Anna’s Accountancy Alerts – March 2020 Week 49

business

Making Tax Digital (MTD)

When MTD was first introduced HMRC said there would be a “soft landing period” when businesses would not be fined. This period comes to an end on 31st March 2020.

Damon Anderson, Director of Operations at Xero UK states: –

“HMRC now requires businesses submitting their taxes digitally to use functional compatible software. This means that if you use multiple pieces of software or spreadsheets for some aspects of bookkeeping, a digital link can be created that transfers data between places. This means that all information you need for MTD sits in one place.”

Penalties will now be incurred for late submission and will be points based: –

“You’ll incur points each time you’re late with a submission and penalties will be incurred once you pass a certain threshold of points.”

Anderson gives advice as to what you can do: –

  • Know the deadlines.
  • Research cloud accounting and find the best fit for your business.

P9 Notice Of Coding

P9 Notice of Coding email notifications will be sent from week commencing 10th February 2020 to 10th March 2020 advising that the coding for the tax year starting
6th April 2020 can be viewed online. When logging into the online account to view the P9 notices, please ensure the correct tax year is selected from the dropdown, 2020-2021.

If the P9 notices are still not showing, please log out and log back into the account the following day. This should allow the P9s to be viewed online. We expect paper P9 coding notices to arrive with employers on or around 21st March 2020.

If you do not receive your paper P9 notices in time for the first pay period on or after
6th April 2020, you can request a duplicate from the Employer Helpline on 0300 200 3200.

National Insurance Rates And Thresholds For The Tax Year 2020-21

On 30th January, the government introduced the legislation for National Insurance rates and thresholds for the tax year 2020-21. These confirm the government’s commitment to increase the point at which individuals start to pay National Insurance to £9,500 per year.

A typical employee will save around £104 in 2020-21, while self-employed people, who pay a lower rate, will have £78 cut from their bill. All the other thresholds will rise with inflation, except for the upper NICs thresholds which will remain frozen at £50,000, as announced at Budget 2018.

Stay Up-To-Date With Coronavirus & Brexit News

Coronavirus has affected us all. Whether you’re a sole trader, employer or employee. Stay up to date with the latest news – including government support, tax implications, and more.