Basically there are 2 procedures to correct errors at companies house.
Amending Published Accounts
You must send amended accounts to Companies House on paper.
Amended or corrected accounts must be for the same period as the original accounts.
You must clearly say in your new accounts that they:
- replace the original accounts
- are now the statutory accounts
- are prepared as they were at the date of the original accounts
You must write “amended” on the front – the accounts may be rejected as duplicates if you don’t.
Your original accounts will remain on file at Companies House.
If you only want to amend one part of your accounts, you need to send a note saying what’s been changed. The note must be signed by a director and filed with a copy of the original accounts.
Depending on the changes made you might also need to change the corporation tax returns!
Second Filing of Documents (RP04)
The Finance Bill 2017 was to be the largest at 762 pages but in order to rush it though it was cut to 148 pages!
That’s an 80% reduction dropping 72 out of the 135 clauses and 18 out of 29 schedules.
One of the items dropped was Making Tax Digital (MTD).
But its widely expected that following the general election there will be another bill to bring in all the items that were dropped.
Our tax system is already far too complex:
- 6,102 pages of legislation (according to Tolleys in 2012)
- 639 monetary values
- 425 thresholds
- 214 penalties
Its a shame they couldn’t cut all the tax rules by 80%!
Capital Allowances are for commercial properties.
They can be worth a lot money, sometimes a third of the property value can be plant and machinery and they are often over looked and under claimed.
There are companies who say you can claim them for HMOs but that doesn’t fit with rules!
Yes you could but them on your tax return but that doesn’t mean you have a valid claim as HMRC have process now and check later approach.
Here are the rules…
Capital Allowances Act 2001
The person’s expenditure is not qualifying expenditure if it is incurred in providing plant or machinery for use in a dwelling-house.
General: Definitions: Dwelling house
There are several references to dwelling house in CAA2001. The term appears in Part 2 (plant and machinery allowances), Part 3 (industrial buildings allowances), Part 3A (business premises renovation allowances), Part 6 (research and development allowances) and Part 10 (assured tenancy allowances).
For Part 10 (ATA) only “dwelling house” is given the same meaning as in the Rent Act 1977 (CAA01/S531).
There is no definition of “dwelling house” for the other Parts and so it takes its ordinary meaning. A dwelling house is a building, or a part of a building; its distinctive characteristic is its ability to afford to those who use it the facilities required for day-to-day private domestic existence. In most cases there should be little difficulty in deciding whether or not particular premises comprise a dwelling house, but difficult cases may need to be decided on their particular facts. In such cases the question is essentially one of fact.
A person’s second or holiday home or accommodation used for holiday letting is a dwelling house. A block of flats is not a dwelling house although the individual flats within the block may be. A hospital, a prison, a nursing home or hotel (run as a trade and offering services, whether by the owner-occupier or by a tenant) are not dwelling houses.
A University hall of residence may be one of the most difficult types of premises to decide because there are so many variations in student accommodation. On the one hand, an educational establishment that provides on-site accommodation purely for its own students, where, for example, the kitchen and dining facilities are physically separate from the study-bedrooms and may not always be accessible to the students, is probably an institution, rather than a “dwelling-house”. But on the other hand, cluster flats or houses in multiple occupation, that provide the facilities necessary for day-to-day private domestic existence (such as bedrooms with en-suite facilities and a shared or communal kitchen/diner and sitting room) are dwelling-houses. Such a flat or house would be a dwelling-house if occupied by a family, a group of friends or key workers, so the fact that it may be occupied by students is, in a sense, incidental.
The common parts (for example the stairs and lifts) of a building which contains two or more dwelling houses will not, however, comprise a dwelling-house.
Whilst we know that due to the election Making Tax Digital was dropped from the Finance Bill, we also know HMRC has said it will be back as soon as the elections are over!
The plan is that by 2019 VAT returns will be abolished for businesses including the Self Employed, Landlords and Partnerships.
But don’t start celebration too soon, they are being abolished because we will be providing more information each quarter online to HMRC.
Interestingly HMRC say they may be able to accept spreadsheets if they meet specific criteria, but realistically, surely everyone should now be using online accounting software. DIY spreadsheets are not the best way to keep your accounts and there is a high risk of error.
Why create your own spreadsheet when you can get software like Sage One Start for £6/mth or you might get an even better deal if you ask a Sage One Accountant.
So what is the expected timetable for Making Tax Digital
- April 2018 – quarterly reporting for income tax purposes for unincorporated businesses with a turnover over £85,000
- April 2019 – quarterly reporting for both incorporated and unincorporated businesses for income tax and VAT
- April 2020 – quarterly reporting for corporation tax purposes
2018 is just the beginning as Sage explain …
What Making Tax Digital really means
- All self-employed individuals, landlords and incorporated entities with business income over £10,000 will be required to keep digital records of all their income and expenditure and submit these records electronically to HMRC. Those in employment who have secondary income of more than £10,000 per year through self-employment or property will also be affected.
- HMRC will not provide you with the tools for digital record keeping and submission. These will be offered through commercial software providers.
- Those affected have the option to make the electronic submission in collaboration with their accountant or bookkeeper or can do this on their own.
- Updates to HMRC will need to be made at least quarterly, taxpayers will have an option to pay tax based on their quarterly submissions, if they wish.
- Any activity at the end of the year must be concluded and sent either by ten months after the last day of the accounting period, or by 31st January, whichever is sooner.
The truth is, we don’t know exactly what the rules will be until the bill is drafted which won’t be till after the election, but what we do know is that big changes are coming!
MBL Seminars have invited me give full day seminars on Making Tax Digital – Bristol, Cambridge, Manchester and London.
Click on this link to book a place http://www.mblseminars.com/Outline/Making-Tax-Digital—A-Guide-to-Digital-Online-Filing/8641
The rules say….
If you’re an employee and work at sea, you may be able to reduce your tax bill by getting the Seafarers’ Earnings Deduction.
To get the deduction you must have:
- worked on a ship
- worked outside of the UK long enough to qualify for the deduction – usually a minimum of 365 days
- been resident in the UK or resident for tax purposes in a European Economic Area (EEA) State (other than the UK)
You can’t get the deduction if you were:
- a Crown employee (eg, a Royal Navy sailor)
- not a UK resident
- not a resident of an EEA State (other than the UK)
If you had more than one job you’ll still get the deduction against your seafarer pay if you meet all the conditions.
So if you are self employed – Sole Trader or Partnership – you can’t be an employee.
If you work on cruise ship or a shipping line you will probably be an employee so that’s fine but if you would on other ships then you should create your own Limited Company so that you can be an employee.
HMRC are actively investigating many self assessment returns where the claim for Seafarers Deductions has been incorrectly made.
The mechanics of the deduction – the first stage is to calculate what the legislation (ITEPA 2003, s 378(2) and (3)) calls an eligible period, which:
- is a period of at least 365 days;
- begins and ends with a period of absence from the UK;
- does not include any single period of presence in the UK in excess of 183 days; and
- at least half of which is spent outside the UK (the 50% test to which All at Sea refers).
Then its based on employment earnings.
Here is a tax calculator to help http://seafarerstaxcalculator.com/
A Ship is large sea vessel carrying passengers or cargo, so its unlikely a yacht would be considered a ship. Although if its large enough it might.
Making Tax Digital is coming soon!
It will will eventually affect us all, businesses including property investors will have to initially file their accounts quarterly and then ultimately monthly.
For many this will be a huge shift from annual accounts and self assessment returns.
HMRC will be able to estimate your tax each time you submit a return.
The government have confirmed that taxpayers will be given a period of at least 12 months before they will be charged any late submission penalties in relation to their Making Tax Digital for Business obligations.
Making Tax Digital – sanctions for late submission and late payment is open for you to respond until 11 June. The consultation seeks views on three possible models for late submission penalties and provides an update on late payment penalty interest.
Model A – the Points Based System
Model B – Compliance Reviews with Penalties
Model C – Suspension with conditions
Read further details at https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/601136/Making_Tax_Digital_-_sanctions_for_late_submission_and_late_payment.pdf
Did you see our April Newsletter:
- What are the rules on subsistence and travel?
- Will you be able to file your accounts every quarter? making tax digital
- How do you leave the Flat Rate Scheme?
- #BHBanterAbout – Cloud Telephony – 2nd May 2017
Click on this link to get a copy http://mailchi.mp/bicknells/bicknell-top-blogs-april-2017
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