Welcome to our 2017 Summer Update

In our Summer Update we include some of the latest changes in tax and accounting which we hope you will find useful and which may be relevant to your small business.

Remember we don’t charge by the hour so you can call your local accountant anytime. We focus on the numbers so you can focus on what is it important to you – running your business.

Do you own more than 25% of a Company?

Companies House has made certain amendments to notification requirements regarding PSCs:

From 26 June PSC information won’t be updated on the annual confirmation statement (CS01). Instead notification must be by forms PSC01 to PSC09 whenever there’s a change. Registers have to be updated within 14 days of the change and Companies House informed with 14 days after that.

From 24 July, active Scottish Limited Partnerships and General Scottish Partnerships where all the partners are corporate bodies must register PSC information with Companies House.

If you have an ISA

The amount you can save into an ISA has risen from £15,240 to £20,000 from April. This means you can save up to £20,000 a year and not suffer any tax on the interest you gain in a cash ISA or dividends received in a stocks and shares ISA.

If you own a Buy-To-Let Property

Bad news for owners of buy to let properties - from 6th April 2017 you are only getting Higher Rate tax relief for 75% of mortgage interest costs This is the start of the process of restricting tax relief for mortgage interest to the Basic Rate. We will eventually have a Basic Rate tax credit whereby you will only be allowed to claim 20% of interest costs to be offset against the income tax due on your rental income.

What Is Making Tax Digital (MTD)?

MTD will be with us in April 2018; there are still gaps in the information available but the outline of the story so far:

Who is affected? Initially any unincorporated business or landlord with an annual turnover of more than £10,000 – this is the threshold proposed by HMRC in its consultation paper, in their response, however, it says that this decision has been deferred until later this year.

When? The obligation to make MTD submissions will begin for the accounting period starting in 2018/2019. It is possible that HMRC might defer this deadline for smaller businesses for a year. Partnerships with a turnover over £1m will not have to make submissions until 2020.

Filing obligations - Businesses and landlords will have to make quarterly “updates” of accounting information within one month of the end of the quarter. There is then an “end of year activity” in which technical adjustments are made; this “activity” must be carried out by the sooner of ten months after the end of the accounting period or 31 January following the year of assessment in which the profits of the accounting period are taxed.

Mechanics – Records keeping and the updates must be made using software, either accounting software by the taxpayer or their accountant or via the accountant’s tax submission software.

If you spend less than £1000 on Goods

This April, HMRC introduced the "limited cost business " category to the VAT Flat Rate Scheme. Being a "limited cost business " will increase your vat bill. If you are registered for the Flat Rate Scheme and do not spend more than £1000 a year on "goods" the chances are this applies to you.

Change to accounts for Limited Companies

Limited company owners and directors might notice a different presentation of their statutory accounts this year. Your accounts will look different, but for the most part the content will not change.

About AIMS

AIMS are a market leader in core accountancy and taxation services for small, local and independent businesses, established for 25 years and with over 200 qualified accountants nationwide. Our success is down to our clear focus on our clients, our systems and our accountants - our accountants are personally responsible for each client, ensuring a personable and quality service guaranteed.

Download a copy