Accountancy Blog

Making Tax Digital – obligations from 1st April 2019

Obligations from 1 April 2019 onwards.

Although the Making Tax Digital (MTD) regime has suffered several setbacks and delays, MTD for VAT remains on course to take effect from its planned implementation date of 1 April 2019.

Under the scheme, VAT-registered businesses are required to maintain digital records, complete the VAT return from the digital records and send it electronically to HMRC. More…

Letting holiday accommodation – the good and bad

The pros and cons of letting furnished holiday accommodation.

When furnished holiday property is let on a commercial basis for short periods, the owner can benefit from certain tax reliefs which wouldn’t otherwise be available to residential landlords, providing certain conditions are met.

However, there are also several disadvantages associated with letting property as holiday accommodation whether or not the furnished holiday letting conditions are met. More…

Working pensioners pay £8.6bn in income tax

Working pensioners are on course to pay £8.6 billion in income tax in 2018/19, according to Aegon.

The number of pensioner households containing at least one person working beyond their state pension age increased from 12% in 1997/98 to an estimated 17% in 2018/19.

Aegon estimates there are around 12.8 million people living in 8.7 million pensioner households in the UK, with around 1.4 million homes containing a working pensioner. More…

SME’s missing out on balance interest

Small business owners could alleviate pressure on their cashflow by paying more attention to business savings interest, according to a report.

Aldermore polled 950 SME owners and sole traders and found that 62% are earning no interest on their business savings at all.

Over half (53%) are earning less than £300 a year in interest on their business savings, while 65% had the same business bank account as their personal account provider.

While consistently low interest rates offer little incentive to save, 33% of respondents said they were spending their cash too quickly each month. More…

VAT – raise or lower the threshold?

The Association of Independent Professionals and the Self-Employed (IPSE) has called for the VAT threshold to be increased, in response to a government consultation.

The current £85,000 threshold at which businesses must register for VAT has been frozen until 2020, while the government deliberates on its approach to the tax.

Chancellor Philip Hammond considered lowering the VAT-registration threshold before Autumn Budget 2017 to bring the threshold closer to global standards and the EU average of £20,000.

Estimates suggested that reducing the threshold from £85,000 to £43,000 would net the Treasury an extra £1.5 billion a year, while decreasing the threshold to £25,000 could fetch up to £2 billion. More…

Apprenticeships levy – flawed system?

Pressure is mounting on the government to reform the apprenticeships system, following recent apprenticeship levy statistics.

The Institute of Directors (IoD) has joined the British Chambers of Commerce (BCC) in urging the government to address ongoing problems with the levy.

Apprenticeship starts were down 25% for the seven months to February 2018 compared with the previous year, according to statistics from the Department for Education.

The apprenticeship levy, which has been in place since 6 April 2017, means businesses with an annual wage bill of more than £3 million must pay the levy towards apprenticeship funding. More…