Two years ago it was proposed that HMRC was to move towards a fully digital based tax system, making tax digital or MTD for short. This affects all businesses and by the end of the tax year 2018/19 these changes may affect you and your business. By 2020/21 all businesses will be affected. These changes are coming and you will be expected to update HMRC every quarter. Quick Books have produced a guide which can be downloaded here. HMRC have information on their website regarding these changes. If you have any queries as to how you will be affected and
In a surprise move, Chancellor Hammond reversed his decision announced in the budget little more than seven days ago. Amid controversy over the possibility of the proposed changes being in contravention of a manifesto pledge, the U turn overturned plans which would have affected small business owners and the self-employed. The letter Chancellor Hammond sent to the Chair of the Treasury Select Committee, ahead of this announcement today can be read here on the .gov website. So where does this leave you, the self employed, small business owner? I can advise on all your tax, NIC and VAT queries. I
Chancellor Philip Hammond delivered his budget on Wednesday 8th March and defended the generally controversial changes to Class 4 NIC on Thursday 9th March. The changes are widely unpopular as they appear to break a 2015 manifesto pledge not to raise taxes. But politics aside, what are the facts behind Chancellor Hammond’s budget? How will it affect you and your business? For full details of what this budget means for self-employed business owners contact Jenny who can advise on all tax matters. Read the full budget here A copy can be downloaded here Or read the summary from the .gov.uk
In a little over a year, many businesses will be required to keep digital records of their finances. Sole traders, small businesses, including landlords and the self-employed, will be required to keep records of their income and expenditure digitally, and send summary updates quarterly to HMRC from their software or app. It is estimated that £8billion is lost to HMRC each year due to avoidable taxpayer errors. This failure, along with the drive to turn the department into a modern digital online service provider are the objectives behind the changes. Contact Jenny at JMJ Bookkeeping for full details of what the
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The next deadline for submitting your tax return falls on 31 January and this is for online submissions. Don’t forget about this deadline. If you have any queries regarding your tax affairs please contact us. We can help with personal and business tax returns and ensure that your financial records and books are up to date. Don’t fool yourself into thinking the deadline is open to negotiation. HM Revenue and Customs reveal here the top 10 worst excuses for missing the deadline. If you are planning to make 2017 the year you take the plunge into self-employment, speak to us.
Update for business owners. The Autumn Statement was Chancellor Philip Hammond’s first major announcement since taking office. As well as new information about the state of the UK economy, it included some key points for small businesses. Tax The tax free personal allowance will rise to £12,500, and the higher rate threshold to £50,000, by the end of the parliament. The personal allowance will rise at least in line with inflation from that point. The Chancellor said the government had put a “business-led recovery” at the heart of their plan. Following this, he confirmed that corporation tax will fall to
This government has promised that by the end of the current parliament everyone will have a digital tax account and during 2016 five million small businesses gained access to this with the creation of their own online digital account. This is one of the biggest changes to take place in the way we manage and pay our taxes and it is promised that we will see a much more user friendly way to deal with paying taxes with many not having to complete a tax return. There will be a period of transition which has started and is proposed that
Different ways to submit your tax return Depending on how you choose to submit your tax return, the deadline for submitting it will be different. Paper tax returns need to be filed by 31 October. So for tax returns relating to the year April 2015 to April 2016, for example, all paper returns should be submitted by 31 October 2016. If you are not registered to file your tax return online you have already missed the deadline for paper returns. Contact us on 01677470780 if you are worried in any way about your tax submissions. Ask for Jenny. I can help.