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

Missed the Tax Return Deadline? What Happens Now?

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 is therefore a) to submit your tax return without delay and b) to pay as much tax as you can as soon as possible. By doing both, you’ll minimise the penalty and interest payable to HMRC.

But what 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. Your circumstances must fit HMRC’s eligibility criteria, however. Let’s take a look at those…

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.

Final day to submit your Self-Assessment tax return

31 January Was the Tax Return Deadline!

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.

Saturday Appointments in December - Book Now for Tax Returns Etc.

Saturday Appointments in January – Book Now for Tax Returns Etc.

Saturday Appointments Available in January - Book Now for Tax Returns Etc.

Taxfile is open on Saturday mornings in January, by appointment. Saturdays might be useful if you need to see us for your 2023/24 tax return, or any other accountancy work, but can’t do it on a weekday. Saturday slots are limited; there are only 4 Saturdays available in January and opening times will be from 9am until 1pm. So, please book in today if a weekend appointment suits you — before slots are all taken. Late appointments are also available on Mondays, when we open until 6pm, or choose any other weekday if you can come earlier. Please see the footer of our website for latest opening times.

Book in on 0208 761 8000 or book your appointment online (here). We are happy to do virtual (video/phone) or physical appointments at our Tulse Hill office in Thurlow Park Road — whichever suits you best. Read more

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

Capital Gains Tax Hike: A Blow to Investors

Capital Gains Tax Hike: A Blow to Investors

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.

Taxfile is Here to Help

Taxfile is here to help proactive investors navigate the new tax landscape and protect wealth. Contact us today if you would like professional help with any tax or accountancy-related issue. We’ll be delighted to help. The first 20-minute consultation is free and without obligation.

020 8761 8000 Book Appointment Contact Us

Taxfile are accountants in Tulse Hill in SE21, Dulwich in South London, and Devon/Cornwall in the South West.

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.

Uber Drivers in South London: Contact Taxfile

We offer a free, 20-minute, no-obligation consultation, so you have nothing to lose by getting in touch. We’ll confirm pricing and explain more about how we can help you, with zero pressure.

020 8761 8000 Book Appointment Contact Us

Taxfile are accountants with offices in Tulse Hill in SE21, Dulwich in South London, and Devon/Cornwall in the West Country.

*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.

For Accounting Help, Contact Taxfile

Call us on 0208 761 8000 so we can provide you with all the services we provide from VAT registration, bookkeeping, MTD-compliant software and those VAT calculations and submissions. The only thing we don’t do is pay your VAT bill for you!

020 8761 8000 Book Appointment Contact Us

Taxfile are accountants and tax advisors in Tulse Hill and Dulwich in South London as well as Devon/Cornwall.

The Early Bird Catches the Worm — The Benefits of Acting on Taxes Sooner

The Early Bird Catches the Worm — The Benefits of Acting on Taxes Sooner

The Early Bird Catches the Worm — The Benefits of Acting on Taxes Sooner

by Ali at Taxfile.

For many self-employed UK taxpayers, the January Self-Assessment deadline looms like a tax-shaped storm cloud. But what if you could banish that pre-deadline panic and transform tax season into a breeze?

Psychology tells us that we are motivated when one set of thought processes outweighs the opposing ones, tipping the balance to make us act. With that in mind, here are 7 key things that may motivate you to act on your taxes sooner rather than later.

1. Knowledge is Power

Filing early gives you a clear picture of your tax bill. This allows you to budget effectively and avoid any nasty surprises come January. Knowing if you owe tax or are due a refund empowers you to make informed financial decisions.

2. Less Stress = Happier

If you owe tax, filing early lets you explore HMRC’s Budget Payment Plan. This lets you spread the cost of your tax bill over monthly or weekly instalments, making it much easier to manage.

3. Faster Refunds = Even Happier

If you’ve overpaid tax, filing early means a quicker turnaround on your refund. That extra cash can be a welcome boost for your finances.

4. Time is Money

January is a notoriously busy time for HMRC and accountants. Filing early ensures you avoid spending hours over the phone to HMRC, or your accountant having to contact HMRC on your behalf and spending over 45 minutes on hold.

5. Spot Errors, Fix them with Ease

Sometimes mistakes happen. Filing early gives you time to review your return and identify any errors. This allows you or your accountant to rectify them before the deadline, avoiding potential penalties.

6. Proof of Income, When You Need It Most

A completed Self-Assessment tax return can be used as proof of income when applying for a mortgage, loan, or certain benefits. Filing early ensures you have this documentation known as an SA302 readily available.

7. More Time for Tax Efficiency (if Needed)

If your tax bill is higher than expected, filing early gives you more time to explore tax-saving opportunities with an accountant (if necessary). In our experience, it also allows us to keep an eye on your turnover and spot early if you might need to be VAT registered, or are steadily moving towards it. It could also allow us to advise whether you’d benefit from setting up a limited company.

File Early — and catch the worm!

By taking charge of your Self-Assessment early, you gain control of your finances and avoid unnecessary stress. So, ditch the last-minute panic and embrace the benefits of early filing.

Contact Taxfile & Take Control

At Taxfile we would like to instil healthy habits in our clients and encourage you to come and see us in the early months after April. By doing so, we can file your tax return early and remove all the stress and worry.

Get ready by making an appointment to see our tax agents today. Call, message, or use our online booking system:

020 8761 8000 Book Appointment Contact Us

Taxfile are tax advisors & accountants in Tulse Hill, Dulwich, South London & the South West of England.

Do I Need to Register for Self-Assessment?

Do I Need to Register for Self-Assessment?

by Mohamed at Taxfile.

In today’s guide, we look at the rules around whether or not you need to register for Self-Assessment and submit a tax return to HMRC each year. Let’s take a look.

Reasons to Register for Self-Assessment

You generally need to register for a Self-Assessment tax return if your income isn’t taxed at the source, meaning the tax isn’t automatically deducted from your wages/salary. Here are some common scenarios where you would need to register for self-assessment:

  • You are self-employed — sole traders, freelancers, and consultants typically fall under this category.
  • You receive rental income — if you earn income from renting out a property, you need to register.
  • You have a high income — employees earning over £100,000 per year need to register as their tax calculations may become more complex. (From 2023-24 you are only required to register if your income is above £150,000).
  • You have other income sources — this includes income from abroad, dividends, and partnership profits.

If you are still unsure about registration, please contact HMRC or call Taxfile on 0208 761 8000.

Registering for UK Taxes is Important

Registering for UK taxes is important for a few reasons, as we’ll explain below.

Firstly, it helps you avoid penalties. If you don’t register for Self-Assessment when required, you could face penalties from HMRC. These can be significant, especially if you’ve been earning income for a while without registering.

Secondly, it helps to ensure accurate tax payments. By registering and filing a Self-Assessment tax return, you ensure you’re paying the correct amount of tax. Without it, you might underpay and owe interest, or overpay and have to wait for a refund.

Thirdly, it helps you stay legally compliant. In severe cases, failing to register and pay your taxes can lead to legal action, including prosecution.

Registering also helps you maintain good standing with the Government. Being registered with HMRC shows you’re taking your tax obligations seriously. This can also be important if you’re applying for credit, a mortgage, or a visa.

Do Directors Need to Do a Self-Assessment?

Not all directors need to do a Self-Assessment tax return, but some do. Here’s a breakdown:

Directors with only PAYE income

If your only income from the company is through PAYE (Pay as You Earn), where tax is deducted at source, you generally don’t need to do a Self-Assessment.

Directors with additional income

If you have any other taxable income besides your salary, like dividends, company benefits, or income from another job, you likely do need to do a Self-Assessment tax return in order to report it.

However, even if you aren’t required to register, HMRC might still ask you to file a Self-Assessment return.

Learn more about director self-assessment here.

Why is Payroll Important for a Director?

Payroll ensures compliance with tax regulations. Directors are considered employees for tax purposes, and PAYE is the system used to collect Income Tax and National Insurance Contributions (NICs) from their salary. Running payroll ensures these deductions are made and reported correctly to HMRC.

Payroll creates a clear and accurate record of your director’s salary payments. This is important for tax purposes, but also for things like calculating benefits and pension contributions that might be tied to salary.

Being on payroll allows directors to qualify for certain benefits they wouldn’t get if paid through dividends alone. These can include enrolling in a company pension scheme and accruing National Insurance credits that contribute to your state pension.

Payroll ensures transparency by helping to maintain a clear separation between personal finances and the company’s finances. This is important for legal and accounting reasons.

While there might be tax advantages to structuring some of your director’s income as dividends, payroll remains a vital part of ensuring you’re following regulations and have a clear record of your director’s overall compensation.

Learn more about how to pay yourself as a director here.

Contact Taxfile – Accountants & Tax Advisors

Tax and accountancy help for South Londoners

If you need any accountancy help for your limited company or small business, Taxfile is here to help:

020 8761 8000 Book Appointment Contact Us

Are you in the South East or South West of England? Taxfile has offices in Tulse Hill, Dulwich, and Devon & Cornwall.