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Business Round-up
Government publishes Making Tax Digital
for VAT legislation
In March 2018, the government published the Value Added Tax
(Amendment) Regulations 2018, which set out the requirements
under Making Tax Digital for VAT (MTD for VAT).
The new regulations are set to take effect from 1 April 2019, and
will apply to businesses which have a taxable turnover above the
VAT registration threshold, which currently sits at £85,000.
Under the government's MTD regime, taxpayers will ultimately
move to a fully digital tax system, and will be required to register,
file, pay and update their financial information using a secure
online tax account. The government has previously stressed that
keeping digital records and making quarterly updates will not be
compulsory for taxes other than VAT before April 2020.
From April 2018, HMRC is live piloting MTD for VAT, and
a number of UK businesses have been invited to take part.
Participating businesses will be able to submit VAT returns using
the new digital system, and will have the opportunity to influence
how the system works, looks and feels.
The government intends to expand the MTD pilot over the
coming months.
Meanwhile, HMRC has also launched an MTD pilot for income tax
for self-employed taxpayers. This pilot is open to sole traders with
income from only one business, whose current accounting period
ends after 5 April 2018.
Reminders for your diary
June 2018
1 New Advisory Fuel Rates
(AFR) for company car
users apply from today.
19 PAYE, Student loan and
CIS deductions are due for
the month to 5 June 2018.
30 End of CT61
quarterly period.
July 2018
5 Deadline for reaching
a PAYE Settlement
Agreement for 2017/18.
6 Deadline for forms P11D
and P11D(b) for 2017/18
to be submitted to HMRC
and copies to be issued to
employees concerned.
Deadline for employers to
report share incentives for
2017/18.
14 Due date for income tax
for the CT61 period to
30 June 2018.
19 Class 1A NICs due for
2017/18.
PAYE, Student loan and
CIS deductions due for the
month to 5 July 2018.
PAYE quarterly payments
are due for small
employers for the pay
periods 6 April 2018 to
5 July 2018.
31 Second payment on
account for 2017/18 due.
August 2018
2 Deadline for submitting
P46(Car) for employees
whose car/fuel benefits
changed during the
quarter to 5 July 2018.
19 PAYE, Student loan
and CIS deductions are
due for the month to
5 August 2018.
Web Watch
Essential sites for business owners.
ico.org.uk/for-organisations/ guide-to-the-general-data- protection-regulation-gdprProvides a detailed guide to the
General Data Protection Regulation.
britishchambers.org.ukOffers support for businesses all over
the UK, and provides information on
your local Chamber.
hireanapprentice.campaign.gov.ukSupplies details on how to go about
hiring an apprentice.
gigabitvoucher.culture.gov.ukOffers information on how small
businesses and individuals can apply for
broadband vouchers.
Chancellor delivers first Spring Statement
On 13 March 2018, Chancellor Philip Hammond delivered his
first ever Spring Statement speech, in which he responded to
the latest economic forecasts published by the Office for Budget
Responsibility (OBR).
The annual Spring Statement forms part of the Chancellor’s new
Budget timetable, which has seen the main annual Budget move
from its traditional Spring setting to the Autumn.
The Chancellor used his speech to report on the progress made
on a number of measures announced in the 2017 Autumn Budget,
as well as announcing some future measures. This included the
announcement that the next business rates revaluation will be
brought forward from 2022 to 2021.
Mr Hammond also launched a number of consultations, including
a new consultation examining the effect of the current VAT
registration threshold on small businesses, as well as consultations
relating to changes to Entrepreneurs’ Relief, and using the UK tax
system to encourage the ‘responsible use of plastic’.
New incentives to encourage the ‘great British white van driver’
to go green were also unveiled, whilst £20 million from existing
budgets will be given to businesses and universities to help
fund research into ways in which the impact of plastics on the
environment can be reduced.
Meanwhile, over £1.5 billion has been allocated to departments
and devolved administrations in preparation for the UK’s exit from
the European Union.