Digital tax: 'HMRC wants a direct link to everyone's bank accounts'

[SaltnVinegar]

Re: Digital tax: 'HMRC wants a direct link to everyone's bank accounts'

The issue with Google is a simple one. They did nothing wrong. They used the law to effectively reduce their tax bill.

And I genuinely don't have a problem with that (as long as that is the case!)

But HMRC need to apply that philosophy to ALL businesses, which, unfortunately they do not, but instead the full weight of the beaurocracy is brought against small traders because they know they lack the resources to fight against it.

[Never-In-Doubt]

Re: Digital tax: 'HMRC wants a direct link to everyone's bank accounts'

As I said before. They already know. Nectar cards give them that info already.

Do what? How, exactly?

[SXGuy]

Re: Digital tax: 'HMRC wants a direct link to everyone's bank accounts'

As I said before. They already know. Nectar cards give them that info already.

[Spent2much]

Re: Digital tax: 'HMRC wants a direct link to everyone's bank accounts'

we're heading towards a cashless society , that way we're able to be monitored on everything we buy and by using a debit card they know where we are too . Scary !

[Spent2much]

Re: Digital tax: 'HMRC wants a direct link to everyone's bank accounts'

The higher up you are the more power you have , 'money does talk'

The house of lords are moaning now that their £300 a day isn't enough .

[SXGuy]

Re: Digital tax: 'HMRC wants a direct link to everyone's bank accounts'

And this is what I get really annoyed about

The cost of micro-examination of finances during these investigations is frequently completely disproportionate to (and in some cases probably exceeds) the sums of money they are investigating.

I bet that Google wasn't subject to the same level of examination when they got away with paying a fraction of the tax that they should have done over the last 10 years.

The issue with Google is a simple one. They did nothing wrong. They used the law to effectively reduce their tax bill. The amount they have agreed to repaid was more of a good will gesture. Hmrc said look please pay something and Google said ok we will pay this. They didn't have to. They didn't evade tax, they avoided it legally. If government dont like it. Change the system. It was more of a pr exercise than anything so based on that no they wouldn't have been treated with the same level of scrutiny as you or i

[SXGuy]

Re: Digital tax: 'HMRC wants a direct link to everyone's bank accounts'

we use our personal bank account because of the high charges just for having a business account which does the same thing, although business banking at the TSB never used to be real time banking , you could put a few hundred quid in and it would take three days to clear on the account and that is cash. We closed our account for this reason as we needed to use our debit card at wholesalers but if the cash hadn't cleared we couldn't use it and that's ridiculous .

It's like we're being punished for being self employed .

It's exactly that I'm afraid. Government doesn't like self employed people. They would prefer we was all under paye as tax is taken on a monthly or quarterly basis. But that will change too as well. Tax on self assessment will eventually be taken every 3 months on account and adjusted at the end of the year. Cash flow problems looming

[Spent2much]

Re: Digital tax: 'HMRC wants a direct link to everyone's bank accounts'

And this is what I get really annoyed about

The cost of micro-examination of finances during these investigations is frequently completely disproportionate to (and in some cases probably exceeds) the sums of money they are investigating.

I bet that Google wasn't subject to the same level of examination when they got away with paying a fraction of the tax that they should have done over the last 10 years.

That's true , but also Star Bucks don't they make a loss or nil profit ?

[SaltnVinegar]

Re: Digital tax: 'HMRC wants a direct link to everyone's bank accounts'

We once had a client investigation where they asked him what he spent his money on. He said oh I love to drink and go on long holidays all the time. Inspector was loving it writing it all down ready to pounce on him. Until our client explained his gf was a flight attendant and got cheap holidays and the drinking was orange juice as he was a fitness fanatic. Lol should have seen the guys face drop. Needless to say case was closed and he walked away with his tail between his legs.

And this is what I get really annoyed about

The cost of micro-examination of finances during these investigations is frequently completely disproportionate to (and in some cases probably exceeds) the sums of money they are investigating.

I bet that Google wasn't subject to the same level of examination when they got away with paying a fraction of the tax that they should have done over the last 10 years.

[Spent2much]

Re: Digital tax: 'HMRC wants a direct link to everyone's bank accounts'

we use our personal bank account because of the high charges just for having a business account which does the same thing, although business banking at the TSB never used to be real time banking , you could put a few hundred quid in and it would take three days to clear on the account and that is cash. We closed our account for this reason as we needed to use our debit card at wholesalers but if the cash hadn't cleared we couldn't use it and that's ridiculous .

It's like we're being punished for being self employed .

[SXGuy]

Re: Digital tax: 'HMRC wants a direct link to everyone's bank accounts'

I always draw out cash from the Bank, then pay for everyday stuff in cash, learned this from tribunal investigation when forensic chartered accountant from Ministry of Injustice went through Bank statements. Told them where I had been shopping, filled up with petrol, in fact they knew everything about me. Not any more, draw out and pay in cash.

We once had a client investigation where they asked him what he spent his money on. He said oh I love to drink and go on long holidays all the time. Inspector was loving it writing it all down ready to pounce on him. Until our client explained his gf was a flight attendant and got cheap holidays and the drinking was orange juice as he was a fitness fanatic. Lol should have seen the guys face drop. Needless to say case was closed and he walked away with his tail between his legs.

[SXGuy]

Re: Digital tax: 'HMRC wants a direct link to everyone's bank accounts'

Don't get me wrong. If you are paid in cash and you spend cash no digital age will ever capture this. But at some point cash will be replaced with credit. So it won't always be the easy way out.

[SXGuy]

Re: Digital tax: 'HMRC wants a direct link to everyone's bank accounts'

That's good. But people's downfall is using things like club cards and nectar points. They think it's a great concept till people like hmrc tell you how much you spend in sainsburys each week.

[Enforcer]

Re: Digital tax: 'HMRC wants a direct link to everyone's bank accounts'

I always draw out cash from the Bank, then pay for everyday stuff in cash, learned this from tribunal investigation when forensic chartered accountant from Ministry of Injustice went through Bank statements. Told them where I had been shopping, filled up with petrol, in fact they knew everything about me. Not any more, draw out and pay in cash.

[SXGuy]

Re: Digital tax: 'HMRC wants a direct link to everyone's bank accounts'

Personally I'm worried big time. Not so much for me but for everyone else who's going to be affected. Hmrc can't even give accurate advice based on their own rules. We was told by hmrc once to register a client with hid own login to the gateway and use that because they couldn't or wouldn't fix an issue with agents being able to add clients to our own login. Now they are telling us if they notice a different I.P address using individual client accounts they will ban us using our own. Thanks hmrc. They cant even get paye rti system running properly {3 years on} with their data being 12 weeks behind our submissions yet they want to log every bank transaction? Sod off. My advice, if you haven't already, get a separate bank account and only use it for business use. Let them link to that and tell them to go to hell with the others. I could go on all day about their proposals and how us accountants have argued it won't work. But it's pointless as they will not listen and once again we will be left sorting out their mess.