By having an Accountant who keeps up to date with changes to the tax system means you will always be kept in the ‘know’. At Central Business Services we keep up to date with the legal requirements to ensure you pay the right taxes (but no more)
The government plans to phase in its landmark Making Tax Digital (MTD) initiative over the coming years, this will see taxpayers move to a fully digital tax system. However, HMRC has shared a statement about how they are prioritising change in the department and as a result some parts of MTD will be delayed. HMRC has acknowledged the challenges in:
- exiting the EU and
- the ambition to become the world’s most digitally advanced tax authority
HMRC have announced that, to achieve the above whilst the finer details are still being decided, that they will still go ahead with MTD for VAT from April 2019. Information on some of the delayed projects are set out below…
INTRODUCING FURTHER DIGITAL SERVICES FOR INDIVIDUALS
There will be ‘halted progress’ on simple assessment and real-time tax code changes. Additional services in this area will only be added where they reduce phone or post contact or otherwise deliver ‘significant savings’.
DIGITALISATION OF SERVICES AFFECTING FEWER INDIVIDUALS
This includes Inheritance Tax payments, Tax Advantaged Venture Capital Schemes applications and PAYE Settlement Agreements
CREATION OF THE SINGLE DIGITAL ACCOUNT FOR ALL BUSINESSES
This will now happen at a ‘slower pace’ HMRC confirmed. The single digital account remains an aim of the department and they stress it will not impact the delivery of Making Tax Digital.
VOLUNTARY MAKING TAX DIGITAL FOR BUSINESS SERVICE FOR INCOME TAX
This has been confirmed by HMRC and this will continue to be available for any sole trader wishing to make quarterly updates to HMRC.
MANDATORY MAKING TAX DIGITAL FOR VAT
MTD for VAT is still going ahead. VAT registered businesses with a turnover in excess of the £85,000 VAT registration threshold, will be required to comply with the requirements of MTD for VAT for all VAT periods commencing on or after 1 April 2019.
The government has confirmed that, it will not mandate any further MTD for Business changes before 2020, at the earliest.
We can help you with software solutions to help you comply with the requirements and keep costs to a minimum. Quickbooks® Online is only one of the software products we can help with. We also use Xero, KashFlow, Sage – and many more. Whether you are already using software or need help in deciding what to use, talk to us.
Take advantage of our free initial consultation to discuss your accountancy, bookkeeping and financial planning requirements Contact us via our website or by telephone – (01509) 816150 one of our team will be happy to assist.