Making Tax Digital
Discussion
Ive followed most of this thread, initially with some alarm, but after a gap of several month I’m now just a shade confused as to MTDs impact on me - Eric, is it possible just to clarify please?
My business is incorporated, not VAT registered (come nowhere near the threshold), turnover varies from year to year (its more of a hobby really and not my main source of income).
I currently complete the books (and they are paper as my wife doesn’t do computers!) and we see the accountant once per year.
I’ve always made a profit and always paid tax since starting.
Is MTD going to affect my business at all or am I exempt?
Thanks in advance!
My business is incorporated, not VAT registered (come nowhere near the threshold), turnover varies from year to year (its more of a hobby really and not my main source of income).
I currently complete the books (and they are paper as my wife doesn’t do computers!) and we see the accountant once per year.
I’ve always made a profit and always paid tax since starting.
Is MTD going to affect my business at all or am I exempt?
Thanks in advance!
steveatesh said:
Ive followed most of this thread, initially with some alarm, but after a gap of several month I’m now just a shade confused as to MTDs impact on me - Eric, is it possible just to clarify please?
My business is incorporated, not VAT registered (come nowhere near the threshold), turnover varies from year to year (its more of a hobby really and not my main source of income).
I currently complete the books (and they are paper as my wife doesn’t do computers!) and we see the accountant once per year.
I’ve always made a profit and always paid tax since starting.
Is MTD going to affect my business at all or am I exempt?
Thanks in advance!
At the moment you're outside of MTD (they're only introducing it for VAT first of all). Give it a couple of years and it'll catch up with you though.My business is incorporated, not VAT registered (come nowhere near the threshold), turnover varies from year to year (its more of a hobby really and not my main source of income).
I currently complete the books (and they are paper as my wife doesn’t do computers!) and we see the accountant once per year.
I’ve always made a profit and always paid tax since starting.
Is MTD going to affect my business at all or am I exempt?
Thanks in advance!
steveatesh said:
Is MTD going to affect my business at all or am I exempt?
Thanks in advance!
The simple answer is yes, MTD will affect your business - eventually but not yet. Thanks in advance!
The original plan was -
MTD replaces Self Assessment for individuals and partnerships from April 2018
MTD comes in for VAT probably in April 2019
MTD comes in for limited companies and large partnerships (which were not defined) in April 2020.
The revised plan is -
MTD comes in for VAT only, in April 2019. This applies to ALL VAT registered entities whether sole traders, partnerships (big and small) , limited companies, schools, charities, police forces and any other operation that needs to register for VAT. However, it only applies to VAT registered entities who currently have a turnover exceeding the VAT registration threshold.
If you have registered for VAT voluntarily and are under the compulsory turnover threshold, you can continue filing VAT the "old fashioned way". If you go over the threshold, you then register for MTD and YOU CAN NEVER GO BACK, even if you go back under the threshold. The only way to escape MTD in this circumstance is to de-register for VAT.
MTD will come in for Self Assessment for individuals/partnerships and Corporation Tax for limited companies in April 2020 AT THE VERY EARLIEST. No firm date is known.
SunsetZed said:
Eric Mc said:
You do or you don't agree that governments should stipulate how businesses keep their records?
I think they should have a say in it yes but not define all the minute details for every business.Those who run businesses (whether corporate, sole traders or partnerships) are supposed to prepare their accounts to the accepted accounting standards as set out by the accounting bodies i.e. the Generally Applied Accounting Principles as set out in the Financial Reporting Standards. HMRC's opinion has always been, that as long as accounts were prepared to those standards and adjusted accordingly where tax rules differed from those standards (Capital Allowances being a good example), then the business was compliant with what HMRC required.
MTD is a major step away from that approach and could result in businesses essentially jumping to multiple masters, all with different requirements regarding accounting information.,
mjb1 said:
steveatesh said:
Ive followed most of this thread, initially with some alarm, but after a gap of several month I’m now just a shade confused as to MTDs impact on me - Eric, is it possible just to clarify please?
My business is incorporated, not VAT registered (come nowhere near the threshold), turnover varies from year to year (its more of a hobby really and not my main source of income).
I currently complete the books (and they are paper as my wife doesn’t do computers!) and we see the accountant once per year.
I’ve always made a profit and always paid tax since starting.
Is MTD going to affect my business at all or am I exempt?
Thanks in advance!
At the moment you're outside of MTD (they're only introducing it for VAT first of all). Give it a couple of years and it'll catch up with you though.My business is incorporated, not VAT registered (come nowhere near the threshold), turnover varies from year to year (its more of a hobby really and not my main source of income).
I currently complete the books (and they are paper as my wife doesn’t do computers!) and we see the accountant once per year.
I’ve always made a profit and always paid tax since starting.
Is MTD going to affect my business at all or am I exempt?
Thanks in advance!
Eric Mc said:
steveatesh said:
Is MTD going to affect my business at all or am I exempt?
Thanks in advance!
The simple answer is yes, MTD will affect your business - eventually but not yet. Thanks in advance!
The original plan was -
MTD replaces Self Assessment for individuals and partnerships from April 2018
MTD comes in for VAT probably in April 2019
MTD comes in for limited companies and large partnerships (which were not defined) in April 2020.
The revised plan is -
MTD comes in for VAT only, in April 2019. This applies to ALL VAT registered entities whether sole traders, partnerships (big and small) , limited companies, schools, charities, police forces and any other operation that needs to register for VAT. However, it only applies to VAT registered entities who currently have a turnover exceeding the VAT registration threshold.
If you have registered for VAT voluntarily and are under the compulsory turnover threshold, you can continue filing VAT the "old fashioned way". If you go over the threshold, you then register for MTD and YOU CAN NEVER GO BACK, even if you go back under the threshold. The only way to escape MTD in this circumstance is to de-register for VAT.
MTD will come in for Self Assessment for individuals/partnerships and Corporation Tax for limited companies in April 2020 AT THE VERY EARLIEST. No firm date is known.
Eric Mc said:
SunsetZed said:
Eric Mc said:
You do or you don't agree that governments should stipulate how businesses keep their records?
I think they should have a say in it yes but not define all the minute details for every business.Those who run businesses (whether corporate, sole traders or partnerships) are supposed to prepare their accounts to the accepted accounting standards as set out by the accounting bodies i.e. the Generally Applied Accounting Principles as set out in the Financial Reporting Standards. HMRC's opinion has always been, that as long as accounts were prepared to those standards and adjusted accordingly where tax rules differed from those standards (Capital Allowances being a good example), then the business was compliant with what HMRC required.
MTD is a major step away from that approach and could result in businesses essentially jumping to multiple masters, all with different requirements regarding accounting information.,
plasticpig said:
Eric Mc said:
No good ideas regarding tax have EVER come from France.
Is VAT a bad idea then?Seems to me that this whole exercise is about HMRC getting us taxpayers to input the necessary VAT/Co Account/SA etc fields directly into their Connect system so that it can cross check against all of our bank, email and social media accounts (that it can now legally look at and read) with the minimum amount of human input. It'll even print the letters as well; all terribly efficient.
I think the arguments over which software best facilitates this process is rather a moot point. Still, nothing to hide and all that. What could possibly go wrong with all that data being collated and stored in one place?
I think the arguments over which software best facilitates this process is rather a moot point. Still, nothing to hide and all that. What could possibly go wrong with all that data being collated and stored in one place?
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