Tax Blog by Taxfile: latest news about HMRC, income tax, accounting etc.

2 Weeks to the Self Assessment Tax Return Deadline!

January 17, 2023/in 2021, 2022, 2023, Accountancy, Accountants, Deadline, HMRC, Self-assessment, South London, Tax accountants, Tax advice, Tax advisers, Tax returns, Taxfile, Tulse Hill/by Mark

[As at 17 January 2023]: There are only about 2 weeks left in which to file your Self Assessment tax return and pay any tax due by the official deadline of 31 January. Miss the deadline (31st January) and you’ll straight away incur a £100 HMRC penalty. Interest will also be charged by HMRC if tax is not paid by midnight on 31 January. Time is running out, so contact Taxfile for help with your tax return as soon as possible please. Book an appointment* with one of our helpful tax advisors and accountancy experts TODAY — we’ll make it easy!

020 8761 8000 Book Appointment Get Started Here

Saturday Appointments in December - Book Now for Tax Returns Etc.

Saturday Appointments in January – Book Now for Tax Returns Etc.

January 10, 2023/in 2020, 2021, Accountancy, Accountants, Accounts, Annual Return, Self-assessment, Self-employed, tax rebates, Tax refunds, Tax return, Tax returns, Taxes, Taxfile, Tulse Hill/by Mark

Taxfile is open on Saturday mornings in January, by appointment. Saturdays might be useful if you need to see us for your 2021/22 tax return, or any other accountancy work, but can’t do it on a weekday. Saturday slots are limited; there are only 4 Saturdays available in January and opening times will be from 9am until 1pm. So, please book in today if a weekend appointment suits you — before slots are all taken. Late appointments are also available on Mondays and Tuesdays, when we open until 6pm, or choose any other weekday if you can come earlier. Please note that we close earlier, at 3pm, on Fridays.

Book in on 0208 761 8000 or book your appointment online (here). We are happy to do virtual (video/phone) or physical appointments at our Tulse Hill office in Thurlow Park Road — whichever suits you best. Read more

3 Weeks to the Self Assessment Tax Return Deadline!

January 10, 2023/in 2020, 2021, 2022, Accountancy, Accountants, Deadline, HMRC, Self-assessment, South London, Tax accountants, Tax advice, Tax advisers, Tax returns, Taxfile, Tulse Hill/by Mark

[As at 10 January 2023]: There are only about 3 weeks left in which to file your Self Assessment tax return and pay any tax due by the HMRC deadline of 31 January. Miss the deadline (31st January) and usually you’d be in for a £100 HMRC fine right away. Time is still short, so contact Taxfile for help with your tax return as soon as possible please. Book an appointment* with one of our helpful tax advisors and accountancy experts TODAY and we’ll make it easy!

020 8761 8000 Book Appointment Get Started Here

Tax-Free Personal Allowance Thresholds & Tax Bands (2022/23 to 2016/17)

May 28, 2022/in 2016, 2017, 2018, 2019, 2020, 2021, 2022, 2023, Accountancy, Accountants, Annual threshold, Band rates, Dulwich, HMRC, London, Personal allowance, Personal Tax Account, South London, Tax, Tax accountants, Tax advice, Tax advisers, Tax calculation, Tax-free allowance, thresholds, Tulse Hill/by Mark

Today we look at the tax-free allowance thresholds for what’s officially known as the tax-free Personal Allowance in the tax and accountancy world.

The Tax-Free Personal Allowance

This is the amount a UK individual can earn as income before they have to pay any Income Tax. In the current tax year (6 April 2022 to 5 April 2023) individuals can earn up to £12,570 before they have to start paying Income Tax, as you’ll see in the first table. In other words, if their taxable income is two thousand pounds more than that, they’ll only have to pay income tax on the extra £2000, not the core £12,570. There are exceptions, and different rules applied before 2016/17, but our aim is to keep things simple in this guide rather than focusing on more rare exceptions. So, below, we show the Personal Allowance thresholds for tax-free income over the last 7 tax years. As you will see, the Tax-Free Personal Allowance has gradually increased over the years.

Tax Bands for Basic Rate, Higher Rate and Additional Rate Taxpayers

The tables also show the various tax bands for earnings above the Personal Allowance threshold. These are the Basic Rate, Higher Rate and Additional Rate income tax bands, with tax rates increasing the more people earn. The information might be useful if you owe income tax from previous years but bear in mind that anyone born prior to 6 April 1948 may be entitled to a larger Personal Allowance.

Please note: this guide focuses only on Income Tax. Taxpayers will also need to allow for other deductions like National Insurance, which we’ll cover in a separate guide, and things like pension contributions, any student loan interest repayments, any tax on dividends, and so on.

Tax-Free Allowance Thresholds 2022/23

For the tax year 6 Apr 2022 to 5 Apr 2023:
The first £12,570 (your Personal Allowance) is tax-free*
Earnings between £12,571 and £50,270 are taxed at 20% (‘Basic Rate’ income tax)
Earnings between £50,271 and £150,000 are taxed at 40% (‘Higher Rate’ income tax)
Earnings over £150,000 are taxed at 45% (‘Additional Rate’ income tax)

* For every £2 earned above £100,000, the Personal Allowance is reduced by £1. It therefore reduces to zero for earnings of £125,140 or more.

Tax-Free Allowance Thresholds 2021/22

For the tax year 6 Apr 2021 to 5 Apr 2022:
The first £12,570 (your Personal Allowance) is tax-free*
‘Basic Rate’ earnings between £12,571 and £50,270 are taxed at 20%
‘Higher Rate’ earnings between £50,271 and £150,000 are taxed at 40%
‘Additional Rate’ earnings over £150,000 are taxed at 45%

* For every £2 earned above £100,000, the Personal Allowance is reduced by £1. It therefore reduces to zero for earnings of £125,140 or more.

Tax-Free Allowance Thresholds 2020/21

For the tax year 6 Apr 2020 to 5 Apr 2021:
The first £12,500 (your Personal Allowance) is tax-free*
‘Basic Rate’ earnings between £12,501 and £50,000 are taxed at 20%
‘Higher Rate’ earnings between £50,001 and £150,000 are taxed at 40%
‘Additional Rate’ earnings over £150,000 are taxed at 45%

* For every £2 earned above £100,000, the Personal Allowance is reduced by £1. It therefore reduces to zero for earnings of £125,000 or more.

Tax-Free Allowance Thresholds 2019/20

CIS Sub-contractors – Claim Your Tax Refund Now!

March 28, 2022/in 2020, 2021, 2022, Accountancy, CIS, Construction Industry Scheme, Income & Expenditure, Income tax, Personal allowance, Refund, South London, Subcontractor, Tax, Tax refunds, Tulse Hill/by Mark

[Updated April/May 2022]: It’s now time to start the process of claiming your tax refund if you are a sub-contractor working within the Construction Industry Scheme (‘CIS’). Refunds are usually fast through Taxfile.

What you need to do

Don’t delay – book an appointment with Taxfile today by calling 0208 761 8000 and we’ll sort it all out for you. We have staff who speak English, Polish, Pashto, Dari, Russian, French, and Dutch, should you need them on the day. Our Tulse Hill office is at 25 Thurlow Park Road, London SE21 8JP. Call 0208 761 8000 for an appointment — the first 20 minutes is free! Alternatively, you can have a ‘virtual’ appointment with us on Zoom, Teams, Google Hangouts, Skype, FaceTime, WhatsApp or whatever you prefer.

Outside of London? No problem – click here.

We’re open from Monday to Saturday in April & May (including early evenings Mon/Tues)

Our Tulse Hill office is open 6 days a week during April & May and offers Saturday morning appointments plus early evening appointments on Mondays and Tuesdays if standard office hours do not suit you (please call for details).

Check List

Key Takeaways from the Spring Statement 2022

March 24, 2022/in 2022, Accountancy, Accountants, Budget, Class 2 NICs, Class 4 NICs, National Insurance, NIC, Spring Statement, Tax, VAT/by Mark

The Chancellor Rishi Sunak unveiled his Spring Statement for 2022 on 23 March and in some ways it was more like a mini budget.

Key takeaways from the Spring Statement include:

The earnings threshold at which you start to pay National Insurance Contributions (NICs) will increase to £12,570 from July 2022. This is currently set at £9,880 (correct at time of writing, March 2022), so will leave people with more money in their pockets.
Class 2 NICs for the self-employed will also reduce, from April 2022, to zero for profits between £6,515 and £9,568
5p per litre has been cut immediately from fuel duty.
The basic rate of income tax will reduce from 20% to 19% starting in April 2024.
The Employment Allowance will increase to £5,000 per annum from April 2022. Currently it’s set at £4,000. The allowance reduces the NICs that employers have to pay.
VAT on materials that save energy will be reduced from 5% to zero from April 2022. This should reduce the cost of things like solar panels, heat pumps and insulation.
Councils in England will be able to pass on their share of an additional £500m in extra Government support via the Household Support Fund. The new tranche is for the period 2022/23. The fund helps vulnerable residents, via councils, with short-term help with things like fuel and household bills, food, clothing and other essentials. The previous tranche ends on 31 March 2022, so this is timely.

Watch the Chancellor’s 28 minute Spring Statement 2022, as delivered to the House of Commons, in the video above (skip any adverts). Alternatively get all the detail in the House’s briefing summary here. There’s also a Read more

New Taxfile Brochure – Download Here

February 19, 2022/in Accountancy, Accountants, Dulwich, South London, South West, Tax accountants, Tax advice, Tax advisers, Tax agents, Tulse Hill/by Mark

The new Taxfile brochure is out and you can download it here. Even if you’re an existing client, it’s worth taking a look in case we can help you in ways you weren’t aware of. We can help anyone e.g. the self-employed, directors of limited companies, partners in partnerships, sole traders, retired people, landlords, taxi and cab drivers, construction workers and just about anyone.

The new brochure covers:

Self-assessment income tax returns;
Services for SMBs;
Accounts work for limited companies;
Bookkeeping and bank reconciliation;
Payroll & PAYE tax and National Insurance, company pensions and more;
VAT help, including for VAT schemes, registration and VAT returns;
Company pensions (auto-enrolment etc.);
Corporation Tax returns;
Confirmation Statements;
Making Tax Digital (MTD);
CIS calculations and tax rebates for construction workers;
Help with tax complications;
Dealing with HMRC on your behalf;
Joining or leaving various tax schemes;
Capital Gains Tax (CGT) calculations and handling;
Tax calculations relating to property income for landlords;
Disclosures of income not previously taxed (e.g. from abroad);
And much more.

Forward to a Friend – Free Consultation

Please feel free to forward the new Taxfile brochure to a friend who could benefit from our accountancy and tax-related services. We offer a free 20-minute consultation for new clients, without obligation.

020 8761 8000 Book Appointment Download Brochure

We are open 6 days a week during February including Saturday mornings (by appointment) and later opening (until 6pm) on Mondays and Tuesdays.

A Personal Message from Guy Bridger at Taxfile

January 29, 2022/in 2020, 2021, 2022, Accountancy, Accountants, Advice, Deadline, Dulwich, Filing deadlines, Guy Bridger, HMRC, Income tax, Late return, London, Online returns, payment plans, payments on account, penalties, Self-assessment, Self-employed, Sole traders, South London, Tax, Tax accountant, Tax accountants, Tax advice, Tax advisers, Tax agents, Tax calculation, Tax returns, Taxfile, Tulse Hill/by Taxfile

Dear Taxfile Client,

We’re aware that many people are struggling right now. So, I wanted to personally touch base with you to confirm that, although the official deadline for submission of 2020/21 self-assessment tax returns and tax payments is Monday (31 January), there is now some extra time this year. This is great news for you if you are concerned about missing the deadlines or having to pay an HMRC penalty for being late. It should really take the pressure off for those who are struggling or worried.

For self-assessment tax returns, you now have until midnight on 28 February to submit. HMRC will only charge you a late filing fee if you file later than this.
For self-assessment tax payments, you now have until 1 April to make your payment (or arrange an HMRC payment plan) before incurring an HMRC late tax payment surcharge. While you will still incur interest for late tax payments from 1 February, HMRC’s interest rate is only 2.75% per annum, so even a month’s interest is unlikely to equate to much for most people.
For tax payments on account (payment in advance for the next tax year), there is no HMRC surcharge/penalty if you’re late but it does attract interest. However, again, that’s only at HMRC’s low rate, so is unlikely to amount to much for most.

We are here to help you, so don’t worry if you owe tax or are running late on your tax return. The Taxfile team can help you sort things out, particularly as we have a little longer than usual. We can work something out during February if you are worried about HMRC surcharges, interest and deadlines. Please get in touch if so.

020 8761 8000 Book Appointment Get Started Here

Lastly, don’t forget that we are open on Saturdays during January and February (by appointment) and open later (until 6pm) on Mondays and Tuesdays. Read more

HMRC Waives Late Filing & Payment Penalty for 31st January Deadline

January 10, 2022/in 2020, 2021, 2022, Accountants, Coronavirus, COVID-19, Pandemic, Self-assessment, Self-employed, Sole traders, Tax, Tax accountant, Tax accountants, Tax advice, Tax advisers, Tax affairs, Tax agents, Tax bill, Tax calculation, Tax return, Tax returns, Taxes, Taxfile/by Taxfile

HMRC has taken the decision to not issue a late filing penalty for anyone who does not submit their self-assessment tax return before midnight on 31st January 2022. It is important to point out that the deadline for filing your 2020-21 tax return remains 31/01/22 but the waiving of the penalty allows anyone who is unable to file their self-assessment tax return by the 31/01/22 deadline avoid a £100 late filing penalty as long as they submit their tax return sometime before midnight 28th February 2022.

Furthermore, anyone that is unable to pay their self-assessment tax liability before 31st January 2022 will not receive a late payment penalty if they pay their tax in full, or call HMRC to arrange a payment plan before 1st April 2022. It is important to note that interest will be added on taxes owed from 1st February 2022.

For a second year in a row, due to COVID, an extra Read more

4 Weeks to the Self Assessment Tax Return Deadline!

December 31, 2021/in 2020, 2021, 2022, Accountancy, Accountants, Deadline, HMRC, Self-assessment, South London, Tax accountants, Tax advice, Tax advisers, Tax returns, Taxfile, Tulse Hill/by Mark

[As at 3 January 2022]: There are only about 4 weeks left in which to file your Self Assessment tax return with HMRC. Miss the deadline (31st January) and you’ll straight away be in for a £100 HMRC fine, so don’t delay — contact Taxfile for help with your tax return. Book an appointment* with one of our helpful tax advisors and accountancy experts TODAY and we’ll make it easy! Read more

2 Weeks to the Self Assessment Tax Return Deadline!

Saturday Appointments in January – Book Now for Tax Returns Etc.

3 Weeks to the Self Assessment Tax Return Deadline!

Tax-Free Personal Allowance Thresholds & Tax Bands (2022/23 to 2016/17)

The Tax-Free Personal Allowance

Tax Bands for Basic Rate, Higher Rate and Additional Rate Taxpayers

Tax-Free Allowance Thresholds 2022/23

Tax-Free Allowance Thresholds 2021/22

Tax-Free Allowance Thresholds 2020/21

Tax-Free Allowance Thresholds 2019/20

CIS Sub-contractors – Claim Your Tax Refund Now!

What you need to do

We’re open from Monday to Saturday in April & May (including early evenings Mon/Tues)

Check List

Key Takeaways from the Spring Statement 2022

New Taxfile Brochure – Download Here

Forward to a Friend – Free Consultation

A Personal Message from Guy Bridger at Taxfile

HMRC Waives Late Filing & Payment Penalty for 31st January Deadline

4 Weeks to the Self Assessment Tax Return Deadline!

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