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Taxfile newsletter (Autumn 2015)

Save money & hassle with our latest PDF newsletter!

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Taxfile newsletter (Autumn 2015)Check out our latest A4 newsletter — which is jam-packed with ways to save money when dealing with your tax affairs and is more comprehensive than our recent e-newsletter. Savings include our 5% Early Bird discount for help with your tax return or accounts before Christmas, our offer to reduce your Taxfile bill by a further 12½% if you introduce a friend who then becomes a Taxfile client, a shout out to all sub-contractors in the construction industry who, if they act fast, can have their CIS tax refunds in time for Christmas, plus Key Dates in the tax calendar, a warning to Landlords — and a whole lot more.

Download the newsletter here (Acrobat PDF format – right-click to save the PDF to your hard drive then open it in Acrobat Reader or alternatively left-click the link to view the newsletter directly in most browsers).

Airbnb in HMRC crack-down on hidden income from renting out rooms

Hosts renting out rooms to be targeted by HMRC

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Airbnb in HMRC crack-down on hidden income from renting out roomsHosts who rent out a spare room could soon see themselves being straddled with an unexpected tax bill if companies like ‘Airbnb’ are forced to share data with UK authorities.

Airbnb, the website that allows you to list, find or rent a room in a private residence, has announced that it now has to share details of its users’ rental profits with the tax authorities in Ireland. Airbnb was already required to share this information in America but, until now, has not been required to do so in the UK. However, HMRC are cracking down on unpaid tax from hidden income and this may result in companies like Airbnb soon having to share details of income earned by its UK customers.

Airbnb, which has headquarters in Ireland and America, say they are not currently governed by the same legalities in the UK and so will not be reporting income automatically in the UK but, as part of its crack-down on unpaid taxes, HMRC has said it will be approaching intermediaries like Airbnb for data on their clients. Read more

George Osborne

Highlights from the Chancellor’s Budget, 18 March 2015

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Along with some encouraging news about the UK economy, some interesting new measures were announced in the Chancellor’s Budget yesterday and below we highlight those which we feel will directly impact the majority of UK taxpayers:

  • As widely forecast, the tax-free allowance will increase. The amount people can earn before paying tax will rise to £10,800 from 2016-17 and then to £11,000 from 2017-18. At the same points in time, higher earners will also receive a two stage increase to the threshold at which they start to pay a 40% rate of tax, with the threshold increasing to £43,300 by 2017-18.
  • The Chancellor also announced a brand new Personal Savings Allowance whereby the first £1,000 of interest (£500 for higher rate taxpayers) will be tax tree. This new allowance will kick in from April 2016 and will take 95% of taxpayers out of savings tax completely. (Fact Sheet available here).
  • Another new scheme announced was the introduction of a new ‘Help to Buy ISA’ aimed at prospective first time buyers. This fairly generous scheme means that the Government will chip in up to £50 extra per month (up to a ceiling of £3,000) when an eligible saver saves up to £200 per month towards their first home. (Fact Sheet available here).
  • In another ISA reform, savers will now be able to withdraw money from a new Flexible ISA and deposit it back later in the same financial year without losing any of their usual ISA tax benefits. £15,240 will be able to be put into this re-styled savings vehicle. Read more
Tax return help & accounting advice for taxi drivers, cabbies, cab firms, couriers, limos and private hire firms. We're accountants in Tulse Hill, South London, SE21.

Missed the Tax Return Deadline?

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[Updated 3 February 2020]: If you missed the deadline for submission of your tax return to HMRC (that was 12 midnight on Saturday 31 January) here’s what you can expect in terms of a fine:

Table of penalties showing fines if you are late submitting your self-assessment tax return

In case you didn’t realise, you still had to submit a tax return even if you did not owe any tax and the longer you leave it, the more it will cost you — as you can see in the table above. Alternatively, use this excellent estimation tool to work out your exact penalty at any given point in time. Not sure if you even need to submit a Self Assessment tax return? No problem; there’s a tool for that too (here).

Statistically speaking, women seem to send in their returns on time more often than men; 18 to 20 year olds of either sex are the very worst with around 11% of them sending in their returns late in recent years, while those over 65 seem to be statistically the most reliable of all, with only around 1½% of them having filed tax returns late. We’ll have to wait and see how it panned out this year when the figures are in.

Taxfile are here for you if you need to get your tax return sorted out whether you’re on time or not – but the earlier the better if you’re to minimise any penalty from HMRC. We are professional accountants and tax advisors, are based in South London, and will help to get your tax affairs in order with minimal fuss. We will ensure that all your figures are correct so that you pay only the right amount of tax – no more, and no less. For professional tax help contact us or book an appointment on-line.

C.I.S. Subbies: claim your refund for Christmas!

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CIS Construction workers get a tax refund in time for Christmas![UPDATED]: Calling all subbies! Claim your refund in time for Christmas AND get a 5% discount on Taxfile prices if you submit your records to us before 21st December!

If you’re a sub-contractor working in the UK construction industry, the first thing you should do is register for CIS (the Construction Industry Scheme). This gives you your own unique tax reference and you effectively become self-employed from a tax standpoint. Taxfile can help set you up on the CIS system (we charge just £36 + VAT for this at time of writing).

Once enrolled, any earnings will automatically be taxed, at source, at 20%. However, with the personal allowance being set at around £10,600 per annum in most cases, this means that many subbies will have overpaid tax and will be due a refund at the end of the tax year. Taxfile are experts at recovering this type of tax for construction workers. We can analyse income, offset any applicable expenditure and allowances, work out the correct National Insurance and income tax, then submit an accurate tax return. 9 out of 10 subbies using Taxfile receive a tax refund within 3 to 4 weeks, many of those receiving in excess of £1000. Taxfile do more than 500 of these annually and Read more