July Tax News
How To Reduce Your July Tax Payment By Getting This Year’s Tax Return In Early
A lot of clients would like their 2018/19 tax return completed this month in case it can help reduce their July tax payment.
How does that work, I hear you ask? If you’re self-employed or run a business, you will make two tax payments per year. One is due by 31 July and the other 31 January. If you’ve earnt more in the previous tax year 2017/18 than you have in 2018/19, then your accountant may be able to reduce the amount you pay in July. Better that than pay a higher amount of tax in July only to wait for HMRC to give you a rebate later.
First submissions with MTD
Making Tax Digital (MTD) will kick in properly this month as companies with VAT Return periods starting in April, May or June will make their first submissions to HMRC. For some people it could be the first time they’ve used their new accounting software and, for this reason, there’s likely to be a lot of hand-holding and calls to HMRC.
To recap, MTD went live from 1 April 2019 when HMRC replaced the old tax system for businesses and individuals with digital tax accounts. From April onwards those affected now have to report their accounts and business transactions online and quarterly.
At this point it is VAT registered businesses with a taxable turnover above £85,000 who have to comply. From 1 April 2020 it will be limited companies which are not VAT registered, and from 1 April 2021 it will be smaller businesses, sole traders, freelancers and even landlords.
If you are one of the VAT registered companies about to make your first online submission since the rollout of MTD and would like to some help or if you think you may be paying too much tax this month, please get in touch. At Lewis & Co we have been providing support to businesses in Kent for nearly three decades. Please contact 01892 513515 or email firstname.lastname@example.org
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