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29th June 2017

Making Tax Digital

Filed Under: Tax, Accounting, Business News


Major changes are being made to the way in which all taxpayers interact with HM Revenue & Customs (HMRC). This is known as “Making Tax Digital” (MTD) and work has already started with some changes implemented in April 2016, and further changes planned through to completion in 2020.  The introduction of MTD will mean that business, self-employed people and landlords will need to keep their records digitally and make quarterly reports to HMRC.

Timescale

Businesses, self-employed people and landlords will be required to start using the new digital service as follows:

Landlords and unincorporated businesses with a turnover in excess of the VAT threshold (currently £85,000) April 2018
Landlords and unincorporated businesses with a turnover above £10,000 but below the VAT threshold April 2019
All VAT payments will have to be processed through MTD for the self-employed, unincorporated businesses and landlords. April 2019
All taxpayers that pay corporation tax and partnerships with a turnover of over £10m April 2020

 

Keeping records digitally

Currently, individual taxpayers can, if they wish, submit their annual tax return to HMRC on a paper form, whereas limited companies have had to submit their annual returns electronically for some time.  MTD not only means that all income tax, corporation tax and VAT returns are submitted electronically they must also be submitted on a quarterly basis.  As all returns must be digital they must provide information in a format specified by HMRC they are insisting that software be used to keep the records required.  However, HMRC have firmly said that will not provide free software to the taxpayers concerned.

Getting ready for MTD

Consider using software – If you do not already use bookkeeping software in your business you should consider doing so.  There are a variety of packages out there and so it can be a bit of a nightmare to decide which is best for you.  We would very much like to work with you in this process so please call your usual THL contact. We would also be able to offer setup support, initial training and ongoing assistance.

Consider changing your year ended – Currently draft rules mean that businesses with a 31 March year end look to enter MTD twelve months later than those with a 5 April year end.

Consider incorporating – Limited companies don’t have to enter MTD until April 2020 so if you’d like more breathing space you could incorporate your business.

Please do not hesitate to get in touch if you’d like to discuss how MTD will affect you.

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8th June 2017

Opportunity at THL Accountancy

Filed Under: Recruitment


We are looking for an individual with at least 1 years accountancy practice experience to join our dynamic team.

We will consider any skills mix.  You must be adaptable and hard working with a strong character.

THL is a smaller, unique, ambitious and rapidly growing practice so the position offers a fantastic career opportunity.

If you would like more information please call the office on 01903 300230 and speak to Paul Thatcher or Hayley Sengebusch.

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5th April 2017

Key Points from the Spring Statement

Filed Under: Uncategorized


  • Class 2 NICs abolished from April 2018 as previously planned.
  • VAT threshold to be £85,000 from April 2017.
  • Going Digital delayed until April 2019 for those unincorporated businesses and landlords with turnover below the VAT threshold. The £10,000 turnover threshold for exemption stays the same. So from April 2018 just businesses, self-employed people and landlords with turnovers in excess of VAT threshold will be Digital.
  • Cash basis entry threshold to be increased from April 2017 to £150,000 and exit at £300,000.
  • Dividend allowance reduced to £2,000 from April 2018.
  • Changes to s161 TCGA 1992 re tax treatment of appropriations to trading stock – ability to convert capital losses into trading losses removed from 08/03/2017.

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