Alan Sallows Associates

At Sallows Associates, we are a team of experienced chartered accountants and tax advisors with over 25 years of experience in providing expert advice and guidance to individuals and businesses throughout the UK. Our team, led by Lewes Accountant Fred Hoad CTA, MAAT, has a comprehensive understanding of all aspects of taxation, from day-to-day issues to complex tax schemes and wealth planning for high net worth individuals. We have extensive experience of both domestic and international tax, as well as dealing with HM Revenue & Customs and helping clients with enquiries and investigations.

Our Services

Our services include:

• Chartered Tax Adviser
• Tax Accountant
• Small Business Accounting
• Tax Planning
• HMRC MTD (Making Tax Digital) support

Making Tax Digital

As you may be aware, the concept of Making Tax Digital (MTD) was announced in the Chancellor's Autumn Statement of 2015. It is part of a process to integrate various taxpayer processes more in-line with HMRC's systems, making use of the digital world we live in. As your partner in tax and accountancy, we are committed to helping you understand what MTD means for you and what changes you need to make to your existing processes to ensure compliance with your digital reporting requirements.

Digital Tax Returns

Under the Government's MTD strategy, most businesses will be required to keep track of their tax affairs digitally and to update HMRC at least quarterly. This means that you will need to keep digital tax records and record and categorize your receipts and expenses. Apps and software will be available for these purposes. It will be essential that you update your records on an ongoing basis so that you are able to provide the information to HMRC on time.

Exemptions and Cash Basis

If you are an unincorporated business or landlord with an annual turnover below 10,000, you will be exempt from the digital tax obligations. Additionally, if your turnover is below the VAT registration threshold (currently 83,000), you can opt to prepare your accounts using the cash basis (money in and out) rather than using the more common accruals basis. The opportunity to use the cash basis is to be extended to larger unincorporated businesses as part of the proposals for moving to a digital tax world.

Pay as You Go

Once MTD is up and running, taxpayers will be able to make voluntary payments on account of their tax liabilities throughout the year. This may help you in managing your cash flow and ensuring that you are able to meet your tax liabilities on time.

Getting Ready for MTD

Although you will not need to start providing HMRC with digital updates until April 2018, it is not too early to start planning for the transition to a digital tax world. We recommend discussing with us sooner rather than later what MTD will mean for you and what changes you need to make to your existing processes to ensure that you will be able to comply with your digital reporting requirements.

Conclusion

As your partner in tax and accountancy, we are committed to helping you navigate the changing landscape of taxation in the UK. Our expertise and guidance will help you minimize your tax liabilities and ensure compliance with the new digital reporting requirements. We will continue to keep you updated on the developments surrounding MTD and provide expert advice and guidance to help you avoid any pitfalls and make the most of the opportunities presented by this new system.