From April 2019: Impacts VAT reporting by all VAT registered businesses and organisations (including sole traders, partnerships, limited companies, non-UK businesses registered for UK VAT, trusts and charities) with turnover above the VAT threshold. HMRC has announced a 6 month deferral to the start date for some more complex businesses.
From April 2020, at the earliest: Impacts MTD for income tax and corporation tax. MTD for VAT may also be extended to all VAT registered businesses. Further details have yet to be announced.
Source: PWC, HMRC
Employees and Directors
Documents you have signed or which have been provided to you by someone else:
Personal financial records which support any claims based on amounts paid eg certificates of interest paid.
Source HMRC, Montpelier Chartered Accountants
The same weekly SSP rate applies to all employees. However, the amount you must actually pay an employee for each day they’re off work due to illness (the daily rate) depends on the number of ‘qualifying days’ (QDs) they work each week.
Use the SSP calculator to work out your employee’s sick pay, or use the rates below.
|Unrounded daily rates||Number of QDs in week||1 day to pay||2 days to pay||3 days to pay||4 days to pay||5 days to pay||6 days to pay||7 days to pay|
There have recently been some significant changes to the proposed implementation plans for MTD leading us to publish this new service page. On 13 July 2017 the government announced that MTD for VAT will come into effect from April 2019. From that date businesses with a turnover above the VAT threshold (currently £85,000) will have to:-
Keep their records digitally for VAT purposes only.
Provide their VAT return information to HMRC through MTD functional compatible software.
Whilst other businesses may use MTD on a voluntary basis they will not be required to keep digital records, or to update HMRC quarterly, for other taxes until at least 2020. All businesses will have at least two years to adapt to the changes before being asked to keep digital records for other taxes.
The rates below apply from 1 April 2018.
|Category of worker||Hourly rate|
|Aged 25 and above (national living wage rate)||£7.83|
|Aged 21 to 24 inclusive||£7.38|
|Aged 18 to 20 inclusive||£5.90|
|Aged under 18 (but above compulsory school leaving age)||£4.20|
|Apprentices aged under 19||£3.70|
|Apprentices aged 19 and over, but in the first year of their apprenticeship||£3.70|
Proposed updated timetable:
|2019||VAT||Self- employed individuals who are VAT registered||Business with a turnover of less than £10,000
Business engaged in excluded activities
The Digitally Excluded
See MTD: Toolkit for Accountants & Advisers
|2020||Income tax & Class 4 NICs||Self-employed individuals and landlords|
Income tax & Class 4 NICs
Comments: The deadline and requirements looks unrealistic and complicated burden for all involved, especially the end user.
Source, HMRC, Rossmartin
HMRC have delayed the full roll-out of Making Tax Digital (MTD) while the UK prepares to leave the EU in 2019.
MTD for individuals was scheduled to take effect from 2020, however the government have revealed that the plans have been put on hold to allow HMRC to focus on the UK’s Brexit preparations.
In a letter to tax professionals, HMRC stated: ‘We have made the decision to delay plans to release project capability to EU exit work. This means halting progress on Simple Assessment and real-time tax code changes.’
HMRC proceeded to say that the foundations for MTD for individuals have been laid, which will enable the government to return to the initiative ‘in the future’.
Responding to the news, Yvette Nunn, Co-Chair of the Technical Steering Group at the Association of Taxation Technicians (ATT), stated: ‘Given the unprecedented changes which will result from Brexit, it is only sensible that HMRC seek to prioritise their work.
‘There have been reports of inaccuracies in the information which HMRC have used in Simple Assessments to calculate tax bills. As a result, taxpayers are required to check these carefully once received, especially as they only have 60 days to correct any errors.
‘While we welcome the pause . . . we strongly urge HMRC to use the extra time given to iron out the known problems with Simple Assessment and dynamic coding before they hit play on them again.’
Meanwhile, HMRC confirmed that MTD for VAT is set to take effect from April 2019 as previously planned. From this time, businesses with a turnover above the VAT registration threshold (currently £85,000) will be required to keep digital records for VAT purposes and submit VAT returns using MTD functional compatible software.
Source: Montpelier, HMRC
R & D expenditure credit increase
The Government will legislate to increase the rate of the R&D expenditure credit from 11% to 12%, to support business investment in R&D.
This change will have effect on and after 1 January 2018.
Source: Ashing Chartered Accountants, GOV.uk, HMRC