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.

• 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.

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