MAKING TAX DIGITAL (MTD)

Income Tax:

Government’s plans to make it easier for individuals and businesses to get their tax right. Self-employed businesses and landlords will need to follow the rules for MTD for Income Tax from their accounting period starting on 6 April 2026 which is delayed by a further two years. (it was due to apply from the 6 April 2024). It was announced onn 19 December. It will introduce over few phases, the date dependent on the taxpayer’s income: From April 2026, self-employed individuals and landlords with an income of more than £50,000 will be require to follow MTD for ITSA. Those income of between £30,000 and up to £50,000 will be require to follow from April 2027. The Government will review the needs of smaller businesses and individuals those under the £30,000 before making any decision on the further mandation of MTD for ITSA. Its require Digital record keeping (Excel or Software) and the information required to submit quarterly update and end of period statement. The government has announced that if your total gross income from self-employment and property is over £20,000, you’ll need to use Making Tax Digital for Income Tax in the future. We’ll set out the timeline for this at a later date..

MTD VAT:

From 1 April 2019, VAT registered traders with turnover in excess of the VAT registration limit (currently £85,000), will have to keep digital record and need to submit their VAT returns using Making Tax Digital compatible software which linked to HMRC’s Making Tax Digital (MTD) systems. If we complete your VAT returns, assured that we will be using HMRC approved MTD capable software. If you manage your own VAT filing, you should check with your software supplier to make sure they are capable of MTD VAT filing.

If you are struggling to achieve MTD compatibility before 1 April 2019, Do contact WeAccountants, we can help you on MTD.

Exemption from Making Tax Digital

You will exempt for Making Tax Digital if HMRC is satisfied that either:

 it’s not reasonably practicable for you to use digital tools to keep your business records or submit your VAT Returns because of age, disability, remoteness of location or for any other reason

 you or your business are subject to an insolvency procedure

 your business is run entirely by practising members of a religious society or order whose beliefs are incompatible with using electronic communications or keeping electronic records

If you think you are eligible for MTD exemption and need help, please do contact us, WeAccountant can help you for make a claim an exemption on your behalf,

VALUE ADDED TAX (VAT)

VAT is a complex tax which affects most businesses in the UK. Whether it’s preparing and submitting VAT returns or considering the implications of specific transactions, getting it wrong can be a costly mistake. With our collective experience and expertise in VAT compliance, consultancy and planning, our team of experts provides cost-effective advice and assistance and helps businesses to avoid the many drawbacks presented by VAT and the other indirect taxes administered by HM Revenue & Customs.

Businesses in the UK must apply it to be registered with VAT if their turnover is in excess of £85,000 a year (2020). Businesses can also voluntarily choose to register for VAT if they anticipate turnover lower than the threshold but have a demonstrable commercial reason for needing VAT registration. In order to obtain VAT registration and your business needs to be able to demonstrate that it is providing a taxable supply of goods and services to or from the United Kingdom. WeAccountants can take care of your VAT return so that you don’t have to.

WeAccountants VAT services includes:

 We used Making Tax Digital (MTD) capable software to submit VAT return.

 VAT planning including assists you to choose most beneficial VAT scheme for your business. Such as Standard rate, Flat Rate.

 Help with Registering (or deregistering) your business for VAT.

 Acting as a VAT agent and providing a point of contact for HM Revenues and Customs.

 Our VAT specialists can prepare monthly or quarterly VAT return and submitting to HMRC.

 Mediating enquiries from HM Revenues and Customs in relation to your business VAT.

 If you trade with Europe then there are other reporting requirements that we can assist you with, such as the EC Sales List or an Intrastat Return.

 VAT control and reconciliation.