Following the latest government briefing, the link below provides a summary of the help available for businesses including the job retention scheme, grants, loans, VAT and income tax deferral.
Major changes to the tax regime for gains made on sale of residential property will take effect from April 2020. If a liability arises, you will be required to submit a provisional calculation to HMRC within 30 days of completion. You will also need to pay an estimate of the capital gains tax due.
The 30 day declaration and payment applies whether or not you are within the self assessment system. If you do complete an annual tax return, you will still be required to declare the gain on your tax return. If not within the system, HMRC have advised that you will not need to register for self assessment but instead, after the tax year, you should review the provisional calculation to see if you have paid the capital gains tax at the correct rate i.e. 18% or 28%, and then make any changes required.
Please contact us for further information.
When enrolling yourself into Making Tax Digital for VAT you should consider the timing very carefully Once signed up, HMRC will expect all future VAT returns (and any current or previous returns outstanding) to be filed through Making Tax Digital software. There are further restrictions if you pay your vat by direct debit as it is currently taking around 15 days for the direct debit to be transferred to the new system.
As an example, if your first full vat quarter, falling on or after 1 April 2019 is for the period 1 April 2019 to 30 June 2019, then, if you have a direct debit, you should sign up on or after 15 May 2019. If you do not have a direct debit then you can sign up from 8 May 2019 i.e. after the VAT return for the previous quarter to 31 March 2019 has been filed.
All VAT registered businesses with annual taxable turnover exceeding £85,000 must comply with the making tax digital (MTD) rules for VAT periods beginning on or after 1 April 2019. For example if your first quarter, after 1 April 2019, is for the period 1 May 2019 to 31 July 2019, then the first return that you must file, under MTD, will be for the quarter ended 31 July 2019.
There are two requirements for MTD: to keep your VAT records in a digital format and to submit VAT returns using MTD compatible software. This is neither as complicated nor as difficult as it sounds; if you already record transactions on a spreadsheet based system or some form of accounting software you are already meeting the first MTD requirement.
If you currently use a spreadsheet based system you will need to buy some new MTD software to read the relevant VAT totals from the spreadsheet and submit them to HMRC as your VAT return. This type of bridging software is not expensive.
Your VAT software does not have to be cloud based and you do not need to keep your entire VAT accounting system on one software program. If you are concerned by the extra cost, then do not be bamboozled into upgrading to the latest version of your accounting software to allow you to submit vat returns under MTD. Most accounting packages allow you to download the data into a spreadsheet format (CSV) which can be read by bridging software in order to submit the VAT return.
If you need any further help with MTD, then please get in touch.
Our budget summary covers the key tax changes announced in the Chancellor’s speech and includes tables of the main rates and allowances. We will, of course, be happy to discuss with you any of the points covered and help you reassess your plans in the light of any legislative changes.
This month we look at the tax implications of employing your children in the business, we review the national minimum wage rises from 1 April 2018. Are you aware of the rent a room relief rules if you let a room in your own home? Other articles include PAYE codes and VAT penalties.
Welcome to our quarterly newsletter. In our 1st edition, we look at national insurance for the self employed, a new property allowance, the introduction of Simple Assessments and the government’s plans for Making Tax Digital which will start in April 2019.
We have summarised on one page all the key points announced in the November Budget. If you require further information on any of the changes please contact firstname.lastname@example.org
We have summarised all the key tax changes announced by Philip Hammond in this years budget and their effect on small businesses, landlords and individuals.