HMRC have recently announced the delay of the introduction of the Making Tax Digital for Income Tax Self-Assessment (MTD for ITSA) scheme until 2026. This delay will give those in scope more time to prepare and will reduce the risk of HMRC systems and support services becoming overwhelmed when the deadline hits.

There are some changes relating to financial information and filing requirements which will coming into force once the legislation has been introduced.

Unlike traditional desktop accounting systems, cloud software packages (including QuickBooks Online, Xero and Sage Cloud) do not have a separate and structured year-end process.

There are however, a couple of important steps that we recommend you take once your year-end has passed and all transactions relating to that year have been posted.
 

In preparation for the introduction of Making Tax Digital for Income Tax Self-Assessment, the basis period rules for unincorporated businesses are being abolished. In its place, unincorporated businesses will be assessed on the profits actually earned in the tax year.

What is postponed accounting?

Postponed accounting means that the importer does not pay import VAT when goods arrive at a port or airport instead the VAT is deferred.

The end of the calendar year is a popular accounting date for many businesses, but for those of us with a year-end accounting date of 31 March 2020, reviewing your management accounts for the nine months to the end of December 2019 is a must-do.

For years, the UK and EU have shared the objective of creating a level playing field for new market entrants in the financial services and payments industries while ensuring the proper protection of consumers’ data.

The introduction of FRS 102 (the Financial Reporting Standard which replaces all current GAAP standards) represents a major re-write of UK GAAP and could substantially affect reported profits and tax liabilities. 

The right accountant can be a valuable asset to your business, saving you both time and money.  It’s important to spend a little time and do some research before you make a final decision.  

New business specialist April Foster shares her top tips for choosing the right accountant for you.