John's Autumn Blog 2016

This is my autumn newsletter somewhat late.  As I write we are remembering the 50th anniversary, of Aberfan in 1966 and the terrible tragedy of that day.  It helps to get into perspective our own lives and to be thankful for the blessings we have.  I remember vaguely, as I was just a youngster at school, when so many lives were lost.  

In a few weeks it will be the Advent season as we look to Christmas when Jesus came some 2000 year ago the Jewish nation were expecting a military Commander, Messiah, and were somewhat surprised as to the values which Jesus proclaimed, in some ways very radical, which can be read in the Gospel of Matthew Chapter 5, ‘The Beatitudes’.  This is perhaps what the world needs at this time considering the senseless bombings in Assyria and where the daily worries in the third world is whether there is sufficient food for the day whilst in the western world the worry is whether we have sufficient WiFi access that day!


Turning to the world of accountancy I have written articles on the new ‘Making Tax Digital Regime’, which is due to hit us in the next couple of years, the end of the paper Tax Return with everything going digital.  What is evident is that we have to think differently in terms of accounting records and the filing of Returns.  From April 2018 sole traders, partnerships and property lettings will be expected to file quarterly Returns digitally with HM Revenue & Customs.   The first being due for the quarter to 30 June 2018.

Obviously there is software out there like Xero, Quick Books etc. and obviously there will be Apps becoming available too on the market, but using paper bags to put your records is not the answer. I will be writing to all my sole traders, partnerships and property letting clients in the New Year regarding these changes.  There will be a need to move to appropriate software or eventually allow us to write up your records on a regular basis but not at the end of the year!!


Companies will follow of course in due course, perhaps a year or so later.


As for the 2015/16 Tax Return if you have not supplied your Tax Return information to us at this late date, then time is beginning to run out, so please get together the various information so that the firm can complete your Tax Return to 5 April 2016 and do let us have this in the coming weeks.
  Supplying these papers and books as late as January can only mean extra increased charges which I am sure you want to avoid. 


Without doubt the autumn budget will bring some radical changes in the world of taxation with a new Prime Minister and a new Chancellor.


We will be facing up to in April 2017 changes to tax relief on property lettings.  If you want some help and advice in this area please do not hesitate to contact me, particularly if you want to consider moving matters under the umbrella of a Limited Company where interest relief will still be fully available.


Otherwise, once we get into next year those of you who receive dividends from your Limited Companies as a part of your remuneration package  you are having to face up to the new dividend tax which I have mentioned in previous articles.

Please do not hesitate to contact us if you have any particular worries about tax bills and related matters.

 
John Caladine