Making Tax Digital (MTD) changes – good news for business
The Government has recently announced some changes to Making Tax Digital (MTD), including a delay in the roll-out of the scheme, giving businesses longer to prepare.
Initially, MTD will only be compulsory for businesses over the VAT threshold (currently £85k), and only for VAT purposes. This will apply from April 2019.
For other taxes, HMRC now says that businesses will not be asked to keep digital records, or to update HMRC quarterly, until at least 2020.
Under the new system, the keeping of digital accounting records will be compulsory, along with making mandatory quarterly updates to HMRC – meaning big changes for some businesses (which even includes landlords who let out rental properties).
We will be contacting clients individually from February 2018 if MTD is relevant, to discuss the way forward for you and how we can help.
Reduction in the rate of Corporation Tax
As you may be aware, the rate of corporation tax has reduced from 20% to 19% – applicable from
01 April 2017.
Reduction in the amount of dividend allowance
The dividend allowance of £5,000 that was introduced from 06 April 2016 will remain at this level for 2017/18. However, it will decrease to £2,000 from 06 April 2018.
The allowance is available to anyone who receives dividend income – please contact us if you would like more information.
Pension contributions increasing
Under auto enrolment, by law the minimum pension contributions that employers and staff are required to pay into a pension scheme will soon be increasing. From 06 April 2018, the minimum employer and staff contributions will be 2% and 3% respectively, rising to 3% and 5% from 6 April 2019 onwards.
If you have any questions relating to the above information, please do not hesitate to get in contact – remember we are only a phone call or an email away.
General Data Protection Regulation (GDPR)
New regulations for data protection will come into force on 25 May 2018, designed to give people more control over their personal sensitive data.
The regulations relate to the secure collection, storage and usage of personal information by businesses. Those failing to comply will be met with fines.
Smaller businesses with fewer than 250 employees may not be bound by GDPR, unless they process personal data in certain ways. For example, DVM is affected because as an accountancy firm we hold, receive and process clients’ personal sensitive data.
If you are unsure whether GDPR applies to your business, please contact us to find out more.
The Chancellor’s November Budget did not contain much of note for the majority of people; the stand out feature was the abolition of stamp duty on properties costing up to £300k for first time buyers.
It was also confirmed that the personal allowance will rise to £11,850 in April. For more information please contact us, or visit http://www.bbc.co.uk/news/business42071148.
Thank you for reading – please do not hesitate to contact us if you need further information on any of the topics covered.