FINANCE UK growth hopes take a hit
1. Keep digital records of all transaction details, using software capable of linking directly to HMRC’s systems; and
2. Report the VAT return data via that software directly to HMRC within one calendar month and seven days from the end of your business’s VAT quarter.
To prepare, businesses should
review how information for their VAT returns is currently collected and consider whether this will meet the requirements for MTD.
WHAT ARE THE PENALTIES
IF I DO NOT COMPLY? Penalties for late submission and payment are based on a flat percentage of the tax due. These penalties have no concept of proportionality and can prove very costly. While HMRC may initially be lenient, this won’t last so every registration and return needs to reach the expected standard to avoid penalties.
The British Chambers of Commerce (BCC) recently slightly downgraded its growth expectations for the UK economy, forecasting growth of just 1.2% in 2019 (down from 1.3%), which if realised would be the weakest growth in a decade. The BCC has also downgraded its growth forecast for 2020 to 1.3% (down from 1.5%) and published its first forecast for 2021 of 1.4% growth. A weaker outlook for business investment and trade
amid continued Brexit uncertainty and slower than expected global economic growth were the main drivers behind the downgrades to its forecast for GDP growth in 2019 and 2020. Business investment is forecast to decline by one per
cent in 2019, which if realised would be the weakest outturn since the financial crisis in 2009. Ongoing uncertainty over the UK’s future relationship with the EU is expected to continue to weigh on investment intentions. Net trade is expected to make a
negative contribution to GDP growth over the forecast period, reflecting the lack of clarity on the UK’s future trade arrangements, weaker global growth and continued trade tensions. While average earnings growth in real
terms is set to improve over the forecast period and unemployment is forecast to remain low by historic standards, household spending is expected to be limited by weak consumer confidence and high household debt levels. Growth in the dominant
services sector is expected to weaken to 1.1% in 2019, which would be the slowest growth since 2009. The manufacturing and construction sectors are also expected to grow by less than expected in its previous forecast. The BCC forecast assumes that the UK avoids a
messy and disorderly exit from the EU. Another scenario would lead to revisions in the next forecast.
‘The economy is currently growing sluggishly at best. A clear course of action on Brexit is needed from Government’
Adam Marshall
Adam Marshall, Director General of the BCC, said: “It is clear that political inaction has already had economic consequences, with many firms hitting the brakes on investment and recruitment decisions as a result of ongoing uncertainty. Worse still, some companies have moved investment and growth plans as part of their contingency preparations. Some of this investment may never come back to the UK. “The economy is currently growing sluggishly at best. A clear course of action on Brexit is needed from Government, and greater levels of planning and guidance to prepare its own agencies and communities for all possible outcomes.”
business network April 2019
75
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84
