News

It has been confirmed the first ‘wave’ of 20,000 letters to affected businesses will hit doormats this week, followed by a further 180,000 to be issued next week.

If you are unaware, Making Tax Digital (MTD) for VAT is compulsory for all VAT registered businesses for VAT periods beginning on and after 1 April 2019. The requirement to keep digital records starts from this date but the first VAT return for a normal quarterly period, must be submitted by 7 August 2019.

HMRC will be running a social media campaign about Making Tax Digital (MTD) for VAT including Twitter posts and YouTube videos.

Please see the link below for more information regarding Making Tax Digital from HMRC:

https://www.gov.uk/government/news/hmrc-publishes-more-information-on-making-tax-digital

If you would like further information we are here to help! Give us a call on 01242 370298 or email us on office@wfrancisandco.co.uk

 

 

HMRC has published guidance for tax agents and advisers to help them manage the 31 January 2014 self assessment deadline. If individuals haven’t sent in their tax return yet they must be filed online by midnight on Friday 31 January 2014 to avoid a late filing penalty.

The new rules for repaying child benefit through the High Income Child Benefit Charge will mean there will be many taxpayers filing a tax return this year for the first time.

It is important for these taxpayers to be set up in good time if they have still to register for self assessment. To do this, use form SA1 Registering for Self Assessment and getting a tax return which can be completed and sent to HMRC online. It can take a few weeks to get the necessary Unique Taxpayer Reference and subsequently to register to file online.

Don’t forget too that the ¬£100 fixed rate penalty for filing late is now levied regardless of whether or not there is actually any tax unpaid at 31 January. This will feel particularly harsh for taxpayers who are due a repayment.

HM Revenue & Customs has stepped up its campaign against tax avoidance, by issuing a document warning of the risks entering into contrived schemes.

The four-page leaflet entitled Tempted by Tax Avoidance? warns “anyone tempted to use a tax avoidance scheme should think very carefully about the costs, the disruption caused by having to deal with HMRC enquiries and potentially lengthy litigation”.

“There is a big difference between using tax reliefs and allowances in the way in which they are intended to be used, and trying to bend the rules to avoid tax,” it adds.

George Osborne is facing calls to introduce a simple flat tax system after it emerged that some middle income families are paying an effective rate of 73% because they have been deprived of their child benefit. Simon Walker, the director general of the loD, said that such a large “marginal” tax rates on hard pressed families who are struggling to make ends meet “degrades the motivation to work”.