Copy
Moore Accountancy December 2018 Newsletter
View this email in your browser

Moore Accountancy Update

AND IT IS CHRISTMAS...

We normally put up a picture in December of the staff in their Christmas jumpers, but have been unable to get everyone together this year.
So, you have us looking cheery at a recent Moore Accountancy night out instead!
See if you can match the names you know from emails and phone calls to the picture (no prizes for guessing right though!)

We sent an email out on Friday to all self assessment clients who are on our due in planner reminding them that there are only 6 working weeks until the Self Assessment tax filing deadline of 31/01/2019, so please respond to it if you have not already done so.

The office will be closing for Christmas from lunchtime on Friday 21st December 2018, reopening on Wednesday 2nd January 2019 - so be aware that no emails will be responded to over that period.

Finally, we would like to wish you a very "Merry Christmas" and look forward to working with you in the New Year.
DON’T FORGET THERE MAY BE TAX TO PAY ON YOUR DIVIDENDS IN JANUARY

The rules for taxing dividends changed radically from 6 April 2016 with the removal of the 10% notional tax credit and the introduction of new rates of tax on dividends. For many taxpayers that meant more tax to pay on those dividends on 31 January 2018. The same will also apply on 31 January 2019.

For eg, If you are a higher rate taxpayer and received £30,000 of dividends in 2017/18 £25,000 of those dividends would be taxed at 32.5% meaning £8,125 is due on 31 January 2019. 

If you can let us have all of your tax documents as soon as possible we can let you know how much tax you need to pay next January so that you can set aside sufficient funds.


Note that the dividend allowance was £5,000 in 2017/18 but has dropped to £2,000 in 2018/19 which means more tax and potentially a larger payment on account too.
MAKING TAX DIGITAL FOR VAT GUIDANCE ISSUED

HMRC have issued their detailed guidance on the digital record keeping and return requirements for Making Tax Digital (MTD) for VAT. 

VAT Notice 700/22 clarifies that spreadsheets may still be used to keep business records provided that there is bridging software that links to the Government gateway. 

The VAT notice includes a number of helpful examples illustrating different accounting systems and the digital links required to comply with MTD for VAT. We believe the VAT notice is essential reading for all VAT registered businesses.

WHO DOES IT AFFECT?
MTD affects all businesses which are VAT registered compulsorily (i.e. have turnover exceeding £85,000). It is good practice for those clients who are currently under the threshold to be aware of MTD as it will affect them as soon as they hit the VAT registration mark.

WHEN DOES MTD FOR VAT START?
The Making Tax Digital rules apply from your first VAT period starting on or after 1 April 2019. A ‘VAT period’ is the inclusive dates covered by your VAT Return.
For eg, where a business submits quarterly returns covering the periods to 28/2, 31/5, 31/8 and 30/11, the business will need to comply with MTD rules for the VAT quarter starting 1 June 2019 and ending on 31 August.

USE OF SPREADSHEETS IN PREPARING VAT RETURNS
Example 3 in the VAT Notice describes a business that uses a spreadsheet and bridging software from April 2019, which allows the information to be transferred to HMRC via an API.  It uses a spreadsheet to record all sales, purchases, and expenses in a digital format. The VAT Return is then prepared within the spreadsheet, using formulae already written into the spreadsheet.
The VAT Return information is then sent via a mandatory digital link to bridging software, which digitally submits the information directly to HMRC.  

Using cloud based bookkeeping software (such as Xero and Quickbooks) which has direct APIs to HMRC is a good solution, and monthly charges vary from £10 - £25 +VAT per month directly to the supplier.

If you haven’t already done so, please contact us to help you get ready for this significant change in VAT accounting and reporting. There are some blogs on our website regarding MTD so please have a read if you think it will affect you.

CHECK YOUR NI CONTRIBUTION HISTORY

For individuals, in order to maximise entitlement to full State Benefits a full contribution record Is required. It is possible to check your National Insurance record online to see:
•    what you’ve paid, up to the start of the current tax year (6 April 2018)
•    any National Insurance credits you’ve received
•    if gaps in contributions or credits mean some years don’t count towards your State Pension (they aren’t ‘qualifying years’)
•    if you can pay voluntary contributions to fill any gaps and how much this will cost

Remember if you are not working and have children for whom child benefit would be payable, you can contact the NI office to ensure you are still receiving credits against your account.


IT CONSULTANT WINS IR35 PERSONAL SERVICE COMPANY CASE

In the recent budget, the government have discussed extending the personal service company rules that currently apply to public sector  workers to those in the private sector from April 2020, but in the meantime tax tribunal decisions are still being decided against HMRC.

In a recent case involving an IT consultant working on various projects to implement the new Universal Credit system the First Tier Tax Tribunal decided that the consultant would not have been an employee if directly engaged. A key factor was that the the level of control over the consultant fell far below the sufficient degree required to demonstrate a contract of service. 


Whilst working as a contractor within your own company is getting more difficult, we suggest you should use HMRC's CEST tool (Check Employment Status for Tax for link) to give an opinion on whether your contract is likely to fall within or outside of IR35. 

KEY DATES

19/12/18 - Deadline for filing 2017/18 SATR online in order to request that HMRC collect tax via 2018/19 PAYE tax code (due to MA office closures for Christmas)

19/12/18 - PAYE & NIC deductions for month ended 05/12/18 (November payroll)

31/12/18 - Corporation tax payment for year to 31/03/18

19/01/19 - PAYE & NIC deductions for month ended 05/01/19 (December payroll)

31/01/19 - Self Assessment Tax payment payment for tax year 2017/18 (to 05/04/18)

31/01/19 - Corporation tax payment for year to 30/04/18
Copyright © 2018 Moore Accountancy Limited, All rights reserved.

Our mailing address is:
info@mooreaccountancy.co.uk

Want to change how you receive these emails?
You can update your preferences or unsubscribe from this list
 






This email was sent to <<Email Address>>
why did I get this?    unsubscribe from this list    update subscription preferences
Moore Accountancy · 1 Northway · Altrincham · Cheshire, WA14 1NN · United Kingdom

Email Marketing Powered by Mailchimp