September 2016 Newton & Co Blog through the eyes of John Robson CIMA Member in Practice

Quote of the Day

“The two biggest lies in Accountancy, your cheque is in the post and I am from HMRC and I am here to help you!”

Making Tax Digital -what does it mean for you?

You may or may not be aware of new HMRC plans to make tax digital.

Their aim is to get corporation tax paid earlier, to try and drive a wedge between clients and their accountants and encourage clients to do their own accounts without the advice and help of their accountants, with the likely hood that they will pay more tax due to their lack of specialist knowledge.

I know this is not the propaganda they are putting out but believe me that is their object.

Do not think this is something for the future it is starting now!

Timeline

July to December 2016 Testing starts for digital recording of accounts by small businesses.

January 2017 New online billing system begins.

July to December 2017 Digital tax accounts give taxpayers an overview of tax liabilities.

July 2017 to December 2018 Most businesses self-employed people and landlords start updating HMRC quarterly for income tax and National Insurance obligations through accounting software.

2019 Most businesses, self-employed people and landlords start updating HMRC quarterly for vat through their accounting software.

2020 Most businesses self-employed people and landlords start updating HMRC quarterly for Corporation Tax through their accounting software.

Big Brother is here now you cannot bury your head in the sand and pretend it will go away.

You need to bring your accounting records into the 21st Century and quickly but we are here to help. If you want to discuss your future requirements and how to prepare for it give me a call, if you don’t be afraid, be very afraid.

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