Tax

Shock move on Making Tax Digital

Making Tax Digital (MTD) will not be mandated for income tax or corporation tax until 2021 at the earliest, according to Chancellor of the Exchequer Philip Hammond. He made the announcement in a written statement following his Spring Statement on 13 March. He said: “Mandatory digital record keeping for VAT for businesses over the VAT threshold (with turnover over £85,000)

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PAYE tax codes for 2019-20 confirm £12,500 personal allowance

HMRC has issued the latest PAYE tax codes for tax year 2019-20 effective 6 April, highlighting the increase in the tax-free personal allowance to £12,500. The guidance P9X (2019) explains which tax codes employers need to change, how to change them and which codes to carry forward for the new tax year on 6 April. From April 2019 the basic

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Making Tax Digital VAT service scheduled maintenance

HMRC will be undertaking the final wave of scheduled maintenance to the Making Tax Digital (MTD) VAT service before it is mandated from April. As a result, the service will be temporarily closed from 5pm on Friday 15 March until 8:30am on Tuesday 19 March. During this period, businesses will be unable to join the pilot, and those who have

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Consultation – Off-payroll working from April 2020

At Budget 2018, the government confirmed the extension of reform to the off-payroll working rules (commonly known as IR35) in the private sector. The government is now consulting on the detailed design of the reform from April 2020. The rules ensure individuals who work like employees pay broadly the same employment taxes as directly engaged employees, even where they work

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Tax on clothing is next

Fashion chains beware: the environmentalists have you in their sights. Retailers and manufacturers in the sector could be forced to pay a levy on each item sold in a government effort to reduce the 300,000 tonnes of clothing that finds its way each year to incineration plants or landfill sites. This is just one of the proposals in a new

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Attachment of earnings rules beefed up

HMRC is making widespread use of powers to deduct tax debts owed directly from the earnings of individuals, with 428 people having cash taken straight from their pay packets in 2017/18, according to research from UHY Hacker Young. The firm says that this method of debt recovery, known as ‘attachment of earnings’ orders, often appeals to HMRC as it does

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One month to go before introduction of Making Tax Digital for VAT

Businesses are being urged to get ready as over 2,000 businesses are signing up for Making Tax Digital (MTD) for VAT each day. Almost 1.2 million businesses have one month to go before the introduction of MTD. Nearly 30,000 businesses have already signed up to the new service which will give them a more integrated approach to business and tax.

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Making Tax Digital update

HMRC has released further guidance and support relating to Making Tax Digital (MTD) for VAT. Further information can be found below: Exemptions guidance HMRC has updated the VAT Notice 700/22 to cover exemptions from MTD and included an outline of the process for applying for exemption. The relevant part of the Notice is Section 3. They have also included some

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Welsh rates of income tax

The Welsh rates of income tax (WRIT) will come into effect from 6 April 2019. HMRC have developed a range of factsheets which provide easy access to key information about WRIT for employers, agents and charities. Links to these factsheets are below: Factsheet for employers Factsheet for employees General factsheet If you would like a copy of any of the

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