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Boost State Pension by Plugging Gaps in National Insurance

Boost State Pension by Plugging Gaps in National Insurance

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IMPORTANT: the video mentions the original deadline in April 2023. This has now been extended to 5th April 2025.

Do you have gaps in your National Insurance record? If so, it could mean that you could get a lower State Pension when you reach state retirement age, particularly if you are aged between approximately 45 and 70 at the moment. Generally speaking, you need 10 years of contributions for a basic state pension and around 30 to 35 years for a full state pension. It does vary by circumstance though and, even with gaps, some people might have enough qualifying years for the full state pension already.

Urgently Check Whether You Have National Insurance Gaps

Our advice is to urgently check whether you do have any gaps in your National Insurance record. If so, in many cases it would be wise to make some one-off payments to plug any gaps for the years 2006 to 2016. However, there is limited time to do so despite the deadline for this opportunity having been extended from early April to the end of July 2023 [UPDATE: This has now been extended again to 5th April 2025]. Thereafter, the chance to fix all 11 years from 2006 to 2016 will be gone forever. 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!

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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
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Key Takeaways from the Spring Statement 2022

Key Takeaways from the Spring Statement 2022

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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

Taxfile Covers Clients for HMRC Enquiries

Taxfile Covers Clients for HMRC Enquiries

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Taxfile Covers Clients Against HMRC Enquiries

Did you know that Taxfile’s clients are protected from HMRC enquiries, for example for tax returns and similar submissions we make to HMRC? Through a simple, low-cost fee, Taxfile promises to liaise with HMRC on clients’ behalves should HMRC ever want further clarification of figures submitted. This includes HMRC queries following a tax return, VAT return, corporation tax return or payroll submission made by us. Usually, protecting clients from this type of HMRC investigation could mount up in terms of cost, as it can sometimes take hours to deal with, even for tax experts like us. However, with Taxfile’s low cost cover, it’s all covered automatically (within reason, of course*).

Through a low-cost fee, Taxfile promises to liaise with HMRC on clients' behalves should HMRC ever want clarification of figures submitted.The enquiry cover costs only …

  • £5 for a self assessment income tax return;
  • £10 for a VAT return;
  • £25 for a corporation tax return;
  • £4 for a payroll submission.

(VAT extra). Most accountants would charge you a considerable sum for this level of protection against HMRC enquiries. However, at Taxfile, we spread the cost through the whole business and, as a result, the cost to clients is a fraction of what it could otherwise be. We hope you agree that it’s a very small price to pay for such peace of mind, should the worst happen.

Tax Advisers & Accountants in Tulse Hill & Dulwich, South London

Do ask a staff member if you would like more information or, indeed, if you would like any tax or accountancy help. Telephone 020 8761 8000 or contact us here. We are Read more

Faiz from Taxfile - Helping the Community with Tax Problems

Faiz from Taxfile – Helping the Community with Tax Problems

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Faiz from Taxfile - helping the South London community with their tax problems

Hello; I’m Faiz Mazloumiar. I have been working for Taxfile since May 2005, mostly doing tax returns for subcontractors, self-employed individuals, partnerships and landlords. I specialise in helping clients who, for whatever reason, have fallen behind in their tax affairs, assisting in making disclosures to HMRC whilst trying to minimise the penalties imposed on them over the years. I always aim to put our customers first by calling HMRC to try to cancel recent years’ penalties, then I submit any outstanding tax returns. When I submit the tax returns I also do an appeal for older years’ penalties to be revoked. In many cases HMRC accept my appeals and clients get their money back for anything they have had to pay. I am always fighting for my clients and I have been known to battle on behalf of them for over a year.

I also help many people in our local community who are on PAYE but perhaps do not know if they are paying the right tax and NI contributions. It is a little like charity work. When people from the local community bring in their P60, I will check it and give them advice on how to contact HMRC and ask for a refund if they have overpaid. When new clients come with any problems, they are usually very stressed and anxious and sometimes don’t understand the intricacies of the UK tax system. We aim to help them with their tax problems, so they can leave us feeling relieved and a little happier. When I help clients they trust me and I have grown my client base only through recommendations. It is very exciting and satisfying for me to be able to help my clients and community as a whole.

Contact Taxfile, South London’s Favourite Tax Accountants

For any tax- or accountancy-related needs, contact us. We’d love to help! Call Faiz direct on 020 8655 7891 or speak to our main switchboard on 020 8761 8000. Alternatively message us your tax-related query here. We also offer a free 20-minute introductory appointment and this is available in person, through a video call (Zoom, Teams etc.) or via telephone — whichever you prefer. We are accountants and tax advisors in Tulse Hill and Dulwich, South London.

This post was brought to you by Faiz at Taxfile.

Get peace of mind by using an experienced and friendly team of tax advisers and accountants

Peace of Mind from Using an Experienced Tax Team

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Get peace of mind by using an experienced and friendly team of tax advisers and accountants

When using Taxfile, you are using an experienced team that will make dealing with your tax affairs seamless. A lot of clients start by coming into our office stressed and overwhelmed, not knowing where to start. Using your current position and needs, we plan a step-by-step approach to keep you on top of your affairs and the relationship between you and HMRC harmonious. Once you are officially on board with us, we will have access to your HMRC record and, with our dedicated agent lines to HMRC, we’ll be able to speak to them on your behalf. This way, you are free from having to call them yourself and wait longer than we do for a call handler. You can also have any issues or queries explained to you in an easy to understand way by our friendly team. If you receive any letters that from HMRC and you don’t understand anything, we will be able to take a look for you and explain what it’s all about.

Any fee you pay Taxfile is tax deductible, so will be put on your tax return and result in a reduction of tax.

Our up-to-date knowledge of the tax system will give you peace of mind, alleviate any anxiety you may have and make the whole experience very different to how a lot of people find it when they are not using a team like ours. We know the best way to approach a tax situation that, without our experience and knowledge, could otherwise result in a lot more time and money being spent unnecessarily. From something as small as missing a tax return deadline, it can spiral into something a lot bigger, potentially including penalties, late payment interest, debt collection agencies being involved and so on. We inform all our clients of upcoming deadlines, for their particular tax situation, and let them know what needs doing and when, avoiding this situation and many more.

Unlike a lot of other companies, our tax experts and accountants are approachable, accessible and happy to help. We’re a unique tax advisor and accountancy practice like no other, with offices in Tulse Hill and Dulwich. We can help with any tax-related issues, including bookkeeping, filling in a tax return, limited company accounts, help accounting for property lettings,  tax refunds and anything accountancy-related. Call Taxfile on 020 8761 8000, book a free 20-minute appointment with us (remote or in-person options available) or simply email us your tax-related query here.

This post was brought to you by Julie at Taxfile.

Taxes & Cryptocurrency

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How crypto currency in the UK is treated for tax by HMRC

According to HMRC, ‘cryptoassets’ are cryptographically secured digital representations of value or contractual rights that can be:

  • transferred
  • stored
  • traded electronically

There are various types of cryptoassets including exchange tokens, utility tokens, and security tokens. HMRC does not consider cryptocurrency to be currency or money & their complete Cryptoassets Manual can be found HERE.

As far taxes are concerned, investing in cryptocurrency is akin to investing in other assets such as stocks, bonds, and the sale of rental properties.  This means that capital gains and losses rules apply when you ‘dispose’ your assets, and in this case your cryptocurrency.

HMRC explains that disposals include:

  • selling cryptocurrency for money
  • exchanging cryptocurrency for a different type of cryptocurrency
  • using cryptocurrency to pay for goods or services
  • giving away cryptocurrency to another person

Any of the above situations subject any profits to Capital Gains Tax (CGT) and the simple formula for calculating capital gains (or losses) is:

Fair Market Value – Cost = Profit or Loss

The fair market value is the market price of the asset at the time that you sold, traded, or disposed of it.  The cost is the price you paid at the time of the purchase.

Although this is a simple and logical calculation, calculating CGT on your profits becomes a bit more complex when you have multiple transactions to account for.  The UK requires a specific type of method for calculating the cost basis of your coins known as Shared Pool Accounting also known as a 104 Pool.

With the shared pooled accounting method, you are essentially Read more

HMRC Extends the Self-Assessment Submission Deadline to 28th February BUT Payments still need to be made by 31st January

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Self-Assessment tax return deadline extendedto February but tax needs to be paid by 31 January

Yesterday HMRC made an 11th hour decision to give the remaining 3 million tax payers an additional 28-days to file their tax return electronically.

For most, a submission after the 31st of January would have resulted in a £100 late filing penalty.  With planning already underway at HMRC on how to cope with the administrative task of appeals around COVID & late filing, HMRC has decided to only issue the penalties after 28th February, effectively offering a 1-month extension on the electronic submission of self-assessment income tax.

However, the payment date for taxes remains unchanged, so it is important to note that taxpayers are still obliged to pay any tax they still owe (including any deferred payments) by 31/01.  In fact we are advising our clients to pay as much as they can into their HMRC self-assessment account and to view it as a bank account with HMRC so that, once their taxes are filed, they are not left with any unwanted surprises with interest on late payments, as any unpaid tax from 19/20 will be charged interest as of 01/02.

The extension has been welcomed and our own Director Guy Bridger had approached the Treasury requesting this extension.  so even though there is a sense of relief, we are adamant that tax payers realise they need to settle their outstanding tax bill if they can, even if it is an estimate, otherwise they will face HMRC’s low rate of annual interest on late payment of taxes along with the initial surcharge of 5% of any tax unpaid for the 19/20 tax year after 28-days.  So Guy’s suggestion is to pay as much tax as you can before 28th of February.

Please view your UTR as a bank account with HMRC, and any money paid into HMRC’s account with your UTR is money that will sit on your account until it needs to be used up.

So, even though your taxes can now be filed electronically by no later than 28/02, you will need to pay money into your HMRC account by 31/01.  If you still need us to calculate and submit your 19/20 taxes, please come and see us or call us on 020 8761 8000. Even though we might not file them before the 31st January, you will at least know the outstanding amount owed.

Guy Tells No. 10 to Extend Self-Assessment Deadline

BREAKING NEWS: No. 10 Heeds Guy’s Plea — & Extends Self-Assessment Deadline!

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HMRC Heeds Guy's Plea & Extends Self-Assessment Deadline!

[BREAKING NEWS:] 11 days ago we published a post confirming that Guy Bridger, Taxfile’s founder, had personally delivered a postcard to No. 10 Downing Street, making the case for an extension to the Self-Assessment tax return deadline until the end of February. In Guy’s postcard to Boris Johnson, he had argued that there was simply too much pressure on people during Christmas, the New Year and the month of January, due to the bottleneck caused by the Self Assessment tax return deadline.

Well, in some very welcome good news, it seems the Government has listened to Guy’s plea. This afternoon HMRC confirmed:

“Self Assessment customers will not receive a penalty for filing their 2019-20 tax return late, as long as they file online by 28‌‌ ‌February.”

They went on to say:

“We are still encouraging customers who have not yet filed to do so by 31‌‌ January, if possible.”

This is great news for the people of the UK, in what are otherwise challenging times. Tens of thousands of accountants across the nation will also be hugely relieved. We also suspect that under-pressure HMRC staff will be happy about this development.  Accountants and taxpayers across the UK may well be queueing to buy Guy a drink when the pubs re-open!

It’s important to realise, however, that the tax owed for the tax year 2019-20 will still be due by 31 January. HMRC will charge interest from 1 February as usual. Guy’s company Taxfile is here to help compute the figures, though. For those who wish to take advantage and submit tax returns online during the February extension, but also want pay tax by 31 January in order to avoid interest, we have now published some further guidance here on what to do. That new guidance will help even if you’re not yet 100% sure of the figures, so take a look via that bold link.

Contact Taxfile for Help with Tax Returns & Any Tax-Related Issue

To contact Guy Bridger or any of the helpful tax experts at his company Taxfile, simply get in touch. We’re here to help!

Book an Appointment
Send us a Message
T: 020 8761 8000

 

You can learn more about Guy Bridger, his involvement at The Office of Tax Simplification and his company Taxfile here. If you would like to read Guy’s original article about the postcard given to Boris Johnson, click here.