Making Tax Digital deadline deferred for certain businesses

The Making Tax Digital (MTD) for VAT deadline has been extended until October 2019 for certain businesses. Around 3.5% of mandated customers are affected, including VAT divisions and groups, trusts, unincorporated not-for-profit organisations and traders based overseas.

The later deadline was announced in response to concerns raised by businesses participating in the VAT pilot scheme. This will give affected businesses with more complex arrangements more time to prepare for their filing deadline.

The original deadline of 1 April 2019 still applies to most businesses with a taxable turnover above the registration threshold. From next year any business filing under VAT will need to provide quarterly VAT filings to HMRC and also record transactions digitally as well.

The MTD system does not change any of the filing requirements for VAT, so the same information will still need to be supplied to HMRC. However, organisations will need to use accounting software that allows them to file returns digitally. You can use spreadsheet software but you will need ‘bridging software’ to submit records to HMRC.

The latest timetable for MTD is as below. With many dates left to be confirmed, and deadlines moving as close as six months before, it would be sensible to monitor developments, and how they may affect your organisation.

Start date Tax
Periods beginning on and after 1 April 2019 MTD for VAT: Filing begins for most businesses with annual turnover above the VAT threshold.
Periods beginning on and after 1 October 2019 MTD for VAT: Filing begins for remaining complex and specialist businesses with annual turnover above the VAT threshold.
April 2020 – date not confirmed MTD for VAT: A possible rollout of MTD to all VAT registered businesses.
April 2021 – date not confirmed MTD for income tax: Filing begins for unincorporated businesses and landlords who pay income tax on profits
April 2022 – date not confirmed MTD for corporation tax

 

Growing list of MTD software suppliers

HMRC has been busy approving software suppliers ahead of the first Making Tax Digital (MTD) deadline in April 2019.

The latest additions to HMRC’s list of approved software suppliers means there are now 27 providers to choose from. Until recently there were only a few suppliers on the list, but HMRC has confirmed it is working with 150 suppliers in total, and that 40 aim to have their software ready during the first phase of the pilot.

If you are using the MTD system, you must be using approved accounting software which allows you to send regular income tax updates to HMRC. Keeping digital records is an essential part of the MTD project and is compulsory for any business or individual with taxable turnover above the VAT registration threshold – £85,000 until 2020.

Ward Goodman are able to provide a number of MTD solutions for your business.  You can speak to one of the team about our cloud based solutions on (01202) 875 900 or request a call back here.

The MTD timetable has seen many changes as the complexity of the project has pushed things back. However, with only nine months to go until the first filings, businesses will be keen to ensure their systems are ready well in advance.

Contact us to see if your existing supplier is on the list or to find out if they will be approved before the deadline. If you would like any advice on systems or how best to handle your accounts, then please get in touch.

You are invited to a demonstration of WG Cloud

Free demonstrations of our cloud accountancy service are being held across our offices in Dorset.

Please come along to enjoy refreshments and to see how WG Cloud can make a difference to your business.

  • Tuesday 18th September 2018 9.30-11am at Shaftesbury office
  • Wednesday 19th September 2018 9.30am-11am Wareham office
  • Thursday 27th September 2018 9.30-11am Ferndown office

To book your place please click here

Ward Goodman help The Botanical Candle Co. keep its flame burning bright

Ward Goodman, the Dorset based firm of Chartered Accountants and Independent Financial Advisers, are delighted to count The Botanical Candle Co. amongst their Shaftesbury based clients. The company, which started making hand-poured soy wax candles in 2014 in a bid to produce more ecologically sound alternatives to burning paraffin candles, recently expanded by moving into a new studio and shop above Enchanted Plants at 6 The Commons, Shaftesbury town centre. Now a team of five, the company makes and sells a selection of candles in jars and unique reclaimed containers, tealights, wax melts, matches and exclusive accessories from the premises, as well as through its website www.thebotanicalcandleco.co.uk

Amalia Pothecary, Director of The Botanical Candle Co. said: “Sales were heading to the VAT threshold, so we went to see Teresa McGuire at Ward Goodman who set up us as a limited company. Using WG Cloud Xero software has made it so much easier to keep an eye on our cash flow and bank account, and the whole process has been very smooth and taken away the worry. Teresa’s advice and guidance has enabled us to concentrate on our business and give us the confidence to open up on the high street.”

Teresa McGuire, Client Service Manager at Ward Goodman, said: “It’s great to be able to help a small business and see it expand to high street premises, as it’s not only good for the business, but also for the town itself to have new and exciting shops bringing people to Shaftesbury. We look forward to being part of The Botanical Candle Company’s next chapter and wish them every success.”

L-R Jessica Whittaker (Apprentice, Botanical Candle Co), Amalia Pothecary (Director, Botanical Candle Co), Teresa McGuire (Client Service Manager, Ward Goodman)

Ward Goodman join THIS Workspace

Ward Goodman join THIS Workspace to offer clients a central Bournemouth meeting place at the renovated Daily Echo building

Ward Goodman, the Dorset based firm of Chartered Accountants and Independent Financial Advisers has announced it has joined THIS Workspace in Bournemouth, located in the newly renovated former press hall and offices of The Daily Echo building, Richmond Hill, Bournemouth.

Ian Rodd, Managing Director at Ward Goodman, said: “We are absolutely delighted to be able to offer this convenient venue, to meet by appointment, our clients in and around the Bournemouth area. The space itself is in such an iconic building, stripped back to its 1930s fixtures and renovated to retain all the historic features which reflect the Echo’s heritage. Joining THIS Workspace is a fantastic opportunity for Ward Goodman to increase its presence within the Bournemouth area, and form mutually beneficial relationships within the wider business community.”

Chester Righton, Opportunity Maker at THIS Workspace, commented: “We warmly welcome Ward Goodman in joining our thriving & vibrant business community at THIS Workspace, which is now at 91% occupancy! We look forward to their team capitalising on the many opportunities to network and collaborate with our ever-growing diverse community of 220+ members and 35+ companies that use THIS Workspace daily.”
To make an appointment with Ward Goodman at THIS Workspace, 18 Albert Road, Bournemouth, call: 01202 875 900

Tax return myths

Ward Goodman’s Tax Consultant, Rose Duly, unravels some tax return myths

Rose Duly, Tax Consultant at Dorset based Chartered Accountants and Independent Financial Advisers, Ward Goodman, has addressed some common misconceptions and queries surrounding tax returns, what to do if you are sent one, and what to do if you have not been asked to complete one.

Rose explained:

“Most people aren’t sent a tax return and don’t need to do one, but it’s always helpful to be aware of what the law says. The UK tax year 2017/18 ended on 5 April 2018, and HMRC will soon be sending out ‘notices to complete’ returns. If HMRC sends you a self-assessment tax return you have to fill it in. If you really do have nothing to declare you can call HMRC and explain this. Don’t just ignore it – you will be fined.

“But what if you haven’t been sent a return? What does ‘self-assessment’ mean? The key is in the name. Everyone is required by law to tell the government if they need to pay any taxes, and that means it’s up to you to decide if you need to ask for a tax return. People who should think about getting professional advice in order to avoid falling foul of HMRC include those with dividends over the £5,000 tax free amount for 2017/18 as these are now taxed at 7.5% unless you fall into a higher rates band.

“Bank interest is no longer taxed at source, so this income needs to be declared. If you have more than £500 bank interest each year, you need to be aware that there are different tax-free allowances depending on your overall income.

“If you have rental income you should be completing tax returns. Be aware that the way tax is worked out has changed. If you are used to thinking that you do not need to declare this income because you think you make losses after taking off mortgage interest, this needs reviewing.

“International information exchanges between countries are becoming easier. If you complete overseas tax returns for overseas income this should also be shown on UK tax returns. There are special adjustments to stop you being taxed twice. Penalties for undisclosed overseas income will be increasing from September this year, so anyone with undeclared foreign income should seek professional advice at the earliest opportunity.

“Other possibilities include starting to be self-employed, cashing insurance bonds, or receiving money from any kind of trust.

“Selling small items for under £6,000 is usually tax free but, if you sell a valuable asset there may be capital gains tax to pay. Selling your main home is usually tax free but this depends on exact circumstances, and again, it is best to seek advice to make sure.

“HMRC has smart systems to identify people who have undeclared income. Undeclared rent and investment income is easy for them to spot, and HMRC then asks people to make a disclosure, and will charge penalties and interest as part of a settlement agreement.

“If you have tax arrears to sort out it’s better to make a voluntary disclosure as the penalties are significantly lower than they will be if HMRC spots your tax arrears first. Instalment payment agreements can be agreed to help you catch up. These examples are not an exhaustive list, so if you have any concerns, it’s best to come and talk things through with us. You never know, you may even be due a refund of tax!”

Ward Goodman announce exciting further developments

Ward Goodman, the Dorset based firm of Chartered Accountants and Independent Financial Advisers, is going from strength to strength with the Financial Services team continuing to exceed all expectations, having doubled its funds under management, annual turnover has increased by 92% over the last 5 years. This has been based on providing clients with access to holistic financial planning that is centred on the goals and objectives of the clients that the team works with.

Alex Foster, having been appointed as a Director last year, has been working closely with the newly formed Private Client team to help develop further client-centric solutions within the group.

Gareth Simon, Group Director at Ward Goodman said:

“Since Alex joined the team in 2013, he has rapidly shown his commitment to core values within the group, at the heart of which is solution based planning and ensuring that the service replicates the technical knowledge.”

Alex has also been instrumental in designing and implementing the Corporate Review Service which has been extremely well received by Ward Goodman’s clients and prospective clients.

Tim Jackson, Company Director at iBox Solutions said:

“Alex is an expert in his field and has exceptional analytical skills that allow him to understand complex scenarios and make sound recommendations. He is very good at identifying opportunities to innovate and with his entrepreneurial traits, makes things happen.”

Alex Foster, Director at Ward Goodman, said:

“It is a great feeling working within a team that is able to grow together, with a focus as a group, of developing the team from within. I am enjoying close working relationship with the individuals across the team that make our service offerings such as Private Client, Corporate Review Service and Business Advisory Services work so well, and seeing the visible benefits for the client that we work with, in achieving both their goals and peace of mind.”

Are you caught up in the rise in late payments?

The culture of late payment to UK small and medium-sized enterprises (SMEs) is undermining their growth and the value they bring to the UK economy, latest research has warned. A staggering 62% of invoices issued by UK SMEs in 2017, worth over £21 billion, were paid late, according to findings from business finance company MarketInvoice
A staggering 62% of invoices issued by UK SMEs in 2017, worth over £21 billion, were paid late, according to findings from business finance company MarketInvoice

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