Bird & Co – Newsletter May 2017
Bird & Co Accountants – Newsletter May 2017
Written by Pete Bird for the Yaxley , Stanground and Hampton Gazette’s May 2017
Making Tax Digital
End of the Self-Assessment Tax Return.
Mandatory digital record keeping and reporting for businesses will be phased in from April 2018. Unincorporated businesses with turnovers above the VAT threshold will be the first to make quarterly reports.
Making Tax Digital (MTD) aims to create one digital account for each taxpayer incorporating all of your taxes. Quarterly filing obligations will be imposed for businesses and landlords, with a view to enabling you to track your business transactions as and when they occur. At present, there is no plans to change the tax payment dates, although a voluntary ‘pay as you go’ system will be introduced.
From April 2018 unincorporated businesses (self-employed, sole traders and partnerships) and landlords with annual turnover above the VAT threshold (currently £85,000) will be required to keep digital records and send HMRC quarterly updates. From April 2019, unincorporated businesses and landlords with turnover below the VAT threshold will need to comply with the new rules. All incorporated businesses (limited companies) and landlords will be required to meet the MTD filing requirements from April 2020. Those with an annual turnover of less than £10,000 will be exempt from digital record keeping and quarterly updates unless they choose to enrol.
If your accounting year end is 5 April, your turnover is over £85,000, your first quarterly update will be for the period 6 April 2018 to 5 July 2018. However, if your year end is 31 March, your first quarterly update will therefore be from 1 April 2019 to 30 June 2019, a delay of one year.
At the moment as we understand the position, after four quarterly updates have been submitted, there is a period of 10 months for the reconciliation of end of year accounts and final submission of any adjustments or further claims necessary.
We believe that, for most clients, MTD will be a positive transition, which should simplify reporting, making taxation more efficient and accurate through the use of digital tax accounts – we just have to get over the transition period. How we manage and budget for this change will depend on the software available, and we will be working closely with our clients to ensure a smooth transition.
Dates to Remember:
1 May 2017 – Due date for Corporation tax for companies with an accounting period ended 30 July 2016.
7 May 2017 – Due date for for filing and payment of VAT for the period ended 31 March 2017, unless you submit a paper return then the date is 30 April 2017.
31 May 2017 – Deadline for employers t give their employees their P60 for the tax year 2016-2017.
19th of the Month:
Due date for postal payments of PAYE, NIC and CIS deductions and on-line filing deadline for CIS monthly return
22nd of the Month:
Due date for electronic payments of PAYE, NIC and CIS deductions to HMRC.
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