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Searching for Chartered Accountants to maintain annual year-end account, Tax planning, structuring & VAT advice advise, submitting tax retur
Accountant for Construction & Property Tax Services
Searching for Chartered Accountants to maintain annual year-end account, Tax planning, structuring & VAT advice advise, submitting tax returns & CIS returns. A specialist sector with complicated taxation, legislative and contracting issues Morgan Reach provides a dedicated team of specialists advising within Construction and both Residential and Commercial Property.
The Government has delayed the introduction of Making Tax Digital for income tax self-assessment (MTD for ITSA) to April 6, 2024 to give individuals and businesses more time to prepare after the challenges theyâve faced during the pandemic.
Financial Secretary Lucy Frazer announced the delay to the House of Commons on September 23, 2021, adding that the Government remains committed to the system designed to simplify the UK tax system.
The basis period reform, which would require unincorporated businesses to align their accounting periods with the tax year, will also be delayed to at least 2024, with a transition year not coming into effect before 2023, Frazer added.
The Institute of Chartered Accountants in England and Wales welcomed the delay, saying the original start date for MTD for ITSA was âfar too soon and risked causing serious damage to the UK tax systemâ.
MTD for Income Tax will now be mandated for businesses and landlords with a business income over ÂŁ10,000 per annum in the tax year beginning in April 2024.
General partnerships will not be required to join MTD for ITSA until the tax year beginning in April 2025, while the date other types of partnerships will be required to join will be confirmed in the future.
In March 2021, the government announced a new system of penalties for the late filing and late payment of tax for ITSA. The new system for those who are mandated for MTD for ITSA will now come into effect in the tax year beginning in April 2024, and in the tax year beginning in April 2025 for all other ITSA taxpayers.
Eligible businesses and landlords will have the opportunity to gain the benefits of MTD early by signing up to the pilot, which is already underway and will be gradually expanded during the 2022 to 2023 tax year, ready for larger scale testing in the 2023 to 2024 tax year.
What is MTD for Income Tax Self-Assessment?
Under the requirements of MTD for ITSA, individuals who are subject to income tax on the profits of their trade, profession, vocation or property business will be required to keep their accounting records electronically (either using suitable software or on spreadsheet) and file quarterly returns to HMRC with details of their income and expenditure together with any other information that HMRC specifies.
A final end of period statement will then be submitted after the tax year to complete the individualâs tax affairs.
Although the frequency of reporting is to change, the timing of tax payments will not and the current system of payments on account and balancing payment by January 31 after the tax year is currently expected to remain in place.
At Morgan Reach, we understand every business needs a little help now and again-especially when it comes to the financial side of things. Therefore, to help our clients and visitors we endeavour to cover as much of the business news as possible. If you are self-employed or run a business and need assistance and advice on how these news could make a difference to you or your business, feel free to get in touch with the experts at Morgan Reach.
Weâve rounded up this weekâs news, which has been dominated by more time to prepare for digital tax changes, Office of Tax Simplification (O
Exemptions from MTD for Income Tax Self-Assessment
The Government has delayed the introduction of Making Tax Digital for income tax self-assessment to April 6, 2024 to give individuals and businesses more time to prepare after the challenges theyâve faced during the pandemic. Eligible businesses and landlords will have the opportunity to gain the benefits of Making Tax Digital early by signing up to the pilot, which is already underway and will be gradually expanded during the 2022 to 2023 tax year, ready for larger scale testing in the 2023 to 2024 tax year.
Manage and grow a successful business, you need excellent financial management, conducted by a highly experienced and skilled team. Some businesses find it virtually impossible to maintain an accounting function team who can not only cover the wide range of accounting specialties necessary but who also possess the skills and experience to achieve the high standards demanded. And so, accounting functions of an organisation was one of the first processes to be outsourced overseas. Lets takes a closer look at benefits that organisations expect from outsourcing services.
Increase Contactless Limit and Digital Right to Work | Chartered accountants
The call from The Federation of Small Businesses (FSB) came as it reported two-thirds of respondents to a survey said their operating costs had risen over the past year. A small business lobby group is urging the UK government to cut national insurance contributions. The National roll-out of the new ÂŁ100 spending limit for contactless card payments. Employers carrying out right to work checks will be able to continue doing them digitally until April 5, 2022 following updated government guidance.
Estate planning is about wealth preservation â helping you to manage your assets to minimise tax, local authority fees and other costs. Estate planning also plans around incapacity and what happens if you are unable to act for yourself due to ill health. Looking for Estate Planning Advice? Book a free consultation with Morgan Reach team, our goal is to give the best tax and financial services.
The claims service for the fifth SEISS grant had opened from July. The grant covers lost or reduced earnings from May to September 2021, offering up to 80% of trading profits over three months. ATT believe more timely tax payments should be offered on a voluntary basis only. If the UK has an agreement with a country, you may be able to get a reduced rate of Customs Duty for goods you import from that country. Letâs see the government policy and schemes update for the next quarter.
Errors Free Tax Reforms for Businesses and Self-Employed Tax Returns UK
The tax reforms key points are, the changes mean businesses will be taxed on profits arising in a tax year also it will align the way self-employed profits are taxed with other forms of income, such as property and investment.
Reforms to the tax system that aim to make it easier for self-employed workers and small businesses to fill out their returns have been announced by the Government.
The changes, which will come into force by 2023 and have been drawn-up alongside representatives of small businesses, will mean businesses will be taxed on profits arising in a tax year, rather than profits of accounts ending in the tax year.
It will align the way self-employed profits are taxed with other forms of income, such as property and investment income.
Under the current system, tax returns filed by the self-employed, sole traders and partnerships are based on a businessâs set of accounts ending in the tax year (April 5). More complex rules apply when a business starts and draws up its accounts to a date different to the end of the tax year.
In those cases, taxpayers pay tax for their first tax year on the period to the end of the tax year, and then in subsequent years on the basis of their full accounting year, meaning profits are taxed twice and complex rules apply to relieve the double taxation when the business finishes.
Financial Secretary to the Treasury Jesse Norman said:
âThese complex rules lead to thousands of errors and mistakes in self-employed tax returns every year.
âSimplifying them will allow self-employed people to spend less time doing tax admin and more time growing their business and creating jobs.â
The change to the time periods against which businesses report their tax will also reduce the number of times those with several sources of income will need to report their income under MTD for Income Tax.
Know more about changes in coronavirus government schemes for businesses and self-employed, get in touch with Morgan Reach Certified Chartered Accountants. Weâll guide you through what support is available for you or your business as well as the latest news that may affect you.
HMRC is a department which refers to the tax authority of the UK government. Primarily they are responsible for regulating taxes, wages, child benefits, customs laws and other elements of the financial sector. It comprise of four key subdivisions, the subdivisions include the Personal Tax Division, the Corporate or Business Tax Division, the Credits Payment and Administration Division, and the Reporting and Compliance Enforcement Division.
HMRC posts renewal reminder for tax credits claims
Government is seeking input on plans to boost the regularity of business rates revaluations. Â HMRC is reminding tax credits customers they have one month left to renew their tax credits claims. Get update its guidance for businesses on how to use the trade tariff tool to classify goods correctly and pay the right Customs Duty and import VAT. Morgan Reach business growth experts will guide you through business support.
Tax advice & planning to minimise Corporation tax return. Affordable Tax consultancy for Personal tax payers & employee benefits in UK. Expert accounting & tax firm, Morgan Reach is highly recommended for business & corporate tax planning, self-assessment & tax consultancy in UK. Consistently provide high standard service to address your unique needs, throughout the entire tax life cycle of planning, provision, compliance and working with the tax authorities to give you a balanced and integrated solution covering potential liabilities for all forms of tax in the UK and overseas.
Pension Dashboard Plans Could Take Until 2025 in UK
The key points of pension plans are the dashboards that allow savers to view all their various pension pots in one place and which includes the government pension, workplace pensions and any private pensions.
Savers hoping to see all their retirement pots in one place online might need to wait until at least 2025 for Pensions Dashboards to be fully formed.
Pensions Dashboards will allow savers to view all their various pension pots in one place â including the government pension, workplace pensions and any private pensions. Currently savers have to look at these pots separately, which can make it difficult to keep track.
The governmentâs objective was originally for the service to be available by 2019, with the target date later moving to 2023.
The Pensions Dashboards Programme (PDP), a body established to advise government on the reforms, has published a timetable for pension schemes to connect to dashboards. It says that while the first wave of schemes would connect to dashboards in Spring 2023, this process could take two years under the Pensions Dashboard Programme plans.
There is still not yet a proposed start date for âonboardingâ the smallest pension schemes (If you would like to know more contact the Accounting Firm near you).
Tom Selby, senior analyst at AJ Bell, said: âPensions Dashboards have the potential to make life a whole lot easier for millions of people who build multiple retirement pots over the course of their working lives.
âBeing able to see all of your retirement pots in one place online could be a game changer. Most obviously it should save people the hassle of digging through old statements â if they have them at all â when they want to consolidate their old schemes.
âIt should also make the scourge of lost pension pots a thing of the past, and over the longer-term could become a tool to boost retirement engagement and understanding. However, before that great pensions oak tree can emerge the government and the pensions industry needs to get an acorn in the ground.
âThere is little doubt the government was wildly optimistic when it suggested Dashboards could be up-and-running in 2019. This is a huge project involving vast amounts of data and with peopleâs life savings at stake, so the most important thing is ensuring that data is safe and the information people eventually see on dashboards is reliable.
âWhile the pace of the outlined timetable is enough to make a snail blush and will frustrate many â not least government ministers â it is infinitely better than headlines of another IT disaster. That said, we hope the government and the FCA will hold the feet of the laggards to the fire to ensure dashboards become a reality as soon as possible.â
The OTS said they would be analysing the âbenefits, costs and wider implicationsâ of a change. The âTax after coronavirusâ report called for urgent reform to the entire approach to pensions tax relief. If businesses opt to pay the deferred VAT in full, they have until June 30. SEISS grants are taxable in the tax year they are received, not the accounting year or tax basis period. HMRC has added guidance on when youâll need to use a Full Payment Submission process (FPS) and when to use an Earlier Year Update (EYU).
As the fourth self-employment income support scheme (SEISS) ramps up for applications, HMRC has confirmed the penalty regime with harsh fines for abuse of the financial support. The VAT deferral new payment scheme is open for all businesses who deferred paying VAT due. HMRC has created new guidance for agency workers and contractors who work through an umbrella company. If you are self-employed or run a business and need assistance and advice on how the recent announcements could make a difference to you or your business, feel free to get in touch with the experts at Morgan Reach.
Professional Accounting & tax firm, Morgan Reach is highly recommended for business & corporate tax planning, self-assessment & tax consultancy in UK. Consistently provide high standard service to address your unique needs, throughout the entire tax life cycle of planning, provision, compliance and working with the tax authorities to give you a balanced and integrated solution covering potential liabilities for all forms of tax in the UK and overseas. Morgan Reach accountants are having expertise, experience, knowledge and in depth understanding of UK and overseas taxation.
Pay As You Grow and Coronavirus Job Retention Scheme UK
The UK Government announced Pay As You Grow (PAYG) options for Bounce Back Loan borrowers in September last year, giving the borrower flexibility and more time to pay back their Bounce Back Loan should they need it. The Chancellor also confirmed in the Spring Budget that the Coronavirus Job Retention Scheme (CJRS) will now run until September 30, 2021. You and your employees do not need to have benefited from the scheme before to make a claim, as long as you meet the eligibility criteria.
The tax rules surrounding dividends are catching some people out, resulting in unnecessary tax bills. With careful planning many of these tax bills could be avoided.
The dividend rules
April 2016 saw the introduction of new tax rules regarding dividends, including
Individuals being entitled to a tax-free dividend allowance, and Dividend income in excess of this allowance being taxed at 7.5%, 32.5%, or 38.1% depending upon an individualâs level of income.
Businesses
One of the biggest issues for owner-managed companies is where owners have taken dividends each year to top their income. Many of these company owners may well have taken dividends to top up their income to the higher rate tax threshold. Given the complexities of the dividend rules and allowances it is worth regularly reviewing this position.
Sole traders and Partnerships
Another group that need to be aware of the dividend rules are the self-employed, whether sole traders or partners in a business. Why you may ask, given they wonât be receiving dividends?
Well the simple answer is that for self-employed businesses, especially ones growing, there can come a point where it is much more tax efficient to operate the business through a limited company instead, and there can be a number of other reasons for operating through a limited company should profits suffice. Â
The ways dividend are taxed could have an impact on when this decision is made, or the potential tax savings to be enjoyed. And so given the complexities surrounding such a decision we are offering a Dividend Impact Review service to help those interested in reviewing their situation. Further details and how you could secure your FREE review are given below. Â Â
Savings
If you hold shares in exempt savings such as ISAâs or pensions then these are not affected by the recent dividend tax changes or the planned reduction in dividend allowance.
However share investments could be affected. Depending upon your circumstances it may be worth considering options such as re-organising your investments, or considering more capital growth investments rather than income generating.
Again we would be happy to review your position with you and explain the options thoroughly as part of our Dividend Impact Review service.
The new dividend tax rules could create a problem for some individuals, who previously have not needed to complete a self-assessment tax return. If tax is due on their dividend income then they will need to notify HMRC and may need to complete and submit a self-assessment tax return, which could catch many individuals out who have never needed to complete a tax return.
Our new Dividend Impact Review Service
We are today launching our Dividend Impact Review service. We will be able to identify whether the changes will impact on you whatever your circumstances, quantify the potential impact, and what action can be taken.
The service is normally worth ÂŁ675 + VAT but we are offering it free to the first 40 customers. Â
And so if you are interested in finding out how the changes impact on you and what action to take please contact us now on 0333 300 1887, and book your Dividend Impact Review.
