The tax man gives me a nice surprise, yes really!
Published: Mon, 10/10/16
It is that time of year when, along with the leaves turning brown and the days getting shorter, business tax returns are due. My company tax affairs amongst them. I have a limited company but its size no way justifies paying an accountant to tell the tax man that I have made no profit again, just broken even on paper (or digital screen as it is now).
It used to be that you could submit on paper, which was quite a lot of work but not too difficult. Then, several years ago it moved to online submissions only. That was much more difficult because a peculiar pdf system had to be used with all kinds of security and trust settings needing to be in place. Then, a couple of years ago the accuracy of the numbers was tightened up and you had to get the figures exactly right or the return would be impossible to complete. This involved understanding concepts such as share issues and how to carry them over from year to year. With advice from friends in the accountancy business and a lot of trial an error I did manage to submit accepted returns in the past two years but it was incredibly difficult. I like to think I am a little ‘smarter than the average bear’, I am quite computer literate, I have been doing my own accounts for a long time and I don’t give up easily. I was therefore just
about able to get return in before the deadline. For someone new to running their own company with less digital confidence then I don’t think they would have had a chance. If you had left it near the deadline you would be very lucky to find an available accountant always assuming you could afford their charges.
One starts to think conspiracy theories. Collusion between accountants and Her Majesty’s Revenue and Customs (HMRC) so accountants get more clients? Missed deadlines so the government collects more fines? Perhaps even a communist plot inside government to destroy small businesses? Those are just the plausible ideas that go through your mind in the small hours when you are struggling with the impossible task of just getting your tax return in on time. It isn’t just me, accountant friends confirmed that it has got more difficult and I have heard the subject discussed on Radio 4.
So, this past weekend I knew I had to at least make a start on my company tax return. I wasn’t expecting it to be easy, but I have managed it before so perhaps I was going to get though it again, maybe without a nervous breakdown.
So, I logged in and started the process. The first stage isn’t too hard. This involves getting the abbreviated accounts ready for companies house. Then it usually gets harder, but it didn’t. There was no requirement for a secure pdf with trust settings. My figures were accepted without question. Where I did make a couple of mistakes the machine clearly redirected me and before I knew it I was done. It really wasn’t much more difficult than buying half a dozen items on Amazon. I am not sure this morning that it wasn’t a dream but the emails accepting my submissions are there so I am either still asleep or I am home and dry.
Why share this? I suppose because it shows that we should not always expect the worse. Just because something has been difficult before does not necessarily mean it will be again. One reason is that one gets better by trying. The other reason is that sometimes other people realise that they are making life unnecessarily difficult and take steps to make it easier. Which is what seems to have happened at HMRC, although I am still finding that hard to believe. We give up on relationships, jobs, activities, religious affiliations, physical training and lots of other things because of one or two bad experiences. Sometimes we are right to do so, but often we give up too easily and miss out a lot. I was seriously thinking about giving up my company because of the problem of putting in a tax return. Now I am glad I didn’t.
Stav training may be something you think would be too difficult for you. I do try to keep it as simple and as accessible as possible, so why not take a chance on my Staff course next week in Crewkerne? Saturday 15th of October, full details here http://somersetstav.co.uk/staff.html
regards
Graham
PS Next USA training will be in Minneapolis St Paul, next May 20th to 22nd http://iceandfire.us/events/index.html