February 2017 - Hart Parry
hart parry blog

Making Tax Digital

It is just 7 weeks until HMRC start their pilot scheme of Making Tax Digital (MTD), this is where as a minimum businesses will be required to report their figures each quarter rather than annually as now.  The full system is due to be rolled out from 6 April 2018 – Sole Traders and Landlords being the first to be mandated to do this, followed the next year by partnerships and lastly limited companies  by 2020. There is still a lot of detail to be resolved, and we are already busy planning what we need to do to help you be compliant with the new system.  We will be requesting your assistance in due course, in making it possible for your returns to be both accurate, on time and without penalty.  There may need to be changes to the way you keep your records, both to meet the new regulations and also to help us be able to meet the new deadlines for you. For those of you that are VAT registered, you are already a long way there, and it will not be such a big change, and by 2019 your VAT return and Making Tax Digital returns will be one and the same, HMRC have indicated their intention to combine the 2 returns – so watch this space – lots of changes ahead – we are here to help you smoothly through them. VAT Flat Rate Scheme changes The government considers that some businesses with ‘limited costs’ are obtaining too much advantage in using FRS as, although they correctly use the flat rate appropriate to their trade...