9 days to the tax return deadline

9 DAYS to the Self Assessment Tax Return Deadline!

9 days to the self-assessment tax return deadline!

[As at 22 January 2021]: There are only 9 days 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 a time-slot* with one of our helpful tax advisors and accountancy experts TODAY and we’ll make it easy! Read more

Last resort for tax returns this year

Every Day of January is the 31st

Every Day of January is the 31st

HMRC have announced that those members of the public not able to pay their taxes or submit tax returns on time will be able to appeal against the late filing penalties they will inevitably get this winter. From what we have been hearing HMRC are expecting everyone to have adequate proof of sickness. Does this mean that they will be expected to waste the time of the medical community who, if I am right, are rather busy these days?

What will happen if tax filers struggle with the HMRC online service and cannot get help over the phone, perhaps because HMRC are closing early, not open over the two Sundays, under-staffed on the helplines and rather strangely make you wait 40 minutes in a queue (which has been the case the past year)?

What are people to do?

Buy last minute accounting software from some of the companies climbing on the band wagon to further stress and pressure people into adopting overbearing products and systems designed for businesses not necessarily for sole traders, who probably use their personal bank accounts to get paid, so have mixed use issues? These software products are now being pedalled to the public as the fix-all solution — but who wants to have all their personal bank info imported into a tax and accounting package? Are people expected to analyse every minutiae and, in doing so, become experts on what they can claim or most likely not claim anyway! Or have to master percentages for use of things such as telephone, Internet usage and then apportion in the software (how does this work if at all)?

When I worked with the office of tax simplification we worked out what was actually happening in society and gave it credence;

  • People earn an income from dealing with their clients;
  • They may or may not provide materials or use tools;
  • They may or may not use transport;
  • They probably have some communication and technology costs;
  • Then they may have some professional costs like insurance.

It’s hardly rocket science.

When you come to use the HMRC software it leads you through the maze somewhat similar to the psychology of coping with your first orientation of a new Ikea store!

So I can tell you …

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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.

SEISS Grant – Round 3

Instead of constantly updating our original SEISS grant post we decided to create a new one as over the last month the government has chopped and changed the requirements, the dates, & the amount available due to the everchanging situation around the COVID-19 pandemic.

The points that need to be highlighted for the third extension of the SEISS grant are:

  • The prerequisite is the same as the previous two SEISS grants (changing from a prerequisite to be working if applying).
  • The amount is 80% for 3-months determined from your average trading profits like in the 1st SEISS grant application (changing from 20%, then 40%, then 80% for November & 40% for December and January)
  • Applications will open from 30/11 and will most probably follow suit of the two other applications, in that using your UTR & NI number you will then be given a date/time you can apply (changing from applications opening on 14/12/20).

If you need any help determining your application date or with the application then please call us on or after 30/11 on 020 8761 8000.

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.

Act NOW & get 5% Off 2019-20 Self-Assessment Tax Return Fees

Act NOW & get 5% Off 2019-20 Self-Assessment Tax Return Fees

Act NOW & get 5% Off 2019-20 Self-Assessment Tax Return Fees

Have you contacted us about your 2019-20 Self Assessment tax return yet?

If not, please get in touch early this month (November). You’ll save 5% or more¹ by acting right away. You’ll also avoid the coming bottleneck if you act now. So, please get in touch:

We’ll then confirm the next steps.

1. If you supply everything in time for us to submit your tax return by 30 November 2020, you’ll save 5% off our standard tax return fees. You’ll save even more compared to the higher prices that we’ll need to impose closer to the self-assessment deadline. Our prices will also increase very soon to cover weekend working and overtime to cater for those who leave it to the last minute. Please bear in mind that the pandemic lock-down will make things even harder than usual, so please act now and plan ahead.

2. Worried about COVID? There’s no need! We can do ‘virtual’ meetings instead, for example by telephone, Zoom, Teams, WhatsApp, Google Hangouts, Skype, Facetime or whatever suits you best. So, we don’t even need to meet face-to-face. Just give us a call on 020 8761 8000 to discuss your preferences. We’re here to help!

Taxfile are accountants and tax advisors in South London and the South West, with offices in Tulse Hill, Dulwich, Battersea & Devon.

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

Don't miss THIS on your self-assessment tax return!

Don’t Miss THIS on your Tax Return! (Checklist)

Don't miss THIS on your self-assessment tax return! (Checklist)

The standard Self-Assessment Tax Return includes all the usual areas that you’d expect to have to confirm to HMRC. These include the obvious things like personal details, information about income for the period in question, any assets, dividends, interest received, pensions and so on.

However, there are a number of additional areas that you need to check and confirm before the return is submitted and filed with HMRC. It’s not an exhaustive list, but things people sometimes miss and that you need to check you have allowed for (if applicable) include:

  • Employment Income — have you confirmed any employment income? Have you supplied Taxfile, if we’re your tax agent or accountant, with copies of P60’s and P11D’s. Did you have any employment expenses?
  • Self-Employment Income or Partnership Income — have you confirmed any self-employed or partnership income and relevant expenses? Have you supplied all CIS vouchers, invoices, cash income etc. if applicable?
  • UK Land & Property Income — have you confirmed any rental income and relevant expenses for each property you perhaps rent out?
  • Foreign Income — did you receive any foreign income? Have you confirmed it?
  • Trust Income — did you receive any trust income or are you treated as having received any trust income?
  • Capital Gains — have you sold any assets or investments which may be subject to capital gains tax e.g. a rental house, stocks and shares etc?
  • Residence — were you, for all or part of the year, not resident, not ‘ordinarily resident’ or not ‘domiciled’ in the UK?
  • Investment Income — have you confirmed any bank/building society interest, dividends, etc?
  • Pension Income — are you in receipt of any? It needs confirming if so.
  • Any other income received that doesn’t fit into any of the above e.g. Job Seekers Allowance, Tax Credits? Child Benefit is an important one, especially if one parent is earning £50k or more. Marriage Allowance is another.
  • Do you have a pension that you pay into? If so, how much did you pay for the period in question?
  • Have you given any money to charity? Higher rate taxpayers can usually get extra tax relief on this.
  • Do you have a student loan?
  • Are you subject to the High Income Benefit Charge?
  • Do you use a service company?
  • Have you been paying your National Insurance?
  • Have you been keeping good records?

Taxfile will always prompt you to check for things like these if you’re our customer, before we submit your tax return on your behalf. As we say above, though, the list is not an exhaustive one, so there may be other information we need, depending upon your individual situation. The list of what HMRC requires each year also Read more