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January 2019

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To January’s Tax Tips & MYOB News.  Happy New Year!

Have you missed out on an earlier Email newsletter over the past year?  If so, you can access previous issues in our Newsletter Archive.

Paying Self Assessment Tax
The deadline for paying self assessment tax for 2017-18 is 31st January 2019.

HMRC Bank account details:
Sort Code: 08 32 10
Account number: 12001039
Account Name: HMRC Cumbernauld
Payment Reference:
Use your 10 digit Self Assessment number (UTR), followed by the letter K for example 1234567890K.

See more details on paying tax.
January 2019
· Making Tax Digital (MTD) Pilot
· Can an employer still claim the EA?
· Considering capital expenditure?
· Updates: R&D Tax Credits & VAT Registration
· January questions and answers
· January key tax dates
Making Tax Digital (MTD) Pilot
HMRC have been sending out letters to some of our clients about Making Tax Digital (MTD) for VAT and their MTD pilot study.  As explained last month for those of you who are on VAT Annual Accounting your start date for MTD has potentially been delayed by six months: see our December Newsletter

We will be submitting your MTD VAT returns for you (our clients), but we are in no rush to start this process.  So please ignore any letters sent to you about the MTD pilot scheme.  Please don’t join the pilot!
Can an employer still claim the EA? top
Considering capital expenditure? top
In broad terms, the Employment Allowance (EA) is available to most employers and should enable them to reduce the amount of National Insurance Contributions (NICs) they have to pay by up to £3,000 per year. The eligibility rules changed from April 2016, and the Autumn Budget 2018 announced further changes expected to take effect from April 2020. It is worth checking to make sure that a limited company is still eligible to benefit from this tax incentive.

Employers may generally claim the EA if they are a business (including a Community Amateur Sports Club) that pays employer Class 1 NICs on employees’ or directors’ earnings and is not funded by central government or a charity. Read More
Businesses considering investing more than £200,000 in plant and machinery could benefit from a change to the capital allowances rules in January 2019, which should allow them to obtain tax relief at an earlier time.

Capital allowances are treated as a trading expense of a particular accounting period, so they can potentially increase a loss, or turn a profit into a loss for tax purposes, which in turn, will impact on the amount of tax payable by a business. Where a business is considering expenditure on qualifying items, it may be beneficial to undertake some upfront planning. Read More
Updates: R&D Tax Credits & VAT Registration
R&D Tax Credits Restricted
The amount of repayable R&D tax credit for Small and Medium Sized Enterprises (SMEs) will again be restricted by the amount of the claimant company’s PAYE and NIC liability from April 2020.

The new limit will be set at three times the company’s total PAYE and National Insurance contribution (NICs) payment for the period.

VAT Registration Limit Continues to be frozen

The VAT registration limit normally increases in line with inflation each year. However, It was announced last year that the limit would be frozen at £85,000 until 1 April 2020. It has now been announced that the limit will now remain at the same level until 2022.  The deregistration limit will remain at £83,000.
January questions and answers top
January key tax dates top
Q. What should I do about an error I accidently made on my latest VAT return? Answer

Q. My husband and I own a rental property in joint names. We would like to transfer ownership of the property to our twelve year old son. Can minors own property in the UK? Answer

Q. My estate, which includes my home, is currently worth around £600,000. I am single, have never been married and have no children. I intend leaving my estate to my siblings. Will they qualify as ‘direct descendants’ and, in turn, will my estate qualify for the extra £175,000 family home inheritance tax (IHT) allowance? Answer
14 – Return and payment of CT61 tax due for quarter to 31 December 2018
19/22 – PAYE/NIC, student loan and CIS deductions due for month to 5/1/2019 or quarter 3 of 2018/19 for small employers
31 – Deadline for filing 2018 Self Assessment personal, partnership and trust Tax Returns – £100 first penalty for late filing even if no tax is due or tax due is paid on time

– Balancing self assessment payment due for 2017/18
– Capital gains tax payment due for 2017/18
– First self assessment payment on account due for 2018/19
– Interest accrues on all late payments
– Half yearly Class 2 NIC payment due
– Further penalty of 5% of tax due or £300, whichever is greater for personal tax returns still not filed for 2016/17
– 5% penalty for late payment of tax unpaid for 2016/17 self assessment
Need Help? top
New Clients Welcome top
Please contact us if we can help you with these or any other tax or accounts matters.

In addition, if there’s anyone else who you think would benefit from the newsletter, please forward the email to them or ask them to contact us to be added to the newsletter list.
If you are not already a client and are interested in becoming one, we would love to discuss how we can help and provide you with a competitive quote for our services.

See details of our Business Companion Service.
About Us top
Simple Accounting Limited offers a cost effective Business Companion service to business owners who use MYOB, Acclivity, Mamut, Solar Accounts, Quickbooks or Wave.

‘All clients using these software packages can benefit from our support. Visit our website for a look at the resource on offer.’

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