The next step in the government’s apparent headlong rush into online dependency appears to be the prospect of quarterly tax returns.
This quite bonkers idea is clearly to assist the government to get their hands on the tax revenues quarterly rather than the current half year installments, as is the case for most self employed. As usual it is dressed up under the banner of ‘tax simplification’, which clearly it is not.
So, if this ridiculous idea persists, the role of the bookkeeper will re-emerge. It will no longer be good enough to do the quarterly VAT returns and then give the year end records to the accountant. The figures will have to already be submitted to HMRC.
Quite why quarterly payments on account are not good enough I have no idea, but the new ‘system’ will require a degree of precision if chaos is not to follow shortly after. Imagine quarterly arable farming accounts – loss – loss – loss – profit. How are they to be catered for?
Anyway, the point of the article is firstly to point out the nonsense that is envisaged and secondly to alert the client to the fact that their bookkeeping will have to be sufficiently robust to cater for the demands of the new system.
Many clients have old accounting systems that work well as far as they are concerned. Unfortunately it would appear sensible for these to be critically reviewed and renewed if appropriate. Obviously, should any assistance be require in this regard do please get in touch. Recently, the House of Lords have placed a partial brake on the implementation of this nonsense, it is to be hoped that they persist.