No Making Tax Digital Appeal By Small Business

Recently there has been a survey conducted by the UK200 Group. They came to an analysis that the small businesses are not showing their interest in the tax digital approach. In some cases, it is being seen that they are not even ready for this change. The can be found through the London Accountants or online on the government website.

When Will MTD Be Applied?

This is a fact that UK government has planned a new strategy for paying a tax called as the Making Tax digital. It is being abbreviated as MTD. It is supposed to be implemented in the upcoming years of 2018-2020. It is considered as one of the biggest changes in case of tax payments and tax returns. The Morden Accountants are trying to make their customers ready for such kind of changes.

Why is MTD being Planned By The UK Government?

There has been a question raised by a lot of small businesses and Cheap Xero Accountants that what is the reason that such a big step is going to be taken by the UK Government. Thus, it is being said by the officials that MTD is a step towards creating a completely transparent and see-through system of tax. It will be a new step towards the easy tax systems in this digital age. A number of LondonAccountants are already getting ready for these changes. It will be helpful in giving them a space to handle their client's tax returns in a better way.

What Is The Percentage Of Companies Who Can't Make Use Of Accounting Software?

The survey has completely declared that around 65% of the firms are there which will not be able to take any use of accounting software. This survey has been conducted by one of the biggest groups in UK i.e. UK200Group.

This is a fact that a number of businesses are still using the manual tools in order to save their records. Its percentage is around 22%. The people are not even happy enough to put this approach online. On the other end, there are around 27% of businesses who have just a little know-how about the computer systems. They are using just the basic programs of the computer in order to perform their bookkeeping services.

How Will MTD Become Compatible With Every Business?

It is being said that due to the less knowledge of businesses about the use of computer software they will need to go for the 'full accounting packages'. They will be the only approach for them to deal with the revenue plans. The Morden Accountants are already declaring this as the biggest change in the business world.

Thus, all of the Cheap XeroAccountants and individuals who submit their tax returns by themselves are interested in knowing about the more benefits which businesses will receive after the implication of Modern Tax Digital. Some assume this to be a life-changing implication in which some of the small businesses might struggle but they are appealing the government not to imply such changes.

IT Contractors Face Tax Changes 2017

A number of tax changes hit the contractor world. There is a Flat rate scheme which is being followed by a number of contractors. It is considered as a basic source for reducing the VAT of administration. On the other end, HMRC has come to an analysis that this scheme has been abused by a number of contractors. For this reason, they have changed the rules and regulations in this category. It will be a great way to approach and timely close the loopholes and stop this particular abuse.

Public Sector Face A New Change in IR35 Rule:

April 2017 has brought a lot of changes for contractors. One of them is for those working in a public sector. They are being subjected to the IR35 rules. This simply means that the NI is increased for employee and they will be required to pay for it. On the other end, there is none kind of compensation being provided in this regard.

Need For A Check Of The Employment Status

A new tool has been introduced by HMRC. It is called as the 'employment status checker'. It is quite helpful in checking the status of tax for one's business. The best thing about it is that it is a free tool and anonymous as well.

Dividends & Tax Thresholds

According to the recent changes, it is being cleared that there will be a need to pay the dividends according to different categories. For example;

¥ Basic Rate Tax- 7.5% of dividend

¥ Higher Rate Tax- 32.5% of dividend

¥ Additional Rate Tax- 38.1% of dividend

Nowadays, the dividends which could be received is 5000 pounds. This is supposed to be spared from any additional tax. Moreover, in 2018 this amount will be reduced to 2000 pounds. The Landlord Accountants in London, Kingston Accountants or the Wimbledon Accountants would be helpful in giving a quick overview.

Conclusion

Thus, there have been a number of changes being made for the sake of IT employers and it is being suggested by the Landlord Accountants in London, Kingston Accountants and Wimbledon Accountants that the IT contractors should take all of these changes on serious notes. It is considered as their biggest responsibility. In case if these private contractors will neglect the changes and will not follow then HMRC is liable to charge them penalties for not following the rules and regulations. Moreover, if one is not clear about the latest changes i.e. how these changes will be impacting their business then it is considered as their biggest responsibility to get in contact with the accountants who could be helpful in giving them the right overview of what is going on in the market. Moreover, what sort of employment status do they owe? And what sort of things should they be doing in order to stay according to the latest rules and regulations? This could be a plus point for saving them from any future interests or penalties. If you are an accountants for IT contractor and you haven’t go through the changes made in April 2017 then you should visit the Gov Uk site and get your records updated accordingly.