Xero Certified Migration and Making Tax Digital Advisors
Steve Bicknell has just become a Certified Migration and Making Tax Digital Advisor under the MTD course launched by Xero.
Making Tax Digital starts in April 2019 for businesses over the VAT threshold, but many businesses owners are unaware of the impact it will have on their business and that they will need API software in order to submit returns.
From 2020 we expect to see all businesses – Landlords, Sole Traders, Partnerships, Companies, Charities – with an income over £10,000 having to report their Profit and Loss to HMRC every quarter and then prepare a 5th return for year end adjustments.
This is a massive change and many businesses are currently using incompatible software which will not create digital links, is not approved by HMRC and is not API compliant.
If you want to discuss how Making Tax Digital will affect your business, please get in touch or come to one of our MBL seminars.
Do you pay SDLT on Properties Transfers within a Group?
Finance Act 2003 Schedule 7 has the answer
Many Properties Transactions within Groups of Companies are Exempt from SDLT
Stamp duty land tax: group relief and reconstruction and acquisition reliefs
1(1)A transaction is exempt from charge if the vendor and purchaser are companies that at the effective date of the transaction are members of the same group.
(2)For the purposes of group relief—
(a)“company” means a body corporate, and
(b)companies are members of the same group if one is the 75% subsidiary of the other or both are 75% subsidiaries of a third company.
(3)For the purposes of group relief a company (“company A”) is the 75% subsidiary of another company (“company B”) if company B—
(a)is beneficial owner of not less than 75% of the ordinary share capital of company A,
(b)is beneficially entitled to not less than 75% of any profits available for distribution to equity holders of company A, and
(c)would be beneficially entitled to not less than 75% of any assets of company A available for distribution to its equity holders on a winding-up.
However this group relief can be clawed back if the group relationship is broken within three years
Transfer of property between companies
Companies can claim relief within the same group that buy or sell property to or from each other. The buyer of the property can claim the relief if:
- the buyer and seller are both companies
- at the effective date of the transaction both companies are members of the same group
Certain conditions and restrictions apply to SDLT Group Relief.
To claim it, enter relief code ‘12’ in the SDLT return.
Find out more in the HMRC SDLT manual.
Stamp Duty Land Tax relief for land or property transactions – GOV.UK (www.gov.uk)
It’s Official! — Bournemouth Chamber of Trade & Commerce
Our Social Enterprise has been formed. CORPORATE SOCIAL RESPONSIBILITY AWARD LTD CIC Company number 11259411 Our official launch will be at our BH Banter on Monday 9th April at 6pm at Ocean Beach Hotel, 32 East Overcliff Drive, Bournemouth BH1 3AQ. We want you to be there!!! book in now https://www.bournemouthchamber.org.uk/event/bhbanter-april/ The purpose of the […]
via It’s Official! — Bournemouth Chamber of Trade & Commerce
How to succeed at Speed Networking
Speed Networking is great fun, so don’t miss the chance to do it at our next BH Banter on Monday 5th March. To be successful at Speed Networking you need to do the following Prepare You will only have a couple of minutes to explain who you are, what you do and why people want […]
via How to succeed at Speed Networking — Bournemouth Chamber of Trade & Commerce
Who cares about corporate social responsibility? — Bournemouth Chamber of Trade & Commerce
Bournemouth Chamber of Trade and Commerce care! For us Social Responsibility encompasses Supporting Charities Supporting Employees Supporting Local Businesses If we want a sustainable, inclusive and successful local economy all three of the corner stones above are vital. Surely no one can deny the importance of the three areas of social responsibility we have outlined. […]
via Who cares about corporate social responsibility? — Bournemouth Chamber of Trade & Commerce
Why do we leave Self Assessment Returns until the last minute?
It seems to me that there are basically two types of taxpayer and the split is pretty even.
The first type are ‘Organised Planners’, they prepare things as early as possible, work out what tax might be due and how they will pay it, look at ways to change things and file early. They will always pay less tax because they have had a chance to consider their options – Pensions, Gift Aid, SEIS, EIS and other things that reduce tax – they also tend to have a full set of records neatly posted on their accounting system.
The second type are ‘Just in Time’, whatever the deadline, they put things off. The problem with this is that often this means things get forgotten and paperwork gets lost, there is no time to prepare or plan and the tax will be payable immediately.
The added problem this year is that Credit Card Payments are no longer an option
In 2016, personal credit card payments for tax numbered 454,000 making of total of £741 million and resulting in £3.2 million in bank fees.
These payments were largely made by small businesses, looking to manage bulk payments by putting them on a credit card that could then be paid off over time.
Below are some statistics from HMRC from 2012, but I think that little has changed and the statistics will be similar this year.
I don’t think anyone would say they enjoy paying tax or filling in forms, so in some ways you can understand why some people put it off and do it ‘just in time’.
Last year HMRC reported
29 January was the busiest day with 513,271 returns completed – that’s more than 21,386 returns received per hour. The busiest time was between 14:00 and 15:00, with 50,358 customers – 14 per second – clicking submit.
If you haven’t done your return, do it now, don’t wait till 11.59 on 31st January.