New quarterly tax/accounting requirements

[Grampa]

Now I am the first to admit knowing very little about tax and accounting but I have heard there is a proposal for small businesses which will include  landlords with 2 or more properties to submit their accounts 4 times a year in the same manner that a business that is vat registered have to submit quarterly returns.

Has anyone else heard this?

 

[Richlist]

As I understand it landlords and small businesses with a turnover under the vat threshold (less than 83k) will be required to submit quarterly tax returns from April 2018 i.e. first return July 2018.

There is some confusion about wether the 83k is single person or joint owners gross income and wether that will be 166k for joint owners. Apparently the HMRC pilot hasn't been completed yet so nobody really knows.

I realise that is about as usefull as a chocolate teapot but if anyone has better info I'd also be interested to know what's happening.

[Grampa]

But if it becomes a requirement surely there has to be a knock on effect for the extra cost incurred by landlords which will filter down to higher rents.

[Melboy]

I thought I read last week that the plan had been cancelled as HMRC had stated it would be too much additional admin. work for them to cope with.

[Richlist]

My understanding is that the plan is/ was for 'quarterly reporting'.....not a full tax return x4 times a year. Obviously any extra costs incurred would be tax deductible. I suspect that if it eventually does go ahead there will be a simplified template produced by HMRC/ private accountancy firms to make the submission relatively simple.......and if there isn't, I see a business opportunity for myself. I'm not worried about it at all. I don't see it as a big on cost for anyone more time and effort than expense. But, it will add to the now long list of additional stuff.....all that introduced in Oct 15, loss of mortgage interest relief, loss of w & t allowance etc etc. Not to mention the impending arrival of increased lettings agents fees.

I also remember reading something about it being dropped for landlords but can't remember where I saw it. I'll have a look online to see if I can find it.

[Richlist]

I can't find anything online regarding cancellation of this proposal.

[Carryon Regardless]

Can anyone explain the logic of it anyway?

I can't see what HMRC gain from this, if were to be only reporting. Being able to collect our profits quarterly would have a cash flow advantage for them.

 

BTW RL, you promote the advantage of items being tax deductible, but that still means many, if not the majority, are still paying for 80% of the expence.

[Richlist]

I suspect, as others do, that this introduction will likely lead to us all paying our taxes sooner/ more regularly at some time in the future.  Obviously they can't do that until the system in in place and seen to be operating ok. With the dual problems of national debt and the deficit anything that goes toward balancing the books is good news.

Now for the controversial bit :-

I just hope the Tory party ensure its aimed at the poorer people in society.....we can't have the wealthy supporting them all the time. It's only fair they pay their way. As its unlikely Labour are going to win the next few General Elections, the Tories have a free hand.?

I find its always worth reminding people that they can claim their legitimate business expenses. I'm convinced that many landlords do not put enough effort into claiming all they can on their tax returns. 

I'd like to personally thank those landlords that don't bother claiming all they can......the county needs people like you. People who selflessly contribute more in tax than they should and helping to reduce the deficit for the rest of us. So, from me here is a big thank you..... THANKS.

[kanrent]

On 3/27/2017 at 0:02 AM, Richlist said:

I suspect, as others do, that this introduction will likely lead to us all paying our taxes sooner/ more regularly at some time in the future.  Obviously they can't do that until the system in in place and seen to be operating ok. With the dual problems of national debt and the deficit anything that goes toward balancing the books is good news.

Now for the controversial bit :-

I just hope the Tory party ensure its aimed at the poorer people in society.....we can't have the wealthy supporting them all the time. It's only fair they pay their way. As its unlikely Labour are going to win the next few General Elections, the Tories have a free hand.?

I find its always worth reminding people that they can claim their legitimate business expenses. I'm convinced that many landlords do not put enough effort into claiming all they can on their tax returns. 

I'd like to personally thank those landlords that don't bother claiming all they can......the county needs people like you. People who selflessly contribute more in tax than they should and helping to reduce the deficit for the rest of us. So, from me here is a big thank you..... THANKS.

The deficit will continue and is continuing to grow despite the amount of tax collected