Online Accounts Software (Cloud accounting)

End of personal tax year planning

With just seven days to go to the end of the end tax year, have you considered doing any of the following:

• Make any last minute pension contributions*
• Make any charitable donations (and keep records of the same)
• Utilise any unused ISA allowances:
  • ISA up to £20,000 p.a
  • Junior ISA up to £4,260 p.a
• “Help to Buy” ISA is still available until 30 November 2019
• Cleardown any overdrawn directors’ loan accounts
• Check your newly issued tax code

*Maximum pension contributions are £40,000 per annum (or up to 100% of relevant earnings).  You may have more than £40,000 allowance if you have unused allowance from the last three years and have been a member of a registered pension scheme during that time.  If you have low or no earnings, you can invest up to £3,600 into a registered pension scheme.

Remember to turn on the MTD function!

Making Tax Digital (MTD) for VAT takes effect for VAT registered business with periods starting from 01 April 2019.  From this date, most businesses who are VAT registered and have taxable supplies above the £85,000 threshold (in any 12 month period) will have to submit VAT returns via MTD compliant means.

Many businesses who prepare their own VAT returns are choosing to do this using QuickBooks or Xero.  Just a quick note though… remember to turn on the MTD feature on your package!  Failure to do so will prevent your returns being properly submitted to HMRC.  Turn on should only be done when you are ready to submit your first MTD-compliant return – for most businesses this will be the quarter ending June, July or August 2019.

In Quickbooks this feature can be enabled by editing the VAT settings within the “taxes” section.

And in Xero MTD is enabled through the VAT return section, and clicking “new report available” in the top right hand corner, then selecting “try new report”.

Importing/exporting goods to/from EU from 29 March 2019

If you are an UK-based business who imports/exports goods with the EU from 11pm on Friday 29 March 2019 your business will need to be issued an Economic Operator Registrations Identification number (EORI).

You should have received this letter from HMRC, detailing the steps you now need to take. It can take three days to process an application, therefore we suggest you apply now, if you have not already done so.

If the UK leaves the EU without a deal, or at the end of any transitional period, UK business will need to follow the same procedures that apply for trading with the rest of the world.

If you already have a customs agent or software for trading outside the EU, you’ll be able to use these to make declarations on your EU-UK trade.

If your only trade outside the UK is with the EU, you will need to apply for the Transitional Simplified Procedures (TSP) – an agent cannot do this for you.  TSPs are expected to last up to 18 months, and they allow businesses to defer making a full customs declaration and paying any duty due on import.

To register for TSP you must:

• Have an EORI number
• Be established in the UK
• Be importing goods from the EU into the UK (including goods travelling through the EU from the rest of the world, providing they’ve cleared EU customs formalities)

Please note that the EORI number is only relevant for businesses who import and/or export goods as trade.  Businesses who only sell services outside of the UK are not required to obtain an EORI number.

As always, any queries, please don’t hesitate to get in touch with us.