To provide government support during the early stages and peak of the COVID-19 pandemic, HMRC gave businesses the option to defer VAT payments if they were unable to pay on time. They could do this without incurring late payment interest or penalties.
This purely temporary and limited help is in 5 forms
The introduction of the Job Retention Bonus with eligibility requirements
Incentives to take on new employees/apprentices
A very limited and temporary Eat Out to Help Out scheme
A temporary vat reduction for some of the hospitality trade
A temporary increase in the stamp duty threshold
MTD for VAT is compulsory for all vat periods starting on or after 1st April 2019. For most VAT traders that will be their vat quarter ending 30th June 2019. VAT registered traders need to sign up for making Tax Digital at least 72 hours before their VAT Return is due, or 7 days before if they pay by direct debit.
MTD starts for VAT from April 2019, but HMRC will be happy to collect penalties from those that miss the deadline. VAT registered traders need to plan now and act soon to make sure they are ready.
With gloomy forecasts of the economy and poor growth plus ever increasing costs of Brexit the Chancellor had little room for manoeuvre. His report set out a number of actions the government will take including support for more house building. The major attention-grabber was aimed at first time buyers who will not have to pay Stamp Duty Land Tax on homes costing up to £300,000 but this may backfire with increased house prices.
We are busy planning and preparing to make sure we and our clients are ready for Making Tax Digital (MTD) and it’s big brother MTDfB.
The government have issued information on how Making Tax Digital for Business (MTDfB) is expected to work for VAT once the rules are introduced in April 2019.
Significant changes have been announced for the amount of VAT that many small businesses will have to pay.