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Question A client is compulsorily VAT registered and is using the cash accounting scheme. Their current system is not particularly sophisticated. They only use a manual cashbook. They wish to ensure that they are MTD compliant, but want to keep things as simple as possible. Can they continue to use their ‘old style’ paper-based cashbook but now do this though a spreadsheet based cashbook and submit via bridging software? Answer Generally, the answer will be yes. However, in

HMRC have finally confirmed when an exemption from Making Tax Digital for VAT (MTDfV) is given automatically and when you when you will need to apply. Automatic exemption HMRC expect that most businesses will be able to meet their legal obligations under Making Tax Digital. However, they accept that for a small number of businesses that it may not be possible. If your taxable turnover for the previous year is less than the registration limit of £85,000 then you are automatica

Julie Green, a VAT expert for CronerTaxwise, who we used for tax consultancy and HMRC Fee Protection Scheme, provides some very honest and practical details relating to record keeping under the new Making Tax Digital for VAT (MTD4VAT) process. Under MTD4VAT businesses are required to record individual supplies made and received i.e. to record individual sales and their individual purchases/expenses. Recording petty cash transactions Question Petty Cash transactions: Do we hav

HMRC’s VAT Notice on Making Tax Digital 700/22, sets out the digital record-keeping requirements in section 4.3. The HMRC recordkeeping requirements for Making Tax Digital for VAT (MTD4VAT) are as follows: For supplies made (sales): The time of supply (the VAT tax point) The value of the supply (the net value excluding VAT) The rate of VAT charged For supplies received (purchases): The time of supply The value of the supply including any VAT that is not claimable by the busin

Introduction H M Revenue & Customs (HMRC) says that Making Tax Digital (MTD) is a key part of the government’s plans to make it easier for individuals and businesses to get their tax right and keep on top of their affairs. HMRC’s ambition is to become one of the most digitally advanced tax administrations in the world. HMRC argue that MTD will transform tax administration so that it is more effective, more efficient and easier for taxpayers to get their tax right through the

Introduction Chancellor Philip Hammond’s 2018 Budget speech on 29 October was noted as the 'trick or treat' Budget with its proximity to 31 October. October is a strange month for a Budget. We are so near Bonfire night and Christmas decorations are in the shops. The Budget speech lasted 73min, his longest Budget speech to date, and had a few bad jokes regarding business rate on public toilets. The Chancellor said that austerity is ‘finally coming to an end’ and that wages gr