Happy New Tax Year!

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With the new tax year just around the corner, Taxfile offers you the opportunity to save some money on your accountancy bill just by presenting this voucher when you come to see us in our office in Tulse Hill or Dulwich.
So not only would you save money by getting this discount but also you get to join Taxfile and meet its multilingual team.To give you a better idea of what to expect, you can see bellow our colourful card:

So whether you are a builder and you qualify for a tax rebate , a landlord or a cab driver and you want to know your tax position in order to start saving towards your tax bill, Taxfile is here to take the strain.

Also, as many of you may have noticed a significant drop in your earnings due to the current financial crisis, by coming in early to see one of our experts you might be able to avoid paying your second payment on account for the following tax year, which is due in July.

We are looking forward to seeing you soon.

May the New Tax Year bring you less hassle and more money in your pockets!

Taxfile-Jobseeker’s Allowance

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Unemployment figures are now showing that just over 2 million people in the UK are out of work, this unfortunately means that when you are out of work you are not earning. Fortunately there is an allowance where if you are unemployed and available for work, you could qualify for something called Jobseeker’s Allowance depending on your circumstances.
To qualify for JSA, you must meet the following requirements:
•Be available for work
•Be able to work
•Be actively looking for work
Also you have to be under the state pension age, live in UK and not be working or working for an average of less than 16 hours per week.
There are two types of Jobseeker’s Allowance: Contribution-based and Income-based.
Income-based JSA (IB) is given to you if you are on low income, even if you have not made any National Insurance contributions in the past.
Contribution-based JSA (C) is dependent on your NIC record and is paid for a maximum period of six months. However if you did not earn enough to pay NICs, you many still be entitled to get JSA(C) if you were given NIC credits. This would have happened, if you were earning more than the lower earnings limit (£90 a week in 08/09 and £95 a week for 09/10), if you were unemployed or unable to work because of illness, and in some other circumstances.
If you are unemployed and either 16 or 17, usually you do not receive JSA unless you are forced to live away from your parents and will suffer severely if you don’t receive JSA or if you or your partner are responsible for a child.

If you are on JSA(C), you will receive £47.95 if you are aged 16-24and £60.50 aged 25 and over per week. For JSA (IB), you will receive a maximum weekly rate depending on your circumstances:
•Single people aged 16-24 – £47.95
•Single people aged 25 and over – £60.50
•Couples and civil partnerships (both aged 18 or over) – £94.95
•Lone parents (aged under 18) – £47.95
•Lone parents (aged 18 and over) – £60.50
Your payments might be reduced if you receive income from part-time employment or you will get less if you have savings over £6,000 and if you have savings over £16,000 you probably will not qualify.
In certain cases, a claimant’s Jobseeker’s allowance may be stopped.
One reason would be that you did not actively seek work or sign the Jobseekers Agreement. If this happens, your benefit will be automatically suspended until the date you complete and sign the agreement. Once this has been signed, you are still not guaranteed back all of your benefit, as a decision maker will decide how much you get back, if any.
Other reasons why your Jobseekers allowance could be stopped is if you miss a restart interview, if you voluntarily leave work or refuse a notified vacancy or if you refuse to attend a compulsory scheme or fail to comply with Direction. Doing any of the above could result in you missing a month’s benefit or having to renew your claim, which could take months.

If you wish to make a claim for Jobseekers Allowance, follow this link and it will take you to Job Centre Plus where you can type in your postcode to find your local Job Centre.
Taxfile’s tax agents hope you found this useful, and if you have any more queries regarding Jobseeker’s Allowance why not pop into our offices in South East London and Exeter. Our accountants and tax advisers would be happy to assist.

Disability Living Allowance

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Disability Living Allowance (DLA) is a tax-free benefit for people under 65, including children, who have normally care needs or encounter problems getting about.
Disability living allowance (DLA) is paid at different rates depending on how your disability affects you.
There are two types of disability living allowance:one is the care component and the other is the mobility component. You may be able to get one claim or even be entitled to both.
For the care component there are three types of rates. Lower, middle, and higher. To be eligible for the lower rate, you must need help or supervision for most of the day or be unable to cook a main meal for yourself. For this lower rate you would be entitled to £17.75 per week. If you were receiving the middle rate you would get £44.85 per week, this would be because you would need personal care continually through the day or night. To be entitled to the higher rate you would need help throughout the whole day and during the night as well, the higher rate pays £67.00 per week. Even if you live alone and no-one is actually giving you the care you need, you still can get the care component for Disability Living Allowance.
There are only two types of rates for the mobility component, lower and higher. To get this part of the disability living allowance, you must have difficulty in getting out and about. For the lower rate, you would get £17.75 per week if you need guidance or supervision out of doors or in unfamiliar places. For higher rate of this component, you would be entitled to £46.75. This would be because you are unable or virtually unable to walk, or if you have no legs or feet, also if you get very short of breath after only walking a short distance.
To claim DLA you must have needed help for at least 3 months and be likely to need it for another 6 months. However there are special rules that apply to people that have a terminal illness, this allowing them to get the allowance more quickly and easily. This must be claimed before you reach 65.
If you were to start getting the DLA there is chance it could increase your other benefits such as Council Tax Benefits, Working Tax Credits, Pension Credits, Income support, Housing Benefit and Child Tax Credit. This is because Disability Living Allowance is normally ignored as income for working out these income-related benefits and credits.
To claim for DLA, you can call the benefit line enquiry on 0800 88 22 00,download a form from the governments website or contact your local Jobcentre office or local social security office.
We hope you found this useful, and if you do have any more questions regarding anything to do with Disability Living Allowance, please feel free to pop into our office in South London, Tulse Hill, talk to our accountants and tax advisors in our Exeter office, or send us an email.

Foster Carers and their tax relief

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Fostering is looking after someone else’s children in your own home at a time when his or her family is unable to do so. Foster care relief applies to people who get income from providing foster care to children and young people.
Anyone receiving this type of income is considered by the tax office to be self-employed and therefore liable for tax.
If total receipts from fostering no dot exceed a certain amount, often referred to as qualifying amount, than the foster carer will be exempt from income tax for that year.
A qualifying amount is made up of two elements added together.
One element is the fixed amount of £10,000 per year for each household. Only a proportion of the fixed amount can be claimed if the foster carer is registered for less than a year.
The second element consists of an amount per week for each foster child which varies depending on the child’s age.
If total receipts from fostering exceed the qualifying amount than there are two ways of calculating your tax. One is called the profit method and it is calculated by deducting the allowable expenses from the receipts.
The other one is called the simplified method and is calculated by deducting from the receipts the qualifying amount with no additional relief for expenses. Capital allowances are not available if such a claim is made. The election must be made on or before the first anniversary of 31 January next following the end of the year of assessment to which it relates. If they do not make such an election the will need to calculate their profit in the normal way (the profit method).
As profits from fostering as treated as earnings from self-employment, than National Insurance Contributions will be due (Class2 £2.30 per week and Class4 8% on the profit).
As a foster carer need you to keep good records consisting of total receipts for the year from their local authority, HSS trust or independent fostering provider.You also need to keep a record of the number of weeks that you care for each child placed with you in the year.
Also you need to keep a record of the date of birth for each child.
If your total receipts from fostering exceed the qualifying amount and you are using the profit method than you would need to keep records of your expenses as well.
If you are a foster carer and need help with filling in your tax return, Taxfile‘s tax agents in South London and Exeter are here to help.

Taxfile will help you with tax & accounting

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We thought it was about time to say a little about ourselves – TaxFile.

TaxFile can help with your accountancy and tax issues whether you are an individual needing help filling in your self-assessment tax return, are someone needing assistance with a tax rebate, or are a large organisation needing full accounts work and payroll services. So if you need professional tax help, just drop into the shop or contact TaxFile.

Student Loan Deduction

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Student Loans are considered to be a financial support package for students in higher education in the UK with the Government’s help. They are available to help students meet their expenses while they are studying.
HM Revenue & Customs is responsible for collecting repayments of Student Loans in cases where the borrower is within the UK tax system and is no longer in higher education.
The loans are still administered by the Student Loans Company.
In most cases the employer collects Student Loan repayments by making deductions from the borrower’s pay .
The employer has the following responsibilities:
• making deductions of Student Loan repayments from thee the employee’s wages
•keeping records of the deductions made
•paying the deductions over to HM Revenue & Customs
•providing HM Revenue & Customs with details of the deductions at the year end
•giving the employee details of the deductions on their payslips
•identifying on form P45, when the employee leaves your employment, that they are liable to make Student Loan repayments.
There is an Annual Threshold, currently £15,000, below which Student Loan repayments are not due. Employers making Student Loan deductions apply a proportion of the threshold appropriate to the pay period in calculating the amount of Student Loan repayment to deduct.
The rate of deduction when calculating the amount of Student Loan deduction is 9%.
Deductions are made on a non-cumulative basis. In order to deduct the right amount from the employee’s pay than the employer has to look up the Student Loan Deduction Tables on the HM Revenue & Customs website.
If you need to know more about the way Student Loans deductions work out, Taxfile’s tax agents in South London can help you get a better understanding of it.

Hi, let me introduce myself! I’m Taxfile and this is what I do:

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• I deal with the Inland Revenue on your behalf taking the strain off you at a taxing time!

• I have over 10 years experience in helping individuals as well as businesses prepare their tax returns and accounts for the tax office.

• I can help you register as self-employed, guide you with your property lettings, set up a limited company or sort out your National Insurance.

• Also, I can assess your eligibility for tax credits ( Pension, Child,Working)or help you register as an employer. You might also need help with your payroll and your book-keeping.• If you need to register for VAT or you have a tax enquiry, I am here for your assistance.

So whether you’re a cab driver or a bricklayer, a painter or a landlord, I can help you with your tax return. I pride myself on providing a personal service at very reasonable rates. Visit www.taxfile.co.uk and judge for yourself!

Tax problem? You name it, I solve it!