Changes in England from the point of view of a humble accountant!

Ron asked me to start a thread from the point of view of the accountant so here goes - my first serious thread!

I am a partner in a small accountancy practice in the West Midlands. I have been working in accountancy for 26 years and we started our business in 1992. There have been so many changes in that time - when I first started we used to write the final accounts in big musty books called Private Ledgers, write letters to the Revenue saying "Dear Gentlemen" and attend hearings in magistrates courts to extend time to complete accounts. Now we do most of our work by computer and internet file accounts and tax returns. There is no negotiation to extend filing times - 1 minute late and you are slapped with a penalty!

The strange thing is you would expect computers to have made it easier for us - we were promised savings in time but all that has happened is that the powers that be have made things more complicated! Self Assessment (introduced late 90's) was a good idea in concept but it has meant that many small sole traders think that it is fine to submit any figures they like and if they are not questioned they think that it is acceptable. If I had a pound for every time one of my clients has said "my mate down the pub/building site said that he has got a refund and you are making me pay tax/making me have a small refund!" I would be rich!!!

The biggest con from my point of view of the last few years was the tax breaks offered for companies. It was too good an opportunity to miss - it meant that a "milkman company" - a one man business earning £14,000 a year could become a Limited ompany and go from paying £2000 tax to none (this was because of a 0% tax band up to £10,0000 + the persoanl allowance). So many people signed up to be Limited because of it. But now the tax breaks have eroded (not completely gone) and the penalties for late filing have been increased just when the country is in a terrible recession. Many can't afford to get their accounts done (or don't pay the accountant!) and yet if they are up to one month late the penalty is £150, 1-3 months £375, 3-6 months £750 and more than 6 months £1500. It gets worse - if you are late two years running those penalties are doubled! The reason I think it was a con - I think it was designed to capture more businesses in the stricter world of incorporation with more information about them in the public domain and a harsher enquiry and penalty regime.

So as you can imagine it is worse than I have ever seen it - I have lost about 60% of my work through businesses failing and people forced into retirement because of how hard it is here. I started my first small bookkeeping business in the other big recession in the 80's because I could not get a job. This time the recession has hit the self employed worse than I have ever seen.

Stephanie, over here, a  response to the recession, is a movement/resurgence toward agrarian ~ organic food productions ~solutions,recycling and bartering...a 'green' trade in goods and services...a lifestyle that I have practised for over 30 years...I mean, folks I know are getting rid of flower gardens and planting food crops. One of the big urban settlements of Vancouver....just passed a bylaw allowing chickens in the backyard. Sounds like the Victory Gardens! I realise this note is not even remotely connected to tax patterns and societal relationships with government..only meant to encourage individual participation on a small scale...toward recovery and balance.

Anna

Thanks Anna. We have a friend who lives in Vancouver and I am always impressed at the attitudes towards such things in your country and amazed at how clean the streets look on the photos! I have always said that if I had to emigrate anywhere in the world it would be to Canada.

Thanks also to John for your comment. I think who ever takes over here will also take a good many years to put things right - that is if it ever is put right.

Running your own business nowadays is a nightmare Stephanie!!!!!!!!!!!!!!!!!!! I am seriously considering buying a narrowboat and spending the rest of my natural drifting from canal to canal. I can dream, can't I?

And I thought you would spend most of your day drinking tea and eating chocolate buscuits ...only joking.

For a period in my life I went back to college and began studying for a diploma for the Chartered Institute Purchasing and Supply. Business accounting was part of that course and trying to make a balance sheet balance was soooooooo difficult. So I appreciate the work shedules you will have to put up with. Gladly I am retired from all of that but it never makes your money worries go away.

I think I will follow Andy ...I reckon there will be a queue of people for those narrow boats.

Stephanie.. thank you for your positive comment..but I must say that " all is not gold that glitters". Vancouver and indeed Victoria as well, on some levels vibrant, dynamic and progressive...yet a disastrous government here brought severe cutbacks to social services, closure of many intervention facilities..( meaning dysfunctional individuals are on the street because of stopped funding for transition homes, mental institutions ) has grown a burgeoning underbelly of discontent, rage, depression,homelessness and poverty. There are 18,000 people on waiting lists today for subsidised housing in British Columbia.. for people in the so-called 'senior' age group- over 55 years of age.

Andy, your escape pod narrowboat idea is one I investigated many years ago....and I had written to boaters near Henley on Thames...about moorage and availability of liveaboard boats~ still totally  possible! There are folks right here in these harbours living aboard to escape the madding crowd.Anna

A river rat, Andy?  Ever see "Chocolate" with Johnny Depp?  LOL!

Seriously, though, if there were a great influx of people who decided to go that route,  the government would catch on and implement a way to garnish as much profit off it as possible. In the end, Big Brother is watching, no matter where we are or what we do.