Presentation slides for CIMA CPD session on HMRC latest requirements for personal tax returns (Feb 2018).
Key takeaways
- Personal tax returns (self-assessment) requirement updates under the new work trend
- IR35 change and gig economy
- When it is NOT necessary to register self assesssment
- Common practical issues on self-assessment, e.g. correcting mistakes, HMRC enquiries and penalties
- Changes in buy to let properties and tax impact
- Making tax digital: the timeline and what's next
3. *
*Level of self-employment in the UK
increased from 3.8 million in 2008 to
4.6 million in 2015
*Part time self-employment grew by 88%
between 2001 to 2015
(Data from Office of National Statistics)
6. *
*Zero-hour contract workers
*Self-employed contractors (e.g. Uber, sub-
contractors, locum GP, digital healthcare online
platform, etc)
*IR35 (proposed to expand to the private sector)
*Proposal to have a different classification of
workers
10. *
*Trading/property income of less than
£1,000
*Rent out a spare room (less than £7,500)
*Claiming expenses of less than £2,500
*Dividend income of less than £10,000
*Untaxed income of less than £2,500
(contact HMRC to adjust tax code)
11. *
*An individual is a director of a
dormant company
*An employee’s taxable income
exceeds £100k without realizing it
*Becoming self-employed, but no
money coming in yet
12. *
*ISA allowance £20,000 in 17-18
*Saving for retirement annual
allowance £40,000 (£10,000 for
those with income over £150k)
*Dividend allowance £5,000 for
17-18 (£2,000 from 18-19)
14. *
What to do
*if you’ve made a mistake in tax returns
*when not enough money to pay tax bill by
the deadline
*If you receive HMRC enquiry
*If penalty for inaccuracy & how to
minimize
16. *
*Send amended return (16-17 can be
amended electronically by 31st Jan
19)
*Amend it within 4 tax years
*Penalties can be mitigated if making
an unprompted report
17. *
*HMRC no longer accepts credit card
payment from 13th January 2018
*If insufficient funds, call HMRC
helpline to arrange payment plan
*Collecting outstanding taxes via tax
code
18. *
*Be aware of tax avoidance
schemes (too good to be true)
*Record keeping
*Reasonable care
*Telling, Helping and Giving
20. *
*Removal of wear and tear
*Restrictions on loan interest relief
*Basic rate taxpayers (assess full situations)
*Potential tax increase by 31st Jan 19
*Potential loss of certain relief (e.g. child
benefit, transferable personal allowance)
22. *
*April 2019 – businesses that
reach VAT threshold
*2020: MTD expected to affect
small businesses under VAT
threshold
*Digital record keeping
*Brexit impact?
23. *
*New work trends and SA
requirement
*Tax breaks/reliefs
*Common issues in tax returns:
mistakes, payments, enquiries,
penalties
*Digital tax age
