Autumn Budget 2018

The Chancellor, Philip Hammond, delivered the Autumn Budget yesterday, Monday 29 October 2018.

In his speech, Hammond declared that "austerity is coming to an end" and reinforced his declaration by bringing forward his promise to increase both the tax-free personal allowance and the higher rate tax threshold by 12 months. He also suggested that Britain would enjoy a "double deal dividend" should we manage to strike a Brexit deal, but hinted towards a second full Budget announcement in the Spring if the deal fails to materialise.

To help you understand how these updates will affect you, we have produced a summary of the main changes broken down into the areas that are most likely to be of interest to you, including personal, business, employment and capital taxes.

To help you decipher what was said, we have also included comments on the more important changes. As always, the devil will be in the detail.

We hope you find this budget summary useful but if you have any further queries, please do not hesitate to contact us for advice.

Making Tax Digital

April 2019 sees the start of HMRC's Making Tax Digital initiative for VAT (MTDfV) for most businesses. The new rules will impact VAT registered businesses with taxable turnover above the £85,000 registration threshold, taking effect for VAT return periods starting on or after 1 April 2019.

There have been several recent developments, including the publication of a new VAT Notice covering MTDfV requirements, and the announcement of deferrals for some 'more complex' businesses. Please see attached a pdf copy of our recent newsletter to help guide you through the jargon and answer many of your questions in a concise manner.

Making Tax Digital will affect how we currently service your bookkeeping, and we'd like to talk through your options for how we can get you ready ahead of April 2019.

If you are currently using Excel or manual records to record your financial activity and VAT liability you will need to find a suitable, MTD compliant, alternative and we recommend Sage accounting cloud software to manage your accounts and keep digital records of transactions.

Sage Business Cloud Accounting is simple yet powerful cloud accounting that's packed with innovative features to help your business succeed:
• Perfect for small businesses
• Ready for Making Tax Digital
• All you need to manage finances and cash flow
• Secure in the cloud
• Easy-to-use mobile app for receipts, expenses and invoices
• Range of apps to help you get paid faster, reduce admin and be more productive

We are hosting a SAGE demo and training day at our Halstead Office on Friday 14 December between 2pm-5pm. If you wish to attend please contact your Client Relationship Manager to book a place as spaces are limited. Non clients are also very welcome to attend, please send an email to express your interest.