TSCB 14: new Cash Accounting Rules 2: Ch.. ch.. ch.. ch.. changes!

I feel it's appropriate that I wrote this blog article to the strains of David Bowie's 'Changes'.  Not so great that I listened to it so often that it's now an earworm, but less about my struggles controlling the repeat function in iTunes...

Two days ago I posted TSCB13: the Background to the new Cash Accounting rules here.  At morning coffee time.  As soon as the Chancellor sat down after giving his Budget speech, HMRC & the Treasury released forests of paperwork giving the details behind the speech.  Slightly unexpectedly, a few of the trees in that forest made changes to the new Cash Accounting rules. Quite significant ones.

So this article tells you what the changes are and how they differ from the original proposals for the new Cash Accounting rules and from the existing Accruals Basis.

Today's Featured Seller is BigBlueBed (Alix) - she sells on Etsy here (where you can find this tweed broaoch), and Folksy here. And you can find out what she's up to on her Facebook page here

Tax Amnesty for online businesses

Thanks to a couple of threads on Folksy that someone else on Etsy pointed me to, I've realised that HMRC are running an amnesty for people who haven't yet registered with them as self-employed but want to get their tax affairs in order.

Find out about it here:
http://www.hmrc.gov.uk/campaigns/emarket.htm

You have to tell HMRC you want to join the amnesty by 14 June 2012, and pay all tax owing by September.  I've got a professional exam coming up (one day I'll say enough to exams!) so I can't pre-digest it for you.

Also found through the Folksy/ Etsy threads is HMRC's YouTube channel.  Who knew!
http://www.youtube.com/user/HMRCgovuk?feature=watch
Worth a look, there's a video on working out whether you're trading or not...

It's ALWAYS a good idea to get yourself sorted with the taxman sooner rather than later!

Lois
TootHillMedley

UPDATED TSCB 1: For new rules on registration for Income Tax and NIC and penalties

I'm just highlighting that I have made amendments to TSCB 1 article here

In the article I advised that
(1) once trading, the newly self-employed should register for income tax & Class 2 NIC on Form CWF1 within 3 months of starting up.
(2) that the penalty for failure to do so was a £100 flat penalty.
(3) ignored the new tax geared penalty regime and changes in the deadlines in the article.

Well, I had all sorts of good intentions last spring. Then life took over.

To be honest, life is still in control, but in another few weeks, there will be a brief mutiny (I'm backing myself to win) and I'm aiming to put together a sensible schedule of regular blog posts on my own work, UK tax and business issues generally.

Sneak Preview: a new set of card designs I'm trialling preparatory to putting them on sale in the summer

TSCB Stop Press: News about what's coming next

Firstly, well done for making it this far!  The first 7 articles have been quite technical and very very long - I hope you've found them useful even if you've not quite worked out how the ideas discussed apply to your small craft business.  Or, you might have worked out how they might apply and are horrified and hoping I'm wrong!!  If so, sorry about that, but all I can do is tell you how it should be done, it's up to you to apply the rules sensibly to your own position.

Because tax and accounting for small businesses can be very complicated as it's based on rules for big business, and because I'm human and sometimes have to double check what I've written about because someone queries what I've said, I'm adding a couple more specific types of article to this series:

Featured Seller: The Cycling Artist (Tina)  Find her shop at Etsy here

and about her work (and guest blogging to come) at the bottom