We are tentatively moving out of lockdown and an element of our work is moving back to so sort of normality in that we are now wrestling with Vat Returns, Accounting year end issues and bookkeeping that is involving something more that furloughed receipts, staff payments and loan receipts. Our payroll departments are still wrestling with furlough complications but this time it’s mainly in relation to staff actually doing their job.
No doubt we all breathing a collective sigh and thinking we’re back to the standard fare that was our lot pre Covid but as Accountants we know full well that any such feeling are only going to be short term as our clients are going to be looking to us for major help in the coming months and years and we would in opinion be doing them a disservice if we didn’t start planning for not just understanding the effects of the proposed changes but how we are going to get that across to our clients and how much we are going to have to charge for the work o not.
What’s coming up? Well we have the Domestic reverse charge for Vat which in my opinion effect a huge number of our clients and is frankly one of the worse drafted pieces of legislation I have ever encountered. It’s coming and it needs understanding and planning and best to start now.
I’ll throw in that old time favourite IR35 that will again effect significant mounts for our clients, ok, like the Domestic Reverse Charge it’s been delayed but it’s coming and the accounting and tax consequences need to be understood and there will be plenty of clients that will need a lot of help overcoming the changes and planning for the increased taxation they will bring.
Post Covid HMRC will be looking to replenish the money tree that has been shaken so vigorously and let’s be honest they won’t be looking at Richard Branson and his ilk but at your clients and yes even your smallest clients if they had the temerity to make any sort of Covid related claim. This will be the new HMRC not the cuddly version that oversaw the money handouts nut a new more determined HMRC looking to prove that small businesses and basically a tax avoidance scheme waiting to happen and lets not forget that we were EXCLUDED from helping our clients to ensure that HMRC had a new direct line of contact with out clients going forward. We need to make sure our clients are aware of the maelstrom of HMRC activity that is going to be unleashed.
Finally, I’m going to throw in another old time favourite that hasn’t gone away and that’s our old friend MTD. We have to prepare for the inevitable explosion of reporting a veritable
Quarterly Reporting on speed extravaganza that will engulf our clients very very soon.
No lives are at risk by any of this but lots of businesses are and lots of unwary accountants are so my best advice is shake off the air of lockdown complacency and start planning now.