Among other tax measures, April 2020 will bring changes to the off-payroll working rules for private sector businesses, capital gains tax and the Making Tax Digital links for the exchange of data between different software programs.
Capital gains tax
April 2020 will see the implementation of new capital gains tax (CGT) rules, including the introduction of new stand-alone CGT returns for disposals of UK residential property. From this date, the returns will have to be paid within 30 days of the completion date of the disposal.
There is a risk that the change will take many disposers by surprise and a number of factors will add to the pressure of the change, including the possibility of it being overlooked by the solicitors handling the sale.
Since the person doing the tax return will need to wait for the client’s authorisation, the whole process might also take longer with the new rules.
Making Tax Digital
Although there are no major changes expected until 2021, we all need to prepare for the new requirement for digital links from April 2020. From this date, all data exchanged between different software programs will need to be via a digital link, and it will no longer be possible to key in or use manual entries.
This also covers the case of voluntarily registered businesses, which now need to monitor their value of taxable supplies.
IR35
April 2020 will also usher in the new off-payroll
working rules bringing the private and the public sectors in line. The new
process will impact most businesses engaging contractors through Personal
Service Companies.[1]
[1] Reproduced from AccountingWEB