Background For businesses over the VAT registration threshold, VAT is the first tax selected for digitalisation in the UK. This will take effect from 1 April 2019 for most businesses. For Income Tax and Corporate Tax, MTD will not be mandated until April 2020 at the earliest. Threshold Businesses with turnover above the VAT threshold (£85,000 per year for the 2018/19 tax year), have until 1st April 2019 to comply with MTD. After this date, all VAT-registered businesses will need…

  Autumn Budget 2018 Personal taxation and wages The personal allowance threshold, the rate at which people start paying income tax at 20%, to rise from £11,850 to £12,500 in April – a year earlier than planned The higher rate income tax threshold, the point at which people start paying tax at 40%, to rise from £46,350 to £50,000 in April After that, the two rates will rise in line with inflation National Living Wage increasing by 4.9%, from £7.83…

HMRC rejects Self-Assessment expenses and excuses Angela MacDonald, HMRC Director General of Customer Services, said ‘Each year we still come across some questionable excuses, whether that’s blaming a bus touring schedule or seeing aliens. However, each year we’re making it easier and more intuitive for our customers to complete their tax return. We also receive absurd expense claims from vet fees for a rabbit to room service at a hotel. It is unfair to make honest taxpayers pick up the…

We are now in the final stages of the 2016-2017 Self-Assessment Tax filing period. The deadline being 31st January 2018. The filing of the Self-Assessment allows for HMRC to collect taxes from individuals who run their own businesses or if they receive income that is not taxed through the PAYE. There are a few circumstances where an individual will need to submit a self-assessment tax return: Being self-employed Have savings or investment income above £10,000 before tax Receiving £2,500 or…

The VAT Margin Scheme is designed to be used by VAT Registered businesses that buy and sell: Second – hand goods (Goods that can still be used, or which could be used after repair) Works of art Antiques Collector’s items. This allows VAT to be paid only on the difference between the price the item was bought for and the price it was sold for. Why use the margin scheme? Often when trading in second hand goods they will have…

Asmat & Co had teamed up with a leading Cloud Accounting software specialist for a Bespoke Programme designed for our clientele. With the help of this software programme businesses can run their business without the need of any accounting and bookkeeping knowledge.   Asmat & Co Cloud Accounting Software is a Complete Solutions and Bookkeeping is a practical, safe, secure and affordable option for all UK businesses and sole traders. “Cloud hosted”, which means you can use it wherever you…

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Tax Rates 2016-17

In UK most workers will be required to join a workplace pension scheme by their employers.  From the staging date the employees would have to choose whether they want to join the scheme or ‘opt out’.  If the employees choose to opt out of the scheme they would have to join the pension scheme for at least one month before opting out.  Any contributions they have made into the pension would be refunded back to the employees and the employers.…