Self-Assessment: 'cash basis'?!?

Pennywise

There were a fair amount of people misled by the old SA notes and HMRC guidance where it said something like "enter your receipts and payments" which people took to mean the cash basis, but actually meant the traditional accruals/invoice basis. I think that's where people got the impression that there used to be a "cash basis" before 2013, but clearly were wrong. At the end of the day, accounts and tax returns for all but the tiniest of businesses isn't simple, no matter how many times that HMRC tell people that it is or that "it doesn't need to be taxing". It's a big lie and gets untold numbers of people into trouble.

chrismac1

I am adding to this thread as a warning to anyone who is "taking a punt" on self-assessment today or tomorrow. Back in May 2010 I had a new client who is a successful dance teacher. She owed HMRC £4k and was frantic with worry as they were pursuing her with real aggression. She had done her own tax return, the method she used was calling the HMRC helpline for guidance.

She had made some big howlers, the biggest of all being to exclude her car and trailer from capital allowances. When I re-submitted this return HMRC owed her nearly £1,000 and she's been a great client ever since with a very successful dance school and nearly 100 students.

ANY decent, qualified accountant would have done the same thing for her. For the sake of saving £300 in accountancy fees she messed up her return and was seriously considering ceasing trade.

These are the situations which really motivate me and, I am sure, people like Pennywise too. Situations where I personally have made a very real positive difference to someone's life, and in this case also the lives of her employees too.

If you have taken a punt on something you have filed this January, that is OK. You've prevented the £100 fine. Now see a good local accountant and get it done properly, you have until 31 Jan 16 to re-submit the return.

purdyoaten

chrismac1 wrote: »

I am adding to this thread as a warning to anyone who is "taking a punt" on self-assessment today or tomorrow. Back in May 2010 I had a new client who is a successful dance teacher. She owed HMRC £4k and was frantic with worry as they were pursuing her with real aggression. She had done her own tax return, the method she used was calling the HMRC helpline for guidance.

She had made some big howlers, the biggest of all being to exclude her car and trailer from capital allowances. When I re-submitted this return HMRC owed her nearly £1,000 and she's been a great client ever since with a very successful dance school and nearly 100 students.

ANY decent, qualified accountant would have done the same thing for her. For the sake of saving £300 in accountancy fees she messed up her return and was seriously considering ceasing trade.

These are the situations which really motivate me and, I am sure, people like Pennywise too. Situations where I personally have made a very real positive difference to someone's life, and in this case also the lives of her employees too.

If you have taken a punt on something you have filed this January, that is OK. You've prevented the £100 fine. Now see a good local accountant and get it done properly, you have until 31 Jan 16 to re-submit the return.

Why does anyone believe that the accountant should be the first target in saving costs - the one that ultimately could save the most money or prevent from costing the most money? It has always been thus in my view.

purdyoaten

Wonder who filled this guy's return in - £950 million a month by arrangement! ?

http://news.sky.com/story/1418017/pensioner-78-gets-tax-bill-for-4-7bn