Our newsletter this month includes: the opportunity to consider your tax planning options for 2018-19; are you ready for the VAT filing changes; what is the government doing to prepare us for Brexit and what can you give away before the end of the tax year?
Options for adopting 99% of tax planning opportunities for 2018-19 ends on 5 April 2019, just a couple of months away.
This applies equally to individuals and all businesses with an accounting year end close to, but prior to 5 April 2019.
More importantly, this planning option applies to all taxes: Income Tax, Capital Gains Tax and Corporation Tax; and in some cases, to National Insurance and VAT.
Organise a tax planning review now.
If your personal or business tax affairs are complex, make sure you avail yourself of this moment of reflection before 5 April 2019. Once the date is passed, there is no chance the clock can be turned back.
2019 will likely be marked out as the year when our present relationship with the rest of Europe changes, once again adding to the usual pressures faced by UK businesses. There has never been a more opportune moment to take time out from running your business to consider your planning options for the current tax year.
A reminder that from 1 April 2019, VAT registered traders with turnover in excess of the current VAT registration limit, £85,000, will need to file returns after 1 April 2019 linked to HMRC’s Making Tax Digital (MTD) systems.
Accounts software providers have been working at some pace to change their software, so they “speak” to HMRC’s MTD servers using a dedicated link called an API (an application program interface).
If we complete your VAT returns, you can be assured that we will be using approved software. If you manage your own VAT filing, you should check with your software supplier to make sure they are going to provide the MTD, VAT filing facility.
Any issues please get in touch as we can either take over this chore for you or advise which software to use.
Any mention of software thus far in this article refers to your account’s software. It does not include spreadsheets. Spreadsheets create a particular issue for filing VAT numbers via MTD. If the data in the spreadsheets is linked electronically to the final VAT filing software all is well. If you have to cut and paste data from a spreadsheet into accounts software this will not be sufficient for MTD purposes. However, HMRC has said that they will allow a period of time - a soft landing - for businesses to have digital links in place on or before 31 March 2020.
Do get in touch if you are struggling to achieve MTD compatibility before 1 April 2019.
According to a recent announcement on the GOV.UK website, preparations include:
You can give away £3,000 worth of gifts each tax year (6 April to 5 April) without them being added to the value of your estate. This is known as your ‘annual exemption’.
You can carry any unused annual exemption forward to the next year - but only for one year.
Each tax year, you can also give away:
You can use more than one of these exemptions on the same person - for example, you could give your grandchild gifts for her birthday and wedding in the same tax year.
Small gifts up to £250
1 February 2019 - Due date for Corporation Tax payable for the year ended 30 April 2018.
19 February 2019 - PAYE and NIC deductions due for month ended 5 February 2019. (If you pay your tax electronically the due date is 22 February 2019)
19 February 2019 - Filing deadline for the CIS300 monthly return for the month ended 5 February 2019.
19 February 2019 - CIS tax deducted for the month ended 5 February 2019 is payable by today.
1 March 2019 - Due date for Corporation Tax due for the year ended 31 May 2018.
2 March 2019 - Self assessment tax for 2017/18 paid after this date will incur a 5% surcharge.
19 March 2019 - PAYE and NIC deductions due for month ended 5 March 2019. (If you pay your tax electronically the due date is 22 March 2019)
19 March 2019 - Filing deadline for the CIS300 monthly return for the month ended 5 March 2019.
19 March 2019 - CIS tax deducted for the month ended 5 March 2019 is payable by today.