January deadline marks end of annual returns for contractors says specialist
As the 31 January deadline looms for year-end online tax returns, a leading specialist says contractors will now need to focus on preparing for quarterly reporting to HMRC.
Nova Contracting Director Marcus Green said: “Potentially the 2017 January online tax return deadline will be the last, as next year most personal service companies and self-employed individuals will be required to report quarterly to HMRC under the new Making Tax Digital rules.
“There are exclusions for businesses with annual income below £10,000 and HMRC has said it is also considering extending the deadline for firms with higher turnover, but for some five million small companies and ten million individuals, 2018 will see the annual tax return replaced by quarterly digital tax updates.
“We’ve been working closely with agencies and contractors since the Making Tax Digital changes were first announced, to help them ensure their processes are compliant and that reports are filed in good time.
“Although it is a further administrative burden on a sector which has had more than its fair share of legislative changes to contend with, done properly the online updates can create valuable information dashboards, helping both employment providers and contract workers keep track of earnings, pensions, savings and liabilities.
“Obviously the Making Tax Digital proposals are still subject to consultation, so we’ll continue to monitor that and look out for any announcements in the Budget on March 8, to ensure our clients are prepared for any further developments.”