Anna’s Accountancy Alerts – May 2018
HMRC making tax digital (MTD) update
HMRC has announced a slow-down on the MTD process for individuals because of work on Brexit. This will mean:
- Progress on simple assessment to stop – therefore if you’re currently within self-assessment you’ll remain in it for a bit longer.
- Dynamic coding which was set up to collect underpayments of tax due to incorrect tax codes by making in-year adjustments is going to slowdown. Therefore, it’s a good idea to tell HMRC if you believe your tax code is incorrect.
MTD for VAT is still due to commence April 2019. The introduction of a single online account for businesses will be delayed. At the moment, there is no suggestion that the April 2020 date for MTD for business will change.
HMRC’s deal with online trading sites
HMRC is about to finalise its deal with companies such as Amazon and eBay in order to carry out more checks on businesses which trade online. HMRC are looking at VAT compliance and may:
- Contact you to find out how you deal with VAT for your internet sales
- If you don’t reply satisfactorily, HMRC can block your use of the platform to sell in the UK
Therefore it’s a good idea if you receive a request from an online marketplace company about how you deal with VAT to immediately check that you are complying with VAT rules.
HMRC pension relief calculator
Ordinary individuals’ tax relief is limited to contributions of £40k per annum. However, if your income exceeds £150k per annum the £40k annual allowance is reduced.
HMRC has an online calculator to help but is has been producing errors so from mid April it was taken down.
Motor expenses and VAT
Your business is entitled to reclaim 100% of the VAT in respect of car repairs and maintenance costs which it pays for you and you workers.
If I can help you with any of these issues, then please get in touch.
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