Yesterday the Chancellor announced various measures to help both businesses and employees. The following links give a lot of detail into what has been put in place so far to help:
Guidance for businesses:
Guidance for employees:
More information will follow in the next few days and we will update you when we know more.
We are here to help so please get in touch if you have any queries on 01242 370278 or email email@example.com
HMRC have said that there are still three million tax returns left to submit by Friday 31st January 2020. HMRC started 2020 with five million tax returns still outstanding. Although two million have been filed this month, there is still a considerable amount left to submit in the last four days!
The below link explains that the introduction of the VAT domestic reverse charge for construction services that was due to be introduced in October 2019, will be delayed for a period of 12 months until 1 October 2020.
Find out more here
Inheritance Tax: Rules on gifts to loved ones ‘should be simplified’
Fewer people should have to pay tax on gifts given just before death, under proposals for a major overhaul of the inheritance tax system. Please see the link below for more information:
A glitch within the HMRC self assessment system has meant that some taxpayers were not informed of the amount of tax to pay on account by 31 January 2019 and this problem won’t be fixed before 31 July 2019.
In January 2019, HMRC were experiencing a number of computer errors including the omission of tax demands for payments on account (POA) for 2018/19 from some taxpayers’ statements. This problem applies to the taxpayer’s online personal tax account, as well as to paper statements of account issued by HMRC.
This problem also arose for 2017/18 where some taxpayers’ statements did not show the POA, which was due to be paid by 31 July 2018.
How many are affected?
HMRC recognises that this is a real issue. When contacted for comment on this story a Revenue spokesperson said “We are aware of an issue with payment reminders for a small number of customers. Anyone who is affected should contact us and we’ll put it right. Nobody will be charged additional interest due to this problem.”
However, judging by the number of queries on the HMRC agent forum, this is a widespread problem.
The professional tax and accountancy bodies have complained, and HMRC has apologised to those bodies, but it has made no attempt to tell the affected taxpayers what to do. HMRC has also said it can’t fix the problem of missing POA demands in time for the 31 July 2019 payment date.
HMRC has confirmed that if the demands for POA have been omitted from the taxpayer’s statement, that taxpayer will not be charged interest as long as full payment of all the tax due for 2018/19 is made by 31 January 2020.
Nearly 1.1 million businesses have yet to register for MTD, according to the results of a Freedom of Information (FOI) request sent to HMRC by cash flow service Float.
Additionally, the data suggests that only 2% of accounting firms have registered any clients for MTD, from an estimated 72,000 tax ‘agents’ nationwide.
Float said that many businesses are “still unaware of MTD or are uncertain of what action needs to be taken to become compliant.” The company added that the MTD registration process is “confusing” and that HMRC have “much more to do to alert businesses to the change in the law”.
If you are VAT registered and would like more information regarding MTD and MTD compliant software then please give us a call on 01242 370298 or email us on firstname.lastname@example.org
At the beginning of January approximately 48% of returns nationwide were still to be filed!
By the end of the month 94% of all Self Assessment Tax Returns were successfully filed on time.
It isn’t too late, there’s still time to complete your 2018 Tax Return before the deadline of 31 January 2019, to avoid a £100 penalty.
If you require our assistance call us on 01242 370298 or email email@example.com
Records show that as at 1st January 2019 47.9% of all the anticipated 2017/18 Income Tax Returns remain to be filed in the final month of the filing period.
That amounts to 4,541,784 Tax Returns and history has shown that approx. 50% of those Returns are going to be filed by Accountants. This has been the case since the inception of Self-Assessment, which means we are going to be incredibly busy throughout January!
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:
If you would like further information we are here to help! Give us a call on 01242 370298 or email us on firstname.lastname@example.org