Making Tax Digital (MTD) help and guidelines by ESB Accountancy

Making Tax Digital (MTD) help and support guidelines for Glos businesses by ESB Accountancy

Making Tax Digital (MTD) help and support guidelines for Glos businesses by ESB Accountancy


For most VAT registered businesses with VATable turnover over the VAT registration threshold of £85,000, Making Tax Digital for VAT applies from the start of the first VAT accounting period beginning on or after 1 April 2019. However, for some businesses, the start date is delayed until 1 October 2019. Please ask us if you are unsure which category you fall into.

Capital allowance for non-residential buildings and structures

The introduction of a new capital allowance for non-residential buildings and structures was announced at the time of the 2018 Budget, and a technical note was published for consultation at that time. The allowance is available for businesses that invest in non-residential structures or buildings on or after 29 October 2018 and is given on a straight-line basis at a rate of 2%.

At the time of the Spring Statement 2019, draft legislation was published for comment. As a result of the consultation process, some changes were made.

Legislation to provide for the new capital allowance was laid before Parliament and came into force on 5 July 2019.

Payroll reporting

Employers are required to report details on an employee’s pay and deductions to HMRC on or before the date that payment is made to the employee by making a full payment submission (FPS). If no payments are made to any employees in the tax month, an employer payment summary(EPS) shouldbesentinstead. Penalties are charged if in more than one tax month in the tax year:
• the FPS was late;

• HMRC did not receive the expected number of FPSs; or

• an EPS was not sent in a month in which no employees were paid.

HMRC have recently updated their guidance on what happens if payroll information is not reported on time.

HMRC allow a three day period of grace and will generally not charge a penalty if the FPS is filed within three days of the payment date. However, this is a concession not a right and should not be relied on; HMRC may charge penalties where an employer regularly files in this three-day window.

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 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.

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