CIS sub-contractor refunds

CIS Sub-contractors – Claim Your Tax Refund Now!

CIS sub-contractor refunds

[Updated April 2021]: 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 (including early evenings Mon/Tues)

Our Tulse Hill office is open 6 days a week during April 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

  • Book an appointment by calling 0208 761 8000;
  • Bring in records of your invoices, whether they are self-billed or your own. If any are lost, try to bring copies.
  • Bring in all your CIS statements and receipts for the period 6th April 2020 to 5th April 2021;
  • Even if you don’t yet have your most recent CIS statement, we can still make a start;
  • Show us receipts for things you use for work including tools, equipment and plant hire – the law expects you to keep proof so don’t throw anything away;
  • Bring receipts for materials too, as some can be offset to maximise your tax refund;
  • If you had any equipment or tools stolen during the year, make sure you bring a crime reference number so we can obtain tax relief on those items;
  • Bring in bank statements — if any records for income or expenditure have been lost, bank statements can prove vital to fill in the gaps and give us a better view of your overall tax situation;
  • Lastly, if you have any payslips from any employment during the year, please do also bring in those.

Contact Taxfile to get your CIS tax refund fast!

Taxfile are experts at claiming back CIS tax refunds – we do over 500 of these per year and usually sub-contractors receive their refunds in just 2-4 weeks (often sooner for those who beat the rush and come in early). Taxfile are also very well trusted by HMRC so our sub-contractor CIS submissions and refund requests are rarely questioned. And currently we’re open 6 days a week at the Tulse Hill branch!

Come and see us. Our offices are ideally located if you’re in Tulse Hill, Battersea, Brixton, Dulwich, Elephant & Castle, Streatham, Camberwell, Peckham, West Norwood, Clapham, Stockwell, Herne Hill, Clapham, Pimlico, Vauxhall, Balham, South Lambeth, Earlsfield, Southfields, Wandsworth, Chelsea, Fulham & beyond.

  • Need a Saturday morning appointment? No problem – call us on 0208 761 8000 for latest staff availability.
  • Need a late afternoon/early evening appointment on a Monday or Tuesday? Again, no problem — call 0208 761 8000.

Why you’re due a tax refund

CIS construction workers like you are usually taxed at source before being paid, and this usually results in a tax overpayment. That’s because you were taxed on the first £12,500 of your income even though that part falls within your 2020-21 ‘Personal Allowance’, i.e. the part of your income that should be tax-free. In addition, by pre-paying the tax, you will not have offset any allowable expenses such as tools etc. To rectify this, Taxfile will help you get the figures right, offset all allowable expenses and maximise your tax refund! Most sub-contractors receive their tax rebate within just 2 to 4 weeks, through Taxfile.

Working through a Limited Company?

Perhaps you a sub-contractor working through a limited company? If so, that’s also no problem! As well as CIS tax refunds, we can help limited companies with accounts preparation, confirmation statements, corporation tax computations, CIS set-off rebate, National Insurance (N.I.), VAT and much more.

Call Taxfile on 0208 761 8000. We look forward to seeing you soon! Read more

Tax “Payment Plans” are ENDING – Act NOW if you Owe Tax!

Tax Debt “Payment Plans” are Ending - Act NOW if you Owe Tax!

Are you late paying your tax? Do you owe unpaid tax for the last financial year, or earlier? Are you struggling to pay it?

Taxfile has recently been helping some of our customers with tax debts from 2019/20 and earlier. In particular, we’re helping them to arrange payment plans with HMRC as part of their ‘Time to Pay‘ scheme. This spreads the cost of those tax debts instead of paying them off in one go. This is really useful to those who are struggling financially following the pandemic. The new payment plans are only available until 1 April 2021, though, so really you should apply by 31 March 2021. Our advice is to act now if you are in a position to take advantage of the payment plans while they’re still — just about — available.

The benefits of arranging a tax payment plan now

Agreeing a payment plan with HMRC will help avoid the 5% late payment penalty that’s usually charged on outstanding tax not paid by the deadline. And, of course, spreading the cost helps those who might otherwise struggle to get together the full amount in one transaction. The HMRC interest rate seems relatively low too.

How Tax Payment Plans have gone so far

What we’ve found so far is that Read more

Taxfile Partners with Local Government to Offer Self Assessment Assistance

With the self-assessment tax deadline looming in the midst of a global pandemic and no announcement of an extension from the government (28 days would do), 5.4m* taxpayers (45%) still needing to submit a tax return before the 31st January and many of those are left feeling hopeless and helpless, unsure how to complete it themselves and having difficulty finding or affording an accountant who can do it on their behalf.

Some will attempt to complete the tax return online themselves but without a Government Gateway ID that task will be impossible.  Obtaining the Government Gateway ID would require having their ID checked and confirmed online and without a valid UK passport and/or driving licence the task will lead to long phone calls on hold waiting for a HMRC advisor, who are currently running somewhat of a skeleton crew as a result of the pandemic (at least that’s the impression given due to the long waiting times even on the authorised agents helplines and the reduced opening hours).

Even if you do have Government Gateway ID (and password), you will need to work through HMRC’s Self-Assessment form, deciding which of the sections are relevant to you & compiling the information required for each part. Take a look at these help sheets especially useful for people with self-employed earnings (some of the business income references use the word business which can confuse as the rules and guidelines are equally applicable to sole traders working for themselves).

Also check out the HMRC’s toolkit: https://www.gov.uk/government/publications/hmrc-business-profits-toolkit.

 You will need to accurately assess all your business income and more so, expenses, ensuring the correct figures are entered and submitted.  Knowing what expenses you can and can’t claim can really have a negative or positive effect on the tax bill you will be presented with at the end but how do you ensure you are paying the correct amount of tax?

 Looking for assistance from HMRC’s website can provide some valuable information if you know what you are looking for (see the help sheets mentioned above) but from the distance, for the everyday taxpayer, this task can be rather daunting.  Finding personal help, assistance, and guidance can be difficult, especially when the people that can help those most are currently experiencing their busiest period in the industry whilst coping with the effects of COVID on their workforce.

Many may opt for the avoidance strategy until the £100 late filing penalty lands on their door and further threats of daily fines & interest kicks them into action.  You will have a ground to appeal any fines or penalties if you have been affected by COVID.  This will involve writing a formal letter to HMRC and providing any evidence they may request to overturn the fine.

We do recommend that however hard it maybe, it’s a good idea to put some money on your HMRC self-assessment account to settle last year’s tax if you can at least estimate it because at the end of February any tax still outstanding from the previous year which ended 05/04/20 will attract a surcharge which is almost impossible to appeal against so give it a go and work out your taxable profit and then put it in this calculator so you can guesstimate how much you need to rustle up.

If you need an injection to your cash flow even if you were eligible and claimed for the SEISS grants, we would strongly recommend you apply for the Bounce Back Loan Scheme (BBLS) if you have not done so already.  This can be done via your bank provider online & in many cases they may require you to open a business bank account.  You are then eligible for a maximum of 25% of your 2018/19 business turnover (a minimum of £2k and maximum amount of £50k being leant).  The interest rate for this loan is 2.5% for 6-years and the government will pay the interest for the first 12-months of the loan.

Taxfile is currently working closely with local government and our director is on the board of the local business improvement district, we like to think of ourselves as the local tax office for the people of south London, we may be able to give you a little help along the way so why not give us a call for a free 20 minute confidential chat on 020 8761 8000

 

*figure correct on 01/01/21

Self Assessment Income Tax Returns 2019/20 – COVID Edition

 

To date there has been no change on the deadline to submit and pay your 2019/20 Self Assessment Income Tax return by 31st January 2021.

In preparation for our busiest period in the year we have been doing everything to ensure both our offices and business practices are ready to cope with the changes imposed on us by the Coronavirus pandemic.

At Taxfile we have been doing everything we can to make sure our offices comply by current pandemic safety practices.   We have fitted perspex screens between staff and clients, only allowing 2 clients in at a time, minimising each visit to a maximum of 15-minutes & socially distancing our staff members on site with a maximum of 3 in the main office at one time.

We would like to stress to all our existing & potential customers, we ARE OPEN if you need help in submitting your 2019/20 tax returns.  We currently offer a variety of ways to help you:

  1. Booking an appointment to see a tax agent face-to-face for 15 minutes – call us on 020 8761 8000 so we can arrange a time and date with you
  2. Offices are open for you to drop off paperwork to be processed and then sent through to a tax agent who can then discuss your return over the phone with you or face-to-face
  3. Email service where all electronic data can be sent directly through to the tax agents via emails, this is probably the easiest, quickest, and safest way to proceed.  You can directly send the agents your financial data through on email or using services such as dropbox or google sheets.  They can then calculate your return and liaise with you via phone & email.
  4. You can book an online ‘virtual’ meeting HERE

Regardless of which way or combination of ways suits your needs, know that we are here for you till the deadline date of 31/01/2021 but urge you to contact us sooner than later as we are restricted by the number of people we can physically see & data we can work through during these uncertain times.

We are also urging our clients to pay via online banking for their Taxfile invoices, details found on the bottom of our invoice, reducing the need to come in or phone in to pay a bill as we need to reduce the number of people in the office for health and safety & therefore reducing our resources available.  We are still accepting all payment forms but if clients CAN pay via online banking, then we are encouraging them to do so.

If you have not submitted your 2019/20 tax return (that in most cases will run from 6th April 2019 through to 5th April 2020), then now is the time to get all your financial data together, and decide which of the four methods outlined above will be most convenient for you.  Get in touch now & don’t leave it till the last minute.  This year is like no other!

Taxfile Partners with Vantage Tax Fee Protection

Great news for ALL Taxfile clients!

We are proud to announce that we have partnered with Vantage Tax Fee Protection, a market leading insurance company that will protect all of our clients from any HMRC investigations for tax returns submitted by us.

You are protected as a result of:

  • Corporation Tax and Income Tax full or aspect enquiries
  • PAYE/NIC compliance checks from the outset and disputes with HMRC following such checks
  • CIS enquiries and disputes
  • VAT compliance checks from the outset and disputes with HMRC following such checks
  • Enquiries under Section 60 or 61 of the VAT Act 1994 (provided there is no dishonesty or fraud)
  • Business record checks, inspections and interventions under HMRC’s Information & Inspection Powers at Schedule 36 FA 2008… & more.

Most accountants would charge you a considerable sum for such a leading standard of protection but at Taxfile we will spread the cost through the business on each tax return submitted and as a result the additional cost is a fraction of what would be paid individually by you or your business.

The protection will only add (exclusive of VAT):

  • £5 on a self assessment income tax return
  • £10 on a VAT return
  • £25 on a corporation tax return
  • £4 on a payroll submission

I think you will agree with us, a very small price to pay for peace of mind.

As a Director do I need to file a Self Assessment Income Tax Return?

HMRC now states that where all of a director’s income is taxed at source and there is no other sources of income, then there is no need for them to register for self-assessment and to file a return.

If as a director you have been requested to submit a self assessment tax return, but have no other taxable income to report, then you can request for that notice to file to be withdrawn.

However if you meet any one of these following conditions then you must submit a tax return to HMRC:

  • You are repaying a Student Loan (unless already accounted for in your PAYE)
  • You receive Child or Bereavement Benefit (unless already accounted for in your PAYE)
  • Receiving Interest from Shares, Funds, & other investments
  • Receiving Foreign Income
  • Receiving Rental/Lettings Income
  • Receiving Dividends

The dates are independent of your companies accounting period and run from; 06/04/XX through to 05/04/XY, with the submission and monies that are owed sent through to HMRC by no later than 31/01/XZ.

It is wise not to leave filing your self assessment tax return till the last minute & at Taxfile we can help you get your figures correct so you only pay the correct amount of tax that you have to.  If we do your company accounts, then make sure we get any information about other sources of income in ample time.

Time is now running low, so call us on 020 8761 8000 if you need to get your Self Assessment Income Tax return compiled, computed, and submitted before the 31/01/2021 deadline.

Small Trader? Make the Most of These 2 Allowances!

Small Trader? Make the Most of These 2 Allowances!

Small trader? Make the most of these 2 allowances!

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

Making Tax Digital for Income Tax Self Assessment (MTDfITSA). Are you ready?

Making tax digital for Income Tax Self Assessment

The Government has now pencilled in what they regard as a firm date to implement MTD for ITSA, for all landlords and business owners that have an income above £10,000.

The next accounting period starting on or after 06/04/2023 that meet the above mentioned criteria will need to be compiled & submitted via MTD-compatible software.

If you are self-employed or a landlord with a turnover greater than £10k, how will MTD affect you?

1.  You will need to submit a quarterly summary of your businesses income & expenses to HMRC using MTD-compliant software.  Yes, you read that correctly.  No longer can you do your tax return in one go, with a lot of our customers leaving it to December or even January before they come to see us.  As your tax agents, we would need your business transactions every 3 months, to compile, compute, and submit through to HMRC.

The timing of the quarterly updates is determined by the accounting period of the business but typically the 4 quarters will be:

  • 6 April to 5 July
  • 6 July to 5 October
  • 6 October to 5 January
  • 6 January to 5 April

2.  All your income and expenses will need to be individually logged electronically.  The technical term used is that every business transaction will have an ‘electronic signature’.  These signatures will then be submitted to HMRC every 3 months and you will receive an estimated tax projection for the year based on the information provided.

3.  At the end of the year, any non-business information, foreign income, other income, etc is added to finalise your tax affairs and submitted using the MTD-compatible software.  This replaces the need for a Self Assessment tax return.  You will then have Read more

Making Tax Digital – A New Time Line

Making Tax Digital (‘MTD’) was announced as the new initiative by HMRC to revolutionise and modernise the tax system in the UK.

MTD centres around keeping digital financial records that can then be accessed by software to calculate and submit taxes through to HMRC. The goal is that there will be direct ‘digital link’ between the financial record and the software used to calculate and submit the records and therefore ensuring an accuracy in the figures being generated.

With initial teething problems, MTD for VAT started back in April 2019, and as a result of various delays around Brexit & COVID-19, it still has not sailed out of its ‘soft-landing’ period.

On 21st July 2020 the Treasury published a 10-year plan to modernize the UK’s tax system which outlines a blueprint for the transition of the UK’s tax system into the digital age.

MTD for VAT

Introduced in April 2019, MTD for VAT had a soft-landing period where the rules for this ‘digital-link’ were relaxed.  Prior to COVID-19, April 2020 was the date stipulated where all digital links were to be in place for submissions.

As a direct consequence of COVID-19, it has been now been stated that as of 1st April 2021, the ‘soft-landing’ period comes to an end and all VAT registered businesses submitting VAT returns will need to ensure they have these digital links in place for their submissions.

Furthermore, from April 2022, MTD for VAT will apply to all VAT registered businesses and not just those that have a turnover greater than the VAT threshold.

MTD for Income Tax

The 10-year plan targets 6th April 2023 for self-employed businesses and unincorporated landlords to begin reporting Read more