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Taxfile is Open on Sunday Mornings in January — Perfect for 2022-23 Tax Returns

We’re Open on Sunday Mornings in January — Perfect for 2022-23 Tax Returns

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Taxfile is Open on Sunday Mornings in January — Perfect for 2022-23 Tax Returns

With the self-assessment tax return deadline almost upon us, we are opening our Tulse Hill office* on Sunday mornings, 9 am to 1 pm, for the remainder of January. That’s as well as the previously announced Saturday morning opening during the same hours. It’s the perfect opportunity to discuss your tax return with us or bring in figures and records without having to disturb your working week. Weekend time slots are limited, though, so please book a free 20-minute appointment as soon as possible if you’d like to visit.

020 8761 8000 Book Appointment Tax Return Help
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Information You Need to Supply for Professional Help with Your Tax Return

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

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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

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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

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

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

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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 2022/23 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

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

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

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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

Boost Your State Pension with Voluntary National Insurance Contributions

Boost Your State Pension with Voluntary National Insurance Contributions

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Boost Your State Pension with Voluntary National Insurance Contributions

As we approach retirement, ensuring a comfortable financial future becomes a top priority. The state pension, a crucial source of retirement income, is dependent on the number of qualifying years of National Insurance (NI) contributions you have made. While gaps in your NI record can diminish your state pension entitlement, there’s a solution: voluntary NI contributions.

To receive the full state pension, you need 35 qualifying years of NI contributions. These years typically accumulate as you work, with contributions automatically deducted from your salary. However, there may be instances where you may not have earned enough to make mandatory NI contributions, leading to gaps in your record. Read more

VAT in the UK: a comprehensive guide including what it is, the different rates, registering, returns, reclaiming it, the different schemes and more.

Navigating the VAT Landscape in the UK: A Comprehensive Guide

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VAT in the UK: a comprehensive guide including what it is, the different rates, registering, returns, reclaiming it, the different schemes and more.

Value Added Tax (VAT), a consumption tax levied on most goods and services in the UK, plays a significant role in the nation’s economy. Whether you’re a sole trader, limited company business owner or simply a curious consumer, understanding VAT is crucial for navigating the UK’s tax system effectively. Today’s comprehensive guide explains what it is, the various VAT rates, when you need to be registered for the tax, VAT schemes, and more. Read more

Pension Contribution Deadline Extended

Deadline for Voluntary Insurance Contributions Extended to 5th April 2025

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Deadline for Voluntary Insurance Contributions Extended to 5th April 2025

The original deadline for buying National Insurance ‘credit’ was 31st July 2023, but you can now ‘buy’ incomplete years to boost your state pension until 5th April 2025. The extension was approved by the Government, giving HMRC more time to deal with the process.

You can view our original blog on what you need to do to plug the gaps in your National Insurance contributions here.

How Corporation Tax is calculated has changed

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At Taxfile we can compile and file your company’s tax return as well as calculating what is owed in Corporation Tax.

As of 01/04/2023, the main rate of Corporation Tax (CT) will rise from 19% to 25%, although the rate will remain at 19% for small businesses with profits less than £50,000.00.  However, if the profit is anywhere between £50,000.00 to £250,000.00 then the calculation is slightly more complicated as there is a marginal relief that can be applied.  Anything above £250,000.00 is taxed at the new rate of 25%.

The marginal relief means that you would not pay an outright 25% on a profit between £50k-£250k.  So for example, your company posts a profit of £80,000.00.

At 25% the tax would be £20k.

To calculate the marginal relief you would subtract your profit from the maximum where the relief is allowed (£250k) leaving you £170k and apply the marginal rate multiplier (3/200 or 0.015) to this, which is £2,550.00 in relief.

So the £20k would be reduced by £2,550, meaning that the CT liability would be £17,450 on the £80k profit.

When we file your tax return we calculate:

  • profit or loss for Corporation Tax (this is different from the profit or loss shown in your annual accounts)
  • Corporation Tax liability

Taxable profits for Corporation Tax include the money your company or association makes from:

  • doing business (‘trading profits’)
  • investments
  • selling assets for more than they cost (‘chargeable gains’)

Our SMB Private Limited Company accountancy services will take a lot of the strain away from being a company director, and allow you to focus on why you formed a limited company in the first place, to make a successful and expanding business.

We can help you with all the necessary bookkeeping, computations and filings, as well as advising on other business taxes that may be required such as VAT, and also look after your payroll and expense claims when filing your P11D’s.

Our personable and knowledgeable accountants are real people that you can talk to and meet in person, available to answer your questions and offer advice.

We are a friendly, relaxed accountancy firm offering services to businesses spanning the South London area, from Croydon through to Wandsworth.  We are your local accountant for small to medium businesses.  Call us for advice on 020 8761 8000 for a free 20-min no obligation chat.  We will be happy to answer any of your questions regarding limited companies.