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Accountants for Uber Drivers – Are They Needed?

Accountants for Uber Drivers – Are They Needed?

Are you an Uber driver? If so, you need to ensure that you submit an accurate self-assessment tax return each year and, with new rules and data sharing now in place, it’s never been more important to get your figures right. You may therefore be wondering whether you need an accountant. Today’s guide gives Uber drivers an overview of the main rules for complying with HMRC, what they need to supply, and how accountants like Taxfile can help drivers with accounting, bookkeeping and self-assessment tax returns each year. By getting these right, Uber drivers will minimise tax, keep on the good side of HMRC and fulfil their tax obligations. Doing so will also help them avoid a financial mess and, potentially, nasty penalties from HMRC.

Do Uber Drivers Need an Accountant?

As well as doing the job of driving, Uber drivers need to report their earnings and pay any taxes and National Insurance due to HMRC. This needs to be done accurately and on time in order to avoid HMRC penalties. This is more important than ever now because, since 1 January 2024, digital platforms like Uber will be legally required to report drivers’ income directly to HMRC. Professional drivers will therefore need to be 100% accurate in what they report and pay in terms of tax. Therefore, getting expert help from an Uber accountant is recommended — and the accountancy fees are tax-deductible.

“The regulations will support the government’s work to help taxpayers get their tax right first time, and to bear down on tax evasion.” (HMRC)

As part of the process, Uber drivers will need to submit an accurate self-assessment tax return each year. At the time of writing (July 2024), the next one they will need to file with HMRC is for the tax year 2023-24. The deadline is in January 2025 (or 3 months earlier if filing via the old-style paper tax return).

“Drivers remain self-employed for tax purposes and still have to complete an annual tax return.” (Uber.com)*

Tempted to Do Your Own Tax Return?

When Uber drivers log into their Uber account, they will have access to a tax report which shows their earnings and expenses. It may be tempting to use only this information to do their own Self-Assessment tax return. However, the information supplied via the Uber account will not include capital allowances on vehicles purchased and potentially many other claimable expenses like those that we highlight later in this guide. In other words, they could lose out — and pay more tax than they need to! That’s a major reason why employing an accountant like Taxfile makes sense for Uber drivers.

Taxfile: an Uber Driver Accountant in South London

Taxfile’s accountants and tax agents work with many professional drivers every year, including Uber drivers. We are therefore experts at working out income, expenses, National Insurance, income tax, and compliance with HMRC requirements and deadlines. This culminates in us submitting hundreds of self-assessment tax returns for drivers every year. For professional drivers working through digital platforms like Uber, we work out drivers’ income and help to reduce any tax liability by offsetting all eligible expenses. We also help drivers register for Self Assessment when they first start. This gives them a UTR number, which is needed in order to file a tax return.

What Expenses Can Uber Drivers Offset Against Tax?

There are several expenses that Uber drivers can potentially offset against income in order to reduce tax. As you might expect, many stem from the use of a vehicle for the business. Examples include:

  • The part of the driver fees paid to Uber;
  • Road tax;
  • The cost of MOT tests;
  • The cost of maintaining the vehicle e.g. servicing, cleaning and repairs;
  • Fuel costs/mileage (there are several different ways to approach this);
  • The cost of leasing or renting the vehicle;
  • Capital allowances on vehicles purchased;
  • Parking and any toll fees;
  • The cost of vehicle insurance;
  • Accountancy fees associated with running the business;
  • Bank loan interest;
  • Use of a phone, radio, and/or GPS system for the business;
  • Costs associated with marketing the business (advertising etc.);
  • And possibly additional costs not listed here.

Taxfile can advise on all of these to ensure that Uber drivers pay no more tax than they absolutely need to. Such expenses can usually be offset where they apply to business-related use (not personal). Uber drivers must keep comprehensive and accurate records, i.e. invoices and receipts etc., in order to claim.

So, if you are an Uber driver or are planning on becoming one, please get in touch with Taxfile. We’ll help to get you set up for Self-Assessment and subsequently work with you to ensure your figures are correct, your tax return is accurate, and that it is submitted to HMRC in good time before the deadline. By doing so, you’ll know your tax affairs are in order and be able to avoid any nasty HMRC penalties. With our help, you’ll pay no more tax than you need to. You’ll also get a more accurate picture of your finances and help avoid surprises that might otherwise adversely affect cash flow.

*Are Uber Drivers Employees, Workers, or Self-Employed?

In terms of employment status, Uber drivers in the UK are now legally classed as workers rather than self-employed contractors or employees. This follows a ruling by the UK Supreme Court in 2021 (), which gives them certain employment rights.

However, purely from a tax standpoint, Uber drivers are effectively self-employed, hence the requirement to submit a Self-Assessment tax return each year.

VAT Schemes in the UK: A Guide for Businesses

VAT Schemes in the UK: A Guide for Businesses

VAT Schemes in the UK: A Guide for Businesses

For businesses operating in the UK, understanding Value Added Tax (VAT) schemes is crucial. Not only does VAT impact your cash flow, but navigating the different options can feel overwhelming. This blog post simplifies VAT schemes in the UK, helping you choose the most suitable one for your business. Read more

A Brit's Guide to Value Added Tax (VAT) Returns

A Brit’s Guide to Value Added Tax Returns

A Brit's Guide to Value Added Tax (VAT) Returns

VAT — the three little letters that strike fear into the hearts of many a Brit. But fear not, fellow taxpayer! Today, we’re taking a break from the spreadsheets and diving into the delightfully quirky world of UK VAT returns.

VAT, the Shapeshifter

Ever feel like VAT is playing a game of tax-code whack-a-mole? One minute, it’s 20% on your fancy new bicycle helmet. The next, it’s vanished like a magician’s rabbit on a packet of crisps (because, let’s face it, crisps are a VAT mystery all on their own).

The Great Cake Debate

Who knew a simple sponge cake could cause such a stir? Apparently, a sprinkle of chocolate transforms it into a full-VAT situation. Don’t worry, Victoria sponges are safe (for now).

VATman vs. the Smoothie Smugglers

Remember the smoothie wars of ’07? Innocent Drinks tried to claim their creations were “liquefied fruit salad” to avoid VAT. HMRC, ever the defender of fiscal justice, said, “Not so fast, those are clearly beverages!”  A tale that proves even the fruitiest tax battles can be entertaining.

Filing Follies

We’ve all been there. You’ve spent hours on your return, feeling smug and self-assured. Then, with a click of the submit button, dread washes over you. Did you forget something? Did you use the wrong form for your pet rock collection (because, yes, VAT rules apply there too)? Deep breaths, everyone. VAT return blunders are a thing.

The Refund Rumble

There’s nothing quite like the thrill of a VAT refund. It’s like finding a forgotten banknote in your winter coat – a financial windfall delivered straight from HMRC! Just remember, with great refunds comes great responsibility (to spend it wisely, of course).

 

VAT returns might not be a walk in the park, but with a little humour and a helpful accountant, they can be a gentle breeze on a summer’s morning.

At Taxfile we take the ‘tax’-ing aspect out of VAT returns leaving you with the ‘value added’, focusing on what is important for you and your business.

We can run your VAT from start to finish; all you need to do is keep a digital footprint of your financial data.

Guide to the Employer Payment Summary (EPS) – for Limited Companies within the CIS

Guide to the Employer Payment Summary (EPS) – for Limited Companies within the CIS

by Daniel at Taxfile.

Understanding the Employer Payment Summary (EPS) monthly claims for limited companies within the CIS

Limited company contractors operating within the Construction Industry Scheme (CIS) have distinct payroll obligations, including the submission of their Employer Payment Summary (EPS). In today’s guide, we’ll explain what the EPS is, its purpose, and the submission rules limited companies have to follow if they work within the Construction Industry Scheme.

What is the EPS?

The Employer Payment Summary serves as a crucial mechanism for limited company contractors to report additional payments, deductions, and adjustments to HM Revenue & Customs (HMRC) alongside their regular payroll submissions. While all such employers submit a monthly EPS, limited company contractors operating under CIS have specific considerations due to their status and the nature of their work within the construction industry.

The purpose of submitting monthly EPSs for Limited Company Contractors in the CIS

The primary purpose of EPSs for limited company contractors operating within the CIS is to provide HMRC with accurate information about deductions suffered under the Construction Industry Scheme. By submitting each monthly EPS for CIS, limited company contractors also ensure compliance with CIS regulations and provide HMRC with essential data for tax calculations and entitlements.

Submitting an EPS for Limited Company Contractors working within the CIS

Limited company contractors operating within CIS are required to submit an EPS to HMRC every month, even if there are no adjustments to report. EPSs should be submitted after the end of the tax month but before the 19th of the following month, in line with HMRC guidelines.

Contractors can use HMRC’s online services or compatible payroll software to submit their monthly EPS for CIS. It’s crucial to ensure that the information provided in each EPS accurately reflects the deductions suffered under CIS.

The CIS deductions suffered sent through an EPS are promptly reflected as a credit on the PAYE account. This credit will then be utilised to set off against other liabilities, including PAYE tax, National Insurance Contributions (NIC), and subcontractor’s tax submitted through the CIS300 return.

When sending the EPS you can also claim Employment Allowance and recover statutory payments that exceed the amount of PAYE due.

Submitting EPSs late may lead to penalties imposed by HMRC, which can vary based on the extent and frequency of delays.

CIS Accountancy Help from Taxfile

At Taxfile, we can provide guidance on compliance requirements, tax calculations, and record-keeping practices.

Get in touch today for any accountancy or tax issue that needs expert help.


We can help whether you are a contractor, subcontractor, sole trader or limited company business in South London or the South West.

We are accountants in Tulse Hill, Dulwich and Devon/Cornwall.

CIS Contractor's Monthly Return (CIS300) - Explained

CIS Contractor’s Monthly Return (CIS300)

CIS Contractor's Monthly Return (CIS300) - Explained

by Daniel at Taxfile.

The CIS Contractor’s Monthly Return is a mandatory requirement for contractors operating within the Construction Industry Scheme (CIS). It acts as a mechanism for contractors to disclose to HM Revenue and Customs (HMRC) payments issued to subcontractors and the corresponding tax deductions withheld from those payments. By providing HMRC with information regarding payments rendered and the accompanying tax deductions, the CIS Contractor’s Monthly Return guarantees transparency and adherence to regulations within the construction sector. In today’s guide, we explain the various components of the monthly ‘CIS300’ return, how the process works, key deadlines, the ramifications of non-compliance, and much more.

Key Components of the Monthly Return

The CIS Contractor’s Monthly Return typically includes the following key components:

This section includes information about the contractor, such as their name, Unique Taxpayer Reference (UTR), and contact details. Ensuring accuracy in this section is crucial for HMRC’s records and communication purposes.

Contractors must provide details of all subcontractors they have engaged during the reporting period. This includes the subcontractors’ names, UTRs, and payment amounts.

Contractors must report the total payments made to each subcontractor during the reporting period. This information helps HMRC track payments within the construction industry and verify compliance with tax obligations.

Contractors are required to calculate and report the tax deductions made from payments to subcontractors. The deducted amounts are typically based on the subcontractors’ verification status and tax treatment under the CIS.

The Monthly Return concludes with the calculation of the total amount due to HMRC, taking into account the tax deductions made from payments to subcontractors.

Deadlines and Reporting Periods

The CIS Contractor’s Monthly Return deadlines follow a structured timeline, which includes:

  • The submission deadline — contractors must submit their Monthly Returns to HMRC by the 19th of each month following the end of the reporting period. (Contractors’ payments to HMRC must also be made by this date).
  • The reporting period covered by each Monthly Return — which typically spans from the 6th of the previous month to the 5th of the current one.

Making Your CIS Payments to HMRC

Once you’ve calculated the total CIS deductions, prepare to make the payment to HMRC. You will need to have the following information ready:

  • Your Unique Taxpayer Reference (UTR) number;
  • Your payment reference, which is your 13-character Accounts Office reference number followed by the letter ‘C’ (e.g., 123PA12345678C);
  • The amount you’re paying.

HMRC offers various payment options for settling your CIS liabilities, which are explained here.

  • A contractor who operates as a limited company and also acts as a subcontractor might find that they are exempt from making any payments to HMRC. Subcontractors who do not have gross payment status will incur CIS deductions, which can then be used to offset any CIS payments owed to HMRC. This is exclusively available to limited companies. Please look out for our forthcoming blog focused on the CIS claim — a hyperlink will follow here once it’s live.

Implications of Non-Compliance

Failure to meet CIS Contractor’s Monthly Return deadlines can lead to various consequences, which may include the following:

  • Penalties — HMRC may impose penalties for late or non-submission of Monthly Returns, which can escalate over time.
  • Loss of benefits — non-compliance with CIS obligations, including Monthly Return deadlines, can lead to loss of benefits such as gross payment status, affecting contractors’ cash flow and competitiveness.

Managing the CIS Monthly Return Process

For contractors, efficiently managing the CIS Contractor’s Monthly Return process involves the following steps:

1. Maintain Accurate Records

Contractors should maintain accurate records of payments made to subcontractors and tax deductions applied. This includes keeping track of invoices, receipts, and CIS statements.

2. Timely Submission

The Monthly Return must be submitted to HMRC by the 19th of each month following the end of the reporting period. Contractors should ensure timely submission to avoid penalties and maintain compliance.

3. Use HMRC Online Services

HMRC provides online services for submitting CIS returns, making the process convenient and accessible for contractors. Registering for and using these online services can streamline the submission process and reduce administrative burdens.

The CIS Contractor’s Monthly Return is the key tool through which to report payments and tax deductions accurately to HMRC. Understanding its components and effectively navigating the submission process helps to ensure that contractors are compliant — and also avoids unnecessary penalties.

Rest assured, though: Taxfile is here when you need help with CIS returns and accountancy for construction workers, bookkeeping, CIS tax rebates for subcontractors, limited company accounts, and any tax-related matters that require professional help. We’re happy to provide guidance on compliance requirements, tax calculations, record-keeping practices, and much more.

Setting Up for Making Tax Digital - Bookkeeping, Record-Keeping Etc

Setting Up for Making Tax Digital

Setting Up for Making Tax Digital - Bookkeeping, Record-Keeping Etc

by Sue at Taxfile.

Whether you’re new to self-employment and have just started to run your own business, or have been doing it for a while – the fact is: Making Tax Digital (‘MTD’) is coming and it would be best to get set up in the right way, now.

Record-Keeping for Making Tax Digital

Keeping your personal life & your business completely separate is the best policy. It keeps things streamlined and will also save you money when your tax agent comes to do your bookkeeping & tax returns. So:

  • Set up a separate bank account just for your business;
  • Pay for your expenses from this account;
  • Pay income from your sales into it;
  • Keep an ongoing file for each tax year, where you put all your expenses, receipts & invoices;
  • Include copies of your sales invoices in that file too;
  • Keep the file in monthly order, so that accountants/tax advisors like Taxfile can easily cross-check the invoices to the bank statements and analyse your costs accurately.

Setting Up Digitally

Making Tax Digital means that you must run your business through a digital traceable source. The best way to do this is to allow us, if we are your tax agent/accountant, to set up your bank statements to feed automatically into accounting software like ‘Xero’. Alternatively, we can accept bank statements downloaded in CSV format, which we would then transfer to Excel spreadsheets.

Cash & Card Sales

If you are making cash & card sales, set up an app on your smartphone like ‘Sum Up’ or ‘Square’ so that you will be complying with MTD – your bank can also supply you with a PDQ card reader to accept your cash/card sales. We can upload your sales reports from these services and include them in your sales figures.

Accurate record-keeping is the cornerstone of every successful business

Moving to Quarterly Reporting

Here at Taxfile, we can currently run your bookkeeping for you quarterly or annually. However, when HMRC implement MTD fully in 2026, tax returns will need to be submitted each quarter — no longer just once a year. We’re therefore recommending that everyone gets used to sending in their bookkeeping records quarterly.

Quarterly bookkeeping also allows us to monitor your sales turnover and alert you at the appropriate time if you are approaching the level of sales that would require you to get registered for VAT. Finding out at the end of the year that you have already gone over the threshold — and should have been charging VAT at an earlier date — can be very costly.

Contact Taxfile – for All Your Tax & Accounting Needs

We’re Tax Advisors & Accountants in Tulse Hill, Dulwich, South London & the South West

Come and chat with one of our friendly team in the Tulse Hill office about getting things set up & ready in good time. Or call for a telephone appointment to discuss what will be best suited to your particular business operations.

Whether you are a sole trader with no staff or subcontractors for a larger concern, we are here to help every size of business get set up on the right path — for getting MTD-ready.


Taxfile is a tax advisor and accountant with offices in Tulse Hill, and Dulwich in South London, and Devon & Cornwall in the South West of England.

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

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

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

Basis Reform and Spreading

Basis Reform and Spreading

Basis Period Reform and Spreading of Tax Over Multiple Years
As of April 6, 2023, the Self-Assessment (SA) for income tax has undergone a significant transformation, known as Basis Period Reform.  This change aims to align the taxation of business profits with the standard April-April tax year, rather than any other accounting periods that may have been required by the taxpayer.

While the transition to the new basis period has introduced certain complexities, it also presents opportunities for businesses to manage their tax liabilities more effectively. One such opportunity lies in the spreading of tax arising from transitional profits.

Transitional profits refer to the profits that arise from the transition between the old and new basis periods. These profits can be spread over Read more

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

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

 

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