March 24th, 2012

Simple Politicians

Politicians generally haven’t the first idea when it comes to tax and even less of a clue when it comes to ‘tax simplification’. This week’s Budget didn’t disappoint in that respect.

Small businesses can, from April 2013, choose a more simple method of calculating their profit based on cash – or they can continue to use the ‘accruals’ method. At a stroke we’ve now two methods not one. Potentially two set of books to keep.

I know now what clients will say when I discuss it with them – “Which is better?” – and then they’ll pick the one that means they’ll pay less tax. Small businesses bumbling along without professional advice now will be far more likely to need an accountant. Proper advice for picking the best option for their business will save them money. So much for simple!

PS – The Guardian was reporting this week that 500,000 extra people will need to complete tax returns due to the changes in the Child Benefit system. Tax does seem to be taxing.

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John manages a wide portfolio of owner managed businesses and oversees the smooth operation of the firm’s payroll department.

After obtaining his degree in mathematics from the University of Liverpool, John joined Jonathan Ford & Co in 2004 and qualified as a chartered accountant four years later. John likes to keep abreast of developments in tax and accounting and is responsible for the mentoring of junior staff.

Outside of work, John enjoys powerlifting and is a Liverpool FC season ticket holder.

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