Month: July 2020

Making Tax Digital – When will the next stage start?

The dates for MTD for Business seem to change constantly, the Government and HMRC seem unable to create a plan and stick to it.

Yesterday we had a new announcement

From April 2022, the programme will be extended to all VAT registered businesses with turnover below the VAT threshold (£85,000), and from April 2023, it will apply to taxpayers who file income tax self-assessment tax returns for business or property income over £10,000 annually. https://www.gov.uk/government/news/government-sets-out-draft-agenda-for-a-21st-century-tax-system

The income tax pilot has been running for sometime now and it was expected to go live in April 2021 so basically its been pushed back 2 years.

But in the meantime all VAT registered business need to adopt digital ways to prepare and file VAT as a priority and it will become enforceable by 2022.

What is MTD for Income Tax?

  • Digital business records
  • Quarterly summary of income and expenditure sent to HMRC via software
  • Add personal income at the end of the year
  • Finalise affairs using software – replaces existing Self Assessment Return
  • For sole traders, landlords and partnerships
  • Affecting around 1million tax payers
  • Will include bank interest, dividends, charitable giving

steve@bicknells.net

 

Summer Economic Update 2020 – Is there a give away for you?

Chancellor Rishi Sunak presented the Summer Economic Update against a backdrop of economic uncertainty caused by coronavirus (COVID-19) lockdown.

 

Our summary of the Summer Economic Update provides an overview of the key announcements arising from the Chancellor’s speech. Measures include a new Job Retention Bonus to support the phasing out of the Coronavirus Job Retention Scheme (CJRS), a VAT reduction for businesses in the hospitality and tourism sector and a temporary increase to the nil-rate band of residential Stamp Duty Land Tax (SDLT).

 

Additionally, throughout the Summary you will find informative comments to help you assess the effect that the proposed changes may have.

 

If you would like more detailed, one-to-one advice on any of the issues raised in the Chancellor’s speech, please do get in touch.

 

steve@bicknells.net

Companies House deadlines extended automatically

Extension of deadlines for filing accounts from 27 June 2020

From 27 June 2020, more companies will get an extension to their accounts filing deadline. Companies House will extend your company’s filing deadline if it falls any time from 27 June 2020 to 5 April 2021 (including these dates).

Company type Company has not had an extension or shortened their accounting reference period
Public limited companies (PLCs)* Filing deadline extended from 6 to 9 months
Private company Filing deadline extended from 9 to 12 months
LLP Filing deadline extended from 9 to 12 months
Overseas companies who are required to prepare and disclose accounts under parent law Filing deadline extended from 3 to 6 months
SEs* Filing deadline extended from 6 to 9 months

*For PLCs and SEs whose original accounts filing deadline fell on or after 30 June 2020 before it was extended by the Corporate Insolvency and Governance Act 2020, this extension will apply and supersede the extension under the Act.

Confirmation statement

Companies and other types of business registered at Companies House will get more time to file their confirmation statement.

The current 14 day deadline (from the end of your review period) will be extended to 42 days. It will apply to:

  • companies
  • LLPs
  • Scottish limited partnerships (SLPs)
  • Scottish qualifying partnerships (SQPs)
  • SEs

It’s an automatic extension – you do not need to apply for more time.

https://www.gov.uk/government/publications/the-companies-etc-filing-requirements-temporary-modifications-regulations-2020/temporary-changes-to-companies-house-filing-requirements