News and events from TaxCalc
HM Revenue & Customs (HMRC) has confirmed that their new points-based penalty regime will come into effect from 1 January 2023 and will apply to both Making Tax Digital (MTD) for VAT as well as MTD for Income Tax Self Assessment (ITSA). Their stated aim is to make penalties simple, fair and effective but, as the arguably illustrious ageing rocker, Meat Loaf, might say, “Two Out of Three Ain’t Bad”.
The full MTD regulations have been made public for the first time today. Until now, we have only had an early draft of the regulations to work with and it is fair to say that there were some glaring holes in that draft document – particularly in relation to partnerships, basis periods and when taxpayers could enter or leave the MTD regime.
We have been waiting a long time for those draft regulations to be updated and our tax experts are now pouring over the contents to disseminate the fine detail.
For the export of goods or the supply of services made to EU businesses on or after 1 January 2021, you will not need to submit an EC Sales List (ESL). You will have until 21 January 2021 to submit ESLs for sales made before 1 January 2021.Read more
Recently, HM Revenue and Customs shared news of changes to its IT infrastructure, involving the migration of VAT Customer Accounts to a new system. Following this migration, HMRC will decommission the current XML submission service from 8 April 2021.
On 24 September 2020, the Chancellor Rishi Sunak announced the ‘Winter Economy Plan’ – a series of measures to continue assisting businesses and employees amid the current pressures caused by COVID-19.
Among those measures was an update to the VAT Payments Deferral Scheme. This allowed businesses to defer payment of any VAT liabilities that fell due between 20 March 2020 to the 30 June 2020 until 31 March 2021. The scheme ended on 30 June 2020.
Chancellor Rishi Sunak has outlined a series of measures to support jobs and the economy over the next six months. Here we provide an overview of the five new initiatives with a brief explanation. Please pass it on to your clients as you see fit.Read more
Possible issue with HMRC calculations for Self-Employed National Insurance Contributions (NIC)
If your clients receive a revised assessment of tax due for 2018/19, which includes an adjustment for reducing or eliminating class 2 and/or class 4 National Insurance contributions, it may be incorrect.
If the individual in question is not set up on HMRC’s self-employed database, this could occur because the system will not expect to collect class 2/4 NIC.
HMRC Update on off-payroll (IR35) rules
Whilst a review of the IR35 implementation plans continues in the House of Lords until the end of this month, HMRC have announced changes to the draft legislation.
HMRC has confirmed that the new rules for contractors, working for medium and large-sized companies, will affect services provided after 6 April 2020 and will not be applied retrospectively regardless of payments made after this date. Where the services are performed by the contractor before 6 April 2020 it will continue to be the responsibility of the contractor and their personal service company (PSC) to decide if the work falls within IR35 and pay the right amount of tax to HMRC.Read more