MTD for other taxes

For those businesses battling with Making Tax Digital ( MTD ) for VAT, Brexit, extension of IR35 rules, business rates charges, amongst other things, and trying to keep their businesses operating efficiently, there is a little bit of good news.

It has been confirmed that there will be no mandation of MTD for any new taxes or businesses until the earliest of 2021. On the back of MTD for VAT, it was suggested that other taxes could follow the MTD route from as soon as 2020. So, businesses can at least look forward to the next 2 years before they may possibly be forced into MTD for other taxes.

Chancellor, Philip Hammond, has however confirmed that the Government is still committed to the introduction of MTD for VAT purposes from 1st April 2019.

It is likely that HMRC have decided they want to take stock of the VAT position under MTD before they roll out MTD further to income tax and corporation tax. It remains our view here though that MTD for these other taxes will come into force within the next 2-5 years. We will keep clients updated of any new developments.

March Advisory Fuel Rates

HMRC have announced new fuel rates from 1st March 2019. For the one month of March either the old rates or the new rates can be applied. Hybrid cars are treated as either petrol or diesel for this purpose. These rates can also be used for VAT purposes, but the employer must retain receipts. Finally, whilst electricity is not a fuel, a fully electric car is 4p per mile. The new rates are :

Petrol    :     1,400cc or less 11p; 1,401cc to 2,000cc 14p; over 2,000cc 21p

LPG      :     1,400cc or less   7p;  1,401cc to 2,000cc  8p; over  2,000cc 13p

Diesel   :     1,600cc or less 10p;  1,601cc to 2,000cc 11p; over 2,000cc 13p

New Payslip Changes

New payslip changes come into force from 6th April 2019.

Currently only employees ( i.e. somebody who works for you and who has a contract of employment ) must be given a payslip. From 6th April, ALL workers are entitled to a payslip. Workers include agency staff, bank staff, casual, and zero hours staff. An itemised payslip must be sent to them on or before every pay day.

The number of hours worked need be disclosed, to ensure compliance with the National Minimum Wage ( NMW ) rates. Failure to follow the NMW may result in financial penalties, being named and shamed, and being taken to Tribunal for unlawful deductions from their salary.

If you have not already done so, you should work with your HR and payroll departments to make sure that you are ready for the 6th April, and that you are fully compliant.