Newsletter October 2018

Making Tax Digital - Update

As reported a year ago, MTD is being introduced for all tax payers and many self employed taxpayers and property landlords are still unaware of HM Revenue and Custom's radical plans to transform the tax online filing system. 


The Facts
• The way that you report your business profits to HMRC is changing.
• From April 2017 the cash reporting rules change for the self employed and for property landlords.
• From April 2019 VAT registered traders, whose taxable supplies exceed the VAT registration threshold (currently £85,000) at some point on or after 1 April 2019, will have to report to HMRC under a new Making Tax Digital reporting sequence.
• From April 2020, the self assessment tax return is being replaced by five new reporting obligations made during and after the tax year, but more on this at a later date when further details are replaced.
• Your first tax return under the new system is due in the fourth month of you accounting period, you will then have to file with HMRC every three months.
• If you are not already using software for your record keeping/accounting, you will need to learn how to use a spreadsheet, or some type of accounting software or App.
• You will need a reliable internet connection and a facility to store your electronic data.
MTD for VAT
• If you are a VAT registered business with taxable supplies (non-exempt turnover), which exceeds the VAT registration threshold you will be mandated into MTD for VAT from 1 April 2019.
• You will have to keep digital records and file returns under MTD for the first VAT return commencing after 1 April 2019.
• If you are not VAT registered but your taxable supplies exceed the VAT registration threshold on or after 1 April 2019, you will be mandated into MTD for VAT from your VAT registration date.
• If you are VAT registered but your taxable supplies do not exceed VAT registration threshold at 1 April 2019, you are exempt from MTD for VAT until the first day of the month following the end of the first 12 month period ending after 1 April 2019 where your taxable supplies do exceed the threshold. For example, if the first time you cross the VAT threshold is the 12 months ending 30 November 2019, you are mandated into MTD for VAT from 1 December 2019, even if you have been VAT registered for many years.
• Once in MTD for VAT, you remain in MTD for VAT unless you deregister for VAT.
• Under MTD for VAT, you complete the same number of VAT returns as currently (4 for quarterly, 12 for monthly, 1 for Annual Accounting). The due dates remain the same.

We would be only too pleased to assist you in any way if necessary.


DATES TO REMEMBER:

1 October 2018- Due date for Corporation tax for companies with an accounting period ended 31 December 2017.

7 October 2018- Due date for filing and payment of VAT for the period ended 31 August 2018, unless you submit a paper return then the date is 30 September 2018.

31 October 2018- Due date for filing your paper self assessment tax return for the year ended 5 April 2018.


Monthly Dates:

19th of the Month:

Due date for postal payments of PAYE, NIC and CIS deductions and on-line filing deadline for CIS300 monthly return to HMRC.

22nd of the Month:

Due date for electronic payments of PAYE, NIC and CIS deductions to HMRC.



0 0
Feed