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This month – Employers’ Childcare Vouchers Scheme Now Closing! MPs voted in March to extend the childcare vouchers scheme deadline by six months, meaning it’ll now close to new applicants on 4 October 2018.  See details of the scheme in our January Newsletter – but note the new deadline. If you wish to set up a scheme yourself, just contact us and we will help you with the necessary paperwork.   September 2018 · New VAT Rates for the Building Trade from 2019 · HMRC will no longer give out tax references · New Data Processor Agreement you need to sign! · Personal tax Returns for 2017-18 and Payments · September questions and answers · September key tax dates New VAT Rates for the Building Trade from 2019 top Under new rules due to come in on 1 October 2019 builders, sub-contractors and other trades associated with the construction industry will have to start using a new method of accounting for VAT. The measure is designed to combat VAT fraud in the construction sector labour supply chain which HMRC argue presents a significant tax loss. HMRC has now published draft legislation to introduce the Reverse Charge for Construction Services. Under the proposed new rules, supplies of standard or reduced-rated building services between VAT-registered businesses in the supply chain will not be invoiced in the normal way. Under the reverse charge a main contractor would account for the VAT on the services of any sub-contractor and the supplier does not invoice for VAT. The customer (main contractor) would then account for VAT on the net value of the supplier’s invoice and at the same time deducts that VAT – leaving a nil net tax position. This is intended to ensure that VAT is correctly accounted for on supplies by sub-contractors. Construction Work Affected The reverse charge will apply to a wide range of services in the building trade, including construction, alteration, repairs, demolition, installation of heat, light, water and power systems, drainage, painting and decorating, erection of scaffolding, civil engineering works and associated site clearance, excavation, and foundation works. The definitions have been lifted directly from the CIS legislation. Excluded Works Professional services of architects or surveyors, or of consultants in building, engineering, interior or exterior decoration or in the laying-out of landscape are not covered by the new rules. The draft legislation sets out other work to which the reverse charge does not apply. It is hoped that the legislation and guidance will be finalized by October 2018 to allow businesses at least 12 months in which to make the necessary changes to systems. Please contact us if you are likely to be affected by these changes and we can work with you to ensure you are ready for the new system.   HMRC will no longer give out Tax references top   New Data Processor Agreement – you need to sign! top HMRC will no longer give out CT tax references over the phone. Apparently they receive many thousands of calls from directors and others who represent their companies etc. asking to be reminded of their company’s unique taxpayer reference (UTR). HMRC say that this uses up valuable resources and so future requests by phone will be refused!  If you can’t find your UTR, your accountant should know it, or if you don’t have an accountant and have registered for HMRC online services, you can find it by logging into your Business Tax Account, or on letters and notices from HMRC. As part of our GDPR requirements we have prepared a Data Processor Agreement (DPA) that all our clients will need to check it and sign.  You will find the Agreement within the Administration section of our website.  If possible please can you download two copies of the Agreement, check it thoroughly sign and then send both copies to: Jennifer Byrom, Simple Accounting Ltd, 95 Bridge Lanes, Hebden Bridge, HX7 6AT. We will sign ourselves and return one copy to you.      Personal Tax Returns for 2017-18 and Payments top Have you given us details of your income so we can start preparing your personal tax return for you for 2017-18? If not, please complete our Online Tax Return form.  We also need scans of any P60s, pension statements and details of other income received. Once we have submitted your personal tax return, we will let you know how much tax you have to pay.  You may want to pay it early to get it out of the way, but beware!  HMRC say that if you pay your tax early (before mid-December) it won’t be allocated. And there is a risk that HMRC may then repay it back to you!  An HMRC advisor told me their computer system may automatically decide to refund the tax back to you. Or it may not.  It is up to the computer system – yet outside their (HMRC’s) control! So if you do pay your tax early – keep an eye out for a repayment. Payment Details for Self Assessment tax.: Sort Code: 08 32 10 Account number: 12001039 Account Name: HMRC Cumbernauld Self Assessment Payment Reference: Use your 10 digit Self Assessment number, followed by the letter K. Read more about paying tax   September questions and answers top   September key tax dates top Q. After a long wait, I will shortly be eligible to receive a state retirement pension. Will I have to pay tax on it? Answer Q. I have two seasonal part-time jobs, both paying the minimum wage. I am concerned that neither employer is deducting National Insurance Contributions from my weekly pay. Should I be concerned? Answer Q. My mother is a widow in her nineties but still lives in the same house that she and my late father bought in the early 1960s. I also lived there from birth until I married and moved out in 1990. Will I be able to claim inheritance tax (IHT) relief for the time that I lived there? Answer Q. How can I be sure that a business that I am dealing with in the EU is really registered in the Romanian equivalent of Companies House … even though it is not registered for VAT? 19/22 – PAYE/NIC, student loan and CIS deductions due for month to 5/9/2018   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 http://www.simpleaccounting.co.uk for a look at the resource on offer.’   If the images do not show. If the images contained within this email do not show correctly please add this email to your safe senders list.

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