Making Tax Digital
Discussion
After a quick glance I would say this -
the start date is still 1 April 2018
Spreadsheets WILL be allowed but MUST be linked to compatible software (whatever that may be)
Businesses with turnovers under the VAT threshold only need to submit a very basic quarterly summary (totals only - income/expenditure/profit/loss)- this is a MAJOR concession.
It's still an imposition but some serious reversals have been included compared to the initial proposals.
the start date is still 1 April 2018
Spreadsheets WILL be allowed but MUST be linked to compatible software (whatever that may be)
Businesses with turnovers under the VAT threshold only need to submit a very basic quarterly summary (totals only - income/expenditure/profit/loss)- this is a MAJOR concession.
It's still an imposition but some serious reversals have been included compared to the initial proposals.
Just brushed through it quickly! It seems to me that they should supply more than a 'basic' cr@ppy level of free software if they insist people use software and that they look to gain TWO BILLION in year one of extra taxes!
It also seems to sideline my accountant - will they be charging less as they certainly will have to do far less in my case. I loved the fact that they managed all this for me and I got to just work on my businesses...
It also seems to sideline my accountant - will they be charging less as they certainly will have to do far less in my case. I loved the fact that they managed all this for me and I got to just work on my businesses...
Ken Figenus said:
Just brushed through it quickly! It seems to me that they should supply more than a 'basic' cr@ppy level of free software if they insist people use software and that they look to gain TWO BILLION in year one of extra taxes!
It also seems to sideline my accountant - will they be charging less as they certainly will have to do far less in my case. I loved the fact that they managed all this for me and I got to just work on my businesses...
Unfortunately, accountants will probably end up having to do MORE rather than less. There is still the matter of the end of year reconciliation and submission - which will entail the normal annual accounts but will also now involve picking through the data previously submitted and any howlers made by the tax payer explained and corrected.It also seems to sideline my accountant - will they be charging less as they certainly will have to do far less in my case. I loved the fact that they managed all this for me and I got to just work on my businesses...
It will be at this time that the normal annual relief claims etc will be made.
Interesting point here -
"Therefore, the government has revisited the proposed design of the end of year activity and can confirm that the deadline for providing the associated data will no longer be nine months. Instead the government will introduce legislation which will require that the end of year activity has to be provided by the sooner of 10 months after the last day of the period of account or 31 January of the year of assessment in which the profits for that period of account are chargeable to income tax (the existing Self Assessment deadline)"
So, if your business year end is (say) 31 July, you annual submission deadline date is going to be the following 31 May.
"Therefore, the government has revisited the proposed design of the end of year activity and can confirm that the deadline for providing the associated data will no longer be nine months. Instead the government will introduce legislation which will require that the end of year activity has to be provided by the sooner of 10 months after the last day of the period of account or 31 January of the year of assessment in which the profits for that period of account are chargeable to income tax (the existing Self Assessment deadline)"
So, if your business year end is (say) 31 July, you annual submission deadline date is going to be the following 31 May.
Eric Mc said:
Interesting point here -
"Therefore, the government has revisited the proposed design of the end of year activity and can confirm that the deadline for providing the associated data will no longer be nine months. Instead the government will introduce legislation which will require that the end of year activity has to be provided by the sooner of 10 months after the last day of the period of account or 31 January of the year of assessment in which the profits for that period of account are chargeable to income tax (the existing Self Assessment deadline)"
So, if your business year end is (say) 31 July, you annual submission deadline date is going to be the following 31 May.
So would the tax due be paybale on 31 May? Does this mean the concept of tax years (2015/16 etc) will be done away with? "Therefore, the government has revisited the proposed design of the end of year activity and can confirm that the deadline for providing the associated data will no longer be nine months. Instead the government will introduce legislation which will require that the end of year activity has to be provided by the sooner of 10 months after the last day of the period of account or 31 January of the year of assessment in which the profits for that period of account are chargeable to income tax (the existing Self Assessment deadline)"
So, if your business year end is (say) 31 July, you annual submission deadline date is going to be the following 31 May.
No, the concept of tax years is not being done away with.
Payments will still be based on a 31 January payment date.
What happens now will be fragmented reporting. Here's a typical scenario -
Sole trader has a business with a year end date of 31 July.
He also has some rental property.
In August 2018/19 he sold one of his properties and made a gain.
This is what he will be expected to do in tax year 2018/19.
i) submit quarterly figures for his business covering 3 months ended 30 June 2018, 30 September 2018, 31 December 2018 and 31 March 2019.
ii) submit separate quarterly figures for his rental income covering the same time periods
iii) he made a Capital Gain in August 2018. He has 30 days to update his Digital Tax Account to reflect the gain and PAY THE CAPITAL GAINS TAX arising.
iv) monitor his digital tax account for any other changes or inputs that need to be made over and above the business and rental income
v) he needs to submit the annual update for his business figures covering the business year end 31 July 2018 no later than 10 months after the year end date i.e. - 31 May 2019.
vi) he needs to submit a SEPARATE annual update for his rental income no later than ten months after the end of the tax year 2018/19 i.e. 31 January 2019.
Payments will still be based on a 31 January payment date.
What happens now will be fragmented reporting. Here's a typical scenario -
Sole trader has a business with a year end date of 31 July.
He also has some rental property.
In August 2018/19 he sold one of his properties and made a gain.
This is what he will be expected to do in tax year 2018/19.
i) submit quarterly figures for his business covering 3 months ended 30 June 2018, 30 September 2018, 31 December 2018 and 31 March 2019.
ii) submit separate quarterly figures for his rental income covering the same time periods
iii) he made a Capital Gain in August 2018. He has 30 days to update his Digital Tax Account to reflect the gain and PAY THE CAPITAL GAINS TAX arising.
iv) monitor his digital tax account for any other changes or inputs that need to be made over and above the business and rental income
v) he needs to submit the annual update for his business figures covering the business year end 31 July 2018 no later than 10 months after the year end date i.e. - 31 May 2019.
vi) he needs to submit a SEPARATE annual update for his rental income no later than ten months after the end of the tax year 2018/19 i.e. 31 January 2019.
Just tried to submit a VAT return. The system has decided that my company isn't registered for online VAT and cannot become so.
Last quarter I couldn't submit a return because they had a new logon system & they'd typoed my address so I couldn't get it accepted when I tried the new logon process.
I'll be deregistering for VAT in preparation for the new system. I hope I don't have to fold my company and go work for someone else due to the 'help' these imbeciles wish to give me.
Last quarter I couldn't submit a return because they had a new logon system & they'd typoed my address so I couldn't get it accepted when I tried the new logon process.
I'll be deregistering for VAT in preparation for the new system. I hope I don't have to fold my company and go work for someone else due to the 'help' these imbeciles wish to give me.
Eric Mc said:
He's referring to the report issued yesterday. There is a link to it further up the thread if you want to read it - and make yourself ill.
I had that open in a tab for 24 hour. (Meaning to give it a read - even if only to the Exec Sum - but not yet started.)My Mac has spontaneously developed an update and lost that tab.
I don't think these two facts are completely unrelated.
Listened....
Zoned out mostly.
Noted that Estonia tax returns take five minutes.........
....and the obvious one that each taxpayer has the burden of carrying out appropriate due diligence and is completely responsible for what any third party software to allow them to make digital returns does - or fails to do - and, of course, the security of any of the data.
Yeah. Genius!
Zoned out mostly.
Noted that Estonia tax returns take five minutes.........
....and the obvious one that each taxpayer has the burden of carrying out appropriate due diligence and is completely responsible for what any third party software to allow them to make digital returns does - or fails to do - and, of course, the security of any of the data.
Yeah. Genius!
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