As established accountants in Sheffield, Peach Wilkinson have to keep on top of various accountancy matters which have or will be occurring throughout the year ahead. For those who may sometimes wonder what exactly it is that accountants have to be focusing on, here are the top priorities for accountants in 2018:
A reduction in the threshold for tax free income from dividends
The threshold for paying tax for tax free dividends has dropped dramatically. Whilst in the past this threshold for 0% tax was £5000, from 2018 onward it will be just £2000.
The tax return deadline for self-assessment clients
For those who pay their tax via self assessment, they will likely have their first big deadline of the year on January 31st. This is the day when online self-assessments are due. So, if the paper tax return had not yet been submitted for the October 2017 deadline, you will need to ensure that all paperwork is ready for January 31st.
Getting ready for the government’s new Making Tax Digital initiative
Making Tax Digital is a reform of the tax assessment system which will be rolled out by the government from April 2019. However, to avoid a frenzied rush in a year’s time, it is definitely a good idea to use 2018 to ensure that your current accountancy processes are compliant with MTD. If there is anything that needs to be changed in advance of the roll out of Making Tax Digital, 2018 will be a good time to do a dry run and to ensure that you have got everything running smoothly for April 2019.
Landlords will be hit with lower tax relief rates
In the past, landlords have been able to get tax relief for up to 75% of their finance costs. In 2018, however, this drops to just 50%. As a result, it is worthwhile informing your clients of this right now if they are landlords, and preparing them for the higher taxes that they will likely be paying in the coming tax year.
Get ready for 2018
By focusing on the four priorities listed above, we can be more than ready for the challenges of the year ahead. And, what is just as important, our customers will be well informed about the changing state of their finances as well for 2018 and beyond.