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  • Five tax returns a year coming soon (All Teachers)

    Posted by Phil Schneider on November 4, 2018 at 10:19 am

    Anyone else concerned about the new tax changes “The proposals will see quarterly online reporting in addition to year-end tax return declaration as well as record maintenance via HMRC-compatible software only.” For a lot of people that will mean a lot of extra expense and hassle HMRC do not have a good software record even “The Treasury Committee has lost confidence in the successful implementation of HM Revenue and Customs’ (HMRC) new customs check IT system and is concerned with the implications of potential failure.”

    Guest Teacher replied 5 years, 8 months ago 2 Members · 3 Replies
  • 3 Replies
  • Guest Teacher

    Member
    November 4, 2018 at 10:26 am

    This does sound daunting! Do you know when it is likely to come into force?

    I am not sure how enforceable it will be because I can imagine such a high % of people just forgetting about it, as it isn’t really culturally ingrained to do quarterly returns. How likely are these proposals to come through?

    Thanks for alerting me to this!

  • Phil Schneider

    Member
    November 4, 2018 at 10:26 am

    Well VAT payments are made quarterly.”From April 2019 businesses above the VAT threshold will be mandated to keep their records digitally and provide quarterly updates to HMRC for their VAT”. Which music teachers generally dont need to do.they eventually want all tax to be like this.
    “The first businesses have already started keeping digital records and providing updates to HMRC as part of a live pilot to test and develop the Making Tax Digital service for income tax and NICs and we will continue to expand this pilot.”
    Any way of avoiding this Digital exclusion opt out
    “You will be excluded from the electronic bookkeeping and filing elements of MTD if you are unable to handle it, due to age, disability or location, or if it is contrary to your religion.

    Five tax returns per year

    The first tax year to be affected is 2020/21. This runs from 6 April 2020 to 5 April 2021.”
    I think there will be chaos and outrage when this is mandated.

    Assuming you choose an accounting period that is co-terminus with the tax year your:

    First report will be due in June/July 2020.

  • Guest Teacher

    Member
    November 4, 2018 at 10:26 am

    Interesting to read the “you will be excluded from the electronic bookkeeping…if it is contrary to your religion”. I am guessing the Amish community, for example, will be able to avoid this!

    Really surprised to read this, I agree – I think chaos and outrage will ensue due to the overburdening amount of admin needed to do all of this, for no real financial difference for HMRC…surely the tax totals will be the same, just more admin to produce the returns for shorter time periods on a more frequent basis.

    How do you think the government will deal with the rise of popularity of cryptocurrencies? Do you think these might become taxable at some point as well?

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