[Perfect Windows]

The Treasury is planning a change to the tax system that will affect all self-employed people in the UK.  Instead of an annual tax return, they will expect four returns a year (no, I'm not joking).  And it's planned to be mandatory by 2020.

Most of us on here are self employed, so this will hit us all.  Either we'll all have extra work to do (more time wasted) or our accountants will (so a bigger bill).  The FSB is asking all small business owners to write to the Treasury to oppose the change.  I wrote in December and was told that this will have no impact because the systems businesses use to manage themselves will automatically link into the HMRC systems - this doesn't apply to any of us on here; at the best we use window cleaning round management rather than sophisticated accounting systems.  We're window cleaner, not accountants.

Please don't take it sitting down:

Spend five minutes to write to the Financial Secretary to the Treasury, outlining the impact that the change will have on you and your business. Your letter should:   

•   Be addressed to the Financial Secretary to the Treasury, 1 Horse Guards Road, London, SW1A 2HQ
•   Cover the impact that mandatory (rather than voluntary) Quarterly Tax Reporting will mean to you and your business.   These might include extra time spent on admin, extra money spent on software, extra money spent on accountant's fees.
•   Ask the Government to ensure that any decision to proceed with Quarterly Tax Reporting is on a voluntary basis.
•   Send a copy of your letter to your local MP. You can find out who your local MP is at: http://www.parliament.uk/mps-lords-and-offices/mps/

Five minutes now could save you a great deal of time and money in the future.

Vin

[Dave Willis]

I think my income might mysteriously decrease over the next few years to below the tax band.

[Cookie]

According to this document:

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/479749/52229_Blue_Book_PU1865_Web_Accessible.pdf

This is the governments reason for doing this (Page 77):

At the March 2015 Budget the government committed to transform the tax system over the Parliament by introducing simple, secure and personalised digital tax accounts, removing the need for annual tax returns. This will give individuals and businesses a more convenient real-time view of their tax affairs, providing them with greater certainty about the tax they owe.

These reforms will deliver the biggest transformation of the tax system in a generation, making it more effective, efficient and easier for taxpayers, and are a first step by HMRC towards meeting a new target to reduce the costs to business of tax administration by £400 million  by the end of 2019-20.

If you use an accountant this is certainly going to cost you more .... As a sole trader I do my own accounts so it's just additional time & hassle ....

Have you worked out how much more this will cost you Vin?

[Perfect Windows]

Have you worked out how much more this will cost you Vin?

Under the current system I reckon on about three days to get our accounts in order to hand them over to the accountant.  If we're doing it quarterly, I reckon maybe a day and a half each for all four reports, so six days instead of three, plus extra accountant's fees - we don't use accounting software that's going to be linking in HMRC systems. All for zero benefit for us.

Your phrase about "time and hassle" - much better to spend our time cleaning windows, so we should all be writing to the Treasury.  If they make it voluntary we can decide if it truly does make things "more effective, efficient and easier."

Vin

[Shane sharples]

I think my income might mysteriously decrease over the next few years to below the tax band.

Your over £11,000 a year?! Bloody hell your doin good , mind never seemed to go up once I hit £10,000 😑

[Mark Mcgrorty]

Thank you for the info. I had heard about this, but hadn't realised it is a real possibility.  I'll send in my objection.

[sunshine windows]

Bumping this to the top as I think it's something we should all consider doing.

Good post Vin