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MTD for VAT: guidance updated

2019-09-02T11:23:22+01:00June 16th, 2019|Categories: Blog, VAT|Tags: , , , , |

HMRC have published an updated version of their guidance for businesses on Making Tax Digital for VAT. In particular, the guidance now includes information on how businesses should deal with petty cash transactions. Petty cash is traditionally a small amount of cash on hand that covers day to day expenses of a business, such as buying a pint of milk. In some businesses it can be used to describe costs that are not attributable to an individual account in their records. Requiring businesses to record each of these transactions in digital records could be an unreasonable administrative burden for [...]

Spring Statement 2019

2019-09-02T11:21:53+01:00March 15th, 2019|Categories: Spring Statement|Tags: , , , , |

Summary Chancellor Philip Hammond has delivered his 2019 Spring Statement to the House of Commons. A supporting Written Ministerial Statement (WMS) provides more detail on some of the announcements in the Spring Statement, and sets out details of other forthcoming government policies. Mr Hammond opened his Statement by acknowledging that the most urgent task at present is to 'lift the uncertainty', but he also added a positive note, stating that the 'economy itself is remarkably robust'. The Chancellor indicated that if the UK does leave the EU with a deal, there will be an economic boost due to a [...]

Software requirements under MTD

2019-09-01T23:07:17+01:00November 22nd, 2018|Categories: Blog, HMRC, MTD|Tags: , , , |

Under HMRC's new Making Tax Digital (MTD) regime, which kicks in for VAT-registered businesses with a taxable turnover in excess of £85,000 from April 2019, businesses will no longer be able to keep manual records. Currently, spreadsheets are commonly used - not only to maintain records, but also to convert the information from accounting software into the VAT return figures. MTD requires spreadsheets to interact directly with software. Overcoming these issues may be challenging. Compatibility MTD requires businesses to maintain relevant information about sales and purchases in an electronic format, using 'functional compatible software'. Compatible software is a software product [...]

HMRC launch MTD campaign

2019-09-01T23:06:09+01:00November 4th, 2018|Categories: Blog, HMRC, MTD|Tags: , , |

According to recent research undertaken by the Institute of Chartered Accountants in England and Wales (ICAEW), over 40% of businesses that will be affected by Making Tax Digital (MTD) for VAT are not yet aware of it. With only six months to go until MTD goes live for some businesses in April 2019, HMRC have only recently launched a major communications campaign to try and build awareness amongst small businesses. The ICAEW survey also shows that although there has been a significant increase in the number of businesses now using accounting software, a quarter of all businesses are still [...]

HMRC launch MTD pilot

2019-09-01T12:04:27+01:00May 5th, 2017|Categories: HMRC|Tags: , , |

HMRC have already confirmed that they are committed to having Making Tax Digital (MTD) fully operational by 2020, and recently announced that they would be running a pilot scheme from April 2017 until April 2018. The pilot has now been launched, with customers (both businesses and agents) being invited to sign up for a new way to report income and expenses online. At different stages of the pilot, customers will help HMRC develop and improve the service by: - using accounting software to record their business income and expenses; - sending summary reports of their income and expenses direct [...]

Implementation timetable for Making Tax Digital extended

2019-09-01T11:59:18+01:00February 13th, 2017|Categories: HMRC|Tags: , , |

Following representations from the House of Commons Treasury Committee, HMRC have published proposals to undertake a year-long pilot of the Making Tax Digital programme. HMRC are committed to having Making Tax Digital fully operational by 2020, and a pilot scheme is expected to run from April 2017 until April 2018. Software developers have been invited to participate in the pilots, by asking their clients to sign up to trials. In the first six months of 2017, testing is scheduled for digital reporting of income from letting property, while participating taxpayers will be asked to report additional sources of income [...]

MAKING TAX DIGITAL

2019-09-01T11:42:23+01:00September 23rd, 2016|Categories: Blog, MTD|Tags: , , |

CONSULTATION OVERVIEW From 2018, the UK will have a digital tax system, which means most businesses, self-employed and landlords will need to use software or an app to keep their records digitally and update HMRC quarterly. This is all part of HMRC’s Making Tax Digital and with six consultations now released, here we review the key points you should be aware of. (If you are a small business or landlord you may be particularly interested in the exemptions section of Consultation One). Consultation One: Bringing business tax into the digital age This consultation focuses on the practicalities of digital [...]