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January 2020

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

Acclivity AccountEdge Video
Acclivity have recently issued a long Youtube broadcast to explain the functions available in their AccountEdge software and in AccountEdge Connect.  This is a useful introduction.  But the operations in the software start a little way into the video.  This link takes you to the place where they start discussing the location and purpose of the AE ledgers and functions.
Acclivity AccountEdge Review

Please call us with questions about the functions available to you on this software

January 2020
· What does the General election mean for tax?
· Tax Payments Due
· Another IR35 loss for HMRC
· ICO – do you need to register?
· January questions and answers
· January key tax dates
What does the General election mean for tax? top
Following the General election on 12 December, Prime Minister Boris Johnson has confirmed that Sajid Javid remains as Chancellor of the Exchequer and no other changes at HM Treasury have been announced. The Prime Minister has however, confirmed that a more significant cabinet reshuffle will take place after the UK leaves the EU on 31 January 2020.

The Conservative manifesto set out a fairly limited number of tax pledges, with commitment to a triple lock on income tax, national insurance contributions (NICs) and VAT, which means there should be no tax hikes forthcoming in these areas. Moreover, the government has said it will raise the National Insurance threshold to £9,500 next year.

However, in the run-up to the election, the Institute of Fiscal Studies warned that some of the Conservatives’ more ambitious manifesto pledges would require additional tax.
Read More
Tax Payments Due
Another IR35 loss for HMRC top
We are now getting to that busy time of year where there are a whole series of tax payments to make.  

If you are on VAT Annual Accounting with an August year end then you will need to make your first annual accounting instalment payment immediately (end Dec).  This should be set up as a standing order.   You will then pay at the end of Jan, Feb, Mar, Apr, May, Jun, Jul and Aug. 

Your personal tax return and any payment is due by the end of January – including the first Payment on Account for 2019/20 (if applicable).

Corporation tax for businesses with a year end of 31/12/18 is due now.  Corporation tax for businesses with a year end of 31/3/19 should be paid by 31/03/2020. 

Monthly and quarterly PAYE payments are due by 22nd January.

Details for making all the HMRC payments are given on the administrative centre of our website.
HMRC have faced another defeat in a tax case involving the IR35 intermediaries’ legislation. In RALC Consulting Ltd v HMRC [2019] TC 07474, the First Tier Tribunal (FTT) allowed an appeal against HMRC’s determination that IR35 applied because of a ‘hypothetical contract’ between various parties making up a service provider chain lacked the requisite ‘mutuality of obligation’.

RALC Consulting Ltd (RALC) (the appellant), was the personal service company (PSC) of IT consultant Richard Alcock, who was the company’s sole director and shareholder. During the tax years in question, RALC Consulting Ltd contracted with Mr Alcock’s former employer Accenture UK Ltd (Accenture) and with the Department for Work and Pensions (DWP), a client whose projects Mr Alcock had previously worked on, to provide Mr Alcock’s services working on a large IT project.
Read More
ICO – do you need to register?
The Information Commissioners Office (ICO) has been writing to new companies advising them that their data protection fee is due.

The letters imply that you need to register.  But note that there is no requirement for a small commercial enterprise that doesn’t process personal information to register.  And you are exempt if you only process personal data for the following purposes:
* Staff administration (including payroll);
* accounts or records (ie invoices and payments);
* advertising, marketing and public relations (in connection with your own business activity).

However you should consider registration with the ICO if you hold extensive personal information and contact details (for instance through social media).

Please use the link to inform the ICO that you are exempt. Data Protection Fee Exemption.

If you do need to register with the ICO follow this link: ICO Register

If you are not sure if you need to register just email us.

As part of our Business Companion Service we can draft a data protection policy for you, which includes compliance with the new GDPR regulations. This is one of the extra services we provide for you as part of our Business Companion service. We don’t want any of our clients suffering a GDPR complaint and potential investigation.
January questions and answers top
January key tax dates top
Q. I am the sole director and shareholder of a limited company, which has been trading for many years. Last year, I took an extended holiday and travelled around the world with my wife. We were away for twelve months in total. Whilst I was away the company continued to collect outstanding payments, but it did not receive any other income. Now that I am back, I have taken on another director/shareholder (50%) and company trading has resumed. Should I have informed HMRC that I was going away and how should the losses in the period of temporary non-trading be treated? Answer

Q. My employer has agreed to give me an interest-free loan to purchase my annual rail fare ticket. The season ticket is £5,000. Will I have to pay tax on the loan? Answer

Q. Can the annual capital gains tax (CGT) exemption be utilised against a capital gain that qualifies for entrepreneurs’ relief? Answer
1 – Due date for payment of Corporation Tax for the year ended 31 March 2019

14 – Return and payment of CT61 tax due for quarter to 31 December 2019

19/22 – PAYE/NIC, student loan and CIS deductions due for month to 5/1/2020 or quarter 3 of 2019/20 for small employers

31 – Deadline for filing 2019 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 2018/19

– Capital gains tax payment due for 2018/19

– First self assessment payment on account due for 2019/20

– 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 2017/18

– 5% penalty for late payment of tax unpaid for 2017/18 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 Clearbooks.

‘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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