Quarterly Digital Tax Returns for turnover less than 83k delayed?

Quarterly Digital Tax Returns for turnover less than 83k delayed?

14:45 PM, 13th March 2017, About 7 years ago 7

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It is rather confusing as Chancellor stated on 8th Of March during his Budget speech that, Landlords and Small Businesses with a turnover under VAT threshold (less than 83k) will have another year (April 2019) before they will be required to submit quarterly Tax Return. Immediately after, HMRC published their guidelines stating that “Cash Basis” businesses and landlords less than £150k will have another extra year (April 2019)before they are required to submit their Tax Return or quarterly basis.digital tax return

As you can see above, both Chancellor and HMRC have provided conflicting information. If we were to go by Chancellor’s speech then as I understand that, if husband and wife has joint Gross Rental Income of above £166000 (£83k each) then we will be required to submit quarterly return from April 2018. (first return from July 2018).

Or is it joint income of £83K? How do they establish what your turnover might be in advance of before the year is up? Do they base their calculation on previous Tax Year?

On other hand, HMRC States, based on Cash Basis, if you are Landlord or Small Business making more than £150k then you will be required to submit your Return from April 2019??

I am rather confused, any clarification would be much appreciated.

Kind regards
Simon


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Comments

JohnCaversham

9:04 AM, 14th March 2017, About 7 years ago

HMRC and Hammond both have axxxs and elbows but have no idea which are which....
Not helpful I know but like all HMRC-landlord related topics its an absolute shambles...

Kathy Evans

11:16 AM, 14th March 2017, About 7 years ago

It seems, according to accountants on AccountingWeb that no one really knows - and they also don't know exactly what is going to be required, how it needs to be submitted and who has to do it when - exactly. The pilot hasn't even been completed yet, so the other thing that no one knows is if it the system will actually work. Since RTI still has problems, I doubt it will. We are all telepathic, of course, or make exactly the same year on year, which is how we know what our turnover will be before it happens.Or perhaps it's like VAT and you have to register when your turnover reaches the limit - who knows?

Simon Hall

14:05 PM, 14th March 2017, About 7 years ago

Reply to the comment left by "Kathy Evans" at "14/03/2017 - 11:16":

Everyone who I speak to including accountants they are telling me "Our guess is as good as yours".

Mike W

23:30 PM, 14th March 2017, About 7 years ago

The problem is that it is not going away. Unfortunately this will go the way of all large database IT projects. The IT consultants will earn loadsamoney. The business will do its best. The poor business targeted by HMRC on a routine check will not have done it properly and HMRC will have its target. A sensible person would shelve it.
For my part I will carefully allocate the bag of screws bought from B&Q to each of the 10 properties etc etc.I haven't worked out how the mortgage interest will be handled. Will the building society calculate my interest on the repayment mortgage each quarter in time for submission? I'm sure I can think of a few other things. It is obvious that the government is trying in various ways to eliminate private landlords. This is death by reporting. I thought we will need to be a dynamic economy set to face the new world post brexit ....Where are all the tenants going to go?

Simon Hall

10:45 AM, 16th March 2017, About 7 years ago

Reply to the comment left by "John Maynard" at "14/03/2017 - 09:04":

John, Are you Gerardo's client by the way? From Reading.

JohnCaversham

13:28 PM, 16th March 2017, About 7 years ago

Reply to the comment left by "Simon Hall" at "16/03/2017 - 10:45":

Aye, tis I indeed! Did we meet one in Caversham couple of years back?

Simon Hall

17:24 PM, 16th March 2017, About 7 years ago

Reply to the comment left by "John Maynard" at "16/03/2017 - 13:28":

John, I do not think we did but ping me an email with your contact details so perhaps we can meet up in Reading next time I am up there. Gerardo often mentions you so I thought it might be you. I am also one of the largest Landlords he got on his books.

hallsimon509@gmail.com.

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