Chancellor Hammond made two key announcements regarding MTD; the exemption threshold will be fixed at turnover of £10,000, and businesses with trading income under the VAT threshold won’t have to commence MTD reporting until 2019. All other MTD proposals remain as stated in the Government response to the consultations on 31 January 2017.
News & Updates
Employment Status Tool
For the last 17 years, individuals who provide their own services through an intermediary, and the businesses who engage them, have struggled with the intermediaries legislation known as IR35. The key issue is how to determine whether a particular engagement is within the IR35 rules.
Budget Fallout
The headlines after the Budget were captured by the 2% rise in the main rate of class 4 NIC. This caused such a fuss as it appeared to break a Conservative Party manifesto pledge not to raise the rate of income tax, national insurance or VAT in this Parliament, i.e. before May 2020.
VAT Flat Rate Scheme
We are not suggesting that HMRC are making up the rules as they go along, but their webinar on the flat rate scheme (FRS) included an additional condition, which isn’t in the new version of the FRS leaflet (Notice 733).
Cash Basis for Landlords
We outlined the rules for new cash basis for unincorporated property businesses in our newsletter 2 February 2017. The draft legislation was only published on 31 January, but those new rules will apply by default to individual landlords from 6 April 2017, unless the landlord opts out.
Tax Tables and Rates Corrected
An update to correct tax tables and rates