What a week: the chancellor has backed down on his Spring Budget announcement on increasing NICs for the self-employed and now the House of Lords are urging HMRC to put the brakes on Making Tax Digital.
The U-turn on NICs was sensible given the break of a manifesto pledge and ensuing negative headlines. It is nevertheless disturbing that the government forgot its own manifesto. The vexted question is why government have got it in for small business?
The heart of the problem must lie in the fact that very few people in government have any idea what goes into starting up and running a business. In our Making Tax Digital Index we have a link to oral and written evidence submitted to the House of Lords. It is most welcome that the Lords took the time to consider the evidence presented. This is probably because so many of the Lords have experience of running businesses and have understood the massive administrative burden that daily bookkeeping and quarterly reporting imposes on small business. My solution to introducing MTD would be to introduce reporting in stages, first learn how to report your income digitally and then when you are up to speed add on expenses.
New guides this time: small business - we are here for you! We have the new versions of Start-ups guide, Directors' tax planning toolkits and the 2016/17 year-end toolkit. Its not just about income tax, we have handy advice on CGT and IHT planning as well as the problem as to whether to incorporate your buy-to-let.
You might notice that we are doing a 'Dr Who' and regenerating the site into the third version of ourselves! Apologies if there is the odd technical hitch in the next week.
If you have any queries ask away at our Virtual Tax Partner support portal at www.VtaxP.co.uk
Enjoy the guides and updates and the news is below.
Nichola Ross Martin FCA Tax Director
Your Virtual Tax Partner®: online PRACTICAL support for accountants & tax advisers BY accountants & tax advisers
Quick news (freeview)
House of Lords say, 'Put the brakes on Making Tax Digital (for business)'
Concern that HMRC is rushing into MTD at little benefit to government and high burden to small business. Postpone until 2020 and after proper testing.
Government U-turn on Class 4 NICs rise
The Chancellor has announced that the NIC rise for the self employed proposed at last week's Spring Budget will not go ahead.
Latest list of deliberate defaulters
HMRC have released their latest 'name and shame' list of deliberate tax defaulters. The list details the name of the defaulter, the industry, tax avoided, and penalties charged.
Editor's Choice (subscribers)
Tax efficient extraction of profits: toolkit (2017/18)
NEW: company toolkit designed to help directors decide how to plan salary, benefits, expenses and dividends.
Directors: tax planning toolkit for 2017/18
NEW: covers key essentials for directors to plan their affairs for the next year.
Practical Tax Guides and Updates (subscribers)
Starting in business: start here
UPDATE: what advice do you give a start up in 2017?
Incorporation of a property business
UPDATE: this guide takes you across the key taxes and also considers the new interest restrictions that commence in April, corporation tax and stamp duty land tax.
Making Tax Digital: index
UPDATE: track the unfolding saga that is MTD for business
UPDATE: new links to case law and guidance. Globalisation creates new challenges when it comes to working out the source of some clients income.
Missed last time's update?
- Spring Budget highlights
- PSC and the public sector: new HMRC guidance.
- New HMRC online employment status tool.
- New online form for reclaiming additional 3% SDLT.
- Register to manage your apprenticeship funds.
- Cases on potential lost revenue, celebs and privacy in tax hearings and VAT penalties.
- Sole trader v limited company: tax savings 2017/18 on
- Finance Bill 2017 tax update and rolling planner.
- Closure notices.
- Pensions: unauthorised payments.
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