Sanjay Parmar Archives - Grunberg & Co

Around 100,000 businesses “yet to register” for Making Tax Digital for VAT

admin — Mon, 24 May 2021 15:46:07 +0000

Around 100,000 VAT-registered businesses have yet to register for Making Tax Digital for VAT, the latest figures have revealed.
The research comes after HM Revenue & Customs (HMRC) wrote to businesses reminding them of their obligations.
According to the compliance letter, the tax authority will begin ramping up enforcement activity in the current tax year – with multiple options at its disposal.
This includes a penalty of up to £400 for filing a VAT return other than by using MTD software, as well as closing the online VAT return portal to those that are required to sign up to MTD for VAT – effectively leaving businesses with no other option than to complete their VAT return using the new service.
The compliance letter warns that up to 800 traders will be affected by the latter measure, meaning they will be able to file their March to May 2021 VAT return by 7 July 2021 using the online VAT return, but will not be able to file subsequent returns in this way.
Commenting on the report, the Institute of Chartered Accountants in England and Wales (ICAEW) said almost 90 per cent of traders have now signed up to MTD for VAT, but businesses who have not should take urgent action.
“HMRC is taking a tougher approach to traders that should have signed up to MTD for VAT including a trial of closing their access to online VAT returns,” said the regulator.
“All these businesses have received more than one letter from HMRC reminding them of their MTD obligations.”
Under Making Tax Digital legislation, any business with a taxable turnover of more than £85,000 (the current VAT threshold) must sign up for MTD for VAT and file returns electronically using MTD-compliant software.
For help and advice with related matters, please get in touch with our expert Making Tax Digital team today.

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HMRC clamp down on non-VAT-registered traders that trade above the VAT threshold

admin — Thu, 01 Apr 2021 17:23:32 +0000

HM Revenue and Customs revealed they are writing to non-VAT-registered traders they think are trading above the VAT threshold.
Business responsibilities
Business must register for VAT once their historic taxable turnover exceeds £85,000 for the previous year, or if it expects its taxable turnover to exceed the threshold in the next 30 days.
Sales that are exempt from this threshold include land and insurance. However, reduced-rate and zero-rated sales are not exempt – such as repairs.
Historic test
If your business exceeds the threshold, you must notify HMRC within 30 days of the month’s end and register from the first day of the second month.
Future test
Businesses must notify HMRC by the end of the 30 days after the future expectation arose and becomes registered from the start of the 30th day.
If you miss the VAT registration deadline, HMRC may charge you a penalty based on a percentage of the net VAT payable between the date of the registration date and the date you registered. This penalty ranges from five to 15 per cent, depending on the number of days it is late.
Additionally, if your business receives a letter, you should review your turnover figures to ensure you did not surpass the £85,000 threshold. It may be best to review as far back as possible to ensure you have not missed a reporting requirement.
For more information or advice on related matters, please contact us today.

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Independent review sets out new start-up and scale-up support for British fintech

admin — Tue, 02 Mar 2021 15:33:11 +0000

The UK now accounts for 10 per cent of the global financial technology (fintech) market, a major study has revealed.

The finding forms part of the Government’s new independent review highlighting how the sector can be supported to grow even stronger.
According to the latest statistics, the UK fintech sector now accounts for over 10 per cent of the entire international market and is worth an estimated £11 billion to the economy annually.
Investment into UK fintech, meanwhile, reached $4.1 billion (£2.96 billion) in 2020 – more than the “next four European countries combined”.
But the review, led by Ron Kalifa, chairman of Network International and former CEO of Worldpay, suggests more can be done to boost the British fintech sector.
Finding that the UK is at a “pivotal moment”, the research sets out a new strategy aiming to “put the UK at the top of the global fintech league table” by creating more jobs, improving access to international trade, and supporting research and development.
The measures include:

introducing a new ‘fintech scale up’ visa route for specialists from around the world
implementing a ‘scale box’ to provide regulatory support for growing firms
improving UK listings rules with free float reduction and dual class shares
creating a £1 billion-pound fintech ‘growth fund’ to help firms grow independently; and
establishing a private sector-led Centre for Finance, Innovation and Technology to support national coordination and growth in fintech across the UK.

Commenting on the review, Ron Kalifa OBE said: “Britain has a proud record of starting-up and scaling-up some of the best known fintech products, but we cannot rest on our laurels. The next powerhouses will not be created by accident.
“We must continue to nurture our start-up culture, but crucially we must also give our high growth firms the support to become global giants.”
Rishi Sunak, Chancellor of the Exchequer, added: “Fintech is one of the UK’s great success stories and will help us seize new opportunities around the world.
“We must now build on our global reputation for fostering innovative start-ups and ensure firms can access the talent, finance and support they need to scale up here in the UK.”
To access the independent review, please click here.
For help and advice with related matters, please get in touch with our expert team today.

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