The Positive Accountant - Vol 2 Ed 15
Bizarrely, HMRC having informed us that they weren't issuing statements showing tax due any more, over the last two days I have seen several issued. I am so glad they are joined up. To add to the confusion, I have been taking a look at how HMRC expect furlough claims to be calculated under the new flexible furlough scheme. On the face of it, it is easy. You look at normal hours worked, you compare that to actual hours worked and the difference is furlough. Ah, but it isn't. Because HMRC are requiring normal working hours to be averaged over non working days on a per month basis (and obviously the number of non working days varies according to how a month falls in the calendar). Unless you are a software developer, as HMRC have told them to write their software calculating an average over a full calendar year. Oh yes, and they have told us to round up in our calculations, but instructions to software companies is to round down... For July, someone working a 35 hour week, I can see that the correct answer might be 151,152, 155 or 161 hours. We already had one of the most complex tax systems in the world, it is becoming rapidly unworkable. Missed an edition ? See them at http://www.positiveaccountant.com What are my positives today:-: 1. Furlough exists Despite the above, we'd all rather have it than not. So that's good. 2. Lockdown lifts soon ? Together with the proposed lifting of the 2m rule this is great news for the hospitality and retail sectors. Mind you, am I the only one to be confused as to what the rules actually are any more ? Maybe I'm not keeping up. That probably doesn't matter though as with all these new regulations the typical tax adviser will never see daylight again. Bram Stoker was almost right, we'll be dealing with the lifeblood of the economy, worrying all the time about the tax stake. 3. We still have internet Why is that an issue ? Because the utility company ordered a pruning exercise of the tree in which our cable resides - see below. There were a few anxious moments... What am I talking to clients about ? What's then likelihood of further tax changes ? very, very, very high. The weekend newspapers were full of speculation about temporary cuts in the VAT rate which has all sorts of implications (not least as it may stop people spending, waiting for it !). National Insurance cuts have also been suggested. Figures suggest that although there was a temporary boom when the non-essential shops opened, that lasted for all of two days, And as the economy relies on consumer spending, that's important., so pump-priming the economy is a priority. Will there be a car scar-page scheme again ? Scary figure coming - in April and May public debt exceeded 100% of GDP for first time since 1963, the deficit was £103.7 billion, six times larger than this time last year. Stay safe, stay positive Adrian adrian.mole@quove.co.uk 07917 338342 Please mind that tiny copper cable !
You were that close to never hearing from me again...
Please mind that tiny copper cable ! You were that close to never hearing from me again...