Talking Points are based on your suggestions and feedback, which can be emailed to the agent engagement team.
For help at a time that suits you HMRC also has a selection of recorded Talking Points webinars.
Back to Contents
Tax Agents blog – preparing for making tax digital (MTD) 10 May 2018
HMRC’s recent Tax Agent blog explains what the next steps are to make sure that your clients are prepared for making tax digital. From April 2019, businesses with taxable turnover above the VAT registration threshold must keep digital records and submit VAT returns using MTD compatible software. The pilot for MTD VAT has already commenced and the blog explains the importance of moving your clients to digital record keeping (if they are not doing so already) in preparation for April 2019.
Even though it will be mandatory for those above the VAT threshold from April 2019 to submit their VAT returns businesses below the VAT threshold can do this and can also join the pilot.
Details of the first MTD compatible software products for income tax are available on GOV.UK and information will be updated regularly as new products become available. Once the initial private testing phase of the VAT pilot is complete, details of MTD compatible software for VAT will also be published on GOV.UK. HMRC encourage you to start your new clients on MTD straight away so they can benefit from a more straightforward and streamlined way of keeping records and providing tax information to HMRC from the start and they don’t need to make changes later.
Find out more by going to HMRC’s tax agent blog HMRC’s Tax Agent blog
Back to Contents
Making Tax Digital: Essential that businesses walk before they run 6 September 2018
Making Tax Digital (MTD) is a compulsory digital tax system that initially applies to VAT registered businesses with a turnover exceeding the VAT registration threshold (£85,000) and for VAT periods beginning on or after 1 April 2019 . All other taxes will be April 2020 at the earliest. Some firms are concerned that they will struggle to make the transformation to a fully ‘digital’ practice, as expected of them by HMRC, in time for the impending deadline. Whilst most firms already file VAT returns online, the journey taken to compile the correct VAT figures is typically more analogue than digital and frequently relies on spreadsheets, the use of which has been hotly debated as MTD worked its way through the legislative process. After significant pressure from trade and industry bodies and the accountancy profession alike, on July 13 HMRC released its final addendum to the VAT notice which states that spreadsheets can continue to be used, providing they are used in conjunction with a solution that can submit information digitally to HMRC.
This is great news for employers and businesses as this allows the transition to digital using appropriate ‘bridging’ software, rather than transforming to a completely new digital environment.
Back to Contents
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
Page 344 of 598
Made with FlippingBook - Online magazine maker