News

Making Tax Digital (MTD) shelved – but for how long?

Since George Osborne announced the death of the annual Tax Return in his Budget speech in March 2015, the government has been planning to introduce MTD from April 2018.  Under MTD all businesses and landlords would be required to make quarterly electronic submissions of basic accounting information to HMRC, starting with those whose turnover is above the VAT threshold (currently £85,000) from April 2018, extending the system to all businesses and landlords over a number of tax years.

However, the government’s plans were shelved at the end of April 2017 with the announcement of the General Election on June 8th.  Opponents of MTD and the pace at which it was being implemented were hopeful that this represented a change of heart from the Treasury.  The real reason, though, is that there was insufficient time to debate the MTD legislation in parliament before the House rose for the election.

We believe that after the election (and assuming there is still a Conservative government) the MTD plans will be revisited in the 2017 Autumn Budget – or even a 2017 Summer Budget.  In light of this hiatus it is possible that the temporary shelving of this ambitious project will mean it is delayed by a year to April 2019, but one cannot be sure.  Considering the investment and time put into the MTD project already it is certainly hard to see it being shelved permanently.

As soon as more information is announced we will review how all of our clients are affected and will be in touch with you directly.

In the meantime, if you have any questions about MTD please do get in touch.

Written by Shane White

Shane White

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VAT Flat Rate Scheme – ‘Limited Cost’ Businesses

From 1st April 2017, the VAT bills of many Flat Rate Scheme (FRS) users will increase dramatically, because of the introduction of a new ‘limited cost trader’ category.

This means that if your expenditure on “relevant goods” is less than the higher of 2% of gross (VAT inclusive) turnover or £250, you will need to use the new 16.5% flat rate percentage.  At that percentage a trader would only retain 0.2% of net turnover, as opposed to 3.2% on a flat rate percentage of 14%.

HMRC state that “relevant goods” are goods used by an FRS trader exclusively for business purposes but, importantly, excluding the following: vehicles, vehicle parts and fuel; any food or beverages for consumption by the flat-rate trader or their employees; and capital expenditure goods.

Two possible strategies to deal with this might be to leave the Flat Rate Scheme or, if your turnover is below the threshold, deregister from VAT altogether.  If you think this might affect you, please contact my colleague Shane White to discuss the best course of action (01223 843324 or shane@tayabali-white.co.uk ).

Written by Simon White

Simon White

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Autumn Statement

The new chancellor delivered his first Autumn Statement last month. There was nothing especially radical in what he had to say but given the perceived uncertainty in the world following Brexit and the election of Donald Trump, perhaps this was not the time to show too much flare! Mr Hammond cautioned that there are “sharp challenges ahead” and pledged a post-Brexit economy that works for everyone. That sounds like a pretty difficult thing to achieve.

He stated that economic growth is expected to slow over the next two years, initially rising marginally to 2.1% for 2016 but then reducing to 1.4% in 2017. The Brexit effect is anticipated to impact economic growth by about 2.4%.

The chancellor proposed to invest in UK infrastructure and innovation and announced the creation of a £23 billion National Productivity Investment Fund (NPIF) which will provide additional funding for transport, digital communications, research & development and housing.

Corporation Tax will be reduced by to 17% by 2020 (as previously planned). Employee and employer NI thresholds will be aligned and salary sacrifice schemes will be scaled back.  The government also plans to raise the income tax personal allowance to £12,500 and the higher rate income tax threshold to £50,000 by 2020/21.  And there will be further measures to counter tax avoidance.

Of course there are a number of other smaller changes but as fiscal statements go there was little to get hugely excited about, which is reassuring in many ways and, I suspect, is what he intended.

Written by Imran Tayabali

Imran Tayabali

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Cambridge Digital Awards

Tayabali & White were shortlisted for the Cambridge Digital Awards for our website in the B2B section. It was great that the hard work that our team had put into our website was recognised by experts in the field. Although we did not win our category it was apparent that we were competing with organisations that have delegated this to large external marketing agencies. By comparison our approach is more personal and tailored to our clients. We do use a third party to assist us with this aspect of our business which we take very seriously but we are primarily focussed on first class service to our clients not just a sparkly website. To even be in the short list, given the nature of industry, is absolutely fantastic and further proves our determination to continue to be an outstanding firm of accountants.

Written by Imran Tayabali

Imran Tayabali

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Practice Excellence Awards

Simon and Imran attended the highly acclaimed Practice Excellence Awards in Mayfair last month. We were advised that there were a record number of applicants for the awards this year and Tayabali & White was one of just three practices shortlisted for “Client Service Firm of the Year”. Our firm was singled out for its approach to client care, delivering a service typically found in the private banking sector.

There were many different award categories and it was apparent that we were in the company of some of the best accountancy practices in the country with organisations that are prepared to think differently, break away from the conventional and approach our industry with refreshing change. Although we did not win our category, we are very proud that we are genuinely amongst the best in our profession. Given that this was our first attempt we are thrilled to have been recognised by the judges, who are themselves at the forefront of the Accountancy world.

The night was great fun, with plenty of Champagne, music and delicious food to keep us going. Many thanks to the Practice Excellence Awards team for hosting such an enjoyable event.

Written by Imran Tayabali

Imran Tayabali

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Practice Excellence Awards Shortlisting

Tayabali & White are thrilled to have been shortlisted for the prestigious “Client Service Firm of the Year” Award in the Practice Excellence Awards.

The annual awards recognise and celebrate the very best in our profession showcasing the firms and individuals who are driving standards of excellence ever higher. The Practice Excellence Awards ceremony will be held in London on the 20th of October, it will be an exciting evening of inspiration, celebration and entertainment. A chance to party with friends old and new as we reveal this years best in class. With guest host, Declan Curry, it will be a prestigious and unmissable night.

Written by Imran Tayabali

Imran Tayabali

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"Over a period of almost 25 years, we have found Tayabali & White, to be much more than just first class accountants. They have frequently provided specialist advice and wise counsel, even moral support, and their sensitive, very personal approach is rare and much appreciated. It is difficult to imagine going elsewhere."
George Pearson
Pearson Publishing Limited