News


MTD ('Making Tax Digital')

The introduction of the Government's flagship MTD tax system is now scheduled to start in April 2019, and even then it will only initially apply to VAT compliance.

However, irrespective of VAT compliance the core thinking behind MTD is that in due course all businesses and larger landlords will have to keep and submit digital details to HMRC of their income and their costs (by expenses type) on a quarterly basis, albeit this 'full' version of MTD is not intended for implementation until April 2020 at the earliest.

Please see our 'MTD' page for full details or access it by clicking here.


Worldwide Disclosure Facility (Do you receive any income from overseas?)

HMRC is clamping down on taxpayers who receive overseas income of any kind that is not subsequently declared on their UK Tax Return.

Recent cross-border agreements mean that previously unobtainable details regarding foreign bank accounts or assets is now being made available to HMRC; so much so that counties previously synonymous with banking secrecy, such as Switzerland, have signed up to share data.

Because it is recognised that some taxpayers may be unwittingly failing to declare overseas income HMRC has been urging those people to ‘come clean’ and bring their affairs up to date via their related disclosure facility, albeit this facility is not is not going to be offered indefinitely.

Therefore if you have any foreign bank accounts or income producing assets, please click on this link in order to read HMRC’s standard letter about overseas disclosure.


Dividends

Relatively recent tax changes mean that basic rate taxpayers will now potentially have to pay personal tax on dividend income above £2000 per annum, and higher rate taxpayers face an increased tax charge.


P11Ds

Subject to various important conditions, some trivial reimbursements to employees and directors can now often be ignored.  However, one change that may impact is the removal of the £8500 earnings limit for P11D disclosures; this means that any employee who receives a reportable Benefit in Kind must have that benefit declared annually to HMRC by their employer, irrespective of how much the employee earns.


£3000 Employment Allowance

The annual Employment Allowance for 2018/19 remains at £3000.  Dependent upon certain conditions, most small employers will be able to recoup the first £3000 of their Employers' National Insurance Contributions within the tax year in question.









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