Nigel Gorski Consulting - Chartered Accountant & Business Consultant
  • Home
  • Accounting
  • Tax
    • Digital Tax
    • Business Tax
    • Personal Tax
  • Planning
  • Training
  • About
    • Contact
    • Testimonials
    • The Small Print
  • News
  • Privacy
  • Home
  • Accounting
  • Tax
    • Digital Tax
    • Business Tax
    • Personal Tax
  • Planning
  • Training
  • About
    • Contact
    • Testimonials
    • The Small Print
  • News
  • Privacy

MTD – Preparing Your Business

3/27/2019

0 Comments

 
Picture
For many businesses the ability to log onto HMRC and manually complete and submit a VAT return is being removed.  The following changes are taking place:


  • HMRC are changing servers and the functionality to submit VAT returns the old fashioned way will not be available to many businesses
  • Businesses and agents will need new gateway credentials to use the new server
  • You will be required to keep digital records of your VAT returns for 6 years
  • The only way to submit a Vat return for periods beginning on or after 1 April 2019will be to use compliant software and submit from that software  - if your next VAT return is April 19 then it will be fine to do it the old fashioned away and your July return will be the first one due under the new regime so there is a little time yet
Clients preparing their own VAT returns:

  1. You will need to check with your software supplier that they are MTD compliant – most of the major names are working on this but people using older Sage desktop versions should check for upgrades that are MTD compliant
  2. You may need to activate your software
  3. You will need to check your HMRC log in and ensure it is MTD ready
 
For clients who use book keepers and myself, we are in the process of setting up agent services accounts and securing additional software as we’re ready in good time.
 
So in reality a business filing a quarterly return from April to June 2019 is likely to be first affected by the change with the filing date of 7 August 2019 being unchanged.
 
HMRC have issued guidance on this link.

0 Comments

Useful Reliefs – Tax return or Not?

3/27/2019

0 Comments

 
Picture
As we approach the end of the tax year, It’s worth reminding you of some useful reliefs to enable you to consider if you owe any tax or indeed need to complete a tax return. 
 ​

  • Property Allowance – £1,000
  • Trading Allowance - £1,000
  • Rent a room relief - £7,500
 
Property and Trading Allowance - Where the £1,000 allowances cover allof the income (no expenses are ever allowed) then you don’t need to declare it.  In the case of these being your only other source of income it means you don’t need to do a tax return anymore.
 
So for example, you’re a teacher and you do some tuition earning £15 a week then previously you should have completed a tax return and provided you don’t have any income other that your PAYE salary then you probably don’t need to do a tax return.  There is quite a bit more to this particularly where people have a main sole trade and a ‘hobby business’ and the detail can be found on this link.
  
The Rent a Room Scheme lets you earn up to a threshold of £7,500 per year tax-free from letting out furnished accommodation in your home. This is halved if you share the income with your partner or someone else.  You can let out as much of your home as you want. If income falls below this limit (as with the above reliefs, you can’t deduct costs), then the relief is automatic and provided there is no other reason to complete a tax return, you don’t need to do one.
Follow this link for more information. 

As a reminder if you need to complete a tax return you must register by 5thOctober to be sure to avoid a penalty.  It’s important to note that if you do need to complete a tax return and fail to do one, HMRC ‘not sending you one’ is not considered a reasonable excuse if you are subject to a compliance check.
0 Comments

Personal Allowances & National Insurance - What's Changed?

3/27/2019

0 Comments

 
The following personal allowances will take place with effect from 6thApril 2019:
 
  • Personal Allowance £12,500
  • Point at which you pay higher rate tax £50,000
  • Child Benefit starts to reduce from £50,000
  • Point at which you start to lose your Personal Allowance remains at £100,000
  • Additional rate tax commences at £150,000
  • The point at which Company Directors and Sole Traders pay National insurance rises to £8,632
0 Comments

Employing People - What You Need To Know

3/27/2019

0 Comments

 
Picture
Photo by Free To Use Sounds on Unsplash
There might not have been a budget in March, but lots is changing on the employment front.
 
National Minimum (NMW) and Living Wages will increase from 1 April 2019.  The changes are as follows:
Age Group

National Living Wage (25+)

NMW (21-24)

NMW (18-20)

NMW (16-17)
April 2018

£7.83 p.h.​

​£7.38 p.h.

​£5.90 p.h.

​£4.20 p.h.
April 2019
​
​£8.21 p.h.

​£7.70 p.h.

​£6.15 p.h.

​£4.35 p.h.
It’s important to note that the change is 1 April and not6thApril so wages and salaries change before the end of the tax year.  HMRC continue to remain responsible for policing this and with the payroll data that is now submitted its pretty easy to tell who’s not complying!
 
Following the increases, its also really important that you also check to see if an employee needs to be taken into a pension scheme as the £10,000 trigger remains unchanged which means more people are likely to qualify.  The Pensions Regulator has a useful toolkit here:
 
https://www.thepensionsregulator.gov.uk/en/employers
 
Pension contributions will also rise and this link is particularly helpful.

For more detailed advice, why not contact me here?
0 Comments

    Nigel Gorski

    Say it as it is and you'll never be misunderstood. Here in the Blog you'll see news posts on many topics of interest to your and your business...

    Archives

    October 2024
    March 2024
    November 2023
    March 2023
    November 2022
    October 2022
    September 2022
    March 2022
    October 2021
    March 2021
    November 2020
    June 2020
    March 2020
    December 2019
    August 2019
    March 2019
    October 2018
    March 2018
    November 2017
    October 2017
    September 2017
    March 2017
    February 2017
    November 2016
    October 2016
    August 2016
    May 2016
    April 2016
    March 2016

    Categories

    All
    2015
    2017
    2020
    2022
    2024
    Accountancy
    Advice
    Allowances
    Budget
    Business
    Business Tax
    Christmas
    Claim Allowances
    Company
    Company Accounts
    Company Vehicles
    Directors
    Dividend
    Flat Rate
    Gift Aid
    HMRC
    Income
    Inheritance Tax
    Interest
    Investment
    Let
    Lettings
    Making Tax Digital
    MTD
    National Insurance
    News
    Party
    Personal Allowances
    Property
    Self Assessment
    Self Employed
    Tax
    TAX Rate
    Tax Returns
    Trivial Benefits
    Vans
    VAT

    RSS Feed

© Nigel Gorski Consulting 2016, Nigel Gorski BA ACA (Sole Practitioner), c/o TNT Marketing, North Vale Mill, Brighouse, HD6 4DJ
Telephone: 
07980 270610
Website & Marketing by TNT Marketing
Photo from Ivan Radic