In the future – will you need iMoney to pay iTax to the iHMRC?
Like many other Contractor Accountants, we use a software program called IRIS to prepare annual accounts etc. Quite a sophisticated program that holds together many different facets of a company and enables us to have immediate access to client data. This all sounds very simple, until one of my Accountants went to file a set of accounts this morning, only to be greeted by an error message. They rang technical support and were flabbergasted to find that HMRC have closed their system to all year ends (after March 2011) until the middle of October.
Yes, you did read that correctly.
If your annual accounts year ends after the 31st March 2011 – you can’t file the accounts yet. Not even if you want to – not even if you beg. You just can’t do it, end of argument. “BUT WHY??” I hear you shout.
The answer is very simple – the corporation tax rate has been reduced from 21% to 20% and everyone has to learn to tie their shoelaces before the machines at HMRC can process the new percentage. I myself used an LED calculator from the 1970’s and it all panned out fine.
So what will happen if something really serious happens and we put corporation tax back up again to 21%? I suspect a total meltdown and a return to using stones for currency and having a tax inspector popping around the village on horseback.