on Tax and VAT evasion. If you are a member of the FSB, keep an eye out for the seminars they are going to run in various locations. Link to post Share on other sites More sharing options...
RMweb Premium Kris Posted January 3, 2019 RMweb Premium Share Posted January 3, 2019 My wife has been looking into this for her company, to ensure that the products that they produce will enable their clients to meet the digital tax requirements. From her discussions with various accounting software providers and HMRC, it is evident that more information will be asked for and at more frequent intervals than currently (at least for her companies clients). Link to post Share on other sites More sharing options...
Mike at C&M Posted January 3, 2019 Share Posted January 3, 2019 Calling all fellow retailers. And indeed, anyone who has any business that has a turnover in excess of £85,000. Effectively our homegrown accounting system, which uses Excel spreadsheets, becomes illegal when MTD (Making Tax Digital) comes into use. We have always been able to manually calculate what goes into the VAT Return boxes, and manually fill them in using the online VAT gateway. For years I have been lectured on not allowing any third party to be able to access your bank and accounting records, and now we are legally obliged to allow this to happen! As someone who is not a computer expert, we are still suspicious about anyone having remote access to our records. Ironically, we were given a quote from an HMRC document that states that no-one should be financially worse off through the change to MTD. And were then given the thought that who is going to write a complicated piece of software that will require constant updating, and allow everyone to use it for free! There will be a cost to any business who has to upgrade their systems. We will just have to work even harder for no gain, with the added bonus that in time as other taxes are added to the system, you can pay earlier and more often - another negative impact on your cash flow. Our accountants suggested using Xero accounting software, we have instead gone for the slightly more expensive Sage 50. I have gone for Sage as it has a more familiar look and setup to accounting packages we have used in previous jobs. MTD starts at the beginning of April, May or June, depending when your VAT quarter ends, and I would seriously suggest that you start looking at your options now. Set-up, training and being happy to work with your new system will take time, and it is not something you can do at the last minute. 1 Link to post Share on other sites More sharing options...
RMweb Premium jjb1970 Posted January 3, 2019 RMweb Premium Share Posted January 3, 2019 But its digital, it must be better, and there is no organisation in the world I have greater confidence in when it comes to knowing what it is doing than HMRC 1 Link to post Share on other sites More sharing options...
brianusa Posted January 3, 2019 Share Posted January 3, 2019 I often wonder how the government can think up these plans to extract the widows mite from businesses that are trying to make a living in these difficult times and yet are stymied with major problems such as immigration and Brexit, etc. Brian. 1 Link to post Share on other sites More sharing options...
Mike at C&M Posted January 3, 2019 Share Posted January 3, 2019 I often wonder how the government can think up these plans to extract the widows mite from businesses that are trying to make a living in these difficult times and yet are stymied with major problems such as immigration and Brexit, etc. Brian Small businesses are also being leaned on heavily at present to make detail preparations for what will happen to them from when Brexit takes place. So we have about 12 weeks to be ready for who knows what. Presumably running our businesses leaves us with all the time in the world to attend to the challenges of the next 3 months. [irony!] Link to post Share on other sites More sharing options...
RMweb Gold chris p bacon Posted January 4, 2019 RMweb Gold Share Posted January 4, 2019 I issue no invoices but I purchase thousands in materials, I am rated zero for VAT and none of the accounting packages I've looked at is suitable. I am at the accountants on Monday so intend having a chat there about what they recommend using....if at all... Link to post Share on other sites More sharing options...
RMweb Premium jjb1970 Posted January 4, 2019 RMweb Premium Share Posted January 4, 2019 Small businesses are also being leaned on heavily at present to make detail preparations for what will happen to them from when Brexit takes place. So we have about 12 weeks to be ready for who knows what. Presumably running our businesses leaves us with all the time in the world to attend to the challenges of the next 3 months. [irony!] I think a few government departments lose sight of the fact that the world outside government has other things to do than spend its whole life trying to stay familiar with every growing reams of government regulation, tax codes and filling in government reporting forms etc. 1 Link to post Share on other sites More sharing options...
Widnes Model Centre Posted January 4, 2019 Author Share Posted January 4, 2019 Small businesses are also being leaned on heavily at present to make detail preparations for what will happen to them from when Brexit takes place. So we have about 12 weeks to be ready for who knows what. Presumably running our businesses leaves us with all the time in the world to attend to the challenges of the next 3 months. [irony!] I presume Mike that you are referring to the letters from HMRC re what to do if Deal/No Deal/Hard/Soft/Any Other Scenario? Trying to get my head around the applying for an Import Licence, Informing our preferred carrier etc. etc, etc.... Not sure which way to turn at the moment. Waiting for the letter from HMRC advising us to close our business down to make things simpler. Link to post Share on other sites More sharing options...
bigP Posted January 4, 2019 Share Posted January 4, 2019 (edited) -- Edited January 31, 2021 by bigP Deleted 1 Link to post Share on other sites More sharing options...
RMweb Gold adb968008 Posted January 5, 2019 RMweb Gold Share Posted January 5, 2019 I presume Mike that you are referring to the letters from HMRC re what to do if Deal/No Deal/Hard/Soft/Any Other Scenario? Trying to get my head around the applying for an Import Licence, Informing our preferred carrier etc. etc, etc.... Not sure which way to turn at the moment. Waiting for the letter from HMRC advising us to close our business down to make things simpler. At least you know that HMRC is spending your cash wisely on informing you of Brexit. Its starting to feel a bit Millenium bug, of course in 2001 came the mass recession as those budgets retracted. Link to post Share on other sites More sharing options...
RMweb Premium phil-b259 Posted January 5, 2019 RMweb Premium Share Posted January 5, 2019 But its digital, it must be better, and there is no organisation in the world I have greater confidence in when it comes to knowing what it is doing than HMRC Oh I don't know, from its performance in previous years surely that sort of statement could equally well apply to the DfT.... Link to post Share on other sites More sharing options...
Widnes Model Centre Posted January 5, 2019 Author Share Posted January 5, 2019 Continuing on the same theme.... Arrived home yesterday from the shop to find a letter from HMRC Tax. Having paid our personal tax liability just before Christmas, I thought I could relax. No. HMRC had recalculated my Tax and I still owed them £1.60p. Has to be paid by 31/1/2019. Payable on-line or via Debit Card over the telephone. On-line? No, due to fact that my Unique Tax Reference was't recognised, it was the number with a "K" at the beginning or end of the number. No "K" shown on the letter. Telephoned HMRC and they told me I was unable to pay over the telephone anything under £5 with a Debit Card. Tried on-line, no go. Back on telephone and having gone through the "voice recognition" process, eventually spoke to a real person. He told me I couldn't pay that amount again as it was under £5. I explained that particular restriction had been removed quite some time ago and in our shop we had to accept any payment, irrespective of the amount. He transferred me to their Telephone Payments Dept.... Yes, we can take any payments, security checks, voice recognition again... Payment details, put on "hold".... more security and contact details. 58 minutes after this phone call commenced. "Anything else I can help you with?". Me... are business phone calls tax-deductable? HMRC, I will transfer you to our Self Assesment Helpline, I hung up! Link to post Share on other sites More sharing options...
RMweb Gold Colin_McLeod Posted January 5, 2019 RMweb Gold Share Posted January 5, 2019 More practical solutions. a) Write a cheque for £1.60 and pop it in the post. b) Pay £5.00 over the phone The overpayment will be credited to your future tax liability and will be "used up" very soon. Colin PS. It's £1.60 not £1.60p. Link to post Share on other sites More sharing options...
RMweb Premium jjb1970 Posted January 5, 2019 RMweb Premium Share Posted January 5, 2019 Oh I don't know, from its performance in previous years surely that sort of statement could equally well apply to the DfT.... If I had anything positive to say about DafT I'd say it. I was never impressed by DECC (happily defunct and merged into some bigger department now) either when I worked in electricity generation. However, despite a lot of balls ups and embarrassments I did have a lot of time for the MoD people at Abbey Wood, or at least the ones responsible for warship designs I dealt with. Link to post Share on other sites More sharing options...
Widnes Model Centre Posted January 5, 2019 Author Share Posted January 5, 2019 More practical solutions. a) Write a cheque for £1.60 and pop it in the post. b) Pay £5.00 over the phone The overpayment will be credited to your future tax liability and will be "used up" very soon. Colin PS. It's £1.60 not £1.60p. Suggested both of them, also couldn't they re-adjust my tax Code. As it was my personal liabilty from our business, they wanted a cheque drawn on our business account (there is a cost to us for cheques from that account), or a cheque in my own name/account. I couldn't find my cheque book, not sure when I had it last but it will some years ago. Not sure if I could claim the cost of postage and didn't want to be transferred again What difference does having a "p" make, I needed one after so long on the phone? Link to post Share on other sites More sharing options...
RMweb Gold Colin_McLeod Posted January 5, 2019 RMweb Gold Share Posted January 5, 2019 What difference does having a "p" make, I needed one after so long on the phone? LOL. Link to post Share on other sites More sharing options...
RMweb Premium polybear Posted January 5, 2019 RMweb Premium Share Posted January 5, 2019 Continuing on the same theme.... Arrived home yesterday from the shop to find a letter from HMRC Tax. Having paid our personal tax liability just before Christmas, I thought I could relax. No. HMRC had recalculated my Tax and I still owed them £1.60p. Has to be paid by 31/1/2019. Payable on-line or via Debit Card over the telephone. On-line? No, due to fact that my Unique Tax Reference was't recognised, it was the number with a "K" at the beginning or end of the number. No "K" shown on the letter. Telephoned HMRC and they told me I was unable to pay over the telephone anything under £5 with a Debit Card. Tried on-line, no go. Back on telephone and having gone through the "voice recognition" process, eventually spoke to a real person. He told me I couldn't pay that amount again as it was under £5. I explained that particular restriction had been removed quite some time ago and in our shop we had to accept any payment, irrespective of the amount. He transferred me to their Telephone Payments Dept.... Yes, we can take any payments, security checks, voice recognition again... Payment details, put on "hold".... more security and contact details. 58 minutes after this phone call commenced. "Anything else I can help you with?". Me... are business phone calls tax-deductable? HMRC, I will transfer you to our Self Assesment Helpline, I hung up! Sleep peacefully, in the knowledge that the HMRC costs far outweigh the measely £1.60 being claimed. Will they never learn? Link to post Share on other sites More sharing options...
RMweb Gold Strathwood Posted January 6, 2019 RMweb Gold Share Posted January 6, 2019 Sleep peacefully, in the knowledge that the HMRC costs far outweigh the measely £1.60 being claimed. Will they never learn? But it keeps them in work and no doubt a few Humphrey Appleby types within the department will use the argument of the collective spend on these small petty claims settlements to help justify increasing their budget for the following year to help combat the perceived costs of combating tax evasion, thus increasing their power still further. Will be sitting down and watching a box set of Yes Minister and Yes Prime Minister after submitting my return this week too and awaiting their nitpicking over something or other, and they wonder why all dislike them... Ho hum Kevin Link to post Share on other sites More sharing options...
RMweb Gold Strathwood Posted January 15, 2019 RMweb Gold Share Posted January 15, 2019 Has anyone experience of these new "approved" VAT accounting programs yet, any suggestions on those to consider, or to avoid, please? As it would be good for those of us who submit monthly VAT returns to get into swing as soon as possible as our traditional spreadsheet accounting has to go out of the window ready for the submission in April. Thanks, Kevin Link to post Share on other sites More sharing options...
johndon Posted January 15, 2019 Share Posted January 15, 2019 Has anyone experience of these new "approved" VAT accounting programs yet, any suggestions on those to consider, or to avoid, please? As it would be good for those of us who submit monthly VAT returns to get into swing as soon as possible as our traditional spreadsheet accounting has to go out of the window ready for the submission in April. Thanks, Kevin None of them are 'new' as such, they are existing accounting programs (Sage, Xero, Quick Books, Kashflow etc.) that have been updated for MTD. As for suggestions, do you want an application that you install on your PC or one 'in the cloud' that you access via a web browser? John Link to post Share on other sites More sharing options...
Mike at C&M Posted January 15, 2019 Share Posted January 15, 2019 We are looking at "Sage 50C". The reason for our choice is that it handles most like the traditional accounting package that we dealt with in our previous employment in the early 2000s. Link to post Share on other sites More sharing options...
MRDBLUE17 Posted January 15, 2019 Share Posted January 15, 2019 It certainly is another consideration - there’s still details tbc which won’t suprise you from speaking to my accountant. I use VT transaction currently as this is a good accounting package and straight forward to use on the business laptop but this will also need to change update with the digital changes. There also seems to be a focus on annual VAT returns which if you are on and don’t plan for could lead to serious problems. A local butchers chain shut before Christmas due to unpaid VAT. It soon adds up - take 1/6th off your takings, then deal with your costs. All good fun Mark Link to post Share on other sites More sharing options...
antrobuscp Posted January 15, 2019 Share Posted January 15, 2019 It certainly is another consideration - there’s still details tbc which won’t suprise you from speaking to my accountant. I use VT transaction currently as this is a good accounting package and straight forward to use on the business laptop but this will also need to change update with the digital changes. There also seems to be a focus on annual VAT returns which if you are on and don’t plan for could lead to serious problems. A local butchers chain shut before Christmas due to unpaid VAT. It soon adds up - take 1/6th off your takings, then deal with your costs. All good fun Mark I retired as an accountant in public practice about 3 years ago, so my knowledge is not as complete as if I were still in practice. I was under the impression from what I have read, that the use of spreadsheet accounting was still possible provided the data can be filed directly with HMRC systems. I used to use a similar method to file iXBRL company accounts. using VT accounting software which was an Excel add-in. I have just visited their website and it seems they intend to provide a "bridging product" to enable the filing of returns via an Excel add-in. It may be worthwhile for those interested if they visit the MTD page on their website and/or have a word with the software house. My only connection was as a satisfied customer. www.vtsoftware.co.uk/mtd/index.htm Hope this helps. Colin Link to post Share on other sites More sharing options...
dj_crisp Posted January 15, 2019 Share Posted January 15, 2019 I'm looking at various excel addins so it don't have to bin my Excel set up. Trying to avoid moving to new software which is costly both in subscriptions and time to transfer everything. I'm sure it's ultimately going to end up being a quarterly reporting exercise for all accounts... Link to post Share on other sites More sharing options...
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