with less than 6 months until MTD for VAT officially starts, HMRC has finally deceided to start communicating with those affected by this massive change to the operation of UK tax. HMRC will begin advertising this move more and have begun writing out to those businesses affected from 1st April 2019, which are VAT registered businesses with a taxable turnover above the VAT threshold of £85000, this has prompted more agents to commence educating their clients of this impending change and increasing realisation by taxpayers that this will actually happen and measures will need to be taken to ensure that (initially) their VAT records are held in digital form from start to submission (no conversion from manual to a digital format for submission will be acceptable), thankfully HMRC will now accept spreadsheets as being sufficient digital form and conversion software to allow submission from excel are being released. Much more on this subject will follow shortly.
Eamonn Homes is the latest big name to be pursued as a test case, this time in connection with the supply of his services to ITV via his own limited company, it is reported that this could amount to around £2million in taxes, which would no doubt be followed by similar cases or agreed settlements, this follows a similar case successfully brought against Christa Ackroyd and the BBC, whenever these cases become common knowledge public opinion is generally against the tax authorities, however the largest tax avoided is generally NIC, and with the apparently ever increasing need for funding within the NHS perhaps public mood ought to change and not reserve public damnation only for the Amazon and Starbucks of this world.
As compliance and penalties appear to get tighter and tighter you may wish to know of some of the excuses received (and refused) by companies house for late filing of company accounts, one business owner complained he walked in to find his wife in the bath with his accountant, Pirates stealing my Accounts and a volcano erupting were also attempts, but the poor company whose accounts were apparently eaten by goats seem to have been the most unfortunate.
MTD will be addressed again shortly, but in the meantime please excuse me if I take a few days in Seville to watch England Football Team, I know they can be as frustrating as the tax authorities most of the time, but sun and baking temperatures are also on order.