Making Tax Digital (MTD) for VAT came into force in April this year, and the new process required the use of compatible software. The last three months will have been spent setting up making tax digital software in order to be ready to submit your first quarterly figures. For many business owners, this will have created major changes to their accounting procedures. Most businesses will be used to collating their figures and then submitting their VAT return each quarter via the HMRC website. This will have used figures which have been kept using whichever format they found most convenient. Often […]
Big changes to Capital Gains Tax for property owners. October 2018’s budget announced two big changes to capital gains tax relief for homeowners. The two areas affected are CGT relief for the final period of ownership and lettings relief. Private residence relief: the final period of ownership Currently, relief from capital gains tax on the sale of a property (principal private residence) is valuable tax relief available to both individuals and trustees. It allows all the sale proceeds, (subject to rules and restrictions), to be carried over into the purchase of the new property without a proportion being taken out […]
The start of a new year is the perfect time to plan the year ahead, putting into action those new year resolutions. However, January 31st is also the deadline for Self Assessment Tax Returns. This means that January is a time that many self-employed people dread, putting a dampener on the New Year buzz. Self assessment tax returns inevitably take much longer than you initially anticipated, no matter how closely you kept a record of your income and expenditure throughout the year. When you sit down to the task of calculating what you owe or even how much you are […]
It’s that time of year again – it’s nearly Christmas and you’re probably getting ready to wind down for the end of the year. But…are you ready for the upcoming self assessment deadline? Far too many businesses find themselves caught out as the deadline looms after the Christmas break. So when’s the deadline? The deadline for online returns is midnight on the 31st of January, which means there is not much time left! Don’t leave it until the last minute! If you haven’t already done so, we need your records as soon as possible in order to be able to […]
Be Ready with K.A.Farr & Co. From April 2019 businesses above the VAT threshold will be required by law to keep their records digitally and provide quarterly updates to HMRC in compliance with Making Tax Digital. In July 2018 HMRC issued more detail on this new legislation via VAT notice 700/22. If you think you will be caught by MTD for VAT we recommend you read this new notice sooner rather than later. Businesses can currently use manual records, spreadsheets, accounting software or a combination of all three to maintain their business records. However, from the April 2019 deadline businesses […]
Making Tax Digital or MTD is an initiative designed by the Government in conjunction with HMRC to make sure the UK tax system is effective, efficient and easier for taxpayers. Beginning on 1 April 2019, VAT-registered businesses above the threshold of £85k will have to keep digital records in line with Making Tax Digital and submit VAT returns using compatible software. The key things to remember are: Business records must be kept in digital form Quarterly updates must be submitted to HMRC An annual ‘End of Year’ report with final figures must be submitted. What does it mean for my […]
Tax Investigation Insurance will protect your business against fines from HMRC Tax Investigation Insurance, also known as Tax Enquiry Insurance, Tax Fee Protection or TFP schemes, all mean one thing… If you are selected for a tax enquiry, we will robustly defend you against unjustified questions by HMRC. The investigation can be detailed and very time-consuming, which means that even if no extra tax is payable the cost to your business can be substantial. However, with Tax Investigation Insurance from KA Farr & Co, the cost of our time is covered by your premium. Since 2010 HMRC have invested £1.8 billion targeting businesses who have underpaid tax. New […]
The new Tax Year for 2018/19 is starting and we’ve got some facts on the new changes that you need to know about. Employer Pension Contributions Under auto enrolment legislation, minimum pension contributions are required to increase over time. This happens on set dates. Originally, auto enrolment minimum contributions were due to rise in October 2017 and again in October 2018. These increases were pushed back by six months by the government and the increases will now happen on the 6 April 2018 to a total of 5% of qualifying earnings of which 2% must be paid by the employer […]
The Government’s long-awaited Tax-Free Childcare scheme – intended to eventually replace Childcare Vouchers – is now in operation, so we thought we’d bring you some information on how it works.
Many of our clients here at K.A. Farr & Co. rely on us to ensure that their tax affairs are always in order so they don’t have to worry about anything going wrong. We’re proud to provide an excellent service in this area, and part of that involves our Tax Enquiry Insurance service.