Making Tax Digital for VAT (MTDfV) is on the horizon. There is now less than a year to prepare for this momentous change in the way VAT registered businesses interact with HMRC. We cover this in our front page article.
MTDfV begins with the first accounting period starting on or after 1 April 2019. Only those businesses whose turnover is above the VAT registration threshold are mandated to join, although voluntarily-registered businesses may also join if they choose. However, any business operating at around the registration threshold will also need to be aware of developments – and monitor turnover closely - as newly-registered businesses will be required to be MTD-compliant from day one of VAT registration.
We also report on recent findings by the Office of Tax Simplification (OTS). This discusses some of the complexities of the tax system as they impact owner managed businesses. It also serves as a timely reminder of the opportunities to plan and expand which are currently on offer.
Elsewhere, we consider the government consultation on compliance with the IR35 ‘off-payroll working’ rules in the private sector. Many commentators envisage that changes in the public sector, which were introduced in April 2017, are likely to be brought in on the back of this enquiry. HMRC states that the result of the consultation is not a foregone conclusion. Our article looks at some of the implications of the current discussion.
We also draw attention to the many opportunities available to taxpayers to structure their affairs efficiently in the current tax year. These can arise, for instance, when disposing of a capital asset, reviewing pension plans or considering investments such as an Individual Savings Account.
In our other articles, we examine:
the stamp duty implications of property purchase across English, Welsh and Scottish borders
employee rights to shared parental leave and pay on the arrival of a new baby
new penalties for UK taxpayers who have not told HMRC about foreign income or gains which may be liable to tax in the UK
Enhanced Capital Allowances.
We are sure you will find the newsletter an interesting read. Please contact us if you have any questions regarding any of the articles we have included in our newsletter or if you would like further information on a topic we haven’t covered. Your views are always important to us and we would welcome your feedback.