1/17/2023 1 Comment Ontime reporting robert half![]() More than half of those affected do not claim relief they are entitled to and could pay tax twice. These rules can be confusing to understand, particularly for new businesses, leading to thousands of errors and mistakes in tax returns. In those cases, taxpayers pay tax for their first tax year on the period to the end of the tax year, and then in subsequent years on the basis of their full accounting year, meaning profits are taxed twice and complex rules apply to relieve the double taxation when the business finishes. More complex rules apply when a business starts and draws up its accounts to a date different to the end of the tax year. Under the current system, tax returns filed by the self-employed, sole traders and partnerships are based on a business’s set of accounts ending in the tax year (5 April). Simplifying them will allow self-employed people to spend less time doing tax admin and more time growing their business and creating jobs. These complex rules lead to thousands of errors and mistakes in self-employed tax returns every year. ![]() Financial Secretary to the Treasury Jesse Norman said: It should help them spend less time filing their taxes - aligning the way self-employed profits are taxed with other forms of income, such as property and investment income. The changes, which will come into force by 2023 and have been drawn-up alongside representatives of small businesses, will mean businesses will be taxed on profits arising in a tax year, rather than profits of accounts ending in the tax year. Research published on Making Tax Digital highlights benefits for VAT-registered businesses New measures to clamp down on promoters of tax avoidance, including supporting taxpayers to steer clear and HMRC shut-down powers ![]() ![]() Self-employed and small businesses are set to benefit from simpler tax reporting rule ![]()
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4/18/2023 03:30:53 am
If you’re having issues submitting your tax return via MTD, it’s a good idea to contact HMRC – here’s their contact page for VAT queries. Explain that there’s an issue between your HMRC account and your filing software, and ask if HMRC can look into your account and let you know what’s causing the problem. If you believe you’re already registered for MTD, don’t forget to mention that in your contact.
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