12 Days of IRIS Christmas: “On the 9th day of Christmas, as we sipped on our eggnog…
...we took a look at this year's popular blogs."
More reflection on the year that was in today’s blog, as we reveal the most read posts of 2016.
Yes, that’s right, blogs within a blog, or, as we like to call it: Blogception. As an added bonus, each features a running commentary from St. Nick, self-confessed IRIS blog fanatic (who can blame him), and his accountant, Patrick.
Perhaps unsurprisingly, new legislation proved popular throughout, with one notable exception...
Santa: Ah. More acronyms. Come on then, Patrick, what does this one mean?
Patrick: Well, Santa, PSC stands for Persons of Significant Control, and this blog refers to the latest regulations requiring that a register of PSCs is kept by each company and LLP.
Santa: Including mine?
Patrick: Including yours.
Santa: Any particular reason this has been introduced?
Patrick: Primarily to improve transparency over who owns and controls UK businesses.
Santa: I see. Have you put mine together for me yet?
Patrick: It’s on my agenda.
Santa: Just so you know, all of my full-time elves and reindeer have the right to exercise significant control over the company as per their contracts. Does that mean they’ll need to be registered?
Patrick: Yes. How many of them are there?
Santa: 12,300. And 9.
Santa: MTD? I think I know this one, Patrick! Making Trees Decorated.
Patrick: Close, but it actually stands for Making Tax Digital, a new government scheme to make all record-keeping and tax returns 100% digital, eventually.
Santa: Ah yes, of course. I remember now. So what will become of the several thousand tonnes of paperwork I’ve got stowed away down in the old factory warehouse?
Patrick: Well, you could potentially arrange for...someone...to transfer all that data onto a computer.
Santa: Someone, Patrick? Are you offering up your services? You’re too kind!
Patrick: Yes, Santa, it’s another acronym. Two, in fact. CT600 and CATO. HMRC’s CT600 form (CT stands for Corporation Tax) for online filing has been discontinued and replaced by CATO (Company Accounts and Tax Online), a free online tool designed to make it quicker and easier for small companies to file their own accounts to Companies House and company tax returns to HMRC.
CATO, however, won’t be available to professionals such as myself or other providers of tax services. You’ll be pleased to learn though, Santa, that IRIS have rounded-up a selection of alternative options to HMRC's CT600 service. Santa?
Santa: *snores loudly* ... Hmm? What? Oh, I do beg your pardon, Patrick. You were saying something about PSCs?
Santa: Now, Patrick, this is something I wanted to talk to you about. Mr Blobby and I go way back. I had him round just last week for some of Mrs S’s delicious filet mignon. He only managed to get 5% of it into his mouth, and he trashed the place, of course, but what can you do: he’s Mr Blobby.
Point being, Patrick, that Blobby has been awarded this tax exemption and yet here I am, toiling away for centuries on end for the good of children, and, indeed, all mankind, yet I still get given a tax bill as long as my beard every year!
Patrick: Actually, if you check the date---
Santa: It really won't do, Patrick. I’ve a good mind to put that entire lot down at HMTD on my permanent Naughty list, you know. I’ll do it, believe you me. They won’t be the first...
Patrick: Yes but you see, Santa, this was an Apri---
Santa: ...Genghis Khan, he was an early entry, way back when...then there’s the royal Kims in North Korea. More recently, that preposterous Trump fellow. Who else? Oh yes, how could I forget... *goes on for several hours*
Santa: Making Tax...Digital? Did I get it right, Paddy?
Patrick: Got it in one, Santa. Well done.
Santa: Oh, how wonderful. So what’s this blog about?
Patrick: Ensuring you’ve got a plan in place for the new legislation, from what I can see. The majority of small businesses in the UK don’t use software for record-keeping, so it’s going to be down to accountants like me to help clients make a smooth transition to a digital-first mentality.
Santa: Sounds tricky.
Patrick: It does, but it needn’t be. IRIS have created a Making Tax Digital Hub featuring all kinds of helpful resources designed to turn the transition into an opportunity. The main point is to plan ahead.
Santa: Well that’s handy. Speaking of planning ahead, I’d better get back to the workshop. Just ten days to go until Christmas, Patrick! You know, you really should be getting started on those archives…
Wise words from Patrick (and some questionable words from St. Nick).
Our Making Tax Digital Hub is now available for you to use, and will be continually updated right up until the legislation is enforced and beyond.
If you'd like to read more in our ‘The 12 Days of IRIS Christmas’ series, click on the links below: