Making Tax Digital – A New Timescale

Making Tax Digital is HMRC’s planned changes to the requirements for submission of tax returns and accounts. In a nutshell, the programme increases the frequency of accounts submission (from annually to quarterly) and online tax accounts will become compulsory.

Making Tax Digital is huge – the biggest change to tax since the introduction of self assessment. (Read our ‘What is Making Tax Digital?’ blog for more details.) It has understandably caused huge shockwaves amongst business owners and the self employed, many of whom need to change from their current systems.

A phased implementation of Making Tax Digital was planned from April 2018. Those affected were: self employed, partnerships and landlords with turnover above the annual VAT threshold of £85,000.

Big Making Tax Digital News!

HMRC has announced a revised timescale for Making Tax Digital, explaining that: “There is widespread agreement that Making Tax Digital for Business is the right approach for the future. However a number of concerns about the pace and scale of change have been raised. As a result the government has announced that the roll out for Making Tax Digital for Business has been amended to ensure businesses have plenty of time to adapt to the changes.”

The website goes to state: “Businesses will not now be mandated to use the Making Tax Digital for Business system until April 2019 and then only to meet their VAT obligations. This will apply to businesses who have a turnover above the VAT threshold – the smallest businesses will not be required to use the system, although they can choose to do so voluntarily.”

HMRC adds: “The government remains committed to ensuring we can deliver a modern digital tax system for all businesses and their agents, supporting them to get their tax right and reducing the amount of tax lost through avoidable error.”

Revised Making Tax Digital Timescale

Under the new timetable:
– only businesses with a turnover above the VAT threshold (currently £85,000) will have to keep digital records and only for VAT purposes
– they will only need to do so from 2019
– businesses will not be asked to keep digital records, or to update HMRC quarterly, for other taxes until at least 2020

Making Tax Digital will be available on a voluntary basis for the smallest businesses and other taxes.

Do You Have Any Making Tax Digital Queries?

At Spicer & Co Chartered Accountants we offer a wide range of tax services and are supporting our clients to ensure that they meet their Making Tax Digital obligations. Our friendly team is happy answer any questions about Making Tax Digital – and to put the kettle on! Let’s talk.

Tax Investigation Services – Don’t Worry!

Insurance. We hope we never need it, but it’s good to know that we’re covered… just in case.

Some insurances are mandatory – such as motor insurance. Others are optional – such as house insurance – and give us peace of mind that the policies are there if we need them.

This applies to businesses too. Employers’ Liability is required by law if you employ people. It isn’t compulsory to have insurance to protect you from accountancy fees incurred via a HMRC (Her Majesty’s Revenue & Customs) investigation. But – with the number of investigations rising, it offers peace of mind to business owners who want to avoid the extra cost and stress of being probed by HMRC.

Why is Croner Taxwise protection a good idea?

An increasing number of individuals and organisations are being selected for investigation. This can be done randomly, or because someone you’re working with has been investigated. (7% of tax inspections are triggered at random.) Or – you could have been chosen by “Connect”.

“Connect” is HMRC’s new £100 million computer. It analyses data from a variety of sources – UK-based and overseas. It finds discrepancies between identified and reported income. The result? More investigations.

In addition, Making Tax Digital will be phased in from 2018. It is anticipated that this new system could also create additional investigations.

What does Fee Protection insurance include?

Fee Protection insurance ensures that:

  • All accountancy fees incurred as a result of a tax investigation by HMRC are paid by the insurers – not by you or your business
  • – You enjoy peace of mind that you will receive all the professional support you need from your chartered accountant – without the worry of the final bill.
  • – You receive expert advice throughout a HMRC tax inspection – without incurring a penny in costs

Accountancy Expertise and beyond…

Taxwise protection from Spicer & Co offers support beyond expert tax investigation advice. Additional benefits include:

  • – Unlimited access to Employment Law and Business Safety specialists
  • – Commercial legal advice on a broad range of commercial law subjects
  • – Tax and VAT consultancy services

All of these services – and the peace of mind that accompanies them – are available for an annual fee of just £149 + VAT.

“The unexpected brown envelope or email from HMRC is worrying for business owners and individuals alike,” says Suzanne Spicer of Spicer & Co Chartered Accountants in Dunstable. “The Taxwise insurance policy protects you from the professional accountancy fees that are incurred during tax investigations. It’s very reassuring to know that you’ll receive all the expert advice and action you need during the inspection without incurring any costs.”

To find out more about tax services or Taxwise protection, contact the team at Spicer & Co Chartered Accountants.