Facebook - Shropshire Business Twitter - Shropshire Business LinkedIn - Shropshire Business
https://www.fbcmb.co.uk https://www.barclayscorporate.com

Businesses urged to take digital approach

Accountants at a Shropshire firm are calling on taxpayers to sign up to the HM Revenue and Customs initiative – Making Tax Digital – sooner rather than later.

HMRC have set out their roadmap for the nationwide roll-out of the scheme and taxpayers across the UK need to be prepared.

Martyn Bramwell, Tax Department Manager at Dyke Yaxley Chartered Accountants, in Shrewsbury and Telford, called on businesses to embrace the changes to the VAT system as soon as they could.

“Making Tax Digital started in April 2019 for the majority of VAT-registered businesses with taxable turnover over the £85,000 threshold. And from April 2022, it will become compulsory for all VAT-registered businesses to report their income in this way, so it makes sense to start preparing now for the new rules rather than leaving things until the last minute.”

Martyn said the initiative meant that all VAT-registered businesses would need to keep their VAT records digitally.

“You can do this by taking pictures of records on a smartphone and keeping a spreadsheet – you’ll then need bridging software to ‘talk’ to HMRC’s systems. Or you could use a dedicated software package, or a combination of both methods.”

HMRC has also confirmed that from April 2023, MTD for income tax will apply for unincorporated businesses and landlords with a gross turnover of over £10,000.

“If you have a business and a rental property, HMRC has ruled that the gross income of £10,000 is for both business and rental incomes combined, not £10,000 for each, so more taxpayers will be caught by the real-time reporting requirement,” said Martyn.

“Taxpayers will have to report on their income and expenses quarterly, and then file a submission at the end of the year finalising their business details. They will also be required to add non-business information such as bank interest, dividends, and pension contributions.”

Martyn said although reporting will be quarterly, HMRC had confirmed there were no changes to the deadlines for the payment of tax – but that could change.

“Although April 2023 seems a long way off, perhaps the new tax year starting in April 2021 is a good time to start thinking about making the change to digital records if you haven’t already done so.”

Pictured: Martyn Bramwell


Businesses warned of cashflow cliff edge

Tax expert says realistic forecasting will be crucial

23rd October 2020

Self-employed will face new tax rules

Accountant warns changes come into force next month

10th March 2021

Deadline warning for self-employed

Third round of vital grant support will soon come to an end

22nd January 2021

New rules for online retailers

Businesses must prepare for tax changes

10th November 2020

Scammers target tax deadline

Tax specialists warn of increased criminal activity

27th January 2021

Rules change over import tax charges

Retailers can now take responsibility for additional costs

15th July 2021

Covid support could be open to more people

Change in criteria means self-employed who missed out previously may qualify

28th April 2021

Online event will showcase support

Focus is on environment, digital and skills training

12th March 2021

Company vehicles cause tax confusion

Business people need to know the rules

24th November 2020

Colleges group supports prison inmates

Team delivers digital learning to help offender learners

17th March 2021

Greener choices could benefit company car drivers

Increase in range and models makes them commercially viable option

24th March 2021

Project aims to protect Shropshire jobs

Skills training will help companies embrace the digital revolution

28th September 2020

New partnership offers financial guidance

Tailored tax advice will be easier to find

23rd April 2021

Art business fights back

Innovative online gallery attracts attention

14th December 2020

Creative trio stay true to their roots

First birthday marked with new contract wins

15th September 2020