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

Guy Tells No. 10 to Extend Self-Assessment Deadline

Guy Tells No. 10 to Extend Self-Assessment Deadline

Guy Tells No. 10 to Extend Self-Assessment Deadline

Guy Bridger, Taxfile’s founder, has personally delivered a post card to Boris Johnson. He recently slipped it under the door of Number 10 Downing Street (there is no letterbox!).

The Issue with the Tax Return Deadline – & Guy’s Suggested Solution

In his communication to Boris, Guy suggested that the tax return filing deadline should be permanently extended, for example to the end of February, instead of 31 January as it is currently. In his proposed scenario, people would have longer to file their tax return. As well as taking the pressure off over Christmas, New Year and during January, this later deadline would also mean less likelihood of receiving a surcharge on the possible tax debt they owed for the last tax year’s calculation. Taking this a step further and with the help of video journalist David Gyimah, Guy has also been making a documentary about the tax return filing deadline and the immense pressure it puts people under during Christmas and the New Year — and especially during the entire month of January.

In contrast, limited company businesses currently have 9 months in which to file their accounts to Companies House and at the same time pay their taxes. Interestingly, they have 12 months to file their Corporation Tax return.

Guy & Taxfile

Guy has worked in South London for 25 years, dealing with members of the public and their tax responsibilities. At Taxfile, he has long-serving, thoughtful staff on hand six, sometimes seven, days a week every January. This is a measure of just how much work the current tax return deadline causes during this key accounting month every year. Taxfile makes it their task to remind — even nag — every customer about the deadline, as most of them will have to submit a Self-Assessment tax return by 31 January.

Consulting with the Office of Tax Simplification

Guy Bridger’s last visit to the Treasury was when he worked with The Office of Tax Simplification, resulting in the recognition that people actually prepare their self-employed accounts on a cash basis.

When Guy worked with John Whiting there, the other theme he was interested in was the idea that people who were sole traders perhaps didn’t need to form a limited company. This was because, in agreement with John and many members of the consultation body, it was our view 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

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

Watch out for scam emails, texts & calls

Watch Out – Fraudsters Are About!

Watch out for scam emails, texts & calls

Have you noticed a significant increase in the number of scam calls, phishing emails and dodgy texts to your mobile in recent weeks? We certainly have. Some of Taxfile’s customers have been asking if any are genuine, so we thought we’d send out this warning

If you receive a call, email or text from HMRC asking for your personal or financial details, it’s simple: DO NOT to give ANY information away via text, email or to someone calling you by telephone. They could be anyone! Your information will be used against you if it gets into the wrong hands — and that could potentially cost you a LOT of money. So if they call, text or email you out of the blue:

  • don’t confirm your date of birth,
  • don’t confirm your National Insurance Number,
  • don’t tell them your your mother’s Maiden name,
  • don’t confirm your Unique Taxpayer Reference (‘UTR’) or any other piece of personal or financial information,
  • … even if they say it’s urgent (most fraudsters will say it is, so as to panic you into divulging your information).

Even one bit of data given away can be dangerous these days. ‘Social Engineering’ scams can use one bit of information as a starting point to eventually build a more complete picture of your sensitive data. Once they have enough pieces of the jigsaw, they can potentially take over your identity, empty your bank account or go on a spending spree with a credit or debit card issued in your name. People have lost thousands! So, the message is to be careful not to give anything away via email, SMS/text or to someone who has telephoned you out of the blue.

If HMRC do send you a genuine email, text your mobile or call you, they will never ask for personal information, financial information or payment details. It may help you to check here to see a list of genuine communications that HMRC has recently sent.

If you’re going to give HMRC information and want to be sure it’s genuine, you need to Read more

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

TODAY is the deadline for submission of your tax return. Contact Taxfile for help filing & avoid a minimum £100 fine!

31 JANUARY was the Tax Return Deadline!

TODAY is the Self-Assessment tax return deadline!

[As at 31 January 2020]: 31st January was the last day to file your Self Assessment tax return on time with HMRC. Did you miss the deadline? If so, you’ll straight away be in for a £100 fine from HRMC, and if you continue not to submit your return, other penalties will soon also be added to your debt (click here for more details). So don’t delay — contact Taxfile 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 2018-19 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 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.