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Guy Bridger, Taxfile’s founder, has personally delivered a post card to Boris Johnson. He recently slipped it under the door of Number 10 Downing Street (there is no letterbox!).
The Issue with the Tax Return Deadline – & Guy’s Suggested Solution
In his communication to Boris, Guy suggested that the tax return filing deadline should be permanently extended, for example to the end of February, instead of 31 January as it is currently. In his proposed scenario, people would have longer to file their tax return. As well as taking the pressure off over Christmas, New Year and during January, this later deadline would also mean less likelihood of receiving a surcharge on the possible tax debt they owed for the last tax year’s calculation. Taking this a step further and with the help of video journalist David Gyimah, Guy has also been making a documentary about the tax return filing deadline and the immense pressure it puts people under during Christmas and the New Year — and especially during the entire month of January.
In contrast, limited company businesses currently have 9 months in which to file their accounts to Companies House and at the same time pay their taxes. Interestingly, they have 12 months to file their Corporation Tax return.
Guy & Taxfile
Guy has worked in South London for 25 years, dealing with members of the public and their tax responsibilities. At Taxfile, he has long-serving, thoughtful staff on hand six, sometimes seven, days a week every January. This is a measure of just how much work the current tax return deadline causes during this key accounting month every year. Taxfile makes it their task to remind — even nag — every customer about the deadline, as most of them will have to submit a Self-Assessment tax return by 31 January.
Consulting with the Office of Tax Simplification
Guy Bridger’s last visit to the Treasury was when he worked with The Office of Tax Simplification, resulting in the recognition that people actually prepare their self-employed accounts on a cash basis.
When Guy worked with John Whiting there, the other theme he was interested in was the idea that people who were sole traders perhaps didn’t need to form a limited company. This was because, in agreement with John and many members of the consultation body, it was our view that they could instead qualify for a protected asset status so that their home would be ring-fenced from liability should their business fail.
Potential VAT & NI Increases Coming
Guy expects VAT and national insurance increases in the coming years. So, watch this space!
Guy would also like to remind landlords who do not currently prepare their accounts, perhaps because they think they are under the radar, to come forward and contribute tax, as everyone else has to. Guy’s highly experienced team has had to deal with hundreds of cases of landlords ‘found out’ by HMRC over the past few years. Landlords and landladies who have rental income to declare may be taxed but National Insurance does not apply as it is considered investment income — yet the money is earned through their endeavour and enterprise. It seems unlikely that this will be reclassified for the ‘accidental’ landlords but, if any of them have a rental business, it is worth remembering that the absence of National Insurance charges is somewhat of a blessing.
Guy would remind everyone that the best advice is to keep records. Taxfile prides itself in being able to work with any style of record-keeping. This can take several forms and a variety of formats given the changes in Internet banking and the use of mobile phones. So, however you have your records held, on whichever device or format you favour, in whichever bank you use, it will be possible for Taxfile to put together the tax figures for you. So, don’t delay if you need help from a reliable Tax Agent. It’s no different from popping in to your local Tax Office (… if there was one).
Contact Taxfile for Help with Tax Returns & Any Other Tax Matter
To contact Guy Bridger or Taxfile — for help filling in and submitting your tax return or for any other tax- or accounting-related matter, simply get in touch. We’re here to help.