We need your help to improve the Forum - users needed for research » NEW - Participate in user research - Help us improve the Forum » Go to message
Hi,

Thank you for taking the time to leave us your feedback.

We aim to provide helpful responses from HMRC subject matter experts to all of the Forum posts but also suggest further reading available on GOV.UK for more detailed guidance.

We set this announcement up to ask for volunteers to take part in user research as HMRC are redesigning the HMRC Online Customer Forum. We welcome contribution from all of our customers but I am going to close this post off for any further comments.

If you want to leave feedback regarding the service you receive on this Forum then you can do this on the post set up for feedback via the link below.

Tell us what you think of the Forum

If you want to take part in the user research then you can find the details for this on the original post above.

Making Tax Digital » Siging up for MTD for a nonUK resident company » Go to message
Hi,

I have reviewed my previous response and updated it from the feedback you have given.

Thank you for your contribution.
Keeping your tax records » Record Keeping » Go to message
Hi Charlie,

Thanks for your question.

You can use either a compatible software package that allows you to keep records and submit VAT Returns or bridging software to connect non-compatible software (like spreadsheets) to HMRC systems.

There is a list of Making Tax Digital compatible products that are available for businesses and accountants to use now on GOV.UK and you are able to filter these by the basic features they offer. For each product there is a link to the specific provider’s webpage where the user can find out more information.

We have already improved this page to allow businesses to search and filter for particular products and are in the process of making further enhancements. There are already a number of free products available and for those who want to use spreadsheets to keep their records, free and inexpensive bridging products are available.

Find software that's compatible with Making Tax Digital for VAT



Making Tax Digital » MTD VAT free software » Go to message
Hi,

Thanks for your contribution.

Just to make our customers aware, and with reference to our terms and conditions of the forum, that whilst contributors are able to include links to other sources they may find useful, HMRC does not endorse any content or links to 3rd party sites.

All our guidance can be found on GOV.UK.
We need your help to improve the Forum - users needed for research » NEW - Participate in user research - Help us improve the Forum » Go to message
Hi,

Thanks so much for your feedback.

As the post above mentions, we want to understand what our customers want from the Forum, what features and aspects of the Forum that you like and how it could be improved.

We appreciate you taking the time to give us your thoughts and we will take your suggestions forward.

Self Assessment » Cash basis and freelancing website fees » Go to message
Hi,

In the first response we have already confirmed that the information that you received from the third party was correct and that you need to record the cost the client pays and your fee to the website company separately.

Recording the information this way can be done using either the cash basis or the traditional accounting method.

There was not any reference to the accounting method you had to use in the initial response, using the cash basis you should still be doing the correct breakdown and you can carry on doing the cash basis if this is the system you prefer.
Keeping your tax records » Record Keeping » Go to message
This is in response to the question above from Anonymous posted 10/06/19 11:23:20

Hi,

Thanks for your question.

The format you choose to keep your records in is entirely up to you. HMRC require you to retain your records in a way which is simple and accessible for yourself, but also which can be easily reproduced if HMRC ask to see any of it.

Your paper receipts do not need to be 'registered' anywhere, as long as you can lay your hands on any one if required. Keeping invoices on digital form is acceptable, again as long as they can be reproduced when required.

When you are preparing your own books it is ok to have 'categories' and totals under each one, you do not require to have every separate item listed as neither is this required on your Self Assessment return.
Self Assessment » Cash basis and freelancing website fees » Go to message
Hi,

Thanks for your further question.

It is up to the individual on which accounting method to use.

If using cash basis the income and expenses are recorded when you receive the money in and pay the money out.

Under the traditional accounting method the income and expenses are recorded in the accounting period they relate to.

Guidance is available here:

HS222 How to calculate your taxable profits (2019)
Self Assessment » Trading allowance » Go to message
Hi,

Thanks for your question.

The trading income allowance of £1000 can be used against casual earnings so if your income is below this it does not need to be declared.

Guidance is available here:

Tax-free allowances on property and trading income
VAT » OUT of Scope & VAT Registration » Go to message
Hi Kevin,

We are unable to answer this with the information given.

Please contact the VAT Helpline so that we can get all the details required to give you an accurate answer.

VAT: general enquiries
Making Tax Digital » Multiple IDs » Go to message
Hi there,

Thanks for your question.

If you do not have your Government Gateway user ID, there should be a "forgotten user ID" option at the sign in page which in most cases will allow you to retrieve it.

If not, or if you have any issues, then you can contact us either via webchat or by calling the Online Services Helpdesk and we can reissue it to you.

Technical support with HMRC online services

Lines open 8am - 8pm Monday to Friday, 8am - 4pm on Saturday and 9am - 5pm on Sunday.
Self Assessment » Cash basis and freelancing website fees » Go to message
Hi,

A good question as there is a lot of misconception with scenarios such as this.

Although overall the effect of your tax is not changed, as your actual fee for the work is £100 this is the amount which should be included as income.

The £10 being paid to the website is one of your expenses that you need to pay in order to do your 'trade'. So, the £10 should then be classed as an expense when completing your return.

The difference it does make is that if you require to provide your total income for a reason, for example a mortgage application, then it is say the £100. Where you need to provide your net income then it is £90.
Making Tax Digital » Submission figure change » Go to message
Hi,

Thanks for your question.

Box 5 is the net amount of VAT to be paid to HM Revenue & Customs or reclaimed by you and will always be a positive figure.

Please contact the VAT Online Helpdesk so that we can access your records and check the figures we have received.

You can find their contact details at the following page of our website:

Get help using VAT online services
PAYE and payroll for employers » Former Employee Wants to Claim SMP » Go to message
Hi,

Thanks for your question.

The employee should contact their previous employer to discuss eligibility for SMP. The previous employer could be eligible to pay SMP if the employee's earnings/other criteria are met.

The employee must not have started/done any work for an employer with whom they wouldn't qualify for SMP.

Maternity, Adoption and paternity calculator for employers
Making Tax Digital » Monthly VAT Returns » Go to message
Hi,

Thanks for your question.

No, this is not correct. The rules on Making Tax Digital will not affect how often businesses submit VAT Returns.

I hope this helps.