Tax Newsletter February 2019

Our newsletter this month includes a reminder about Making Tax Digital (MTD) and the imminent changes to VAT filing.  There is also an article about what you can you give away before the end of the tax year if you are concerned about Inheritance Tax and have spare resources.

Our next newsletter will be published on Thursday, 7 March 2019.

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Newsletter February 2019


What can you give away before the end of the tax year?

You can give away £3,000 worth of gifts each tax year (6 April to 5 April) without them being added to the value of your estate. This is known as your ‘annual exemption’.

You can carry any unused annual exemption forward to the next year - but only for one year.

Each tax year, you can also give away:

  • wedding or civil ceremony gifts of up to £1,000 per person (£2,500 for a grandchild or great-grandchild, £5,000 for a child),
  • normal gifts out of your income, for example Christmas or birthday presents - you must be able to maintain your standard of living after making the gift,
  • payments to help with another person’s living costs, such as an elderly relative or a child under 18,
  • gifts to charities and political parties.

You can use more than one of these exemptions on the same person - for example, you could give your grandchild gifts for her birthday and wedding in the same tax year.

Small gifts up to £250

You can give as many gifts of up to £250 per person as you want during the tax year as long as you have not used another exemption on the same person.

 

 


 

Are you ready for the VAT filing changes?

A reminder that from return periods beginning on or after 1 April 2019, VAT registered businesses with turnover in excess of the current VAT registration limit, £85,000, will need to file returns linked to HMRC’s Making Tax Digital (MTD) systems.

Accounting software providers have been working at some pace to change their software, so they “speak” to HMRC’s MTD servers using a dedicated link called an API (an application program interface).

If we keep your records for you, you can be assured that we will be using approved software. If you manage your own VAT filing and use accounting software, you should check with your software supplier to make sure they are going to provide the MTD, VAT filing facility.

Any mention of software thus far in this article refers to commercial accounting software. It does not include spreadsheets. Spreadsheets create a particular issue for filing VAT numbers via MTD. The data in the spreadsheets will need to be linked to compatible software and the VAT return filed from there. It will no longer be possible to type the numbers into HMRC's online return form. If you currently maintain your records on spreadsheets, you will either need to switch to using an approved software system or we can provide a service which will link spreadsheet data to bridging software to enable filing under MTD.  

Your Client Manager will be in touch over the next few weeks to help ensure you achieve MTD compatibility before 1 April 2019.


  

 

Tax Diary February/March 2019

1 February 2019 - Due date for Corporation Tax payable for the year ended 30 April 2018.

19 February 2019 - PAYE and NIC deductions due for month ended 5 February 2019. (If you pay your tax electronically the due date is 22 February 2019)

19 February 2019 - Filing deadline for the CIS300 monthly return for the month ended 5 February 2019.

19 February 2019 - CIS tax deducted for the month ended 5 February 2019 is payable by today.

1 March 2019 - Due date for Corporation Tax due for the year ended 31 May 2018.

2 March 2019 – Self assessment tax for 2017/18 paid after this date will incur a 5% surcharge.

19 March 2019 - PAYE and NIC deductions due for month ended 5 March 2019. (If you pay your tax electronically the due date is 22 March 2019)

19 March 2019 - Filing deadline for the CIS300 monthly return for the month ended 5 March 2019.

19 March 2019 - CIS tax deducted for the month ended 5 March 2019 is payable by today.

 

 


DISCLAIMER - PLEASE NOTE: The ideas shared with you in this email are intended to inform rather than advise. Taxpayers circumstances do vary and if you feel that tax strategies we have outlined may be beneficial it is important that you contact us before implementation. If you do or do not take action as a result of reading this newsletter, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.