Welcome to July 2019 News Update from Prestige Business Management
July 2019 News Update – featuring additional news developments from our newsletter series.
Welcome to July 2019 News Update – This month sees HMRC making big announcements about major deadlines. The first is the Making Tax Digital deadline in August and the second is the upcoming Tax Credit renewal deadline at the end of July. HMRC has also announced that the Tax Gap has declined whilst new Childcare money could help parents over the summer holidays.
The Tax Gap Continues To Decline
The amount theoretically the Exchequer calculates, and the sum collected by HMRC generates a gap. This is called the Tax Gap.
HMRC states that in 2017/18 94.4% of all taxes were collected. However, the 5.6% that remained unclaimed is down on historically high levels – like 7.2% between 2005/06.
Jesse Norman MP, Financial Secretary to the Treasury stated:
“The UK’s low tax gap underlines both how the vast majority of people are paying the correct amount of tax, and how effective HM Revenue and Customs has been in its efforts to clamp down on tax evasion and avoidance.”
HMRC argues that the majority of their “customers” get their taxes right. However, they do understand that these figures do illustrate the difficulties faced by many. Making it easier is in part why HMRC have rolled out Making Tax Digital.
If you have any concerns about your tax repayments, get in contact with Prestige Business Management today.
Working Parents Could Get £2,000 Tax-Free Childcare For Holiday Clubs
HMRC have announced that parents who pay into their Childcare Tax-Free Accounts, to the value of £8 paid in by parents which would then be topped up by £2 by the Government, could help fund registered places at summer holiday clubs during school holidays.
The Government understands that the school holiday period creates a time-off pressure point for working parents. The new scheme could see parents choose from 68,000 childcare providers that have signed up to the scheme which include summer camps and schools.
Nonethless, the scheme is open to self-employed parents who earn up to £100,000 a year. They can achieve the £2 top-up from the Government if they pay in £8 pounds to get a tax-free maximum of £2,000 from the Government if they save up all year.
The Treasury states:
“We understand making arrangements for summer childcare at this time of year is important and can be a stressful time for parents. Tax-Free Childcare makes things easier, putting more money in the pockets of parents and supporting as many families as possible to secure high-quality, affordable childcare.”
Tax Credits Renewal Deadline – HMRC Announcement
Tax Credits help working people with what the Government calls “targeted financial support.” Many self-employed people claim tax credits and the renewal time on annual tax credits processes is the 1st of July 2019. Don’t forget to get in touch with HMRC or log into GOV.UK to check the progress of your renewal application.
“We know that customers lead busy lives, which is why our online services are available day and night. Customers can complete their tax credits renewals at a time convenient to them. Renewing on time is vital to ensure that their payments don’t stop.”
If you would like advice on Tax Credits for the Self Employed, why not get in touch with Prestige Business Management today?
Making Tax Digital Registration Deadline Fast Approaching
The Making Tax Digital deadline for registration is nearing. The August 7th deadline to submit first quarterly return using HMRC approved deadline will be a first for the HMRC and millions of UK companies alike.
If your business has an annual turnover of £85,000 or above you are being urged by the HMRC to sign-up today, before the 7th of August 2019 filing date, to the Making Tax Digital scheme.
However, the new changes will affect 1.2 million companies in the United Kingdom. The new rules along with a changing VAT period post-April 1st, 2019 will see over a million firms submit their first quarterly return to HMRC using software like QuickBooks in order to make a digital tax ecosystem with an always-on live account for a business or person’s tax experience.
“Now is the time for businesses with an August quarterly filing deadline to sign up and join the hundreds of thousands already experiencing the benefits of MTD. During this first year, we won’t be issuing filing or record-keeping penalties to businesses doing their best to comply.”
If you need help with Making Tax Digital or you know of anyone having problems why not get in touch with Prestige Business Management today? We can help get your business MTD-ready.