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First SEISS Grant Application Deadline Day Looms

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First SEISS Grant Application Deadline Day Looms

Back in April, as a result of the Coronavirus pandemic, the Government announced the Self Employment Income Support Scheme (‘SEISS’), a taxable grant to support self-employed individuals and businesses affected by COVID-19.

The deadline for claiming this initial grant has been set as Monday 13 July 2020.

After this date you will no longer be able to claim for this first SEISS grant.

The 1st SEISS grant covered a 3 month period, for loss of income due to COVID-19, from April to June 2020. If you are eligible for this grant, you only have until Monday 13th July 2020 to make the claim. After this date the applications will close and you will have no means of applying.

Need Help?

If you have been putting it off, have not checked your eligibility status, or are unsure how to do so, then please call Taxfile on 020 8761 8000, and we can help you. Alternatively, fill in and submit the form below and we’ll be in touch.

(Interested in the 2nd SEISS grant? Click here).

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    Your Tax Return - All Wrapped Up for Christmas!

    Your Tax Return – All Wrapped Up for Christmas!

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    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

    Taxfile's Autumn Newsletter 2018

    Autumn Newsletter 2018

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    Taxfile's Autumn Newsletter 2018

    Those of you who are not on our mailing list may be unaware of our latest newsletter. So, we thought we’d post a little about it here, along with a link where you can download an Acrobat PDF version to read at your leisure.

    Keep on Top of your Taxes

    The Autumn 2018 Newsletter is packed full of articles and advice to help you get on top of your taxes, make sure you are aware of the services we offer and, above all else, ensure that you file your tax return in good time.

    It’s Tax Return Time! Act Now!

    When it comes to Self-Assessment tax returns, the main message is to act now. That way you will avoid the January stampede and any unnecessary, additional expenses.

    Key Contacts at Taxfile

    Along with other tax news and advice, we also include a very useful table of your key contacts at Taxfile. Simply choose the service you require and the key people responsible for helping you can be found alongside, including their email addresses for direct contact.

    Download Taxfile's Autumn Newsletter 2018Download the eNewsletter

    To find out much more, download the Taxfile Autumn 2018 Newsletter here.

    Professional Help to Get Your Tax Affairs in Order

    Taxfile are super-keen to help you through the maze of HMRC rules and tax regulations. We’ll get your paperwork, accounts, bookkeeping and tax returns all in order. Simple!

    Open for Saturday Appointments

    Taxfile’s Tulse Hill (SE21) office is now open on Saturday mornings, from 10am until 1pm, for pre-booked appointments. So, if you’d like to discuss any aspect of your tax and a weekend appointment is more convenient than a weekday, call 0208 761 8000 to book one or book an appointment online here.

    Holiday lettings: tax guide for landlords with furnished lets in the UK/EU

    A Tax Guide for Landlords with Holiday Lets

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    Holiday lettings: tax guide for landlords with furnished lets in the UK/EU

    Do you have a holiday cottage, flat or apartment that you rent out to holidaymakers? If so, our handy ‘Holiday lettings’ guide for landlords could be very useful to you — and it could save you money. It’s packed full of useful information and tax tips that will help you to make the most of your holiday property, at the same time as keeping on the right side of the tax man.

    The Pros

    We’ve written a section all about the tax breaks that apply to qualifying holiday lets. These include capital allowances for things you pay for when fitting out your holiday property, the tax treatment of expenses, the ability to pay pension contributions on your profits, several types of relief (some of which may affect your exposure to Capital Gains Tax) and small business rate relief.

    The Cons

    There’s also a section in the guide that covers some of the downsides to tax on holiday lettings. These include the need to get your VAT Registration status and charges right (where applicable) and also the tax treatment of any trading losses.

    Qualifying Conditions

    Lastly, there’s a section that outlines the qualifying conditions that apply if you want to treat your property as a holiday let rather than as an ordinary rental property. That’s important because different tax rules apply to each category and you could miss out on some excellent tax breaks if you don’t get it right. For example, the holiday rental property must be fully furnished and allow for self-catering holidays. Also, the property must be available for a particular number of days per year and be rented out in a particular way. It should not be occupied by the same tenant(s) for more than Read more

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

    Letting a Room through Airbnb? HMRC Tracks your Income!

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    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.

    Tax credits renewal deadline is just days away!

    Tax Credits Renewal Deadline Just Days Away – Don’t Miss Out!

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    Tax credits renewal deadline is just days away!

    If you’re claiming tax credits and haven’t yet renewed, then you’d be wise to pay very close attention to the following …

    Don’t Miss Out

    Tax Credits are payments made to eligible people with children and/or very low incomes. Examples include Tax Credits and Child Tax Credits and the payments are made by the UK Government. However, the scheme rules are complex and part of that includes a strict renewal process, with a built-in deadline.

    Renewal Deadline

    Alarmingly, even if you are already claiming tax credits, there’s a high likelihood that your payments will cease completely unless you take proactive steps to renew your claim to them by 31st July* 2018 — that’s just a few days away at time of writing, so there is no time to lose.

    * If your renewal pack states a different deadline, then that applies instead of 31st July in your case.

    How to Renew Tax Credits

    If you are claiming tax credits, you will be sent a renewal pack.

    If your renewal pack has a red line across the first page, then you will need to send a reply.

    Note that you can only renew your claim once you have received your renewal pack. Having received the pack, you should then ideally renew your tax credits online although see below for other options.

    Automatic Renewal

    If your form shows the code ‘TC 603 R’, you do not need to send a reply and your tax credits will be renewed automatically. However, you must make sure that you check the form carefully in case any of your details are incorrect. Should you fail to report any errors or to confirm any changes in your circumstances, your tax credits could stop or you could receive a fine. You can report errors and changes in circumstances using the Tax Credits Online Service.

    Online Renewals

    Renewing online is HMRC’s preferred method of renewal, via the Gov.UK website.

    Telephone Renewals

    To renew your claim to tax credits via telephone, simply contact the Tax Credit Helpline on 0345 300 3900 or textphone: 0345 300 3909.

    Postal Renewals

    You can also renew your tax credits claim by post. Send your claim to: Comben House, Farriers Way, Netherton L75 1AX. Make sure that your renewal claim arrives by 31 July and we also recommend sending by recorded delivery so you have some proof of the arrival date.

    What Next?

    You should hear back from HMRC within Read more

    Overseas assests - requirement to correct

    Undeclared Overseas Assets? Beware the ‘Requirement to Correct’ Deadline!

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    Overseas assests - requirement to correct

    What does this mean for me?

    If you are a taxpayer with overseas assets which are undeclared as regards income tax, capital gains tax or inheritance tax, you have an obligation to sort things out by 30 September 2018.

    People who ignore this requirement and whose income or assets subsequently come to light will face much, much higher penalties and sanctions after the deadline.

    Why bother now?

    The United Kingdom has signed up for information exchange with a whole host of other countries. The information it receives from them will be input into its intelligence system known as Connect. This increases the likelihood of undeclared sources coming to light.

    What if I do nothing?

    After the deadline date, if your undeclared sources of income or gains come to light, you will face potential penalties as follows:

    • A tax geared penalty of between 100% and 200% of the tax due;
    • A potential asset based penalty of up to 10% of the asset value where the relevant tax at stake is over £25,000 in any one tax year;
    • Adverse publicity from being publicly named as a tax cheat where the tax is over £25,000;
    • A further potential penalty of 50% of the standard penalty if the Revenue show that assets or funds have been moved in an attempt to avoid the requirement to correct.

    If you have a reasonable excuse for failing to correct your tax position, such as failing health for example, then penalties may be reduced or not charged in exceptional circumstances.

    Get Started:

    If you think you might be affected or are in any doubt, we suggest you act now to avoid any problems before the deadline.

    Call Taxfile on 0208 761 8000 for a no-obligation discussion if you want to put things right. Alternatively, book an appointment here. We have a wealth of experience in dealing with voluntary disclosures and negotiating settlements with HMRC, so can definitely help you. We offer tax advice and accountancy services from our offices in Tulse Hill, Dulwich and Battersea in South and South West London along with tax experts in Exeter, Plymouth, Poole, Dorset, Devon, Yorkshire and Carlisle.

    Capital Gains Tax Rule Changes for 2nd properties and property rentals

    Second Property & Rented Property ‘Tax Trap’ for the Unwary

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    New Capital Gains Tax rules for 2nd properties and property rentals

    Owners of second properties and let properties need to be aware that HMRC is planning to introduce new rules from 6 April 2020 to require payment of Capital Gains Tax much, much earlier! The window of payment will be reduced from 31 January following the year of the gain to a mere 30 days from the date of the sale.

    Effectively, ‘in year’ reporting of the estimated gains – and payment of the tax – is mandatory under the new rules. Failure to report the gains and pay the tax will lead to penalties for landlords and second home owners.

    You will only be able to offset losses accrued at the time of the disposal, so losses later in the year will not be available against the payment on account.

    Summing Up:

    • If you make a capital gain in 2018/19 (before the new rules kick in) you will pay the capital gains tax on or by 31 January 2020.
    • For the sale of a house that is let, or a second property, with exchange of contracts occurring on, say, 15 April 2020 with completion happening on 15 May 2020, the Capital Gains Tax (CGT) has to be paid by 14 June 2020. This accelerates the payment of the tax to the Exchequer by 7 months.
    • So, perversely, the later year requires the Capital Gains Tax payment before the earlier year, as you can see above!

    The other difficulty is knowing what rate to apply because a higher rate taxpayer has to pay 28% on a gain but a basic rate taxpayer has to pay tax at 18% up to the limit of the basic rate band that is unused. This is, of course, one situation where Taxfile can help to work out the tax implications for its customers. Tax calculations are what we do best and we’re here to help you!

    Note that Scottish tax rates may vary.

    HMRC is currently assessing feedback on their consultation, which closed on 6 June 2018.

    If you believe this change of rules is wrong, one option is to write to your MP to complain.

    Professional Help with Tax & Accountancy – for Landlords & More

    For help with accountancy and tax for any property, lettings or any capital gains situation you may find yourself in, contact your nearest branch of Taxfile. We have London offices in Tulse Hill (SE21), Dulwich, Battersea (SW8) and another in the Exeter in the South West along with additional tax consultants in Carlisle in the North of England, Yorkshire in the North East, Poole/Dorset and Plymouth in the West Country. Call 0208 761 8000 for an introductory chat or appointment, contact us here or click the bold links for more information. We’ll be happy to help and to get your tax affairs in order.

    Using 'Trading Income Allowance' to save tax

    Making the Most of your Tax Allowances for Small Trading?

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    Using 'Trading Income Allowance' to save tax

    Are you making the most of your tax allowances for small trading? If you have small earnings from self employment, then it may be advantageous to make a claim for Trading Income Allowance i.e. to claim a flat rate deduction of £1,000 for expenses instead of claiming the actual expenses incurred.

    Example:

    Christina has income of £2,360 and expenses for web hosting of £204, software of £103 and publishing costs of £430
    (total expenses £737).

    As her expenses are less than £1,000 she can claim £1,000 Trading Income Allowance in preference to claiming the actual expenses.

    Her taxable profit therefore becomes £1,360 instead of £1,623. So, she pays less tax!

    This is just one simple way in which Taxfile’s knowledge of the tax system can help its customers pay less tax in a totally acceptable way from HMRC’s perspective.

    Contact your nearest Taxfile branch

    Please do contact us for any accountancy work that you or your business(es) require. We’re tax experts and are also very well trusted by HMRC because we deal with them on a daily basis on behalf hundreds of clients. We have several UK branches including in Tulse Hill, Dulwich and Battersea in London, Exeter and Plymouth in the South West along with our tax specialists in Poole (Dorset), Carlisle in the North of England and Yorkshire in the North East. Call 0208 761 8000 or contact us here for more information — we’ll be happy to help you to get your tax affairs in order in the most tax-efficient way.

    Taxfile's new Battersea branch in London SW8

    New Battersea Branch – Now Open in London SW8!

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    Taxfile's new Battersea branch in London SW8

    Our new branch is now open in Battersea, London SW8. You’ll find it very convenient if you work nearby — we’re at Cloisters Business Centre, near Battersea Park Station, just off Battersea Park Road (A3205). You can park easily too – just pull into the business centre and you’ll find us opposite the church, on the ground floor with the brown door (unit 4). Come and see us there too if you’re an existing client and find Battersea more convenient than our Tulse Hill and Dulwich Village offices.

    During April & May, the Battersea branch is open from 11am right through to 7pm from Monday to Thursday — so you don’t need to take a day off work to come and see us. On Fridays we’re open 11am to 3pm by appointment and Faiz will be a familiar face to many that day.

    The new Battersea branch will especially suit construction workers in the building industry, which is very active in this location. Contractors who have set up as limited companies will find our CIS work, payroll and bookkeeping services very useful, affordable and convenient. Meanwhile, sub-contractors will like the fact that we’re experts at getting workers tax refunds and rebates, particularly if they’ve been working within the Construction Industry Scheme (‘CIS’). We claim thousands back from HMRC on their behalf every year.

    Call 020 7821 9444 for a free 20 minute consultation at the Battersea branch, or 020 8761 8000 for Tulse Hill, Dulwich and all other branches.

    Taxfile’s Battersea branch is at Studio 4, Cloisters House, Cloisters Business Centre, Battersea Park Road, London SW8 4BG. Opening hours: Mon-Thurs 11am-7pm (& Fridays 11am-3pm by appointment). Visit our new, stand-alone Battersea branch website for more details.