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

Tax Returns for Self-Employed Londoners - Special Offer

Tax Returns for Self-Employed Londoners – Special Offer!

Tax returns for self-employed Londoners - Special Offer!
Are you self-employed? Are you late filing your 2018/19 Self-Assessment tax return? If so, now is the time to get Taxfile to sort it out for you.

There are 4 important reasons why you should file your tax return now:

1. Save money, with our special offer!

For a very limited time, we are offering to do 2018-19 Self-Assessment tax returns for self-employed Londoners for just £199 + VAT (our usual pricing is from £277 + VAT). That’s a saving of nearly £94 including VAT.

2. Stay eligible for Government Help during the lock-down

Self-employed people who are struggling financially during the coronavirus lock-down may be eligible for financial help from the Government. This is in the form of their recently announced Self-Employed Income Support Scheme (‘SEISS’). However, to remain eligible, you must have filed your 2018/19 Self-Assessment tax return by 23 April. If you miss that deadline, you will no longer be eligible for that Government assistance.

3. Avoid severe fines from HMRC for being so late

The original deadline for submission of your 2018/19 Self-Assessment tax return was actually 31 January 2020. So, if you didn’t already file your tax return by that date, you already owe HMRC a fine of £100 minimum. That’s nothing, though, compared to the penalties they will start charging you after April. From 1 May, you will owe an additional £10 per day, every day from that date if you still haven’t filed your 2018/19 tax return. So, for example, after a week you’ll owe the original £100 plus an additional £70 as a minimum, or the £100 plus a further £140 after two weeks and so on. You may also be charged interest on top of all of that if you owed HMRC a tax payment on the original 31 January deadline and still haven’t paid it.

4. You may be due a tax rebate

Some self-employed people may be due a tax rebate. This depends upon your

Wandsworth Council chooses Taxfile for its Tax Return Support Scheme

In an extraordinary measure to help its community, Wandsworth council has set up a Tax Return Support Scheme for those needing to do a 2018/19 tax return in order to qualify for the Self-employment Income Support Scheme (SEISS).

In response to COVID-19, SEISS will provide direct cash grants worth 80% of trading profits up to a maximum of £2,500 per month for self-employed individuals with profits of less than £50,000 per annum.  To be eligible for this scheme, you will need to have submitted your tax returns for 2018-19 by the extended deadline of Thursday 23 April.

To assist the community captured by Wandsworth council, the scheme is to help members submit tax returns when they otherwise might not have been in a position to do so.

At Taxfile we are delighted to be considered as one of their ‘local accountants’ who will advise and assist residents to complete their 2018/19 tax returns.   This service is provided by Wandsworth council for FREE, as the council covers the cost.

The submissions need to be sent to HMRC by no later than 23/04/20, so the council has placed a cut-off date 17/04/2020 to take advantage of their free support.

To be eligible for Wandsworth council’s Tax return Support Scheme you must;

 

  • Be a Wandsworth resident
  • Be self-employed (sole trader, freelancer or CIS contractor)
  • Have a Unique Tax Reference number (UTR)
  • Have made a profit of less than £50,000 or less in the 2018/19 tax year
  • Not yet have submitted your 2018/19 tax return
  • Not be a director of your own limited company

[UPDATE: Please note that the Wandsworth council’s scheme has now ended].

If you would like any advice, we offer a free 20-minute consultation, please call us on 020 8761 8000.

 

Late with your tax return and tax payment?

Missed the tax return deadline? What now?

Missed the tax return deadline? What now?

[Updated August 2020] If you missed the deadline to submit your self-assessment tax return, the first thing to know is that you are now into the penalty stage. HMRC applies an automatic £100 penalty to those who are even 1 day late (the deadline was 11.59pm on 31st January) and further penalties are added if you take even longer to comply. It’s worse, of course, if you also haven’t paid any tax owed as you’ll then owe interest too, so our advice is to pay as much as you can as soon as possible, so you’ll reduce any element of interest. However, if there is a genuine reason why you were late with your return, and it fits certain criteria, you have the option to appeal …

Circumstances that are taken into account by HMRC when considering appeals include:

  • if a close relative or partner died shortly before the tax return or payment deadline;
  • if you had to stay in hospital unexpectedly;
  • if you had a life-threatening or serious illness;
  • if your computer or software failed at the time you were preparing your online return;
  • if HMRC’s online services were disrupted;
  • if you were prevented from filing your return or paying your tax because of a fire, flood or theft;
  • if there were unexpected postal delays;
  • and occasionally other reasons which, if genuine, HMRC may deem to be relevant.

Excuses that aren’t usually accepted by HMRC include: Read more

Your Tax Return - All Wrapped Up for Christmas!

Your Tax Return – All Wrapped Up for Christmas!

Your Tax Return - All Wrapped Up for Christmas!

Urgent: rather than waiting until January, start sorting out your Self-Assessment Tax Return out right now.

Why now? Well, because every tax expert and accountant in the land is about to hit their busiest month in the accounting year — January. For tax professionals, January is a frantic time because everyone wants their tax matters sorted out at the same time due to HMRC’s deadlines. So, we have to take on extra staff, extend our opening hours and open at weekends — just to keep up with the demand. All of this costs extra money, so we have to increase charges a little during January to cater for the enormous increase in workload. January also becomes quite a bottleneck. In January alone, we are likely to have to prepare and submit around 500 Self-Assessment tax returns for our customers and that’s a very tall order.

So — act now & save money on your tax return

You can avoid extra charges by coming in to see us for your tax return now — well before January. It makes sense to come in early in November or December if you can. That way, we can have your tax affairs sorted in time for Christmas, avoiding the bottleneck. You can then relax in the knowledge that your tax matters have been sorted, ahead of the rush, at the best possible price.

Saturday opening

We’re open Saturday mornings at Tulse Hill from 9am until 1pm for a limited time. So, make the most of this opportunity and book a weekend appointment now, while it costs nothing extra.

Get a tax refund for Christmas!

We can help prepare and submit your Self-Assessment tax return and let you know the all-important amount of tax you need to pay or, indeed, may even be owed by HMRC. If you’ve overpaid tax, we could even get your refund for you in time for Christmas — what a Read more

Final day to submit your Self-Assessment tax return

Today is the Tax Return Deadline!

0 days to the Self-Assessment tax return deadline!

[As at 31 January]: TODAY IS THE FINAL DAY to file your Self Assessment tax return with HMRC. Miss the deadline (11.59pm on 31st January 2019) and you’ll straight away be in for a £100 fine from HRMC, so don’t delay — contact Taxfile AFTER 9AM to book an appointment with one of our helpful tax advisors and accountancy experts.

We’ll make filling in and filing your tax return a breeze and what’s more, we’re currently open 6 DAYS A WEEK from now until the end of January (Saturday mornings by appointment only). Don’t leave it to the last minute, though, as there is always a bottleneck for those who do — so come in as early as you can this week.

It doesn’t matter if you have zero tax to pay – you still need to submit your tax return on time! You also need to have paid HMRC any tax due for the 2017-18 financial year by the same 31 January deadline.

So get our professional help with filing of your tax return — you can book an appointment online, drop by the Tulse Hill shop or the Battersea office to book one, send us an email message via our contact form or, better still, simply call us on 0208 761 8000 and we’ll book you in and help sort out your tax return accurately and on time. Don’t delay — time is quickly slipping by and if you leave it too late you’ll be caught in the last minute bottleneck!

We’ll require your records, figures and receipts for the financial year 6 April 2016 to 5 April 2018.

* Please note: in extremely busy times such as January, a deposit may be required before commencement of appointments.

Taxfile's Autumn Newsletter 2018

Autumn Newsletter 2018

Taxfile's Autumn Newsletter 2018

Those of you who are not on our mailing list may be unaware of our latest newsletter. So, we thought we’d post a little about it here, along with a link where you can download an Acrobat PDF version to read at your leisure.

Keep on Top of your Taxes

The Autumn 2018 Newsletter is packed full of articles and advice to help you get on top of your taxes, make sure you are aware of the services we offer and, above all else, ensure that you file your tax return in good time.

It’s Tax Return Time! Act Now!

When it comes to Self-Assessment tax returns, the main message is to act now. That way you will avoid the January stampede and any unnecessary, additional expenses.

Key Contacts at Taxfile

Along with other tax news and advice, we also include a very useful table of your key contacts at Taxfile. Simply choose the service you require and the key people responsible for helping you can be found alongside, including their email addresses for direct contact.

Download Taxfile's Autumn Newsletter 2018Download the eNewsletter

To find out much more, download the Taxfile Autumn 2018 Newsletter here.

Professional Help to Get Your Tax Affairs in Order

Taxfile are super-keen to help you through the maze of HMRC rules and tax regulations. We’ll get your paperwork, accounts, bookkeeping and tax returns all in order. Simple!

Open for Saturday Appointments

Taxfile’s Tulse Hill (SE21) office is now open on Saturday mornings, from 10am until 1pm, for pre-booked appointments. So, if you’d like to discuss any aspect of your tax and a weekend appointment is more convenient than a weekday, call 0208 761 8000 to book one or book an appointment online here.

Capital Gains Tax Rule Changes for 2nd properties and property rentals

Second Property & Rented Property ‘Tax Trap’ for the Unwary

New Capital Gains Tax rules for 2nd properties and property rentals

Owners of second properties and let properties need to be aware that HMRC is planning to introduce new rules from 6 April 2020 to require payment of Capital Gains Tax much, much earlier! The window of payment will be reduced from 31 January following the year of the gain to a mere 30 days from the date of the sale.

Effectively, ‘in year’ reporting of the estimated gains – and payment of the tax – is mandatory under the new rules. Failure to report the gains and pay the tax will lead to penalties for landlords and second home owners.

You will only be able to offset losses accrued at the time of the disposal, so losses later in the year will not be available against the payment on account.

Summing Up:

  • If you make a capital gain in 2018/19 (before the new rules kick in) you will pay the capital gains tax on or by 31 January 2020.
  • For the sale of a house that is let, or a second property, with exchange of contracts occurring on, say, 15 April 2020 with completion happening on 15 May 2020, the Capital Gains Tax (CGT) has to be paid by 14 June 2020. This accelerates the payment of the tax to the Exchequer by 7 months.
  • So, perversely, the later year requires the Capital Gains Tax payment before the earlier year, as you can see above!

The other difficulty is knowing what rate to apply because a higher rate taxpayer has to pay 28% on a gain but a basic rate taxpayer has to pay tax at 18% up to the limit of the basic rate band that is unused. This is, of course, one situation where Taxfile can help to work out the tax implications for its customers. Tax calculations are what we do best and we’re here to help you!

Note that Scottish tax rates may vary.

HMRC is currently assessing feedback on their consultation, which closed on 6 June 2018.

If you believe this change of rules is wrong, one option is to write to your MP to complain.

Professional Help with Tax & Accountancy – for Landlords & More

For help with accountancy and tax for any property, lettings or any capital gains situation you may find yourself in, contact your nearest branch of Taxfile. We have London offices in Tulse Hill (SE21), Dulwich, Battersea (SW8) and another in the Exeter in the South West along with additional tax consultants in Carlisle in the North of England, Yorkshire in the North East, Poole/Dorset and Plymouth in the West Country. Call 0208 761 8000 for an introductory chat or appointment, contact us here or click the bold links for more information. We’ll be happy to help and to get your tax affairs in order.

Taxfile's May 2018 e-newsletter

May Newsletter – New Battersea Branch, Easy CIS Tax Refunds, Avoid £10 Daily Fines & More

Taxfile's May 2018 e-newsletter

Our informative May e-Newsletter is now ready to view online. It includes exciting news of our new branch opening in Battersea along with important tax and accountancy-related news that might affect you. Here is a quick summary of the newsletter’s contents:

  • The first article announces the opening of our new Battersea Branch in London SW8. New and existing customers are welcome to pop in and say hello and to get expert help with your tax affairs and accountancy requirements. Learn more about the opening of the Battersea branch, and the core services on offer, here or click the big button below to read the newsletter.
  • If you work on one of the many Battersea construction sites in or around SW8, we can help you reclaim overpaid tax and much more … see the newsletter for more details – click the big button below.
  • If you’re a sub-contractor working in the construction industry scheme (‘CIS’), you’re almost certainly due a tax refund (learn why here). Taxfile are experts at getting tax rebates from HMRC, so come and see us and we’ll get you the maximum refund possible. Read the newsletter (click the big button below) to learn how we make your tax refund application fast and hassle-free.
  • We can help limited company contractors too! We’re tax and accountancy experts so we can help you register as a limited company or register for CIS if you’re not already set up, we’ll help you with the monthly tasks demanded of you by HMRC including accounts preparation, confirmation statements, corporation tax handling, CIS set-off rebate, National Insurance (NI), VAT, bookkeeping, payroll and much more. We’ll save you time and will make operating the Construction Industry Scheme a breeze. Click the pink newsletter button below for more details.
  • If you introduce a family member, friend or colleague to Taxfile, you will get a discount off your next tax return if they sign up as a new paying customer with us. Click the button for details.
  • Taxfile recently printed some brightly coloured postcards to promote our new Battersea office and our tax-related services. Simply get in contact if you’d like some of these postcards to hand out to colleagues. If you write your full name on the back and use it to refer a colleague, it might even save you money! Click the button for more details.
  • Our team are multi-lingual and always happy to help. If English is not your first language, let us know and we’ll try to match you to the most appropriate staff member.
  • If you, your friends, family or colleagues have not dealt with your old tax returns, HMRC will be adding £10 per day to the penalty from 1st May. That’s on top of the £100 fine that will have applied immediately after missing the original 31 January deadline. Let Taxfile get your tax records, tax returns and overdue tax all in order so you don’t have to pay any more in fines than you have already. Learn more here or contact your nearest branch for a consultation.
  • All Taxfile clients get free ‘Tax Enquiry Fee Protection Insurance when they file their tax return through Taxfile by the statutory deadline. So – if you’re investigated by HMRC – our fees to sort it out are covered. Click the button for more details.

Feel free to Read more