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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

Over 400 tax returns submitted

We Submitted Over 400 Tax Returns in January!

Over 400 tax returns submitted

Taxfile prepared and submitted more than 400 Self-Assessment tax returns for clients during January. That’s about a hundred a week and goes to show just how busy it gets for us during January, the busiest month in our accounting calendar.

Did you submit your tax return on time?

The deadline for submission of your tax return (and payment of any tax due) was 31st January at midnight. Did you manage to submit yours in time? If not, you’re already into the ‘penalty’ period where HMRC basically fine you for being late. The penalty comes in the form of an initial £100 fine but that increases, potentially very significantly, as you get later and later with your tax return submission. If you look at the table below, it’s safe to say that you can end up owing a thousand pounds or more if you bury your head in the sand and are 3 months late, or more.  If you continue to leave your tax payment and tax return submission outstanding for six months or more, the penalty is £1300 as a minimum – perhaps more (it depends upon how much tax you owe).

Late return penalties by HMRC

Is your tax return & tax payment late? Taxfile can help!

If you are late submitting your tax return or paying tax and don’t know how to straighten things out, don’t Read more

Christmas & New Year Opening Times at Taxfile

Christmas & New Year Opening Times at Taxfile

Christmas & New Year Opening Times at Taxfile

Please take a look at the calendar above and note our opening times over Christmas and New Year. As you can see, we’re closed on several days over the festive period. This is particularly important for those who need to come to see us for help with time-sensitive accounting and tax-related services in the run-up to January 31st.

Need Help Filing Your Tax Return?
Make an Appointment NOW!

In particular, we urge anyone who needs to file a 2017/18 Self-Assessment tax return to come and see us well before Christmas. By doing so, you’ll avoid the last minute stampede — way too many people leave it until January, which is the busiest time in the tax and accounting calendar. While the HMRC deadline for tax returns is the end of January, you run the risk of being caught up in the bottleneck if you leave things later than December. Taxfile files tax returns for thousands of customers during November, December and January, so we’re incredibly busy at this time of year — particularly January, which is frenetic! So, those leaving it until the last minute not only run the risk of being charged more to cover the long hours and overtime that we need to work during January, but they also risk receiving a fine from HMRC if they miss the deadline completely because they left things so late.

So the message is: please book an appointment with us now, ideally for a date before Christmas.

For Self-Assessment tax returns, records for the period 6th April 2017 to 5th April 2018 are required. For business accounts, we will also need to do accounts based upon the business’s individual year end.

Open for Saturday Appointments

We are happy to see people on Saturdays at this busy time of year (with the exception of the festive closures of course – see the calendar above). Saturday morning appointments should be more convenient for those who work on weekdays. As you can see on the calendar, we’re open from 10am to 1pm for most Saturdays in December and January but only for those with a pre-agreed appointment.

To book an appointment, please call 0208 761 8000 or book an appointment online here. Many thanks.

Letting a room through Airbnb? HMRC tracks your income & data!

Letting a Room through Airbnb? HMRC Tracks your Income!

Letting a room through Airbnb? HMRC tracks your income & data!

Back in late 2015, we forewarned that HMRC was planning to force on-line companies like Airbnb to share customer income data with them. That plan has come to fruition and HMRC is now receiving detailed information from Airbnb and other online providers. The data will tell HMRC about lettings income that may have been previously falling under their radar.

Airbnb is an on-line marketplace where people can rent out rooms, cottages, apartments and suchlike to those looking for short-term accommodation, city breaks, holidays or lower cost alternatives to hotels and overnight business stays.

We understand that various on-line providers, including Airbnb, are now exchanging information with HMRC. HMRC then uses their analytical tool “Connect” to track and monitor income from such sources. This powerful application was developed by BAE Systems and is the most advanced data gathering tool HMRC has at its disposal.

So, if you let property or a room on Airbnb, you can expect detailed information to be passed to the Revenue about your letting activities and the income it generates. While you may currently be able to earn up to £7,500* per year tax-free for furnished accommodation under the Government’s ‘Rent a Room Scheme‘, care needs to be taken to submit a tax return and pay tax on any income received once you have gone over that limit. Higher rate taxpayers also need to take care if their rental income pushes them into a higher tax bracket.

In order to qualify under the Rent a Room Scheme:

  • The room must be furnished;
  • The relief cannot be used if you let your home whilst living abroad;
  • The accommodation provided cannot be office space or business space.

Changes arriving in 2019:

HMRC recently held a consultation with relevant professionals and the public about whether the scheme should continue in its present form. Following this, they have announced that the scheme will be more restricted; landlords who do not live in their “main residence” at the same time as their tenants will probably no longer be able to claim “rent a room relief” from 6 April 2019.

Tax Help & Advice for Lettings Income

If you need our help handling your lettings tax needs, Taxfile is here to assist you. We’re tax experts and can guide you through the maze of rules and regulations concerning lettings, renting out accommodation, tax thresholds, knowing when it’s appropriate to work under the Rent a Room Scheme, whether you can claim expenses and so on. Book an appointment at your nearest Taxfile office: for Tulse Hill in London SE21 book an appointment on-line here; book here for Dulwich in SE21; for Battersea in SW8 book your appointment here or for Exeter and the South West, book your appointment here. We also have tax advisers who are available in other UK locations including Poole in Dorset, Carlisle, Yorkshire and Plymouth. Alternatively, simply call 0208 761 8000 or send us an email here and we’ll be happy to help to get you on the right track.

Learn more about our services to landlords and those earning an income from property lettings here.

* Correct for tax years 2016-17 and 2017-18. For tax year 2015-16 the threshold was only £4,250. Also note that the current year’s threshold reduces to £3,750 if someone else, for example a joint owner, receives lettings income in the same property.

Christmas & New Year Opening at Taxfile

Christmas & New Year Opening at Taxfile

Christmas & New Year Opening at Taxfile

The Taxfile Team would like to wish all our readers and customers a very happy festive season and to pass on our very best wishes to everyone for the New Year.

Taxfile will be open as usual until Saturday* 23 December. We then close briefly for Christmas Day and Boxing Day (Monday 25 & Tuesday 26 December respectively).

We will be open again as usual from Wednesday 27th to Saturday* 30th December, then closed for the New Year’s celebrations until Tuesday 2nd January 2018 when we re-open again —from that date it’s back to our usual working hours. Here are the full details:

  • Thursday 21 December: open 9am – 5pm
  • Friday 22 December: open 9am – 3pm
  • Saturday 23 December: open 10am to 1pm (by appointment only)
  • Sunday 24 December: closed
  • Monday 25 December (Christmas Day): closed
  • Tuesday 26 December (Boxing Day): closed
  • Wednesday 27 December: open 9am – 5pm
  • Thursday 28 December: open 9am – 5pm
  • Friday 29 December: open 9am – 3pm
  • Saturday 30 December: open 10am -1pm (by appointment only)
  • Sunday 31 December: closed
  • Monday 1 January 2018 (New Year’s Day): closed for the Bank Holiday
  • Tuesday 2 January onwards: open as usual Mon-Tues 9-6, Wed-Thur 9-5, Fri 9-3, Sat 9-1 (by appointment)

*Saturday morning opening is from 10am to 1pm and is for appointments only, so do book an appointment if you’d like to discuss anything with us at the weekend rather than during the normal working week.

Last few free 20 minute appointments – act fast if you’d like a free tax consultation!

If you would like a free 20 minute consultation for any tax matter, please book a date before the end of December as we pause free consultations during our busiest month of the year – in January we are swamped with tax return deadlines and have to concentrate on hitting those on behalf of our customers. Free 20 minute consultations will, of course, resume from 1st February.

You can book an appointment online here or simply call 0208 761 8000 (07766 495 871 after office hours) to arrange one with our tax professionals.

The Taxfile Team wishes you all a very happy festive season and our very best wishes for the New Year. Thank you too for your custom during 2017 — we really appreciate it. Here’s to 2018 when it arrives!

Self-assessment tax return help

Tax Return Reminder: Beat the Last Minute Rush & Save Money!

Self-assessment tax return help from Taxfile

Beat the tax return deadline AND save money by acting fastIf you’d like our help with your Self-Assessment tax return, please do try to get your records and figures to us before 10th of January if you want to avoid the last minute rush and save money – there will be slightly higher charges for our help from that date (inclusive). This is to cover extra staff and overtime required during the the final part of January – our busiest time of the year – when we can deal with all the last minute returns for those who have left it until the last minute. So, save hassle, avoid the last minute bottlenecks and also save yourself some money by getting your records and figures to us well before 10th January if at all possible. We can still help thereafter, of course, but it’ll cost you a little bit more.

For individuals, your figures, records and, where applicable, receipts are required for the financial year 6 April 2016 to 5 April 2017. (For business accounts, of course, we will also need to do accounts based on the business’s individual year end).

Either book your appointment online at taxfile.co.uk/appointments/ or call the office on 0208 761 8000 (07766 495 871 after hours). If English is not your first language we can still help, as our team speaks a variety of languages.

Please don’t leave it to the last minute – thank you.

Taxfile Autumn 2017 Newsletter

Taxfile’s Autumn 2017 Newsletter

Taxfile Autumn 2017 Newsletter

The Autumn 2017 edition of Taxfile’s newsletter is now out and it’s packed full of useful information, tips, recommendations and key dates in the tax and accounting calendar, including some things you need to act on right away if you want to save time and money. Here is a quick overview of the articles:

Page 1:

  • Self-Assessment Tax Return Deadline Approaches – Act Now!
  • Late with your Tax Return & Tax Payment for a Previous Year?
  • Taxfile Now Open Saturdays by Appointment
  • Deadlines & Key Dates
  • The Future is Digital

Page 2:

  • Accounting for VAT
  • Have you made a Capital Gain?
  • Assets Overseas? Non-Resident Landlord? Read This!
  • Do you Employ People?
  • C.I.S. Sub-Contractors: Claim your Tax Refund for Christmas!
  • Tip!

Page 3:

  • The Benefits of Using Taxfile
  • All Your Tax & Accounting Needs Taken Care of
  • Tax Affairs in a Mess?
  • Who Works at Taxfile?
  • Thank You

If you haven’t already received a copy by email, then view the newsletter online here or Read more

Chancellor Philip Hammond's Autumn Budget Statement, 22 November 2017

The Chancellor’s Autumn Budget 2017

This week, Chancellor of the Exchequer Philip Hammond delivered his Autumn Budget Statement to the House of Commons. View his full 1 hour speech in the official UK Parliament video below, which also includes a response from Jeremy Corbyn, leader of the opposition:

The biggest news from this budget was the Stamp Duty announcement, wherein first time buyers buying a property up to £300,000 in value will no longer pay Stamp Duty at all (saving £5k), nor pay it on the first £300,000 of homes costing up to £500,000. Money man Martin Lewis gave his take on the proposed Stamp Duty changes and answered frequently asked questions pertaining to exactly what defines a first time buyer in an interview on Good Morning Britain yesterday — here is a 5 minute clip:

Other winners included

  • The Personal Allowance, which is the amount people can earn before they need to start paying income tax, is set to increase by £350 from £11,500 to £11,850 for those earning up to £100k per annum.
  • The National Living Wage (NLW) will increase from £7.50 to £7.83 per hour from April 2018. This will affect UK workers aged over 25.
  • The Chancellor promised investment of £160m in 5G mobile networks …
  • … and a total of £550m for electric cars.
  • He also set aside an additional £1.5 billion in Universal Credit to help those on benefits.
  • £40m was set aside for a teacher training fund for under-performing schools in England.
  • NHS England is to receive £2.8BN in investment (less, though, than the £4BN NHS bosses said is needed).
  • From April 2018, the Consumer Price Index (CPI) is set to replace the Retail Price Index (RPI) as the inflation measure through which business rates will be calculated. It is anticipated that this change will save businesses £2.3BN in the first three years of the change.
  • The Chancellor also abolished the very unpopular staircase tax and promised that those affected to date by the staircase tax would see original rates reinstated. Revaluations will take place every three years (previously five) after the next scheduled revaluation in 2022.

Losers included:

  • The Chancellor revised down the growth forecasts for GDP, productivity growth and business investment.
  • £3BN was set aside for helping to combat Brexit challenges.
  • For second property owners, powers have been given to local authorities to charge a 100% council tax premium on empty houses. (See our note about those getting an income from property rental below).

If you have any questions about how the Autumn Budget might affect you, or any queries about any tax or accounting issues and requirements you may have, simply contact Taxfile on 0208 761 8000, send us a message here or book a 20 minute appointment online here and we’ll be happy to help. We also offer specific tax help and accounting for landlords so do get in touch if you would like to make sure you’re claiming no more and no less than you should if you’re getting an income from letting property.

Links to more detailed HMRC information about the Autumn Budget Statement can be read online here.

Tax returns & tax refunds, South London

Need help with your 2016-17 tax return?

Tax returns & tax refunds, South London

Act fast to save money!

[Updated 21 December 2017] Do you need Taxfile to sort out and file your tax return? We’d be very happy to help and do well over 1000 Self Assessment tax returns for customers every year.

However you need, please, to start giving us your paperwork ideally during December or, at a push, up to the 10th January 2018 absolute latest if you are to avoid the price increases that may come into effect thereafter. (Price increases are sometimes necessary during the busiest accounting months of the year in order to cover the extra staff needed, overtime for long hours, evening and weekend work, particularly to work on returns for those who have left it until the last minute. After 10th January, the accounting world goes mad as everyone tries to hit the January tax return deadline all at the same time — we’ll have something like 400 last-minute tax returns to do in one crazy month). So the message is:

Avoid both the bottlenecks — and a likely price increase from 10th January 2018 — by coming to see us for your tax return as soon as possible. You can book your appointment online at taxfile.co.uk/appointments/ or call the office on 0208 761 8000 (07766 495 871 after hours). If English is not your first language we can still help, as our team speaks a variety of languages.

Please don’t leave it to the last minute – thank you.

We’ll require your records, figures and receipts for the financial year 6 April 2016 to 5 April 2017.