Chartered Tax Advisers & Accountants

Making Tax Digital

The idea of Making Tax Digital was first mooted in the 2015 Autumn Statement with the announcement that the Government wanted to replace the annual tax return with some form of quarterly accounting for the self-employed, landlords and partnerships.  Limited company obligations will also follow.  As more and more people become aware of this "quarterly reporting", concern is growing as to how this will impact on the self-employed.  

The Government's consultation on Making Tax Digital closed on 7 November 2016 and M&S submitted their responses to these consultations on 4 November 2016.  We expect final decisions regarding the consultation will be announced in the forthcoming 2016 Autumn Statement on 23 November.  As M&S are deeply concerned about these changes and their potential impact, we will be watching the Autumn Statement more closely than usual, and will provide our usual summary shortly afterwards.

We hope the information in this page will prove useful to you but if you have concerns as to what these changes might mean for you or your business please contact Stewart McKinnon, Tax Director or Wendy Cheung, Tax Manager or by emailing makingtaxdigital@msactax.co.uk


Budget 2017 - Looking To The Future

Published On: 10/03/2017

Even more so than most recent Budgets, in the last ever Spring Budget on Wednesday, there was actually very little of any relevance that will take immediate effect, even the headline announcements about increased Class 4 National Insurance Contributions (NIC) for the self-employed and the reduction in the dividend allowance.  For the most part, gone are the days when changes took effect from midnight on the day of the Budget.  That is certainly a good thing in terms of avoiding last minute panics to get something through or paid before the change was implemented and it does allow businesses and taxpayers time to plan a bit more.

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BUDGET 2017 – HAS ANYONE OUT THERE BEEN LISTENING?

Published On: 08/03/2017

For once we are both pleased and surprised to say HMRC have been.  After mounting criticism and almost unanimous requests from small businesses and their representatives, HMRC have today announced a one year delay in the introduction of Making Tax Digital for Businesses (MTDfB) with a turnover below the soon to be introduced £85,000 VAT threshold.  This turnover threshold will also apply to landlords with an annual turnover of less than £85,000 per annum.

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My Making Tax Digital Blog – starting with some cynicism!

Published On: 02/03/2017

Probably against my better judgement, I’ve agreed to take part in HMRC’s pilot to help them evaluate the MTD software that will become essential for most small businesses to use to complete their quarterly tax “returns” (sorry, submissions, we’re not doing tax returns now, no siree), from April 2018.

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