Newsletter July 2019

Making Tax Digital – VAT Update

HMRC’s latest MTD policy update means supplier statements can now be used to record expenses for input tax purposes; a big time saving for many businesses that adopt spreadsheet accounting or those that have many monthly invoices.

A controversial policy of HMRC has always been that a business using, for example, the cash accounting scheme and spreadsheets to record their expenses had to record every single purchase invoice in a digital format even though the business might make a single payment to a supplier based on a statement covering perhaps 40 or 50 different invoices. It would be sensible for the business to make a one-line entry based on the payment total. With the cash accounting scheme input tax is only claimed when payments are made to suppliers. That policy has now changed.

The updated notice has also confirmed that petty cash expenses can be posted as a single total if no individual receipt within the posting exceeds £50 and the total of all receipts does not exceed £500 per entry. Both figures are VAT inclusive.

CHANGE OF ADDRESS

Bird & Co are moving from their current address in Holme Road Yaxley to 183 Main Street Yaxley (previously known as Sophie T’s vintage tea room). An exact date for the move is not known as internal changes are being done, but a rough date will be the end of July/early August 2019. Further details will be announced in due course, but of course all of our client’s will be notified as will everyone else.

DATES TO REMEMBER:

1 July 2019 - Due date for Corporation tax for companies with an accounting period ended 30 September 2018.

6 July 2019 - Filing deadline for submitting forms 2018-2019 P11D and P11D(b) to HMRC and employees must receive their copy of the P11D.

7 July 2019 - Due date for filing and payment of VAT for the period ended 31 May 2019, unless you submit a paper return then the date is 30 June 2019.

31 July 2019 - Due date for the second payment on account for the tax year ended 5 April 2019.

Monthly Dates:

19th of the Month:

Due date for postal payments of PAYE, NIC and CIS deductions and on-line filing deadline for CIS300 monthly return to HMRC.

22nd of the Month:

Due date for electronic payments of PAYE, NIC and CIS deductions to HMRC.

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