Posts

Don't Miss Out! Your Future Pension Needs YOU! - Check Your NI Contributions by April 5th, 2025

Don’t Miss Out! Your Future Pension Needs YOU! – Check Your NI Contributions by April 5th, 2025

/in , , , , , , /by

Don't Miss Out! Your Future Pension Needs YOU! - Check Your NI Contributions by April 5th, 2025

By Mohamed at Taxfile.

Have you ever thought about your pension? It might seem far away, but it’s super important to start thinking about it now! One of the key things that helps build your future pension is your National Insurance (NI) contributions.

What are NI Contributions?

Think of NI contributions like little building blocks for your future. When you work and earn money, some of that money goes towards your NI. These contributions help you qualify for things like the State Pension when you’re older.

Why is it Important to Check?

Sometimes, there might be gaps in your NI record. Maybe you didn’t earn enough in a year, were travelling, or something else happened. If you have gaps, it could mean you get less State Pension later on.

The Good News: You Can Fill the Gaps!

You can often fill these gaps by making voluntary NI contributions to fill the gaps between 2006 to 2018 This means you pay a bit extra now to make sure you have a stronger pension later.

Big Deadline Alert! April 5th, 2025

There’s a really important deadline coming up: April the 5th, 2025. This is the last day you can pay voluntary NI contributions to fill certain gaps in your record. After the 5th of April 2025, everyone will only be able to pay for voluntary contributions for the past 6 years.

Why the Rush?

  • Boost your pension because filling gaps means a bigger pension in the future.
  • Don’t miss out — after the 5th of April 2025, everyone will only be able to pay for voluntary contributions for the past 6 years.

What Should You Do?

  1. Check your NI record — it’s free and easy! You can check your NI record online through the government’s website.
  2. See if you have gaps — look for any years where you didn’t contribute enough.
  3. Think about voluntary contributions. If you have gaps, consider paying voluntary contributions.

Late with your tax return and tax payment? What happens now?

Missed the Tax Return Deadline? What Happens Now?

/in , , , , , , , , , , , , , , , , , , , , , , , , , /by

Missed the Tax Return Deadline? What Happens Now?

[Updated February 2025]: If you missed the 31 January deadline to submit your self-assessment tax return, you are now into the penalty stage. HMRC applies an automatic £100 penalty to those who are anywhere from 1 day to 3 months late. Further penalties are then added if you take even longer to comply. It’s even worse if you haven’t paid the tax owed to HMRC by 31 January because you’ll then owe interest on that too.

Our Advice if You’re Late

If you are late submitting your tax return and/or paying the tax owed, our advice is to:

  1. submit your tax return without delay;
  2. pay as much tax as you can as soon as possible*.
    By doing both, you’ll minimise the penalty and interest payable to HMRC.

* Payment of any historic tax for 2023/24 and prior years is best dealt with by the last day of February at the latest. Any amount that remains due for 2023/24 is considered late thereafter and will attract an automatic HMRC charge of 5%.

What if you Cannot Pay?

If you cannot pay (or have tax arrears) it’s important that you demonstrate to HMRC that you’re paying as much as you can — and as regularly as possible. The good news is that HMRC has a quick and easy facility for exactly this purpose. By calling 0300 200 3402, you can pay using a debit card. It takes only minutes and doesn’t require any explanation — give it a try!

You will need your tax reference and, after making a payment, will be given a payment reference.

Possible Excuses for Late Tax Returns

What are your options if there were genuine reasons, beyond your control, that stopped you being able to submit your tax return on time? Well, if you “took reasonable care to meet” a deadline and there was a genuine reason why you were late, you have the option to appeal. However, your circumstances must fit HMRC’s eligibility criteria. Let’s take a look at those below.

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;
  • if you have a disability of mental illness that affected the delay;
  • if you misunderstood your legal obligation, or were unaware of it;
  • if someone you’d appointed for the task (e.g. accountant or tax adviser) failed in their obligation on your behalf;
  • and occasionally other reasons which, if genuine, HMRC may deem to be relevant (for example, some Covid-related circumstances).

Excuses that aren’t usually accepted by HMRC include:

  • you didn’t receive a reminder from HMRC;
  • you found HMRC’s online system too difficult to use;
  • your cheque bounced or payment failed due to you having insufficient funds;
  • you made an error on your return.

Appealing Against an HMRC Penalty

You have the right to appeal against HMRC’s decision to issue you a penalty so long as it’s appealed soon enough after the penalty notice. That includes penalties for late tax returns or payments. Taxfile can help advise you about all of that (see below).

Taxfile are Here to Help

If your tax return is late, you owe HMRC tax, or are owed a refund by them, come and see us as soon as possible. Taxfile are accountants and tax advisors in Tulse Hill, South London. We’ll help to sort it all out for you with the minimum of fuss, at a competitive price. Come in as early in the month as you can and we’ll help you to sort things out — for the best possible outcome. We know the rules and liaise with HMRC every single day on behalf of our clients. So, if we can help convince HMRC to reduce or completely remove any penalty you may be facing, we will do so, so long as your circumstances fit the relevant HMRC criteria. You can only appeal within 30 days of the date of any penalty notice you receive, so the earlier you contact us the better – give us a call on 020 8761 8000 or fill in this short form and we’ll take it from there. Alternatively, book an appointment with one of our expert tax advisors to chat things over, without obligation. Payment plans called ‘Time to Pay’ arrangements may also be available for eligible people who cannot to afford to pay their tax in one lump sum — Taxfile would be happy to tell you more.

020 8761 8000 Book Appointment Get Started Here
Final day to submit your Self-Assessment tax return

31 January Was the Tax Return Deadline!

/in , , , , , , , , , , , , , , , , , , /by

TODAY is the Self-Assessment tax return deadline!

[As at 31 January 2025]: The 31st January is THE FINAL DEADLINE by which you need to file your Self Assessment tax return with HMRC. If you miss that deadline (11.59pm on 31st), you risk a £100 HMRC fine right away plus other significant penalties thereafter. Interest will also be charged from 1 February if tax is not paid by midnight on 31 January (rules apply).

Time is running out, so contact Taxfile for help with your tax return as soon as possible please. Book an appointment* with one of our helpful tax advisors and accountancy experts TODAY and we’ll make filling in and submitting your tax return simple!

020 8761 8000 Book Appointment Get Started Here

We’ll make filling in and submitting your tax return easy!

Come in as soon as you can for professional help with filing of your tax return. We’ll require your records and figures for the financial year 6 April 2023 to 5 April 2024 unless you have a different accounting period. Plus any previous years not yet submitted, if applicable.

* As well as a face-to-face meeting, we can do a ‘virtual’ meeting with you, for example using Zoom video, Microsoft Teams, FaceTime, WhatsApp, Google Hangouts — or whatever suits you best.

It doesn’t matter if you have zero tax to pay – you still need to submit your tax return.

020 8761 8000 Book Appointment Get Started Here

* Please note: in busy times like January, a deposit may be required before appointments commence.

Information You Need to Supply for Professional Help with Your Tax Return

Information You Need to Supply for Professional Help with Your Tax Return

/in , , , , , , , , , , , , , , , /by

Information You Need to Supply for Professional Help with Your Tax Return

If you’re self-employed in the UK, you need to file a self-assessment tax return each year. It’s not only the self-employed, though. If you are on a higher income* or receive untaxed income from property rental, savings, investments, or dividends, you also have to submit a return. Getting all the fields filled in properly and the figures right can sometimes be difficult, though. That’s where professional help will be worth its weight in gold. But what information will your accountant or tax advisor need from you? That’s what today’s post is all about, and we’ll explain exactly what information you’ll need to supply.

* (Those earning more than £100,000 currently, or over £150,000 from next year). Read more

Capital Gains Tax Hike: A Blow to Investors

Capital Gains Tax Hike: A Blow to Investors

/in , , , , , , , /by

Capital Gains Tax Hike: A Blow to Investors

October 2024’s Autumn Budget delivered a significant blow to investors with the announcement of increased Capital Gains Tax (CGT) rates. Today, we explore the new rates, how they will affect the sale of assets, and how investors can mitigate their effects.

The New Capital Gains Tax Rates

Effective from 30th October 2024, the basic rate of CGT will rise from 10% to 18%, and the higher rate will increase from 20% to 24%.

What This Means for Investors

These changes will make it more expensive for investors to realise gains from selling assets like shares, bonds, and cryptocurrency. This could lead to a number of consequences, including:

  • Reduced investment activity — investors may be less inclined to sell assets, particularly if they expect to make significant gains;
  • A shift towards tax-efficient investments — investors may seek out tax-efficient investments, such as ISAs and pensions;
  • A greater need for tax planning — investors may require more sophisticated tax planning strategies to minimise tax liabilities.

How Can Investors Mitigate the Impact of the CGT Increases?

Investors have several ways to mitigate the worst effects of the CGT rate increases. They can:

  1. Seek professional advice — a good tax advisor like Taxfile can help investors understand the full impact of the changes and develop a tax-efficient strategy;
  2. Review their investment portfolios to identify the potential tax implications of the new CGT rates;
  3. Utilise tax-efficient investments, for example, through the use of tax-efficient wrappers like ISAs and pensions;
  4. Time investments wisely — carefully timing the sale of assets may help to significantly reduce CGT liabilities.

Understanding Basis Period Reform for Self-Assessment Tax in the UK

Understanding Basis Period Reform for Self-Assessment Tax in the UK

/in , , , , , , , , , , , , , , , /by

 

Understanding Basis Period Reform for Self-Assessment Tax in the UK

Are you a sole trader or in a partnership? 

Do you have different accounting dates from the standard 6th of April to the 5th of Apri?

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

The concept of the basis period determines the time frame used to calculate taxable profits or losses for self-employed individuals, partnerships, and some trusts.  It marks a departure from the traditional “current year” basis, where business profits were taxed based on the accounting period ending within the tax year. Instead, it introduces a “tax year” basis, aligning taxable profits with the UK’s standard tax year, running from 6 April to 5 April. Read more

VAT in the UK: a comprehensive guide including what it is, the different rates, registering, returns, reclaiming it, the different schemes and more.

Navigating the VAT Landscape in the UK: A Comprehensive Guide

/in , , , , , , , , , , , , /by

VAT in the UK: a comprehensive guide including what it is, the different rates, registering, returns, reclaiming it, the different schemes and more.

Value Added Tax (VAT), a consumption tax levied on most goods and services in the UK, plays a significant role in the nation’s economy. Whether you’re a sole trader, limited company business owner or simply a curious consumer, understanding VAT is crucial for navigating the UK’s tax system effectively. Today’s comprehensive guide explains what it is, the various VAT rates, when you need to be registered for the tax, VAT schemes, and more. Read more

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

31st January was the Self Assessment Tax Return Deadline!

/in , , , , , , , , , , , , , /by

Today (31 January) is the self-assessment tax return deadline!

[As at 1 February 2023]: The 31st January was the Self Assessment tax return and tax payment deadline. Miss the deadline and you’ll be in for a £100 HMRC fine right away. Interest will also be charged from 1 February, as usual, if tax is not paid by midnight on 31 January (rules apply). Time is short, so contact Taxfile for help with your tax return as soon as possible please. Book an appointment* with one of our helpful tax advisors and accountancy experts TODAY — we’ll make it easy!

020 8761 8000 Book Appointment Get Started Here
Read more

Key Takeaways from the Spring Statement 2022

Key Takeaways from the Spring Statement 2022

/in , , , , , , , , , , /by

Key Takeaways from the Chancellor of the Exchequer's Spring Statement 2022

The Chancellor Rishi Sunak unveiled his Spring Statement for 2022 on 23 March and in some ways it was more like a mini budget.

Key takeaways from the Spring Statement include:

  • The earnings threshold at which you start to pay National Insurance Contributions (NICs) will increase to £12,570 from July 2022. This is currently set at £9,880 (correct at time of writing, March 2022), so will leave people with more money in their pockets.
  • Class 2 NICs for the self-employed will also reduce, from April 2022, to zero for profits between £6,515 and £9,568
  • 5p per litre has been cut immediately from fuel duty.
  • The basic rate of income tax will reduce from 20% to 19% starting in April 2024.
  • The Employment Allowance will increase to £5,000 per annum from April 2022. Currently it’s set at £4,000. The allowance reduces the NICs that employers have to pay.
  • VAT on materials that save energy will be reduced from 5% to zero from April 2022. This should reduce the cost of things like solar panels, heat pumps and insulation.
  • Councils in England will be able to pass on their share of an additional £500m in extra Government support via the Household Support Fund. The new tranche is for the period 2022/23. The fund helps vulnerable residents, via councils, with short-term help with things like fuel and household bills, food, clothing and other essentials. The previous tranche ends on 31 March 2022, so this is timely.

Watch the Chancellor’s 28 minute Spring Statement 2022, as delivered to the House of Commons, in the video above (skip any adverts). Alternatively get all the detail in the House’s briefing summary here. There’s also a Read more

New Taxfile Brochure - Download Here

New Taxfile Brochure – Download Here

/in , , , , , , , , /by

New Taxfile Brochure - Download Here.

The new Taxfile brochure is out and you can download it here. Even if you’re an existing client, it’s worth taking a look in case we can help you in ways you weren’t aware of. We can help anyone e.g. the self-employed, directors of limited companies, partners in partnerships, sole traders, retired people, landlords, taxi and cab drivers, construction workers and just about anyone.

The new brochure covers:

  • Self-assessment income tax returns;
  • Services for SMBs;The new brochure from Taxfile - accountants and tax advisers in Tulse Hill, Dulwich, South London & the South West.
  • Accounts work for limited companies;
  • Bookkeeping and bank reconciliation;
  • Payroll & PAYE tax and National Insurance, company pensions and more;
  • VAT help, including for VAT schemes, registration and VAT returns;
  • Company pensions (auto-enrolment etc.);
  • Corporation Tax returns;
  • Confirmation Statements;
  • Making Tax Digital (MTD);
  • CIS calculations and tax rebates for construction workers;
  • Help with tax complications;
  • Taxfile brochure - inside spread.Dealing with HMRC on your behalf;
  • Joining or leaving various tax schemes;
  • Capital Gains Tax (CGT) calculations and handling;
  • Tax calculations relating to property income for landlords;
  • Disclosures of income not previously taxed (e.g. from abroad);
  • And much more.

Forward to a Friend – Free Consultation

Please feel free to forward the new Taxfile brochure to a friend who could benefit from our accountancy and tax-related services. We offer a free 20-minute consultation for new clients, without obligation.

020 8761 8000 Book Appointment Download Brochure

We are open 6 days a week during February including Saturday mornings (by appointment) and later opening (until 6pm) on Mondays and Tuesdays.