Over two thirds of EU citizens that are currently in the UK are here for work. The government is advising that if these individuals plan to remain living and working in the UK, after it leaves the EU, they can now apply to the EU Settlement Scheme (EUSS).

EU, EEA, or Swiss employees, and their family members, can apply to the EUSS if they want to continue to live, work, and study in the UK after 31 December 2020. This applies whether UK leave the EU with a deal or with a ‘no deal’.

Under the scheme, successful applications will be granted either settled or pre-settled status. Status depends on how long they have been living in the UK when they apply. In both cases, they can continue to work in the UK, use public services like the NHS, and access public funds such as pensions. Irish citizens do not need to apply.

The government has created an employer toolkit to help EU citizens with their application. The toolkit includes items such as posters and videos and information on how to apply. Employers do not have any obligation to share any information or even check whether employees have applied. However, they may wish to offer reassurance to their employees and make sure they have the right information.

However, employers have a duty not to discriminate against EU citizens with regards to the UK’s decision to leave the EU, both as a prospective and current employer.

Internet links: Agent Update 72 GOV.UK EUSS

HMRC is phasing in its landmark Making Tax Digital (MTD) regime, which will ultimately require taxpayers to move to a fully digital tax system.

Under the rules, businesses with a taxable turnover above the VAT threshold (currently £85,000) must keep digital records for VAT purposes and provide their VAT return information to HMRC using compatible software.

The rules have effect from 1 April 2019 where a taxpayer has a ‘prescribed accounting period’ which begins on that date, or otherwise from the first day of a taxpayer’s first prescribed accounting period beginning after 1 April 2019.

However for some VAT-registered businesses with more complex requirements the rules do not take effect until 1 October 2019. Included in the deferred start date category are VAT divisions, VAT groups and businesses using the annual accounting scheme.

Businesses in the deferral group should have received a letter inviting them to join the MTD for VAT scheme. The scheme will be mandatory for the first VAT return period starting on or after 1 October 2019. The letter encourages businesses to join early in order to be prepared for 1 October 2019. However, it does highlight that once a business has joined MTD for VAT, the old system of filing VAT returns can no longer be used.

HMRC has announced that those entities that use the GIANT service for VAT will have their deferral period for MTD further extended. A mandation date has not yet been confirmed.

GIANT is the ‘Government information and NHS Trust’ service, a special online system that is used by the public sector bodies, such as the NHS trusts and government departments, to file additional information with their VAT returns.

Those affected should have received a letter in June from HMRC informing them of the extension to their deferral period. HMRC will write again later in the summer with details of the revised timetable.

Please contact us for help with MTD for VAT.

Internet link: GOV.UK MTD for VAT

Are you looking for a career in accountancy or maybe looking for a new challenge to expand your accountancy skills. Then have a look at the type of roles we are looking for at Careers at Mcginty Demack

So, if you are looking to join McGinty Demacks’ apprenticeship programme, or if you are already experienced in the accountancy field then why not apply.  Complete the application form on our website.

To help with connecting Quickbooks and Online Banking McGinty Demack have produced a fact sheet.

Quickbooks will soon be updating the way they link to your bank. This is to improve the connection and help provide a better service.

To help keep you informed of this change please see our FAQ sheet below.  If you have any questions please do not hesitate to contact us.

Open Banking FAQ

The government has launched a consultation on proposed reforms at Companies House, including a ‘major upgrade’ of its register.

The consultation aims to tackle misuse of the register. It also strives to provide business owners with ‘greater protection from fraud’.

The consultation seeks views on a series of reforms to limit the risk of misuse:

• knowing who is setting up, managing and controlling companies
• improving the accuracy and usability of data on the companies register
• protecting personal information on the register
• ensuring compliance, sharing intelligence and other measures to deter abuse of corporate entities

Louise Smyth, Chief Executive of Companies House, said:

‘This package of reforms represents a significant milestone for Companies House as they will enable us to play a greater part in tackling economic crime, protecting directors from identity theft and fraud, and improving the accuracy of the register.’

The consultation is open until 5 August 2019.

Internet links: GOV.UK consultation GOV.UK news