Jump to content


Photo

Tax Matters

Keeping Records

  • Please log in to reply
4 replies to this topic

#1 Barry Williams

Barry Williams

    Prodigy

  • Members
  • PipPipPipPip
  • 1306 posts
  • Member: 20603
    Joined: 29-November 07
  • Beddington, Surrey

Posted 18 April 2017 - 13:40

Board members may have read that those who are self-employed will have to obtain and use HMRC approved software for their businesses.

 

There is an interesting note, which I reproduce below, as this indicates that self-employed organists will not need to use such software unless their income from the self-employed source exceeds £10,000 pa,.

 

I have given the quote from the HMRC Website below and have put the relevant words in bold italic.

 

Barry Williams

 

 

 

Businesses, self-employed people and landlords will be required to start using the new digital service from:

  • April 2018 if they have profits chargeable to Income Tax and pay Class 4 National Insurance contributions (NICs)
  • April 2019 if they are registered for and pay VAT
  • April 2020 if they pay Corporation Tax (CT)

Individuals in employment and pensioners will not have to use the digital service unless they have secondary incomes of more than £10,000 per year from self-employment or property.

In the consultation the government said that it was considering exempting more of the smallest unincorporated businesses from the requirement to keep digital records and make regular updates to HM Revenue and Customs (HMRC). It was also considering deferring the mandatory start date of Making Tax Digital for Business (MTDfB) by 1 year for the next tier of small unincorporated businesses and landlords with annual incomes of above £10,000, but below a threshold to be determined. Final decisions will be made before legislation is laid later this year.


  • 0

#2 QFE

QFE

    Newbie

  • Members
  • Pip
  • 37 posts
  • Member: 887532
    Joined: 24-November 13

Posted 18 April 2017 - 19:25

That's a new one on me. As I understood it, it was only if your business paid VAT that the digital service was coming on-line.

 

Thank's for the heads-up, Barry. It would have been unreasonable for HMRC to give me advanced warning.... 


  • 0

#3 mel2

mel2

    Virtuoso

  • Members
  • PipPipPipPipPip
  • 4124 posts
  • Member: 6928
    Joined: 15-May 06
  • East Yorkshire

Posted 18 April 2017 - 21:17

Thank you for sifting through all of that, Barry.
Sometimes it is actually a relief to be paid peanuts. :)
  • 0

#4 Banjogirl

Banjogirl

    Prodigy

  • Members
  • PipPipPipPip
  • 1845 posts
  • Member: 39509
    Joined: 12-September 08

Posted 21 April 2017 - 10:19

My problem is that I have no idea how much I will have earned in a year until quite near the end of that year, as my income can go from no hours a week/month to full time at the drop of a hat. So do I have to register and use software, on the off chance I earn over £10,000, or do I assume I won't until the end of the year? I really don't like the idea of people being forced to used electronic methods of accounting if they don't want to. As long as their records are adequate and accurate that should be fine. Especially as HMRC have not exactly covered themselves in glory in their own use of technology. I was once unable to file my return for eight months because of a bug which they knew about. Their response was that they were dealing with it 'urgently'. I'd hate to see their non-urgent approach.


  • 0

#5 Barry Williams

Barry Williams

    Prodigy

  • Members
  • PipPipPipPip
  • 1306 posts
  • Member: 20603
    Joined: 29-November 07
  • Beddington, Surrey

Posted 22 April 2017 - 12:06

If there is any possibility that you may get near the limit you should register and use the software.

 

These days the tax penalty regime is 'black and white'.  There is no point in taking a risk.

 

"As long as their records are adequate and accurate that should be fine."  This will be no excuse under the law. 

 

Barry Williams


  • 0