Head of technical policy & education, Jacquie Mount, looks back at 2017's key technical updates
Making Tax Digital
The government announced its long awaited decision on when Making Tax Digital for Business (MTDfB) will be implemented. Following the general election and the delay in implementing the whole concept, HMRC has now issued its revised schedule which is that all businesses whose turnover is above the VAT threshold will have to start reporting VAT under MTD from April 2019 but other updates as previously discussed (e.g. quarterly income and expenditure figures) will not now be brought in until at least 2020.
There is a growing body of webinars available on the HMRC website from the most basic information on the steps to take when setting up a business to the more complex tax agent briefings. Each month we list these on the website in the news section together with the links to book into individual presentations. The latest one lists the December dates and sessions are heavily geared towards the self assessment tax returns which are due by 31 January 2018. One in particular should be interesting to everyone studying for the Level III Diploma in self Assessment Tax Returns, as it is all about basis dates!
The Pensions Regulator
Each month we pass on vital messages from The Pensions Regulator – recently to remind members who are involved in pensions in any way that:
- Automatic enrolment is the law – ignore it at your peril
- TPR are increase the compliance side of their work – the first employer has recently been heavily fined for refusing to offer a work-based pension scheme
- Large companies are now starting to go through the first 3-year re-enrolment of their work force
- As of 1 October 2017, all employers who take on a worker will have immediate AE duties from the first time they pay the worker
- Minimum pension contributions will go up from 1 April 2018
There are consultations going on at present with a view to simplifying how businesses deal with cross-border selling for VAT purposes. ICB issued a series of three articles – two on how the system works at present and a third which explains the possible changes being considered.
UK Accounting Standards
FRS 105 (the newly implemented accounting standard for Micro-Entities) was released on 1 January 2017. At the time we were uncertain how this would fully impact on our members and their clients but we knew it would be of vital importance and issued a new CPD module so that qualified members could offer the service for producing and submitting final accounts for taxation purposes for Micro-Entities. Some of our members are already offering this service.
In the New Year we will be publishing articles on the effect this will have and some of the detail that is emerging as companies report under this standard for the first time. There has been some publicity recently that Companies House is rejecting some sets of accounts submitted under FRS105 due to missing information (a problem with the understanding of the standard and its requirements under Company Law) so we would be grateful if any member who may have experienced this contact us in confidence to Jacquie.email@example.com