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New 30-Day Rules for Capital Gains on Residential Property

New 30-Day Rules for Capital Gains on Residential Property

New 30-Day Rules for Capital Gains on Residential Property

New rules have now come into force in relation to capital gains made on disposals of UK residential property*. Several key actions are now required if a taxable capital gain has arisen, including some that now need to be made fast:

  1. Taxpayers need to report the property’s disposal within 30 days of the actual disposal;
  2. They will need to pay the estimated Capital Gains Tax (‘CGT’) to HMRC within 30 days of the disposal.
  3. Those who fill in and submit a Self-Assessment tax return will also need to include details of the disposal on their return.

Who Do the New CGT Rules Apply To?

The new rules apply whether you’re an individual, joint property owner, trustee, partner in a partnership or LLP, or a personal representative.

What Counts as a Residential Property Disposal?

The new rules apply to all UK residential property that was disposed of (taken as the date of the exchange of contracts) since 6 April 2020 inclusive, where a capital gain was made that will require payment of CGT.

To fall within the rules, a UK residential property must be one that:

  • is suitable for use as a dwelling, or;
  • is being built or adapted for use as a dwelling.

It can be one in which the the owner has never lived or has lived for only part of the period they owned it. It can also be a rental property or a holiday home.

Where a property has been used for mixed purposes, only the capital gain that’s equivalent to Read more

Faiz from Taxfile - Helping the Community with Tax Problems

Faiz from Taxfile – Helping the Community with Tax Problems

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, Dulwich, South London and Devon/Cornwall in the West Country.

This post was brought to you by Faiz at Taxfile.

Are you self employed? If so, Joe from Taxfile has some quick advice for you

Are you self employed? Advice from Taxfile

Are you self employed? Joe from Taxfile has some quick advice for you

Are you self employed? If so, Joe from Taxfile has some quick advice for you:

Class 2 National Insurance

It is important to register for Class 2 National Insurance. A lot of people don’t have this set up correctly and, if not sorted, then it can greatly affect your pension in the future. Class 2 National Insurance isn’t a lot of money, so speak to one of our advisors to make sure you’re set up. Finding out missing years is also possible.

Tax Returns

Try to file your tax return early. A major benefit to this is knowing what your tax liability will be long before it is due. That way, you can plan ahead or even set up a payment plan.

If you are filing your return late, then it is very important to try to get up to date as soon as you can. Apart from the initial £100 penalty for late returns, you will eventually end up paying a £10 per day penalty too if you don’t get up to date soon enough. That can soon spiral out of control. HMRC is very good at helping people who are struggling, but they can’t help if you bury your head in the sand. Penalties for late tax returns can be appealed but you must have very a good reason, like illness or death in the family.

Are you claiming the right expenses?

Speak to one of our agents about allowable expenses. A lot of people don’t claim the right expenses and can end up overpaying their tax. We can help with that, so you save unnecessary tax.

Contact Taxfile

Speak to Taxfile for any of your tax needs. Our staff skills are so versatile that, between us, there is nothing accounting- or tax-related that we can’t help with.

Call Taxfile on 020 8761 8000 or email your tax-related query and we’ll be happy to help. We also offer a free 20-minute introductory appointment if you’d like to meet us in person or virtually through a video or telephone call — whatever you prefer. We are accountants and tax advisors in Tulse Hill/Dulwich South London and Devon/Cornwall in the South West.

This post was brought to you by Joe 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

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, Dulwich and Devon. 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.

EU VAT – The BREXIT Effect

EU VAT – The Brexit Effect: changes in EU VAT treatment are coming on 1 July 2021 for EU B2C transactions.

Changes in EU VAT is incoming from 1st July 2021 for Business to Customer (B2C) sales for those operating within the EU.  The changes need to also be considered for businesses in the UK, post-Brexit, that wish to sell online directly to the customer.

The new EU VAT E-commerce package is comprised of two key components;

  • One Stop Shop (OSS)
  • Import One Stop Shop (IOSS)

It is not compulsory to report VAT using either of these methods, the option is still available to register for VAT in each EU country you wish to do trade with and account and pay VAT in each of those territories.  However, reading that, you would wonder why you would take on such a task, when you can just do one VAT return, where the liabilities are then paid to each country where the B2C transaction occurred.  However, importantly, these 2 methods can only be used for Read more

SME Brexit Support Fund

SME Brexit Support Fund

If your business is new to importing &/or exporting now that we are out of the EU, the government is offering a grant of up to £2,000 to help with training &/or professional advice, to help you with changes to trade rules with the EU.

You can use the grant for training on:

  • how to complete customs declarations
  • how to manage customs processes and use customs software and systems
  • specific import- and export-related aspects including VAT, excise and rules of origin

It can be used to help you get professional advice so your business can meet its customs, excise, import VAT or safety and security declaration requirements.

To be eligible your business must be established in the UK for at least 12-months before submitting the application and:

  • not have previously failed to meet its tax or customs obligations
  • have no more than 500 employees
  • have no more than £100 million turnover
  • only import or export goods between Great Britain and the EU, or move goods between Great Britain and Northern Ireland, if you already import or export goods from or to a non-EU country you are not eligible for his grant
  • complete (or intend to complete) import or export declarations internally for its own goods
  • use someone else to complete import or export declarations but requires additional capability internally to effectively import or export (such as advice on rules of origin or advice on dealing with a supply chain)

Applications for this grant are done via PricewaterhouseCoopers (PwC) on behalf of HMRC by visiting HERE

Applications close on 30th June 2021.

4th SEISS Grant Available THIS Week

4th SEISS Grant Available THIS Week

If you are self-employed or a member of a partnership and have been impacted by coronavirus (COVID-19), the 4th Self-Employment Income Support Scheme (SEISS) grant will be available to those eligible from this week (w/c 19 April 2021), and the online service for the fourth SEISS grant is now online HERE

The grant covers the period from 01/02/2021 – 30/04/2021 and eligibility for the fourth grant is dependent on you having traded for both tax years:

  • 2019 to 2020 and submitted your tax return on or before 2 March 2021
  • 2020 to 2021

You must either:

  • be currently trading but are impacted by reduced demand due to coronavirus
  • have been trading but are temporarily unable to do so due to coronavirus
  • intend to continue to trade
  • reasonably believe there will be a significant reduction in your trading profits

The same criteria that were applied for the first 3 SEISS grants still apply & this grant will be 80% of your average trading profits for up to 4 tax years (2016/17, 2017/18, 2018/19, & 2019/20) for 3-months.

The closing date for the 4th SEISS Grant is 01 June 2021.

By now you should have received an email form HMRC stating when you can claim your 4th SEISS grant from.  If you need any assistance with your claim, please do not hesitate to contact us on 020 8761 8000 or email/message us here.

Tax “Payment Plans” are ENDING – Act NOW if you Owe Tax!

Tax Debt “Payment Plans” are Ending - Act NOW if you Owe Tax!

Are you late paying your tax? Do you owe unpaid tax for the last financial year, or earlier? Are you struggling to pay it?

Taxfile has recently been helping some of our customers with tax debts from 2019/20 and earlier. In particular, we’re helping them to arrange payment plans with HMRC as part of their ‘Time to Pay‘ scheme. This spreads the cost of those tax debts instead of paying them off in one go. This is really useful to those who are struggling financially following the pandemic. The new payment plans are only available until 1 April 2021, though, so really you should apply by 31 March 2021. Our advice is to act now if you are in a position to take advantage of the payment plans while they’re still — just about — available.

The benefits of arranging a tax payment plan now

Agreeing a payment plan with HMRC will help avoid the 5% late payment penalty that’s usually charged on outstanding tax not paid by the deadline. And, of course, spreading the cost helps those who might otherwise struggle to get together the full amount in one transaction. The HMRC interest rate seems relatively low too.

How Tax Payment Plans have gone so far

What we’ve found so far is that Read more

Furlough Scheme Extended until End of September

Furlough Scheme Extended until End of September

In The Chancellor’s 2021 budget speech it was announced that the furlough scheme would be extended until the end of September 2021, to protect the jobs and livelihoods of the UK population during the pandemic.

The Government will pay employees 80% of the hours not worked through to the end of June 2021.  As the country opens up it will then offer 70% with the employer to contribute the other 10%, then in August through to the end of September they will ask the employer to pay 20% while the Government covers the remaining 60%, so the employee continues to receive the 80% of their income for the hours not worked.

If you or your business need help setting up a payroll and help with the furlough scheme, then please do not hesitate to contact us on 020 8761 8000.

Mortgage Holidays ENDING

Mortgage Holiday Deadline Looming

Could you do with a few months’ mortgage holiday?

The availability of a three month mortgage holiday was first announced in March 2020, as part of a package of support for individuals as COVID-19 spread rapidly through the UK.  For the 1.8M people that took up the initiative in March, the holidays came to an end in June 2020, while the pandemic still raged on.

Mortgage lenders then announced their own support if your income had been affected by the pandemic, with a repayment holiday of up to a maximum of six months.

If you have not taken any holidays on your mortgage payments yet, you can apply for a payment holiday of up to six months in total.  However, you should continue to make payments if you can afford to.  The deadline for applying for a repayment holiday is 31st March 2021, so act now if you have not applied for a mortgage holiday and are still suffering a cash flow constraint due to the pandemic. Applying by end of March can still get you a mortgage holiday until 31 July 2021.

Your payment holiday can be up to a maximum of six months. If you have already taken the full six-month payment holiday, you cannot apply for another one, however your lender might be able to help you in other ways.  Contact them so you don’t miss a mortgage payment and adversely affect your credit rating.

If you have already taken a payment holiday but not for the full 6 months, then this can be extended up to the maximum term. However, it’s in your best interests to start your repayments again if you can afford to.

Note that cancelling your direct debit is not a payment holiday and will be counted as a missed payment if it has not been agreed with your lender — possibly resulting in your credit file being adversely affected and impacting your ability to re-mortgage.

The main options your lender may consider for repayment once your mortgage payment holiday period is over are:

  • Spreading your deferred payments over the outstanding term of your mortgage by increasing your monthly mortgage repayments.
  • Increasing the length of your mortgage term, resulting in a smaller increase in your monthly repayments.
  • Making interest-only or capital-only repayments during your mortgage holiday.

There is help for you out there and it can be flexible, but ultimately it needs you to ACT NOW. Call your lender by 31 March or you will simply miss out.