01722 420920
Let the experts help choose your industry

Just over half of businesses are prepared for Making Tax Digital

A new study into preparations for Making Tax Digital amongst businesses has found that only 57 per cent of firms are ready to comply with the new regime by 1 April 2019.

Despite the various delays and changes to the Government’s new digital tax system, businesses have had several years to prepare themselves for this landmark change in taxation.

Initially, the new system will only apply to the recording and reporting of VAT on a quarterly basis for those VAT-registered businesses over the VAT threshold (£85,000).

However, the Government intends to extend the system out to other areas of taxation and to other businesses from April 2020 at the earliest.

Businesses will be offered a “soft landing” period of a year during which they won’t be fined if they don’t comply with the reporting requirements in time.

HM Revenue & Customs has also recently confirmed that during this period “where a digital link has not been established between software programs, HMRC will accept the use of cut and paste as being a digital link for these VAT periods.”

Despite its recent communications HMRC has been heavily criticised for not doing enough to make businesses aware of the new regime, with it only launching its social media and email campaign to small businesses in Autumn last year.

Link: Overview of Making Tax Digital

Latest News

Businesses get to grips with new employment costs

Employers across the UK are starting April with a sudden increase in employment costs following a rise in workplace pension contributions and minimum wage costs.

The sharp increase in expenditure on staff couldn’t come at a worse time for business who are experiencing growing uncertainty over the UK and wider global economy.

Minimum contributions for workplace pensions have risen to eight per cent this month, with a minimum contribution of three per cent from employers.

The five per cent gap between minimum employer contributions and the minimum overall contributions must be made up by contributions from the employee. However, employers can increase their contribution to reduce the impact on employees, should they wish.

The minimum contribution only applies to employees earning £10,000 a year or more and percentage contributions are calculated using only the employee’s earnings between £6,136 and £50,000. This is an increase from 2018’s income threshold of £6,032 to £46,350.

Meanwhile, many employers will also see wage costs increase with the introduction of new statutory wage levels. As of 6 April 2019, employers must pay the following hourly rates for staff on the minimum or national living wage:

  • 25 and over (national living wage) – £8.21
  • 21 to 24 – £7.70
  • 18 to 20 – £6.15
  • Under 18 – £4.35
  • Apprentice – £3.90

In some cases, the increase in the statutory minimum wage could push up the additional amount that employers are required to pay towards workplace pensions, meaning that employers with a large number of minimum wage workers, will be hit harder.

Link: National Minimum Wage and National Living Wage rates & Workplace pensions

||
"Fawcetts take a very professional approach via every point of contact. The management team would not hesitate to recommend the services of the Fawcetts team to any business regardless of size and industry"
G Blamire - Salisbury
"Through personal experience i have experienced that the size and scale of a business is immaterial to Fawcetts - the commitment is always the same and they really make you feel as though you and your business matters."
Lou Whiting - Salisbury
"James has always gone beyond the traditional approach of just accounting for what we have already done and continues to help us develop our company in testing times."
Steve Rawlins - Gosport
"Fawcetts provide excellent support tailored to our business needs. They are always available for advice and have a reassuring and professional approach that makes you feel as though you are their only client."
Brian Keane - Stockbridge
"I have been very impressed by the service and support I have received and I'm looking forward to working with Fawcetts to grow Travel Waves Marketing to the leading Marketing Services Company here in the South West."
Claire Riches - New Forest
"We have been very impressed with the excellent high level of professional service and care that Custom Property Care Ltd have received from Fawcetts Accountants. They have dealt with all our needs efficiently and to a very high standard"
Kelly B - Salisbury
"A breath of fresh air' - Straight forward, understandable, approachable, informative, good value accounting. Xero accounting is so quick & simple to use!! Thank you. I enjoy my side of the deal now!"
Sue S. Devizes
"They are a modern and forward thinking company who love working with small businesses and start-ups; helping them grow online by offering relevant services along with pro-active advice."
Jack McConnell - Bath
"James has been a huge help to me as I look to incorporate Creativemint, talking me through all the options, offering advice and helping me to feel relaxed and happy about the transition and services I will need."
Miles Murray - Salisbury
"Nick has been a great help year on year providing my business with efficient services and ever useful and practical advice."
Mrs Zanne St John Marchmont
"We have found Nick to have an exceptional ability to grasp the issues we have as a law firm operating internationally. He helped us to manage our set-up and has guided us as we grow, and is considered to be one of our most trusted advisors."
Andy Leppard - Somerset
"We would have no hesitation in recommending Fawcett's for any accounting requirements and we look forward to many more years working together with them."
Jeremy Chalke - Salisbury
"I chose Fawcetts due to their excellent reputation. Whilst there are a number miles between my work base and my accountant; distance has never been as issue as they are always very responsive."
Julian Bennett - Bournemouth