Budget 2006: Devil in the detail - Changes to Business Tax Returns!

Pennywise

Just when we thought we'd escaped relatively unscathed, anyone running a small business needs to read the following:-

http://www.hmrc.gov.uk/budget2006/carter-review.htm

Highlights:

1. Shortened time period for submitting tax returns - as if it wasn't hard enough to meet the January deadline, they're going to bring it forward by a few months!

2. Compulsory on-line filing of tax returns (SA, PAYE and VAT) - OK, for larger businesses first, but for all businesses in a few years time.

Have they given any thought at all to those small businesses who are already a little bit busy with all the red tape and struggling to run their businesses, without wasting everyone's time in fixing something that isn't broken.

Not to mention, the IR's woeful record in anything internet/computerised. I foresee a lot of wasted time ahead.

And they say they're into consultation - I'd like to know which cronies they consulted before deciding to adopt these proposals - no doubt those likely to gain most (i.e. Govt IT suppliers) who've given the Labour party a bung or two (oh! sorry I should say loan!).

Don't get me wrong, I'm all for the benefits of technology and realise it is the way forward, but why do they have to do these things so quickly without proper consultation and without making sure the technology works. Just look at last year - online PAYE returns - complete fiasco - IR staff manually inputting figures onto one of their systems after printing out figures submitted by businesses using their own on line filing system - the different systems just didn't work - did they never bother to try it out first? Second mess of 2005 - delaying the introduction of the new construction industry scheme by a year due to their systems not working properly.

exil

Problems started with contracting out of government IT, which started under the Tories but New Labour have continued. It was assumed that if you have top IT suppliers you can't go wrong - unfortunately not so!

As far as tax, benefits etc is concerned IT is "core business" and should not be outsourced - but it's a bit late to do anything about this now.

pault123

The government is so into IT and getting everything online they have scrapped their own Home Computing Initiative.

Gordon's budget has just cost me my job.

By scrapping HCI (Home Computing Initiative - https://www.dti.gov.uk/hci) without warning or consultation, he has just wrecked the businesses and jobs of hundreds of those working in this area. The hundreds of thousands of those who took advantage of HCI to obtain low cost computer equipment - which was targeted at the low paid and until today was tax free - have now been betrayed and will have to pay the tax they previously did not.

Is it any wonder people don't trust politicians?

Apart from staff saving National insurance, tax and VAT through buying a pc through their gross salary; companies saved up to £192 over 3 years in National Insurance through a reduced gross salary bill.

Gordon in his many ways of making ends meet has decided £64 a year companies would have saved by offering their staff a fantastic benefit, improving IT skills, staff morale, motivation etc. is outweighed by the fact he could have...

up to £64 per year x number of PAYE staff in UK that take part in a HCI scheme in his back pocket...

...doesn't really seem like a surefire way to increase his budget kitty does it?

Education and schools is so important in this budget Brown has decided pc's play no part in education, homework and a computer literate nation. No £64 is too much for a company to be saving in National Insurance.

Over 30 Staff at my company lost their jobs today

Dora_the_Explorer_5

Really sorry to read your terrible news - people must be absolutely distraught.
Unfortunately since Gordon started breeding he's become obsessed by children.

Savvy_Sue

Pennywise wrote:

2. Compulsory on-line filing of tax returns (SA, PAYE and VAT) - OK, for larger businesses first, but for all businesses in a few years time.

Is that news? I thought this had been flagged up several years ago (when I was last doing payroll!) Fortunately there was no reason for me to try the system out 'cos the incentives for online filing came in after I gave up payroll!

(The letter which comes 'tween A and C in the alpha-et has stopped working on this key-oard! :eek:)