P11D & Employee Benefits

Under the current system employers are required to submit employer benefits to HMRC using a P11D form and pay over the relevant National Insurance after the tax year is over.

Proposed by HMRC the P11D form will be replaced by reporting employee benefits on the monthly payroll. Of course this can already be done voluntarily but will likely become mandatory from 6th April 2020 (Not yet confirmed).

What does this change mean? This means that the additional national insurance due for employee benefits will be due through the year each month through the current RTI process.

This change have not been confirmed but is expected to be introduced by most Accountants.

If you currently have employee benefits such as cars or healthcare do get in touch if you have an questions about the future of declaring this to HMRC.

Richard at TG

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Registering for MTDfV

MAKING TAX DIGITAL FOR VAT

Accurate as at March 2019 (Subject to change) If you are the slightest bit unsure about whether or not you should register for MTDfV now give us a call on 01480300945 and we will be able to confirm if your business is ready or not.

Making Tax Digital for VAT (MTDfV) comes in to effect for VAT periods starting from the 1st April 2019. Please see below when the first return is due to be an MTD filing.

VAT Quarters

 

First mandatory MTDfV return Period Due at HMRC
March/April/May April to June 2019 Quarter 7th August 2019
January/April/July/October May to July 2019 Quarter 7th September 2019
February/May/August/November June to August 2019 Quarter 7th October 2019

Note: Businesses are able to early adopt MTDfV. If your software is compliant we recommend signing up early to ensure any issues are sorted out before it becomes mandatory.

If you do not have making tax digital compliant software please get in touch before signing up to MTDfV.

Also please be aware it takes up to 72 hours to register and 12 days for any existing Direct Debit details to be transferred to the MTD system. Therefore we do not recommend completing this just before filing a return or before the last Direct Debit has been taken.

Assuming your software is now compliant and your turnover will be over £85,000 for the next 12 months you will need to register with HMRC for Making Tax Digital before your mandatory return is filed.

You can do this by following the steps below:

Before starting the process you will need:

  • Company Reference Number
  • Company UTR Number

Step 1. Go to https://www.gov.uk/log-in-register-hmrc-online-services and sign into your business tax account.

(this is where previous VAT returns using the HMRC website would have been submitted from)

Step 2. Under the section “Sign up to Making Tax Digital for VAT” Click on the hyperlink “Find out more about Making tax digital for VAT (Opens in a new tab)

Step 3. In the new tab scroll down to the “Sign up for making tax digital for VAT” heading and click on the “Sign up for Making Tax Digital for VAT” hyperlink.

Step 4.  On the new page scroll down to the “Sign up your business” heading and again clicking on the “Sign up for Making Tax Digital for VAT” hyperlink.

Step 5.  Following the on screen questions (These may vary). If you have any questions about how to answer please do give us a call on 01480300945.

Step 6. Within 72 hours you should receive an e-mail stating if you have been accepted for MTDfV. Once this comes through you will need to enable your software to submit MTD returns. This varies on different software options available so do contact the software support or us for help if needed.

 

Finally if you have an questions about MTDfV do get in touch on 01480 300945.

 

Richard at TG