Anna’s Accountancy Alerts – December 2017
Making Tax Digital for VAT
All VAT returns will have to be filed using software from April 2019.
The Chartered Institute of Taxation has highlighted that although 99% of VAT returns are submitted electronically, only 12% are filed using software.
From September 2017, this applies to new state pensioners with income over the 2016/17 personal allowance and PAYE taxpayers who have underpaid tax and cannot have it collected through their tax code.
In September, HMRC started sending out tax calculations and simple assessment letters (PA302). Taxpayers should check all information is correct prior to making payment.
Tax code queries
If an employee has a tax code query then it’s best to advise them to log on to their personal tax account as this will show them how their tax code is made up.
Benefits in kind – pensions advice
From 6/4/17 there is no benefit in kind on payment of pensions advice up to the value of £500 in a tax year as long as one of the conditions is met:
- condition A – provision is available to all employees, or employees at one particular location
- condition B – provision is available to all employees, or employees at one particular location who have reached a qualifying age or are suffering from ill health
HMRC – No longer accepting credit card payments
Remember after 12/1/18 HMRC won’t be accepting credit card payments. If you have cashflow problems and need to use a credit card, consider paying early.
From October 2017 as soon as you employ someone you have to auto-enrol them if the employee is old enough or earns enough. Be aware that contributions increase to 2% from April 2018 and 3% from April 2019.
Correction of mistakes under RTI
In the current tax year they can be corrected on the full payment submission (FPS) but if the error relates to a previous year it can be corrected using an earlier year update (EYU)
If I can help you with any of these issues, then please get in touch.
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