MTD for ITSA and basis period reform - will it affect you?

Basis Period Reform (BPR)

MTD for ITSA and basis period reform - will it affect you?

Are you a sole trader or in a partnership? 

Do you have different accounting dates as the standard 6th April to 5th April? 

If you answered YES to both questions, some IMPORTANT changes will apply for the tax year 2023-24.

The “Basis Period Reform” (‘BPR’) will apply to you.

Any sole trader or partnership that does not have an accounting period ending between 31st March and 5th April (including 31st March and 5th April) will need to change the way they calculate their business profits for their 2023/24 tax return (and going forward).

If you have an accounting period ending between 31st March and 5th April then you may be affected in the 2023/24 tax year if you have unused overlap relief but on the whole these could be treated as ending on the 5th April.

The Basis Period Reform (BPR) means that Read more

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

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

Saturday Appointments Available in January - Book Now for Tax Returns Etc.

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

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

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

Christmas & New Year Opening Times at Taxfile

Christmas & New Year Opening Times at Taxfile

Christmas & New Year Opening Times at Taxfile

Season’s greetings to all our clients and readers and sincere thanks to all of you who have kept us busy with work during 2021 — we really appreciate it.

Here’s a quick reminder of our opening times during the Christmas period and into the New Year. This is for our Tulse Hill office (Thurlow Park Road) and our Dulwich office (Turney Road) except where otherwise indicated.

  • Friday 24 December 2021 (Christmas Eve): we’re open from 9am until 3pm (Tulse Hill office only).
  • Saturday 25 December 2021 (Christmas Day): closed.
  • Sunday 26 December 2021 (Boxing Day): closed.
  • Monday 27 December 2021 (a public holiday): closed.
  • Tuesday 28 December 2021 (a public holiday): closed.
  • Wednesday 29 December 2021: open 9am until 5pm.
  • Thursday 30 December 2021: open 9am until 5pm.
  • Friday 31 December 2021: open 9am until 3pm (Tulse Hill office only).
  • Saturday 1 January 2022 (New Year’s Day): closed.
  • Sunday 2 January 2022: closed.
  • Monday 3 January 2022 (a public holiday): closed.
  • Tuesday 4 January 2022: we re-open from 9am until 6pm.
  • Wednesday 5 January 2022: open as usual, 9am until 5pm.
  • Thursday 6 January 2022: open as usual, 9am until 5pm.
  • Friday 7 January 2022: open as usual, 9am until 3pm (Tulse Hill office only).
  • Saturday 8 January 2022: open 9am until 1pm by appointment (Tulse Hill office only).
  • Sunday 9 January 2022: closed.
  • From week commencing Monday 10 January: open as usual (see footer).

Have You Contacted Taxfile About Your Tax Return Yet?

If you need a self-assessment tax return or any other kind of return and haven’t yet arranged it with us, please arrange an appointment urgently. January becomes frantically busy in the accounting world, so please make the most of the remaining December appointments while they’re still available — thank you. Appointments are by telephone, Zoom, Microsoft Teams, in person (under safety protocols) … Read more

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

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

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

[Update for January 2022 available here]. Read more

SEISS: The 5th & Final Round

5th SEISS Grant - how to claim

HMRC has already started contacting possible eligible sole traders and partnerships for the 5th and final Self Employed Income Support Scheme grant announced by the Government last year.

HMRC’s online access for applications is due to open later this month (July) and the grant will cover the period 1st May 2021 through to 30th September 2021.  You can claim the 5th grant if you believe that your business profit will be impacted by coronavirus between these dates.

This round of grants requires turnover calculations to be done by the applicant, following four stages to determine the two turnover figures required in the application and hence, how much they will be eligible for.

  1. You will first need to work out your turnover (money received) for a 12-month period starting from any date between 01/04/20 to 06/04/20. Your figure must include the turnover from all your businesses.  You can ask us at Taxfile for your figure if we have submitted your 20/21 tax return.  If you haven’t yet done your 2020/21 tax return, it might be an opportunity to contact your tax agent at Taxfile and bring in your financial data for the period, so we can give you an accurate figure, as HMRC will be able to check the figures once you do submit your tax return.
  2. The second stage is to adjust the 12-month turnover figure by removing the monies received from any SEISS grants or COVID relief grants from the council/government.  Although these grants are viewed as subject to income tax and national insurance, they will not be considered as part of your 12-month turnover figure for the 5th SEISS grant.
  3. The third stage requires you to calculate a previous year’s turnover to use as a reference figure. This is the 2nd figure you will need for the application.  HMRC states that in most cases you must use the 2019/20 tax return as your reference year.  If for any reason 2019/20 was not a normal year, you can use the turnover reported in your 2018/19 tax return.  For ‘not a normal year’, HMRC has stipulated the following examples; being on carers or sick leave for a prolonged period, losing a large contract, reservist duties, or being eligible for the 5th SEISS grant but not having submitted a 21019/20 tax return.  The turnover for your reference figure can be found on the tax return summary we would have issued you.  If you need this figure, please do not hesitate to contact your tax agent on 020 8761 8000.
  4. The fourth stage is to compare the two turnover figures. Only when the figure from stage 3 (the reference year) is greater than that obtained for the 20/21 figure will you be eligible for the 5th SEISS grant.  Furthermore, if the 2020/21 turnover figure has reduced by 30% or more when compared to the reference turnover figure, the grant will be 80% of the 3-month average profits, with the maximum grant payment capped at £7,500.  If the 2020/21 turnover is less than 30%, the grant will be 30% of the 3-month average profits, capped at £2,850.
How we harness technology at Taxfile in Tulse Hill, Dulwich, Devon & Cornwall

Harnessing Technology at Taxfile

How we harness technology at Taxfile in Tulse Hill, Dulwich, Devon & Cornwall

The rapid pace of technological change has caused some of the biggest shifts in how we view and process our tax returns. At Taxfile, we’re constantly striving to use technology as effectively as possible to aid us in collecting, analysing, and collaborating when working on your personal data.

Over the pandemic, we’ve had to place our reliance even further on technology to maintain our standards, with regular meetings online. We’re constantly improving the efficiency of our work pipeline and, with the ability to pull figures directly from online bank statements, we can ensure precision in the numbers we present you with. For the last two years, we’ve implemented cloud technology as both a collaborative tool between our senior and junior staff and as storage for various databases used to track everything from employee working hours to the status of your tax return. We’re expanding further on this concept in collaboration with Pure Technology by merging our existing cloud systems with our current remote work solution to form one, all-encompassing workspace environment. Hosting it in the Microsoft Cloud ensures that, with the help of our office staff, your paperwork and bookings can be sent to and viewed by your tax agent as soon as possible. This and a variety of other endeavours are examples of our ambitions to be at the forefront of innovations, and constant review of our policies ensures we remain ahead, or on track, to meet the standards set by Making Tax Digital (MTD) for its 2023 launch.

Contact South London’s Favourite Accountant

Taxfile can help you with all your tax or accountancy requirements. We offer Read more

Faiz from Taxfile - Helping the Community with Tax Problems

Faiz from Taxfile – Helping the Community with Tax Problems

Faiz from Taxfile - helping the South London community with their tax problems

Hello; I’m Faiz Mazloumiar. I have been working for Taxfile since May 2005, mostly doing tax returns for subcontractors, self-employed individuals, partnerships and landlords. I specialise in helping clients who, for whatever reason, have fallen behind in their tax affairs, assisting in making disclosures to HMRC whilst trying to minimise the penalties imposed on them over the years. I always aim to put our customers first by calling HMRC to try to cancel recent years’ penalties, then I submit any outstanding tax returns. When I submit the tax returns I also do an appeal for older years’ penalties to be revoked. In many cases HMRC accept my appeals and clients get their money back for anything they have had to pay. I am always fighting for my clients and I have been known to battle on behalf of them for over a year.

I also help many people in our local community who are on PAYE but perhaps do not know if they are paying the right tax and NI contributions. It is a little like charity work. When people from the local community bring in their P60, I will check it and give them advice on how to contact HMRC and ask for a refund if they have overpaid. When new clients come with any problems, they are usually very stressed and anxious and sometimes don’t understand the intricacies of the UK tax system. We aim to help them with their tax problems, so they can leave us feeling relieved and a little happier. When I help clients they trust me and I have grown my client base only through recommendations. It is very exciting and satisfying for me to be able to help my clients and community as a whole.

Contact Taxfile, South London’s Favourite Tax Accountants

For any tax- or accountancy-related needs, contact us. We’d love to help! Call Faiz direct on 020 8655 7891 or speak to our main switchboard on 020 8761 8000. Alternatively message us your tax-related query here. We also offer a free 20-minute introductory appointment and this is available in person, through a video call (Zoom, Teams etc.) or via telephone — whichever you prefer. We are accountants and tax advisors in Tulse Hill, Dulwich, South London and Devon/Cornwall in the West Country.

This post was brought to you by Faiz at Taxfile.

4th SEISS Grant Available THIS Week

4th SEISS Grant Available THIS Week

If you are self-employed or a member of a partnership and have been impacted by coronavirus (COVID-19), the 4th Self-Employment Income Support Scheme (SEISS) grant will be available to those eligible from this week (w/c 19 April 2021), and the online service for the fourth SEISS grant is now online HERE

The grant covers the period from 01/02/2021 – 30/04/2021 and eligibility for the fourth grant is dependent on you having traded for both tax years:

  • 2019 to 2020 and submitted your tax return on or before 2 March 2021
  • 2020 to 2021

You must either:

  • be currently trading but are impacted by reduced demand due to coronavirus
  • have been trading but are temporarily unable to do so due to coronavirus
  • intend to continue to trade
  • reasonably believe there will be a significant reduction in your trading profits

The same criteria that were applied for the first 3 SEISS grants still apply & this grant will be 80% of your average trading profits for up to 4 tax years (2016/17, 2017/18, 2018/19, & 2019/20) for 3-months.

The closing date for the 4th SEISS Grant is 01 June 2021.

By now you should have received an email form HMRC stating when you can claim your 4th SEISS grant from.  If you need any assistance with your claim, please do not hesitate to contact us on 020 8761 8000 or email/message us here.