The Economic Affairs Committee has warned HMRC that small businesses ‘could pay a heavy price’ for Making Tax Digital for VAT (MTDfV).
The Committee stated that HMRC has’failed to adequately support small businesses’ ahead of the introduction of MTDfV.
MTDfV is generally set to come into effect for the from 1 April 2019 for businesses which have a taxable turnover above the current VAT registration threshold of £85,000. Under MTDfV, businesses must keep some records digitally and submit their VAT returns via an Application Programming Interface (API).
The Committee has urged HMRC and the government to ‘start listening’ to small businesses MTDfV concerns.
HMRC recently sent businesses within the scope of MTDfV so-called ‘encouragement letters’. These letters were sent to 200,000 businesses which are eligible to join the pilot scheme.
It’s was an exciting start to the day, Crazy when you arrive with a monitor to run your prom presentation and realise you forgot your keyboard and mouse. But like all good accountants, we sorted it. Our branded water giveaway went down well right from the start and we got lots of interest in our making tax digital pitch.
The staff were brilliant in manning the stand and collecting lots of good enquires which we will be sure to try to convert into new clients.
There was a very good seminar – You’re hired. I wonder what inspired the title. Speakers sharing their experience in engaging the next generation of employees and more importantly keeping them.
The facilities at The Edge in the regenerated Wigan Pier area were superb.
We look forward to working in and with the Wigan Business Community. Contact us whether you have seen us at the Wigan Expo or not and we will help you with your accounting and tax matters.
HMRC has issued a Partnership Pack to help businesses carry out contingency planning and to help their customers, members and clients to:
think about how they will need to adapt their business to comply with new systems, processes and controls
assess the impact of the increased demand for customs declarations on their business
consider whether they need to recruit and train additional staff
stay up-to-date with these changes
Meanwhile the Confederation of British Industry (CBI) reports that ‘patience is now threadbare’ amongst UK businesses in regard to the government’s progress in its Brexit negotiations with the EU.
A survey, carried out by the CBI, revealed that 80% of firms believe that Brexit uncertainty is having a ‘negative impact’ on their investment decisions. The majority of businesses polled stated that they may have to implement ‘damaging’ contingency plans if no further progress is made by December.
Carolyn Fairbairn, Director General of the CBI, said:
‘The situation is now urgent. The speed of negotiations is being outpaced by the reality firms are facing on the ground.
‘Unless a Withdrawal Agreement is locked down by December, firms will press the button on their contingency plans. Jobs will be lost and supply chains moved.’
‘As long as ‘no deal’ remains a possibility, the effect is corrosive for the UK economy, jobs and communities.’
With less than 100 days until the self assessment tax return deadline of 31 January 2019, HMRC is urging taxpayers to complete their tax returns early, in order to avoid the last minute rush.
The deadline for submitting 2017/18 self assessment tax returns online is 31 January 2019. An automatic penalty of £100 applies if the return is late.
HMRC advise that last year, more than 11 million taxpayers completed a 2016/17 Self Assessment tax return, with 10.7 million completing on time. There were 4,852,744 taxpayers who filed in January 2018 (44.8% of the total), and 758,707 on 31 January, the deadline day.
HMRC is advising taxpayers not to leave the completion of their 2017/18 Self Assessment tax until the last minute.
Angela MacDonald, HMRC’s Director General for Customer Services, said:
‘The deadline for completing Self Assessment tax returns may be 100 days away, yet many of us wait until January to start the process. Time flies once the festive period is underway, yet the ‘niggle’ to file your tax return remains.’
‘We want to help people get their tax returns right – starting the process early and giving yourself time to gather all the information you need will help avoid the last minute, stressful rush to complete it on time. Let’s beat that niggle.’
Contact us for help with your self assessment tax return.
The Chancellor Philip Hammond presented his second Autumn Budget on Monday 29 October 2018. In his speech he stated that ‘austerity is coming to an end – but discipline will remain‘. He also promised a ‘double deal dividend’ if the Brexit negotiations are successful but stated that there may be a full-scale Spring Budget in 2019 if not.