Making Tax Digital for VAT Glos businesses guide

ESB Accountancy guide for Making Tax Digital (MTD) for VAT Glos businesses.

ESB Accountancy guide for Making Tax Digital (MTD) for VAT Glos businesses.

The start date for Making Tax Digital (MTD) for VAT is fast approaching. If you are a VAT-registered business with turnover in excess of the VAT registration threshold of £85,000, you will need to comply with the requirements of MTD for VAT from the start of your first VAT accounting period beginning on or after 1 April 2019.

If you are VAT registered but your VATable turnover is below £85,000, you can choose whether to join in, but if you do there is no going back and once in MTD for VAT you will need to stay within MTD for VAT as long as you remain VAT registered.

Under MTD for VAT you must keep certain VAT records digitally and send your VAT returns to HMRC using software that is MTD-compatible.

You will no longer be able to use HMRC’s VAT Online service to file your VAT return.

You will need to keep your business records digitally from the start of your accounting period. If you already use software to keep your business records, check your software provider’s plans to introduce MTD-compatible software.

If you don’t currently use software, or your software won’t be MTD-compatible, you’ll need an adviser who can file your VAT returns on your behalf.

Please talk to us at ESB Accountancy to discuss how your business can comply with the new laws – with several decades of financial experience here in Gloucestershire you can either ring us now on  – email us on edith@esbaccountancy.co.uk or click the Contact Us buttonpayroll bookkeeping services small business help contact esb accountancy gloucestershire cheltenhamor please fill the form at the bottom of the contact us page.

Drive to increase number of business women

There is a drive to increase the number of business women as half as likely as men to start a business

Drive to increase number of business women
“Unfair obstacles” may be stopping women from starting and growing their own companies the government has said.

The govt said women were half as likely as men to start their own business, and only a fifth of smaller firms were led by females. It said this was creating a “significant pool” of untapped potential.

Accordingly, it has asked Alison Rose, head of RBS commercial and private banking, to lead a government review into the issue.

“Unfortunately, statistics show that women make up only a third of all entrepreneurs in the UK,” Ms Rose said. “To better drive the UK’s economy, we need to understand, and tackle, the barriers and reasons as to why this is.”

More than 1,000 businesses are started every day in Britain and small and medium size (SME) businesses support more than 16 million jobs.

However, last year only 19% of SME employers were majority led by women – defined as controlled by a single woman or having a management team of which a majority were women.

Meanwhile, women only make up 27% of full-time chief executives and senior officials.

According to a survey of company founders by Unilever Foundry, a number of barriers are stopping women becoming entrepreneurs.

Women it spoke to who had started companies said there were too few female role models in business.

The research also found men and women were still not being encouraged to enter roles that stereotypically are not associated with their gender.

Finally, it found women who started companies often encountered discrimination – such as investors being less willing to invest in their firms on gender grounds.

Robert Jenrick, Exchequer Secretary to the Treasury, said: “The fact that Britain is home to so many new, innovative businesses is something to be proud of. But the fact that so few of them are started by women is shocking. This is not because of a lack of talent or appetite.”

The Treasury said its review would consider ways to boost female engagement in entrepreneurship. It will respond to the review after it is published next spring.

Please talk to us at ESB Accountancy to discuss making the most of your business idea – with several decades of financial experience here in Gloucestershire you can either ring Edith now on  – or email me on edith@esbaccountancy.co.uk or click the Contact Us buttonpayroll bookkeeping services small business help contact esb accountancy gloucestershire cheltenhamor please fill the form at the bottom of the contact us page.

UK unemployment at record low levels

UK unemployment fell by 65,000 to 1.36 million in three months to June – the lowest for more than 40 years, official figures from the Office for National Statistics (ONS) show.

UK unemployment fell by 65,000 to 1.36 million in three months to June - the lowest for more than 40 years, official figures from the Office for National Statistics (ONS) show.

They also show a rise in productivity, but a slowdown in wage growth. Wages, excluding bonuses, grew by 2.7% in the three months to June, compared with a year ago.

The CBI said the size of the UK workforce was shrinking at the same time as vacancies for skills and labour were growing.

The unemployment rate fell to 4% in the quarter to June. That was the lowest since February 1975 and better than the figure expected by economists.

The drop came despite a smaller than expected 42,000 increase in the number of jobs created over the three month period.

On productivity, the ONS also said output per hour worked was up by 1.5% – the biggest rise since late 2016.

The official figures also showed 104,000 people who were employed on “zero hours” contracts, which do not guarantee a set number of hours per week, left such work. That left 780,000 people with those conditions as their main job.

It also said the number of people aged 16 to 64 who were not working, looking for work or available to work – what is known as “economically inactive” – increased by 77,000 from the first quarter of the year.

Here’s something economists have thought for decades that they know for sure: that if unemployment keeps getting lower, wages will improve. For years, the economy’s been rudely ignoring the economists’ theory, with wages sagging even as the unemployment rate hits fresh lows.

But recently, reality’s looked just a little more willing to conform to economic predictions. Pay rises (excluding bonuses) averaged 2.7% in the year to the end of June – higher than the official inflation number of 2.4% (but lower than the 3.4% rise in the old-style Retail Prices Index used to calculate rises in rail fares).

Judging by the unemployment rate dropping to 4.0% – its lowest since February 1975 – that coincided with an apparently super-tight labour market, meaning lots of jobs available for fewer people to fill them.

And there’s a key factor making the labour market tighter: a net outflow of EU nationals working in the UK. In the second quarter of the year, the number of EU nationals was 2.28 million on the Office for National Statistics’ estimates – down by 86,000. That’s the biggest fall in 21 years.

Earlier this month, the Bank of England raised interest rates for only the second time in 10 years, as it sought to manage inflation amid signs of a strengthening UK economy.

Please talk to us at ESB Accountancy to discuss making the most of your business tax rates – with several decades of financial experience here in Gloucestershire you can either ring us now on  – email us on edith@esbaccountancy.co.uk or click the Contact Us buttonpayroll bookkeeping services small business help contact esb accountancy gloucestershire cheltenhamor please fill the form at the bottom of the contact us page.

A million couples miss out on tax break

More than a million married and civil partnered couples are still eligible for a tax break but have yet to claim it, HMRC has said.

More than a million married and civil partnered couples are still eligible for a tax break but have yet to claim it, HMRC has said.

The Marriage Allowance is worth up to £238 a year, and backdated payments of up to £662 could also be available.

There was criticism that the allowance, aimed at couples with one major source of income, was not easy to claim.

However, the government said that the new online application took fewer than 10 minutes to complete.

So far, about three million couples have successfully applied for the allowance.

HMRC has organised several advertising campaigns to persuade people to apply for Marriage Allowance, but has been frustrated by the lack of take-up.

How Marriage Allowance works:

  • Partners must either be married, or in a civil partnership
  • One partner needs to be earning at least £11,850 a year, and paying tax at the basic rate of 20%. If he or she is earning over £46,350 (£43,430 in Scotland) they are not eligible
  • The other partner must be earning less than £11,850 in 2018-19, meaning they pay no tax
  • If the above conditions are satisfied, the partner not paying tax can transfer 10% of his or her tax allowance to a partner, so saving £238 in this tax year
  • Back-claims can be made for previous years.

Please talk to us at ESB Accountancy to discuss making the most of your family business tax rates – with several decades of financial experience here in Gloucestershire you can either ring us now on  – email us on edith@esbaccountancy.co.uk or click the Contact Us buttonpayroll bookkeeping services small business help contact esb accountancy gloucestershire cheltenhamor please fill the form at the bottom of the contact us page.

Tax advice for Glos businesses

ESB offers Gloucestershire businesses tax advice suggested by HMRC

ESB offers Gloucestershire businesses tax advice suggested by HMRC

ESB Accountancy and HMRC suggest that you get your affairs in order swiftly.

HMRC are currently running a number of campaigns to encourage taxpayers who have undeclared income to come forward and bring their tax affairs up to date in return for lower penalties. In particular, campaigns are available in respect of let property, second incomes and credit card sales.

If you have income from any of these sources which you need to tell HMRC about, please talk to your adviser as to how you can get the best possible deal under the available campaigns.

Other undeclared tax income

If you have undeclared income and gains from a source not currently covered by an HMRC campaign, speak to your adviser or ESB Accountancy about making a disclosure.

HMRC deal more favourably with people who come to them than with those who wait to be found out.

This post deals with a number of topics which, it is hoped, will be of general interest to clients. However, in the space available it is impossible to mention all the points which may be relevant in individual cases, so please contact us at ESB Accountancy for personal advice on your own affairs.

Exemptions
If you are an unincorporated business or landlord with an annual turnover below £10,000 you will be exempt from the digital tax obligations.

Cash basis for larger traders
If your turnover is below the VAT registration threshold (currently £83,000) you can opt to prepare your accounts using the cash basis (money in and money out) rather than using the more usual accruals basis. The opportunity to use the cash basis is to be extended to larger unincorporated business as part of the proposals for moving to a digital tax world. Speak to your adviser to discuss whether a move to the cash basis is for you.

Cash basis for landlords
The opportunity to use the cash basis is to be extended to some landlords in order to simplify the tax rules under Making Tax Digital. If you are an individual business, or a partnership where all the partners are individuals, you count as an unincorporated property business and you will be able to opt to use the cash basis. Speak to your adviser to find out what is involved and if this is likely to be for you.

Pay as you go
Once Making Tax Digital is up and running, taxpayers will be able to make voluntary payments on account of their tax liabilities throughout the year. This may help you in managing your cashflow and ensuring that you are able to meet your tax liabilities on time.

Please talk to us at ESB Accountancy to discuss making the most of your family business tax rates – with several decades of financial experience here in Gloucestershire you can either ring us now on  – email us on edith@esbaccountancy.co.uk or click the Contact Us buttonpayroll bookkeeping services small business help contact esb accountancy gloucestershire cheltenhamor please fill the form at the bottom of the contact us page.

Accounting tax advice for family businesses in Gloucestershire

HMRC has just updated it’s tax advice for family businesses employing offspring.

HMRC has just updated it's tax advice for family businesses employing offspring.

Gloucestershire’s ESB Accountancy summarises the HMRC tax advise for paying family members is that payments needs to be systematic, recorded, and contemporaneous.

Formality is the best approach – think about payment by bank transfer so figures tie in exactly, use payslips and record work done and when thus creating an unambiguous audit trail in place.

What family businesses don’t want to do is what Mr Nicholson did. Payment was made in cash and in kind. He paid for his son’s university grocery shop, provided food when visiting, paid for home insurance and gave cash. He blurred the boundaries. It’s something clients can do all too frequently, and it won’t seem wrong until it all goes wrong. Use this case to make thepoint.

In his conclusion, the tribunal judge commented:
‘Had the business owner paid his son on a more time-recorded basis or had there been some form of methodology in calculating the amount payable and an accurate record maintained of the number of hours his son worked, then as with any family member on the payroll of a business, it is unlikely that the expense would have not satisfied the provisions of s 34TMA.’

The takeaway message from the Nicholson case is this: the claim need not have failed, but it did require a tightening up of procedure to pass HMRC’s tax rules.

Family Business Tax Legislation

The relevant legislation is ITTOIA 2005, s. 34 for unincorporated businesses and CTA 2009, s. 54 for companies.
Section 34(1) of ITTOIA 2005 provides:
‘In calculating the profits of a trade, no deduction is allowed for–

(a) expenses not incurred wholly and exclusively for the purposes of the trade,or
(b) lossesnotconnectedwithorarisingoutofthetrade.’And s.34(2):
‘If an expense is incurred for more than one purpose, this section does not prohibit a deduction for any identifiable part or identifiable proportion of the expense which is incurred wholly and exclusively for the purposes of the trade.’

Mr Nicolson’s claim failed because the payments he made were dual purpose: to reward his son for work done and to support him at university. Mr Nicholson ‘expanded on his grounds of appeal’ at the tribunal hearing. This really wasn’t a good idea. It was tantamount to reading a script entitled ‘duality of purpose’. He explained how ‘as a father he had a vested interest in his son’s progress in life and wanted to make sure that he was giving him the best chance to succeed in his education…without the wages his son would not have been able to maintain his university studies.’

On the other hand, had he – subject to the proviso about methodology above–simply made payments to his son for work done in the business, and let the son use the money as he chose ,that would have been quite legitimate.

If remuneration is not at an arm’s-length commercial rate, HMRC will expect apportionment between the wholly for business purpose part – assumed to be a commercial rate for the job – and the gratuitous element, due to family relationship, which is disallowed.

Family businesses tax advise conclusion

Paying family wages is an effective and permissible way of supporting family members and maximising tax relief in owner-managed businesses. But plans can come badly adrift unless arrangements are properly documented and adhered to.

Please talk to us at ESB Accountancy to discuss making the most of your family business tax rates – with several decades of financial experience here in Gloucestershire you can either ring us now on  – email us on edith@esbaccountancy.co.uk or click the Contact Us buttonpayroll bookkeeping services small business help contact esb accountancy gloucestershire cheltenhamor please fill the form at the bottom of the contact us page.

New 2018 Accounting Tax Rates in Gloucestershire

New HMRC 2018 Tax Rates in Gloucestershire by ESB Accountancy come into effect this month.

New HMRC 2018 Tax Rates in Gloucestershire by ESB Accountancy come into effect.

2018 Personal allowance tax rates

The personal allowance increases to £11,850 for the 2018/19 tax year. As for 2017/18, the personal allowance is reduced by £1 for every £2 by which adjusted net income exceeds £100,000. This means that anyone with income in excess of £123,700 in 2018/19 will not receive a personal allowance.

2018 Income tax rates and thresholds

The basic rate band is increased to £34,500 for 2018/19, raising the rate at which higher rate tax becomes payable to £46,350. As for 2017/18, the additional rate threshold remains at £150,000.

The rates of income tax in the UK (excluding Scotland) are unchanged for 2018/19, with the basic rate remaining at 20%, the higher rate at 40% and the additional rate at 45%.

2018 Dividend tax rates

The dividend tax rates for 2018/19 remain at 7.5% to the extent that dividend income falls in the basic rate band, at 32.5% to the extent that dividend income falls in the higher rate band, and at 38.1% to the extent that dividend income falls in the additional rate band. However, the dividend allowance – the band within which dividends are taxed at a zero rate – falls from £5,000 to £2,000 from 6 April 2018.

The dividend allowance was reduced from £5,000 to £2,000 with effect from 6 April 2018.

The dividend allowance is effectively a zero-rate band and dividends that are covered by the allowance are received free of tax. All individuals are entitled to a dividend allowance, regardless of whether they pay tax at the basic, higher or additional rate.

Many personal and family companies extract profits in the form of dividends once a small salary has been taken. Where possible, it is advantageous to ensure that the dividend allowance for 2017/18 is not wasted and, if necessary, declare and pay a dividend prior to 6 April 2018 in order to mop up any unused dividend allowance.

Assuming dividends of at least £5,000 are taken each tax year, the reduction in the dividend allowance from £5,000 to £2,000 will increase the tax paid on dividends by a basic rate taxpayer by £225, that payable by a higher rate taxpayer by £975 and the dividend tax payable by an additional rate taxpayer by £1,143.

2018 Capital Gains Tax Rates

The exempt amount for capital gains tax purposes is increased to £11,700 for 2018/19. The rates of capital gains tax remain at 10% to the extent that total taxable income and gains does not exceed the basic rate limit and at 20% where income and gains are more than the basic rate limit. Higher rates of, respectively, 18% and 28%, apply to gains on residential property.

2018 Corporation tax

The rate of corporation tax for the financial year 2018 (the year starting on 1 April 2018) remains at 19%.

VAT threshold

The VAT threshold is frozen at its current level of £85,000 for two years from 1 April 2018. The VAT de-registration threshold remains at £83,000.

2018 National Insurance contributions

For 2018/19 the lower earnings limit for Class 1 National Insurance purposes is increased to £116 per week, the primary and secondary thresholds are increased to £162 per week and the upper earnings limit is increased to £892 per week. The upper secondary threshold for under 21s and the apprentice upper secondary threshold, both aligned with the upper earnings limit, increase to £892 per week for 2018/19.

The main primary rate of Class 1 contributions remains at 12%, the additional rate remains at 2% and the secondary rate remains at 13.8%.

The National Insurance employment allowance remains at £3,000 for 2018/19.

The Class 2 small profits limit rises to £6,205 for 2018/19 and the weekly rate of Class 2 contributions increases to £2.95 per week.

The rate of voluntary Class 3 contributions increases to £14.65 per week for 2018/19.

The lower profits limit for Class 4 contributions increases to £8,424 for 2018/19 and the upper profits limit increases to £46,350. The main rate of Class 4 contributions remains at 9% and the additional rate remains at 2%.

Please talk to us at ESB Accountancy to discuss making the most of your tax rates – with several decades of financial experience here in Gloucestershire you can either ring us now on  – email us on edith@esbaccountancy.co.uk or click the Contact Us buttonpayroll bookkeeping services small business help contact esb accountancy gloucestershire cheltenhamor please fill the form at the bottom of the contact us page.

What will MTD mean for Glos VAT registered businesses?

ESB Accountancy takes a look at what digital records will be acceptable under MTD for VAT for Gloucestershire businesses.

ESB Accountancy takes a look at what digital records will be acceptable under MTD for VAT for Gloucestershire businesses.

A new draft VAT Notice 700/21 has been published by HMRC giving guidance on what records must be kept digitally within ‘functional compatible software’ in order to comply with the requirements of Making tax Digital (MTD) for VAT.

By mandating digital record-keeping and filing, the Government expect to reduce the amount of tax lost through error and failure to take reasonable care.

MTD will affect businesses with a turnover of more than the VAT registration threshold of £85,000 per annum from 1 April 2019.

However, such businesses must remain within MTD for VAT, even if their turnover drops below £85,000. Businesses that are VAT registered, but have a turnover of less than £85,000 per annum will not be required to participate in MTD, but can do so voluntarily.

Under MTD for VAT, functional compatible software will be used to maintain the mandatory digital records, calculate the return and submit it to HMRC via an Application Programme Interface of API..

The complete set of digital records to meet MTD requirements does not all have to be in one piece of software. If there is a digital link between the pieces of software, records can be kept in a range of compatible digital formats.

Functional compatible software is a software program or set of compatible software programs that must be able to:

  • record and preserve electronic records in an electronic form;
  • provide to HMRC information and returns from the electronic records in an electronic form and by using the API platform; and
  • receive information from HMRC.

Businesses must keep the following information digitally:
business name;

  • the address of the principal place of business;
  • VAT registration number; and
  • a record of any VAT accounting schemes used.

For each supply made the business must record:
the time of supply;

  • the value of the supply; and
  • the rate of VAT charged.

For each purchase received the business must record:
the time of supply;

  • the value of the supply including any VAT that is not claimable; and
  • the amount of input tax claimed.

The transfer of data from the mandatory digital records through to receipt of information by HMRC must be digital. Information can only be submitted to HMRC via APIs, this can be from software, bridging software or API enabled spreadsheets.

To show the link between the output tax in business records and the output tax on the return, the business must have a record of:

  • the output tax owed on sales;
  • the output tax owed on acquisitions from other EU member states;
  • the tax due under the reverse charge procedure;
  • the tax that needs to be paid following a correction or error adjustment; and
  • any other adjustment required by VAT rules.

To show the link between the input tax in the business records and the input tax on the return the business must have a record of:

  • the input tax claimable on business purchases;
  • the input tax allowable on acquisitions from other EU member states;
  • the tax reclaimable following a correction or error adjustment; and
  • any other necessary adjustment.

Please talk to us at ESB Accountancy to discuss the filing of your MTD VAT tax returns – with several decades of financial experience here in Gloucestershire you can either ring us now on  – email us on edith@esbaccountancy.co.uk or click the Contact Us buttonpayroll bookkeeping services small business help contact esb accountancy gloucestershire cheltenhamor please fill the form at the bottom of the contact us page.

Tax Accounting Rules for Employers in Glos

ESB Accountancy outlines some Tax Rules for Employers in Cheltenham, Gloucestershire.

ESB Accountancy outlines some Tax Rules for Employers in Cheltenham, Gloucestershire.

Same tax rules for all

The same rules now apply to tax expenses and benefits regardless of how much the employee earns and whether he or she is a director. The old £8,500 threshold was abolished from 6 April 2016. Since that date, employees who were previously P9D employees are taxed on any benefits in kind that they receive in the same way as for P11D employees.

This means that benefits such as company cars and private medical insurance are now taxable if the employee earns less than £8,500.

No more P9Ds

As a result of the changes, 2015/16 is the last tax year for which P9Ds are required. From 2016/17, where an employee has received a taxable benefit in kind, you will need to use form P11D to tell HMRC about that benefit, unless you have opted to tax it through the payroll.

Payrolling for 2017/18

Although it is now too late now to start payrolling for 2016/17, looking ahead to next year, if you want to deal with some or all of the taxable benefits that you provide through the payroll instead of reporting them to HMRC on form P11D after the end of the tax year, you need to register to do so by 5 April 2017. Speak to your adviser about what benefits can be payrolled and whether payrolling is for you.

New exemption for deductible expenses

A new exemption replaced the dispensation regime from 6 April 2016. It is available for expenses which would be fully deductible if the employee met the expense from his or her own pocket. Items such as business travel qualify. The exemption, which applies to qualifying paid and reimbursed expenses, is given automatically. Unlike the old dispensations, you no longer need to apply.

Trivial benefits tax rules

The long awaited exemption for trivial benefits came into effect from 6 April 2016. Broadly, a benefit is trivial if the cost of providing it is £50 or less. Benefits that count as ‘trivial’ can be ignored and do not need to be reported to HMRC.

Items such as a bunch of flowers sent to an employee on her birthday or a bottle of wine given to employees at Christmas may pass the ‘trivial’ test. However, for directors and employees of close companies, the trivial benefits exemption is capped at £300 per individual per year.

Please speak to your adviser to discuss how you can make best use of these new exemptions or talk to us at ESB Accountancy to discuss your tax returns and the benefits of planning ahead – with several decades of financial experience here in Gloucestershire you can either ring us now on  – email us on edith@esbaccountancy.co.uk or click the Contact Us buttonpayroll bookkeeping services small business help contact esb accountancy gloucestershire cheltenhamor please fill the form at the bottom of the contact us page.

Self Assessment Tax Deadline looms on 31st January

The Self Assessment Tax Deadline looms on 31st January 2018- only 15 days away!

The Self Assessment Tax Deadline looms on 31st January- only 15 days away!

2018 Tax Deadlines:

31 January – for any tax you owe for the previous tax year (known as a balancing payment) and your first payment on account.
31 July for your second payment on account. If you prefer to pay regularly throughout the year, you can use a budget payment plan.

Ways to pay your tax

Make sure you pay HM Revenue and Customs (HMRC) by the deadline. You’ll be charged interest and may have to pay a penalty if your payment is late.

The time you need to allow depends on how you pay:

  • You can no longer pay at the Post Office.
  • Same or next day
    online or telephone banking (Faster Payments)
    CHAPS
    by debit or credit card online
    at your bank or building society
    You need a paying-in slip from HMRC to pay at a bank or building society.
  • 3 working days
    Bacs
    Direct Debit (if you’ve set one up with HMRC before)
    by cheque through the post
  • 5 working days
    Direct Debit (if you haven’t set one up with HMRC before)
    If the deadline falls on a weekend or bank holiday, make sure your payment reaches HMRC on the last working day before (unless you’re paying by Faster Payments or by debit or credit card).

Problems with payment services-  beware online payment services are frequently slow during busy times.

Overall the sooner that you compile your tax return, file it online and make your payments the better.

Please talk to us at ESB Accountancy to discuss the filing of your tax returns and the benefits of planning ahead – with several decades of financial experience here in Gloucestershire you can either ring us now on  – email us on edith@esbaccountancy.co.uk or click the Contact Us buttonpayroll bookkeeping services small business help contact esb accountancy gloucestershire cheltenhamor please fill the form at the bottom of the contact us page.

Cheltenham Bookkeepers and Accountants ESB wishes you a Merry Christmas

Cheltenham Bookkeepers and Accountants ESB wishes you a Merry Christmas and a Happy New Year

Cheltenham Bookkeepers and Accountants ESB wishes you a Merry Christmas and a Happy New Year

Cheltenham and Gloucester bookkeepers and accountants ESB wishes you a Merry Christmas and a Happy and Prosperous New Year for 2018.

So if you would like some help with your bookkeeping and accounting calculations for your organisation from someone with several decades of financial experience here in Gloucestershire you can either ring us now on  – email us on edith@esbaccountancy.co.uk or click the Contact Us buttonpayroll bookkeeping services small business help contact esb accountancy gloucestershire cheltenhamor please fill the form at the bottom of the contact us page.

Small Business Tax Planning in Gloucestershire

Small Business Tax Planning in Gloucestershire by ESB Accountancy

Small Business Tax Planning in Gloucestershire by ESB Accountancy

Taxation is moving to a digital age in Glos.

Under the Government’s Making Tax Digital strategy, most businesses will be required to keep track of their tax affairs digitally and to update HMRC at least quarterly.

To comply with your requirements in the new digital age, you will need to keep digital tax records and record and categorise your receipts and expenses.

Apps and software will be available for these purposes. It will be essential that you update your records on an on-going basis so that you are able to provide the information to HMRC on time for each quarterly update.

Getting ready for Making Tax Digital

Although you will not need to start providing HMRC with digital updates until April 2018, it is not too early to start planning for the transition to a digital tax world.

It is advisable to discuss with your tax adviser sooner rather than later what Making Tax Digital will mean for you and what changes you need to make to your existing processes to ensure that you will be able to comply with your digital reporting requirements.

Introduction to Making Tax Digital

Making Tax Digital is a key part of the government’s plans to make it easier for individuals and businesses to get their tax right and keep on top of their affairs – meaning the end of the annual tax return for millions.

Every individual and business now has access to their own personalised digital tax account and these are being regularly expanded and improved.

HMRC’s ambition is to become one of the most digitally advanced tax administrations in the world, modernising the tax system to make it more effective, more efficient and easier for customers to comply.

Please talk to us at ESB Accountancy to discuss the structuring of tax efficiencies and the benefits of planning ahead – with several decades of financial experience here in Gloucestershire you can either ring us now on  – email us on edith@esbaccountancy.co.uk or click the Contact Us buttonpayroll bookkeeping services small business help contact esb accountancy gloucestershire cheltenhamor please fill the form at the bottom of the contact us page.