by Acuaccounts | Feb 8, 2019 | accounting, latest news
You may have seen previous blogs or newsletters from us regarding Making Tax Digital (MTD). However, here is a reminder.
What is MTD?
Making Tax Digital is an attempt made by the HMRC to do exactly what the name suggests. Currently, once a year, businesses have to file one headache of a document but once MTD is implemented, small businesses will be enforced to keep electronic records of their accounts using software which has been approved by HMRC. Business will have to file their tax information digitally and on a quarterly basis.
With a personal digital account, individuals will be able to send the information directly to HMRC and check details throughout the year to make sure that they are correct. This means there will be no more hunting around for receipts come tax time so in theory, an easier system all round.
Who will this affect?
From April 2019 if the business is currently above the VAT threshold (£85,000) businesses will need to keep their records digitally for VAT purposes.
It is likely smaller businesses will be required to keep digital records shortly after. This changes the way HMRC wants information from taxpayer and means that you may need to move from your existing desktop or manual record keep and onto an online accounting package
The good news is that AcuAccounts are certified in the installation and operation of Online Accounting software which is digitally compliant and specifically designed for small and medium-sized business.
How can AcuAccounts help you?
We have teamed up with various major Cloud software companies to provide our clients with the best possible fully compliant accounts package. The advantages are:
- It’s on the Cloud so you can get a clear view of your finances any time any place
- Run your business from work, home or on your mobile app
- Use your mobile to photograph purchase invoices and expenses and upload these to the software
- It automatically grabs bank statements in real time
The 3 main Cloud software companies we support are; Sage, QuickBooks and Xero.
The important bit – how much will it cost?
We don’t believe in set packages because we don’t want to sell you something that you won’t use, therefore, we tailor make all our client packages based on the features of which we think will be useful to you.
Speak to one of our team today for more details: info@acuaccounts.com or 02039079027
www.acuaccounts.com
by Acuaccounts | Jan 14, 2019 | accounting, tax
If you’re not used to filing self-assessment tax returns, they can seem like a minefield. Here are a few tips from our team:
DO get yourself registered for the self-assessment system. You’ll need a Unique Taxpayer Reference (UTR) number, and they’ll only send it by post. It can take a while, so don’t wind up missing a deadline due to a delay with receiving the letter! You will also need an account and activation code for the Government Gateway site if you want to file online.
DON’T ignore the deadlines or assume it’s okay to be a few days late. If you reach February and still haven’t filed your return, you’ll be walloped with a £100 fine. That’s just for starters, of course.
DO let the taxman know if you’ve got a genuine reason for missing the deadline. If it’s not your fault, he might give you a little breathing room. Don’t count on catching him in a forgiving mood and make sure your excuse is a good one. A major illness might get you off the hook for a week or two.
DON’T assume that you’ve been asked for a tax return by mistake. It can happen but ignoring the demand just because it’s unexpected is always a mistake. If you can prove you don’t need to file a return, HMRC will back off. Until you do, though, they’ll be expecting your paperwork on time.
DO file your self-assessment return even if you know you won’t owe any tax this year. It doesn’t matter how little you earned, HMRC still wants to know about it.
DON’T assume that HMRC doesn’t care about your hobby selling stuff on eBay. If you’re doing enough of it, they’ll call it a business and expect a self-assessment tax return from you.
DO remember to file your self-assessment return, even if you folded your business this year. You need to make sure your books are up to date until the very last day you were trading.
DON’T think you can skip over the self-assessment pages about renting out property just because you make a loss on it. Whether you’re up or down on the deal, you’ve got to account for the money.
The biggest “DO” of all: Talk to AcuAccounts if you need help with your self-assessment return or can’t understand why you must file one. Making a mistake or missing a self-assessment tax return deadline could wind up costing you more than just the tax you owe.
Far too many people are paying more than they should, simply because the rules are too complicated. AcuAccounts tax experts are here to help you understand the self-assessment process, even if you’re due a tax refund and providing support throughout tax return service and tax code queries.
by Acuaccounts | Oct 11, 2018 | accounting, latest news
Plans have been revealed that the Treasury is due to overhaul tax rules which allow self-employed people to avoid paying national insurance contributions. The move will be targeted at people who set themselves up as private Limited companies to take on work.
As announced on the BBC today, this reform could be announced in the October Budget.
The Treasury believes a third of people claiming self-employed status as a “personal service company” are actually full-time employees and should be paying more tax. It says without reform, high levels of non-compliance with tax rules could cost HM Revenue and Customs, which collects taxes, £1.2bn a year by 2023.
It is now looking at demanding that firms which use personal service company contractors take legal responsibility for ensuring “off-payroll” contractors stick to the tax rules known as IR35. A similar move in the public sector on “synthetic” self-employed has raised £410m extra in taxes since 2016, HMRC estimates suggest.
Full employees pay higher levels of national insurance compared with these Contractors. Personal income tax allowances could be frozen, despite a Tory pledge at the 2017 election that they would rise to £12,500 for lower rate taxpayers and £50,000 for higher rate taxpayers by 2020. Freezing them could raise up to £2bn a year. Reform of the IR35 rules is questionable whether it would raise as much.
Source – BBC UK News https://www.bbc.co.uk/news/business-45822650
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