expenses Archives

Are you self employed? Advice from Taxfile

June 9, 2021/in 2021, 2022, Accountancy, Accountants, Accounts, Advice, Class 2 NICs, Dulwich, expenses, National Insurance, South London, Tax returns, Tulse Hill/by Taxfile

Are you self employed? If so, Joe from Taxfile has some quick advice for you:

Class 2 National Insurance

It is important to register for Class 2 National Insurance. A lot of people don’t have this set up correctly and, if not sorted, then it can greatly affect your pension in the future. Class 2 National Insurance isn’t a lot of money, so speak to one of our advisors to make sure you’re set up. Finding out missing years is also possible.

Tax Returns

Try to file your tax return early. A major benefit to this is knowing what your tax liability will be long before it is due. That way, you can plan ahead or even set up a payment plan.

If you are filing your return late, then it is very important to try to get up to date as soon as you can. Apart from the initial £100 penalty for late returns, you will eventually end up paying a £10 per day penalty too if you don’t get up to date soon enough. That can soon spiral out of control. HMRC is very good at helping people who are struggling, but they can’t help if you bury your head in the sand. Penalties for late tax returns can be appealed but you must have very a good reason, like illness or death in the family.

Are you claiming the right expenses?

Speak to one of our agents about allowable expenses. A lot of people don’t claim the right expenses and can end up overpaying their tax. We can help with that, so you save unnecessary tax.

Contact Taxfile

Speak to Taxfile for any of your tax needs. Our staff skills are so versatile that, between us, there is nothing accounting- or tax-related that we can’t help with.

Call Taxfile on 020 8761 8000 or email your tax-related query and we’ll be happy to help. We also offer a free 20-minute introductory appointment if you’d like to meet us in person or virtually through a video or telephone call — whatever you prefer. We are accountants and tax advisors in Tulse Hill/Dulwich South London.

This post was brought to you by Joe at Taxfile.

Small Trader? Make the Most of These 2 Allowances!

October 9, 2020/in Accountancy, Class 2 NICs, expenses, Income tax, Landlords, Lettings income, property, Self-assessment, Small traders, Tax, Tax advice, Tax-free allowance, Taxes, Trading Income Allowance, Tulse Hill/by Mark

Small traders with very modest incomes are currently eligible for a couple of very useful allowances. Both of these could save them money — and some paperwork:

1. Tax-Free Allowance for small traders

If you receive income of no more than £1000 per annum (before expenses) from property or trading income, you don’t need to tell HMRC, you don’t need to pay tax and usually you don’t need to do a self-assessment tax return. If you have both types of income and each earns you no more than £1000 gross per annum, you are usually eligible for the tax-free allowance in BOTH cases! There are exceptions, of course, but these are the general guidelines. Income from property or land speaks for itself, while ‘trading‘ would include things like self-employment, hiring out personal equipment or services like gardening, window cleaning or babysitting. Partnerships are not eligible.

2. Trading Income Allowance

If you are paying tax but have expenses below £1000 per annum, you could reduce the tax by claiming for ‘Trading Income Allowance’ instead of claiming for the actual expenses themselves. In effect, it’s like claiming for £1000 worth of expenses rather than the lower amount of expenses that you’ve incurred in reality. This aspect is all explained in greater detail, with a simple example, in our previous Trading Income Allowance article here.

It’s important to know, though, that you cannot claim both the Read more

A Great Choice of Cloud-based Accounts Software Packages

April 8, 2016/in Accountancy, Accounts, Bookkeeping, Cash flow, expenditure, expenses, FreeAgent, Limited company, Sage, Software packages, South London, Special Offers, Tax, Tax calculation, Taxfile, Xero/by Mark

Sign Up & Your Favourite Charity Gets £25 Too!

[UPDATE: Please note that this offer has now expired]. If you are a limited company client that signs up to a new cloud accounting software subscription from Taxfile, we’ll donate £25 to your favourite charity. So, as well as saving yourself time and making your life easier, you’ll get a warm glow from making the world that little bit better! The accounting software packages that we currently offer and recommend are FreeAgent, Xero and Sage One, which are all leading accounts packages.

With any of the 3 cloud-based packages you’ll be able to:

Create and send invoices from within the software;
Automatically chase payments;
View real time cash-flow;
Track time and expenses;
Monitor Profit and loss;
Forecast your tax liability;
Connect and automatically import your bank statement data straight into the software;
And much more!

Best of all, though, will be the time-saving benefits that you’ll get from professional accounting packages like these. With the software working hard for you in the background, you’ll have more time to get on with something else.

Contact Ryan, our resident accounts package specialist, for advice on which package will best suit you and your specific circumstances. He’ll be able to walk you through the details of the many features and benefits of each package as well as any further information you require. Ryan can be contacted on the usual Taxfile number: 0208 761 8000 or, if preferred, fill in an enquiry form here and Ryan will call you back at a time that suits you.

AMAZING OFFER! Save Time, Money & Space with a FREE Sage Bookkeeping & Accounts Package!*

January 14, 2016/in Accountancy, Accountants, Auto Enrolment, Bookkeeping, Cash flow, expenses, Filing deadlines, Income & Expenditure, Income tax, London, National Insurance, NI, NIC's, Online returns, PAYE, Payroll, Real Time Information, RTI, Sage, Save money, Self-assessment, Software packages, South London, Special Offers, Tax, Tax advice, Tax advisers, Tax calculation, Tax returns, Taxfile, VAT/by Mark

[UPDATE: Please note that this offer has now expired]. Taxfile’s customers can benefit from an incredible offer on a range of Sage accounting packages at the moment. We’re offering a FREE or, in effect, heavily subsidised* Sage accounting package to all active Taxfile customers, whether existing or new. There are various different packages available so we’re sure we’ll have one which will suit every customer perfectly. The list of benefits is almost endless — here are just a few:

Firstly we’ll GIVE* Taxfile customers the package — you don’t have to pay Sage at all;
Say hello to quick and easy bookkeeping and record-keeping;
Quick and easy cash flow management tools;
Cloud-based record keeping means you can access accounts records from anywhere with an internet connection;
Automatic bank statement integration makes bank reconciliation a breeze, helping when receipts go missing and even recognising – and accounting for – regular transactions;
A mobile app module allows you to simply snap a photo of your receipt and it uploads to your Sage account (say goodbye to physical receipt storage!);
Less paperwork!
Automatic tax computations performed by the software;
Report and analysis options;
VAT handling;
Automatic VAT return options (or let us handle it for you as you prefer);
Shows you the taxes and National Insurance due so you can easily pay them on time;
Fast and easier tax returns;
Help from Taxfile at any point and from Sage’s own helpful videos;
Helps you stay in line with UK laws, taxes and regulations;
No experience needed;
Perfect for the self-employed, start-ups and small businesses;
Taxfile will even be happy to set you up;
Integrated invoicing and quotation options available (even from your mobile phone!);
A quick and easy payroll bolt-on is also available for limited companies, with payslips, RTI, Auto Enrolment integration etc.;
Auto enrolment communications included if you have a company pension scheme;
Option to automatically integrate online e-commerce records into your Sage account;
Fast and easier company accounts preparation;
… and much more!

But there is more major benefit – collaboration with us, your accountant!

The Sage packages we supply are not only free, or in effect heavily subsidised depending on the package involved, but also allow us, your accountant and tax adviser, to collaborate with you within your Sage package with your permission. So where you cannot do something yourself, we can log in using our own integrated Sage administration system to get involved on your behalf, for example to set things up for you, run reports, activate VAT returns, tax returns, end of year accounts, payroll and so on. It’s amazing really! So you do as much or as little as you want to … and we cover everything else!

You save money!

Using the easy but powerful Sage bookkeeping and accounting packages supplied by Taxfile
means that you’ll save money. It’s as simple as that. Customers using such packages makes our job easier, reducing our chargeable hours working on your accounts, so quite simply saves you money!

You also save time!

Our Sage packages will save you SO much time you’ll never look back! Once you’ve tried our Sage packages for a while you’ll Read more

Get Sage One Cashbook (online accounts package) FREE!

December 23, 2014/in Accountancy, Accountants, Bookkeeping, Cash flow, expenditure, expenses, Income & Expenditure, Payroll, RTI, Sage, Software packages, Special Offers, Tax accountant, Tax accountants, Taxfile/by Mark

[UPDATE: Please note that this offer has now expired]. Get Sage One Cashbook FREE, only with Taxfile. If you are a Taxfile customer you can currently get this excellent online accounting and cashflow package totally free of charge. This is better than any special offer you’ll find online for the same product and an additional benefit is that it allows us, your accountants and tax advisors, to collaborate with you within the package (with your permission of course), making managing your income, expenditure, tax accounting and bookkeeping absolute child’s play. You can stop at any time; it’ll cost you nothing either way.

Features & Benefits of Sage One Cashbook online include:

It allows you to record income & expenditure for your business quickly and easily;
Access your records from anywhere with an internet connection, any time;
No accountancy experience is necessary – it’s simple;
Perfect for small businesses, sole traders, etc;
It allows you to Read more

Taxfile passes HMRC inspection with flying colours!

November 17, 2014/in Accountancy, Accountants, Dulwich, expenses, HM Revenue and Customs, HMRC, Income tax, Inland Revenue, London, Records, Self-assessment, South London, Tax, Tax accountants, Tax agents, Tax determination, tax inspector, Tax returns, Tulse Hill/by Mark

HMRC have recently been targeting tax agents who file high volumes of tax returns and, as one of the UK’s top 100 tax return preparers by volume, Taxfile had the honour of having an inspection by HMRC inspectors during late October.

The two senior inspectors met all Taxfile staff who prepare tax returns and analysed the procedures undertaken by them to arrive at the figures entered on customer returns. They also reviewed, on a spot-check basis, a selection of files worked upon over this Summer. Analysis included checks on procedures, figure work and record keeping including the level of detail recorded in notes. The result was a resounding success – Taxfile passed with flying colours – of course!

HMRC were also satisfied with the way Taxfile had dealt with any occasional instances of missing client receipts. They reiterated that, where clients had lost receipts, some kind of proof of purchase was always needed in lieu of the official receipts. For example bank statements showing that the purchase was made via a debit card or cheque, or credit card statements showing the purchase was made originally with a Visa or MasterCard. Our own recommendation is to Read more

Online banking may save you money!

October 22, 2014/in Accountancy, Accountants, Bookkeeping, expenditure, expenses, HM Revenue and Customs, HMRC, Income tax, London, Self-assessment, South London, Tax, Tax accountant, Tax accountants, Tax advice, Tax advisers, Tax agents, Tax determination, Taxes, Value Added Tax, VAT/by Mark

Do you have online banking? Sending us downloaded statement information straight from your online banking means we can more easily import the data into our system and check for expenses and income which might otherwise have been overlooked. It can also fill in the gaps where you are missing receipts or invoices. This simple service could therefore save both time and money! Most online banking platforms allow you to export this information, for example as a CSV file, and this format is perfect for our accounting system.

Don’t have online banking? No problem! We also have a new system where we can scan in your paper statements straight into our ‘Bankstream’ accounting platform, making analysis faster and easier.

Either way, ask us for further information or, better still, send us a sample download of a typical month’s bank data (or Read more

Ministers of religion and their allowable expenses

February 13, 2010/in expenses, Tax/by Taxfile

There are certain expenses that you can claim as a minister of religion as long as they are incurred wholly and exclusively for the duties of the office or employment.
• The cost of ministry journeys from one place of work to another.
• Also allowable are related costs of accommodation and meals.
• Maintenance, repairs and insurance of vicarage or manse
• A proportion of the cost of lighting, heating, cleaning and maintaining of premises where you live.
• A proportion of rental cost if part of the house is used mainly for work;
• Cost of postage, stationery;
• Cost of telephone calls where a deduction is made to cover personal calls;
• Cost of repair or replacement of robes worn for divine service;
• Communion expenses such as bread and wine;
• Subscriptions to professional bodies approved by HMRC;
• Secretarial assistance cost;
• Books used in the conduct of services or preparation of sermons;
• Work-related training;
• Reasonable entertaining costs for official visits from clergy or officers of the church;
• Temporary cover cost known as locum tenens.
For more information about taxation of ministers of religion you could visit HMRC.

Clothing: Wholly and Exclusively for trade purposes

September 27, 2008/in expenditure, expenses, Inspector of taxes, London, Self-assessment, Self-employed, wholly and exclusively/by Taxfile

When dealing with self-employment expenses, great care needs to be taken.
An expense needs to have incurred wholly and exclusively for the purpose of the trade in order to be considered allowable. Some expenses by their very nature have a non-trade use and so are disallowed by the Tax Man.
So it is the case with ordinary clothing worn by a trader during the course of their trade,the so-called civilian clothing.
This rule applies even when particular standards of dress are required by the rules of professional bodies.
The cost of clothing that is not part of an everyday wardrobe like for instance protective clothing for a builder or a nurse’s uniform are allowed as trading expenses. The cost of clothing acquired for a film, stage or TV performance incurred by an actor or other entertainers is also allowable. The clothing in this case is called a costume as it is used in a performance.
A well known case with regards to clothing expenditure is the case of Mallalieu v Drummond. The case was concerned with the issue of whether a barrister was entitled to a deduction for expenditure on purchase and laundry of professional clothing.
The barrister acquired and wore particular items of clothing, both in court and to and from the court to her chambers. She did not wear such clothes when she was not at work. Also, her personal wardrobe was made up of very colourful clothes.
The Inspector disallowed the barrister’s expenditure.The test whether her expenditure was ‘ wholly and exclusively’ incurred for the purpose of her profession was subjective.
Also,the General Commissioners considered that when a barrister purchased court clothes their purpose was to enable them both to earn profits in their profession and to be properly clothed, so it had a dual purpose (professional and non professional one at the same time).
Apportionment for business use can only be made when there is a objective benchmark by which any trade element can be distinguished from the non-trade element.
A common example of this approach is the running costs of a car used partly for the purposes of the trade and partly for other purposes.
If you are still confused with regards to what items you are entitled to claim back in your tax return come to Taxfile in one of their offices, either South London or Exeter branch to get help with this matter.