I used to think that but having set it up with all my months in one workbook O can now alter one figure in any spreadsheet and it automatically changes every sheet linked to it I have now an up to date profit or loss figure, instead of doing my tax returns in jan just before the deadline I had last years done and submitted by mid April.
MTD deadline...
- Thread starter Cowabunga
- Start date
- Location
- Mendips Somerset
Im on quickbooks online , vat is touch of a button once a quarter , set it up last year , have to re-allow MTD permissions every 6 months otherwise, as easy as (i hope )
Cowabunga
Member
- Location
- Ceredigion,Wales
I have no need or want to do that. Neither do the vast majority of self employed businesspeople I'll wager.
Besides which I more or less know my profitability for the year ahead at very nearly the start of the financial year and have cashflows that turn out to be fairly accurate, especially for my costs. I've done this for decades and paid my taxes on time, every time.
- Location
- Somerset
Whilst it is still a little way off in time, 1 April 2022 is the MTD date for all VAT registered businesses, which will cover a lot of small farming businesses. Always best to change bookkeeping system at your year end for a smoother transition.
April 2023 is the start date for income tax under MTD, when quarterly submissions are planned to replace the annual tax return.
April 2023 is the start date for income tax under MTD, when quarterly submissions are planned to replace the annual tax return.
- Location
- East yorks
Those quarterly returns will make interesting reading for our farm, I tend to sell all our corn as one Big block if the number is good so I don’t have to pay storage so it will be 3 quarters of losses then a big profit in one
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I use sage one ,accountants wanted £100 an hr to teach me .I decided to teach my self ,had no idea what I was doing ,who reads the advice available lol.Made up numbers for nominal codes ,thought I had it sussed accountant popped out to check it was ok ,it wasnt .once I understood that each activity needed its proper code it was easy .Takes 4 hrs max to to do quarterly vat return that's filling in all the transactions for that period too lot more organized than dads paper system
- Location
- Somerset
Loads of farms in that situation, and also 5 years farmers averaging of profits available. The system is going to need a lot of development from HMRC's point of view, but they aren't there yet.Those quarterly returns will make interesting reading from farm, I tend to sell all our corn as one Bg block if the number is good so I don’t have to pay storage so it will be 3 quarters of losses then a big profit in one
Will be other businesses that are similar, leisure industry often seasonal. Interesting times ahead!
- Location
- Montgomeryshire
Wow! You must have the only farm business that is completely independent of commodity prices and weather. Fair play.
- Location
- Somerset
Always worth taking the accountants time to set up, they are preparing hundreds / thousands of accounts from the bookkeeping data, so if they all use the same codes it will make things quicker and therefore cheaper in the long run.
- Location
- Montgomeryshire
Codes that are necessary for Sage are one of the reasons I dislike it so. I discussed things with my accountant when setting up on my own, who tried to persuade me to use Excel spreadsheets (which he was going to let me have), but I opted for Quickbooks instead. I think I've asked for their help twice since then, setting up HP accounts, etc. Other than that, I have found it intuitive and easy to use, with no descriptions rather than codes for each account, which is customised to every business, so it makes sense to every business owner. I would suggest that is important for a business owner to make most use of any accounting system, rather than try to make it fit a standard template for the accountant.
I can go in to any given period and bring up my total spend on feed, fertiliser, vet & med, etc, quickly and simply.
Cowabunga
Member
- Location
- Ceredigion,Wales
Actually commodity prices have varied within predictable limits historically with two big blips in milk prices, one being this Spring and one a few years ago. Quite unusual really. Costs are actually more predictable as long as some contingencies are budgeted for. Weather, not so very much in dairy averaged through the year. Some Winters may be four weeks longer or shorter than others but as long as there is sufficient forage in stock it has little effect on costs.Wow! You must have the only farm business that is completely independent of commodity prices and weather. Fair play.
It's going to be a big issue having to pay tax like this, it will mean doing stock levels each quarter instead of yearly, on the arable side the crop I planted last week I wont get paid for until Sept 2022, although I can get advance payments if I need them, once the crop is cut I have a reasonable idea of income and in some ways I dont mind paying tax on that but it's not right that I should pay tax on a growing crop, an employee only Pays tax once they have received money not on future earnings. I have changed the way I account for crops in the ground and store by valuing them as the cost to grow rather than project sale income minus their costs, luckily as I do all my own accounts it's easier to make subtle changes but stay within the law