Capital gains tax for additional rate payer

Capital gains accountant, Advisers for additional rate taxpayers

Capital gains tax is the tax payable when you sell your heirloom, shares, business, second property or any other asset. The amount of tax payable is determined by the tax bracket you are in and the tax-free allowance rate for the given year. This guide provides more information on how capital gains tax works.

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What is capital gains tax?

Capital gains tax refers to the amount payable on any profits made upon the disposal of an asset whose value has gone up. The taxable amount will typically be dependent on the value of the asset and the income.

What is a disposal?
Disposal of an asset may involve:
1. Selling the asset
2. Getting compensation for an asset that has either been destroyed or lost 3. Swapping the asset for another asset
4. Transferring or gifting an asset to another party

What do you pay capital gains tax on?
1. Most personal possessions excluding your car that are equal or more than £6000 in value 2. Business assets such as machinery, plants, buildings, and land
3. Property that is not your main residence
4. Your main residence if it is used for business or let out
5. Shares
These are typically referred to as chargeable assets.

You do not pay capital gains tax on:
1. Any shares in an ISA
2. Lottery or betting winnings
UK government premium bonds or gilts

Tax allowances
Only profits above the annual tax-free allowance of £11, will be liable to capital gains tax. The annual tax- free allowance is often referred to as the Annual Exempt Amount. Depending on the type of asset that has appreciated, you may claim tax relief in instances such as:
1. Replacement of business assets/Roll over relief – Wasting assets defined as assets that last for less than five decades are usually exempted from capital gains tax.
2. Private residence relief
3. Entrepreneur’s relief – You can pay less capital gains tax if you are disposing of part or all of your business

Tax on gifts
Civil partner/Spouse
Capital gains tax is not payable on any assets you sell or gift to your civil partner wife or husband unless you: 1. Gave them the assets for them to sell on in the course of doing business
2. Separated or never lived together in the course of the tax year
Your civil partner/spouse will have an obligation to pay capital gains tax if they decide to transfer or sell the asset

Charity
Any assets you give to charity are not subject to capital gains tax

How much tax do you need to pay?
Your annual capital gains tax allowance is what determines how much capital gains tax you have to pay. You will pay capital gains tax on any profits above your annual allowance. The amount payable is calculated thus:
1. Calculate total taxable amounts on profits
2. Work out the profits for each asset that was disposed of during the tax years. The gain is typically the amount above what you paid for the asset and what the buyer paid for it when you disposed or sold it on.
3. Compute the profits from each asset
The totals will be the capital gains tax payable

Deduct any allowable losses
If you realize a loss when disposing of an asset, you can reduce your capital gains tax payable by reporting the loss to the HMRC. The total amount of loss is deducted from any profits you may have made in the tax year.

If you deduct all your allowable losses and still find that your capital gains tax is above the tax-free allowance for the year, you can still get relief by deducting unused losses from past years. Once you have enough losses from previous years to get you into the tax-free allowance bracket, you can carry forward any remaining losses to use for relief in future years.

You do not have any tax obligations if you capital gains tax are below your allowable tax allowance for the year. Nonetheless, you are obligated to inform the HMRC if:

1. You sold or transferred chargeable assets that are worth more than four times the tax allowance (£46,800) for the 2018-2019 tax period.
2. You got losses that you need relief from
You can include this in your tax returns

Apply the tax rate
Capital gains tax for basic income taxpayers is pegged at 10% and 20% for those on the higher tiers of income. Any capital gains realized on the disposal of a buy to let investment or a second home, basic rate taxpayers will need to pay 18% in capital gains tax while higher tier taxpayers will have to pay 28%.

How can you report and pay capital gains tax?
You can pay and report your capital gains tax if you are a UK resident on the real-time Capital Gains Tax service on GOV.UK

Example
Kate purchased an apartment for £200,000 and then sold it for £250,000 making a £50,000 profit
The direct costs incurred in selling and buying the asset can be deducted when we calculate how much she needs to pay in capital gains tax:

£50,000 – £3,000 (advertising fees, estate agent fees among other selling costs) – £3,000 (stamp duty, survey fees and other buying costs) = £44,000 (chargeable gain/the net gain) – £11,700 (tax allowance) = £32,300 (Capital Gains Tax).

Let us assume that the apartment was a buy to let – an investment property. We need to calculate her capital gains tax by taking the appropriate tax rate and multiplying it by the taxable gain: The appropriate rate may either be 28% or 18% or a combination of the two. The applicable rate will depend on how much income

Kate has:

Higher tier taxpayer: If her income is greater than £46,350 (the tax bracket is £46,351 to £150,000) in the tax year 2018 to 2019, she will be classified on the higher band. This means that the applicable capital gains tax will be at 28%. This works out to 28% of £32,300 which is £9,044.

Basic Taxpayer: If Kate makes less than £46,350 a year (the tax bracket is £11,850 to £46,350) she will be classified as a basic rate taxpayer. The basic rate taxpayer pays taxes at 18%. As such, if she has an income of say £30,000 she will be in the basic band for the first £16,350 and at 28% for the rest of her income that falls in the higher tier band:

18% x £16,350 = £2,943+ 28% x £15,950 = £4,466 Total tax = £7,636

If she reports income less than £11,700 (her personal allowance) or no income at all for the tax year, the capital gains tax will be charged under the basic rate band at 18%. This will be
£32,300 x 18% = £5,814

GM Professional Accountants have offices locates in Ilford, London, and Manchester

Why Did I Receive a £100 Corporation Tax Fine/Penalty from HMRC ?

Penalties for Late Filing

Company Tax Return, like other taxes also has its deadline for filing. Meaning, if you fail to pay your tax return within the prescribed period, corresponding penalties shall apply, and as time passes by after the deadline, the fine gets higher and higher. That is the reason why it is important for you to be mindful/always keep reminded on these crucial dates to pay or file such taxes.

The HM Revenue and Customs (HMRC) will estimate your Corporation Tax Bill and will be responsible in adding penalty for unpaid taxes as much as £100 up to 10% of the unpaid tax for 12 months. To fully understand, hereunder is the breakdown of the penalties you will pay if you fail to meet the deadline:

  • 1 day after the deadline- £100
  • 3 months after the deadline- another £100
  • 6 months after the deadline- HMRC will add penalty of 10% from the unpaid Corporation Tax Bill. The HMRC will send you a letter requiring you to pay the unpaid tax. It is called by the term “tax determination. If your company already received this notice/letter, you cannot appeal against it unless otherwise, there is a reasonable justification for the late filing.
  • 12 months after the deadline- another 10% of any unpaid tax

Remember: The later you file after the deadline, the bigger penalties are charged. If you don’t pay your tax return on time three times in a row, penalties will increase up to £500 each. It is therefore important to pay your Corporation Tax due and file your tax return because the later the payment, the higher the penalties will be charged against you.

 

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Appeals

As mentioned above, a company can still file its appeal against the penalty for late filing unless otherwise a justifiable reason is presented. All you need to do is to call the Corporation Tax helpline, or better yet, write to your company’s Corporation Tax Office.

However, the HMRC does not accept all types of justifications as there are only certain excuses that their office considers why you were not able to pay your obligation. Some justifiable reasons that the HMRC will accept are those life-threatening illnesses or situations (disasters, fire, etc.), death of a close family member before the deadline, postal delays, system/software failure of HMRC and others. Since the whole world is affected with the COVID-19, HRMC also considers this reason as long as you can explain clearly how this pandemic affected the filing.

For more inquiries, the HMRC helpline is open from 8 AM to 6 PM from Mondays to Friday and their customer care personnel are more than willing to provide assistance.

How do I get out of HMRC fines?

Filing your appeal to HMRC is the only way to save yourself from paying penalties due to late filing of taxes, however, this is not always 100% guaranteed since the HMRC has their own standards and requirements in order for them to grant the appeal of a certain company. In filing your appeal, you have to make sure that you provide the necessary information, such as the date the penalty is issued, the date you filed your Self-Assessment Tax Return and the exact details of your reasons for late filing.

 

Are HMRC penalties criminal?

Tax evasion can be penalized as financial, criminal or both depending on the severity of the and based on the civil procedures of the HMRC. Prior to the issuance of penalties, the HMRC will conduct thorough investigation in order to determine whether there is an absolute ground to order penalties for unpaid taxes. But as long as the underpaid tax is settled, there is unlikely to be a penalty for tax evasion.

How long do I have to pay HMRC penalty?

You will be given 30 days to pay the HMRC penalty from the date of the PAYE late penalty notice to pay. You can pay the penalties in different paying channels, except at the Post Office. If the deadline falls on Holidays and Weekends, make sure to pay the penalty on the last working days before these dates.

What happens if you ignore HMRC?

HMRC is considerate as long as you provide justifiable reasons for filing your tax return late, however, if you ignore their notices and won’t respond, you will face a penalty and worse, it could lead to the forced closure of your company. That is why it is very important to settle unpaid taxes and be mindful in the deadline of filing.

 

Can HMRC look at my bank account?

Yes. HMRC is authorized to issue a “third party notice” during an investigation for tax evasion. Said notice will be sent to banks, financial institutions and even to the taxpayer’s lawyers and accountant in order to request information about the financial status of a company.

 

Gm professional accountants have offices located in London Canary wharf, London Wimbledon ,Ilford Essex and Birmingham.

Does a sole trader need to register with Companies House?

Does a sole trader need a company registration number?

No. Some sole traders believe they need to register with Companies House but a sole trader business is not a corporation and therefore doesn’t require a company number. The business and the owner are one in the same, so no registration number is required.

Do self-employed need to register with Companies House?

Sole traders need to register with HMRC and fill out an annual Self Assessment tax return. A sole trader does not need to register with Companies House unless they become a limited liability partnership (LLP), a limited company, or a corporation, in which case you need to register with Companies House.

Do sole traders have a company registration number UK?

Only businesses registered or incorporated at Companies House require a company registration number. This includes limited liability partnerships and limited companies. Sole traders do not need a company registration number because they are not a corporation, a limited liability partnerships or a limited company.

Do I need a UTR number as a sole trader?

All sole trader that fill out an annual Self Assessment tax return, and register with the government, will be given a Unique Taxpayers Reference (UTR) number. All sole traders need this UTR number to be able to pay their annual tax bill.

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Is sole trader a business?

A sole trader is a sole proprietorship meaning it is a simplified business structure in which one individual owns and is in charge of everything. Unlike a corporation, a limited liability partnership, or a limited company, a sole trader is liable for all losses incurred but is also the lone recipient of any profits.

How much can a sole trader earn before paying tax UK?

Each sole trader is entitled to a personal allowance equal to £12,570 tax free for the 2021/22 tax year. This allowance is the same for sole traders and for those employed through P.A.Y.E.

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Do sole traders have a certificate of incorporation?

Sole traders are sole proprietorships. Unlike a limited company, a limited liability partnership, or a corporation, when you start up as a sole trader there is no need for a company number or a certificate of incorporation.

How long can you run a business before registering?

After you start trading, you should consider registering at least six months before the next tax year which begins in April. However, there’s no law regarding how much time you take before registering.

Do you need a business bank account as a sole trader?

There’s no law requiring sole traders to have a business bank account. A sole trader may use their personal banking or set up a second personal account to separate business and personal use. Business bank accounts are not required.

How much does it cost to register as a sole trader UK?

A sole trader does not need to register. The only cost to register applies when forming a limited company, limited liability partnerships or corporations. There is no cost to register as a sole trader.

Gm professional accountants have offices located in London Canary wharf, London Wimbledon ,Ilford Essex and Birmingham.

What Is a Notice To Complete A Tax Return letter ?

What does it mean to be informed to file a tax return?

A “board officer” sends a “notice to file,” which tells the taxpayer that they need to file a tax return for 2022.

Some taxpayers get a paper tax return with a reminder to file in the mail. This depends on what the taxpayer needs based on how they have filed in the past.

The deadline is written on the letter, and action is necessary.

Do you get reminders from HMRC to file a tax return?

You might not even receive any paper correspondence from HMRC informing you that you need to file a return. You may instead receive an email reminder that you must file a tax return. If you joined up for HMRC’s digital self-assessment email reminders service, this should only happen to you.

What is the purpose of the self-assessment letter I received?

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Is it necessary for everyone to file a self-assessment tax return?

Every year in April/May, HM Revenue and Customs distribute Tax Returns – or a notice to file online – to everybody in the Self-Assessment system. You must complete a tax return & submit it to HMRC if you get a tax return or a notification to file online.

Under Self Assessment, some taxpayers are required to file an annual tax return (often referred to as a form SA100) detailing their dividends and capital gains, as well as claiming any applicable allowances & reliefs.

Unless their trading income is exempt under the trading allowance, self-employed individuals were required to file a yearly Self Assessment tax return. It is irrelevant whether you earn a capital gain from your self-employment or whether you start trading as a self-employed individual later registering.

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What if I don’t complete my self-assessment?

You’ll incur fines if you don’t file your return and pay any taxes owed on time – and there may be further penalties. So don’t put off filing your tax return until the last minute, and pay whatever taxes you owe with whatever information you have – even if you need to modify it later.

How do I opt-out of self-evaluation?

When you stop being self-employed, you have two options for notifying HMRC. Calling HMRC at 0300 200 3310 is one of them.

If you work in the construction industry (CIS), you can phone 0300 200 3210 instead.

If I’m on PAYE, why do I have to conduct a self-assessment?

You may be required to file an additional Self Assessment tax return if you are a director of the company, generate money that is not taxed under PAYE, or have untaxed income. This could include interest that has not been taxed before being given to you or rental income.

Must I file taxes if my income is less than £1,000?

You don’t have to tell HMRC if your yearly gross income from these is £1,000 or even less unless you can’t use the allowances. You must register for Self Assessment and file a tax return to report your income.

How can I tell if I’ve signed up for self-assessment?

If you’re unsure whether or not you’ve registered, you can call HMRC with your National Insurance number to find out.

Gm professional accountants have offices located in London Canary wharf, London Wimbledon ,Ilford Essex and Birmingham.

What does a Vat surcharge Liability notice letter mean?

Defining the VAT Default Surcharge notice

HMRC imposes a Default Surcharge as a civil penalty to “encourage” firms to file their VAT forms and pay the tax owing on time.

By law, VAT-registered firms must file their returns and make the necessary VAT payments by the due date.

If HMRC does not receive your return and all of the VAT owed by the due date, you will be in default.

The relevant date is when cleared monies are received in HMRC’s bank account. Payment must be paid on the previous working day if the due date is not a working day.

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Is it true that a VAT surcharge is a penalty?

There is presently no separate penalty for late VAT filing. Instead, the Default Surcharge, which is a combination of late submission & late payment penalties, is applied. The taxpayer receives a Surcharge Liability Notice for the first late return, which is valid for a year.

What happens if you fail to file your VAT return?

You’ll face more than a late payment penalty if you don’t file your VAT return to HMRC on time. You’ll have to pay interest on it until it’s paid off.

You may, however, get a Surcharge Liability Notice based on your prior VAT payment history (SLN)

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What is the penalty for paying VAT late?

If your VAT Return is incorrect, HMRC can levy you a penalty (ranging from 15% to 100% of the outstanding amount owing).

How do I write an HMRC dispute letter?

Write to HMRC and explain why you believe the amount you must pay should be revised, as well as how the additional evidence supports your position. Send your message to the address on the letter from HMRC stating that your repayment will not be changed. Any new evidence should be photocopied.

Is it possible to submit my VAT return late?

If you file a late return and pay your VAT in full by the deadline, you will not be charged a penalty. I don’t have to pay any taxes.

are owed a VAT refund

What does “fair excuse” imply?

You will not be charged a fee if you have a reasonable justification for not paying on time and correct the problem before the excuse expires.

Because there is no legal term of reasonable excuse, the facts of your case will decide it.

A reasonable excuse is anything that prevented you from completing a tax obligation on time, notwithstanding your best efforts.

The existence of a valid justification is determined by the specific circumstances surrounding the failure.

Reconsiderations and appeals

If you disagree with our conclusion that you are subject to a surcharge or the method used to compute the fee, you may:

• Request a review of your case from us.

• Have your case considered by a tax tribunal that is independent of the IRS

If you want us to look into your case, you must write to us within 30 days after receiving the Surcharge Liability Notice Extension, explaining why you disagree with our judgment.

You are not required to write to us. An accountant or adviser can do this for you if you have permitted us to act on your behalf.

You might, for example, request that we examine the default if you believe that:

• We applied the erroneous rate of surcharge.

• The wrong amount of VAT was utilized when computing the surcharge.

• There are extraordinary circumstances that warrant the default being removed.

If you disagree with the conclusion of our review, you can still appeal to the tribunal.

Gm professional accountants are small business accountants based in , Wimbledon, Birmingham, Canary Wharf (London)

HMRC Register for Corporation Tax New Company Details Letter

Corporation Tax Registration

The vast majority of companies apply as an employer both for PAYE and Corporation Tax time as they register with Companies House.

To submit your firm’s payment or return of taxes, log in to HMRC online services if you haven’t previously done so. You can set up an account if you don’t already have one.

If you registered your firm, you’ll have to apply for Corporation Tax individually by:

  • post
  • through an agent
  • third-party software

Within three months of launching a business, you should register. Buying, selling, marketing, renting a place, and recruiting someone are all examples of this. If you’re not sure what qualifies as starting a business, you can look it up.

If you are late to register, you may receive a penalty.

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How to Register

To register, log into your firm tax account and simply follow the instructions found in your account.

To sign in, prepare your Government Gateway user ID and password. You can create one right after you sign in if you don’t have one.

You also need the 10 digits number or Unique Taxpayer Reference (UTR) of your business. The HMRC (HM Revenue and Customs) mails this to your business address registered to Companies House in a span of 14 days.

If you haven’t received your UTR when you registered, you can acquire one online.

What you should inform HMRC

You should tell HMRC the following information when registering:

  • registration number of your company
  • the date that your was business launched (the first accounting period for your company will begin on this date)
  • the due date of your annual accounts

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What will happen next?

HMRC will notify you of the Corporation Tax payment deadline.

Even if you suffer losses or doesn’t have a Corporation Tax to pay, you should still submit a file of your Company Tax Return.

In the future, you’ll be able to find your UTR.

Your UTR then appears on all HMRC correspondence and online services: Take note of it as you will need it:

• to submit a Corporation Tax inquiry to HMRC

• to use commercial software to send your company’s tax return

Gm professional accountants have offices located in London Canary wharf, London Wimbledon ,Ilford Essex and Birmingham.

Why has the Self assessment tax return deadline been extended in the UK until February 2022

Self assessment tax return deadline extended in the UK February 2022

Paying tax on time is very important. A taxpayer must know and remember that failing to pay owed taxes on time or having late tax returns will result in extra charges. To avoid paying these late penalties, you need to make sure that you submit your Self Assessment Tax return within the set deadlines by HMRC or HM Revenue and Customs.

In the UK, the tax year runs from April of the current year until April next year. For this year, the tax year had started last April 6, 2021, and will end on April 5, 2022. You can submit your Self Assessment tax return by paper or via HMRC online. The deadline for you to register for Self Assessment if you are a self-employed or a sole trader (not self-employed), or registering a partner or a partnership is last October 5, 2021. For paper tax returns, midnight of October 31st is the deadline while the deadline for online 2020/2021 tax returns is on the midnight of January 31st but you can still submit up to the 28th of February 2022 without having a late filing penalty as filing tax return of the year 2021 has been extended on that day.

The deadline for paying tax owed for the previous year 2020/2021 is on midnight on the 31st of January, 2022. The only time that the deadline of the tax return in the UK may change is when you received a notice from HMRC informing you to submit an online tax return after the 31st of October, 2021. With that scenario, you will still have 3 months to pass your tax return starting from the notice date.

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What Will Happen If You Miss The Deadline?

If you are paying late or paying a day after the deadline, the charge is 100 pounds. Paying 3 months after the deadline will result in a penalty up to 1,000 pounds. If you will pay your tax bill between 6 to 12 months after the deadline, you will have to pay an additional 300 pounds aside from the earlier fines being mentioned. Some cases include paying 5% of your tax bill which is a bit expensive for any taxpayer. For worst cases like paying more than 12 months late, there will be a fine of 300 pounds including all the other penalties. If you can’t pay within 1 year, you can be penalized as high as 100% of the tax you owed on top of your original tax bill.

Penalty Waivers

HMRC has the authority to waive late penalties or charges of taxpayers for 1 month for them to have more time in paying their taxes. Penalty waivers are applicable only for those who can’t file their online return on the 31st of January if they will file online on February 28, and those taxpayers who can’t pay their tax on the deadline if they will pay their tax in full or set up a time to make arrangement and pay by April 1st. If you can pay your tax on time, then that’s the best thing to do to avoid asking for penalty waivers or paying late fees.

Gm professional accountants have offices located in London Canary wharf, Wimbledon  , Birmingham and Essex.

What is the 1257L Tax Code?

What is the meaning of the 1257L Tax Code – 

It is predicted that, not only will the 1257L Tax Code not suffer any changes until around 2026, but that it will be the most common form of tax between 2021 and 2023. Considering its replacement of the 1250L tax code, the most popular tax code between 2019 and 2021, it only makes sense that there will only be any talk of change after the same amount of time is given.

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No matter what happens, the majority of taxpayers will receive an update notice to the tax code either in February or March by the HMRC. This is the time taxpayers will be fully aware of how they should calculate and determine how much they will pay out in taxes that year.

What is tax code 1257L M1

This is an emergency tax code , and means you have been provided the allowance from the month that you have commended your employment. This will not take into account your previous months. This is a measure taken if your tax code cannot be obtained from your previous employer. This should be corrected.

What Is Tax Code 1257L?

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It may seem complex or confusing, but the tax code in the UK has always been fairly simplistic, and tax code 1257L is no different.

Each tax year, there is an agreed-upon personal allowance that is granted to UK’s taxpayer. This personal allowance essentially determines how much a person can earn before paying taxes on their income. During the tax year ranging between 2021 and 2022, the personal allowance was increased to £12,570.

The HMRC then converts the personal allowance number (£12,570) into a tax code. In this case, that tax code is 1257. From there, an “L” is added, which makes the tax code 1257L.

Put simply, for the majority of taxpayers, Tax Code 1257L means that you will only be taxed on earnings that exceed £12,570.

How Much Will I Pay With Tax Code 1257L?

The 1257L tax code essentially offers an annual rebate of £12,570. This is spread out over a year. This means you’d receive a weekly allowance of £241 and a monthly allowance of £1,047.

Any income earned over this, ranging between £12,571 and £50,270, is taxed at a rate of 20%. From there, income earned between £50,271 and £150,000 is taxed at a 40% rate. Finally, for those that earn over £150,001 annually, they are taxed at a 45% rate.

Scotland has a slightly altered tax rate that is only slightly different from the numbers listed above.

Is My Tax Code Wrong?

For the vast majority of employees, the tax code should be correct. Generally, those with only a single employer and no benefits or tax-deductible allowances will be in the correct tax code setting.

Those that run the risk of being placed in the wrong tax code can typically include:

  • Those that regularly shift jobs; have multiple jobs at one time; or have started, left, or are retiring from a job within that year
  • Those with multiple sources of income (eg., a second job or a pension plan)
  • Those with tax-deductible allowances
  • Any changes to their taxable benefits (such as being given a company van for private use)
How Can I Correct My Tax Code?

If you are under the impression that you may have an incorrect tax code, immediately contact HMRC on 0300 200 3300. Speaking with them as soon as possible can reduce any potential tax errors.

Other methods of contacting HMRC about a potentially incorrect tax code is available by following the link below here – Contact HMRC.

Gm professional accountants have offices located in London Canary wharf, London Wimbledon ,Ilford Essex and Birmingham.

Accountants Guide For Tutors

Accountants For private Tutors self employed or Limited Company 

While it’s true throughout the school year, the tutoring business is at its most profitable during exam season. For many, this can be just as much a time of stress as it is a time of celebration. After all, as profitable as it is during this period, it’s also going to be a hectic one. Going from student to student while also trying to keep track of your finances can wear at even the sharpest minds.

Instead, it may be better to let a skilled professional give you a hand.

If you’ve ever felt you’ve left your finances and accounting go by the wayside while focusing exclusively on ensuring your students put out good work, this is worth your time. If you’ve ever felt that you could use some help of your structuring your cash flow, this is worth your time. Simply put, if you’ve ever felt you just had too much on your hands at once, this is worth your time.

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Self-Assessment / Tax Return / Deadlines

What Is A Self-Assessment Tax Return?

Required by the HMRC, a Self Assessment Tax Return is an overview of your full income as well as a way to determine whether you have properly paid out your income tax for the year. The HMRC does this by going over your income as a PAYE (pay as you earn) employee. This ensures that they have a complete picture of how much income you’ve made from all sources throughout the year.

As a result of this tracking, you’ll want to make sure you list out any additional forms of income you’ve earned, provided you meet the criteria (see below).

Potential Tax Refunds

It may seem like you are only opening yourself up to a larger portion of your income being taken, but that isn’t entirely true. Depending on your situation, you may also have the option of getting a few tax refunds as well.

Tax Deadlines

The deadline for each annual tax year (for individual persons) goes from the 6th of April to the 5th of April the following year.

As an example, for the tax year of 2o2o/2021, all income accrued between the 6th of April 2020 to the 5th of April 2021 is counted as income that you’ve personally received, and thus must be declared on your tax returns.

As we are currently still inside of 2021/2022’s tax year frame, while everything made until the 5th of April 2022 will be a part of that year’s return form, your following tax return won’t be due until the 5th of April in 2023.

Allowable Expenses For Tutors

Office & Stationary Costs

While filling out your self-assessment tax return form, you can claim expenses on several things, including:

  • Any and all Office & Stationery Costs
  • Printing
  • Printer Ink & Cartridge Costs
  • Postage
  • Computer Software
  • Phone, Mobile, Fax, & Internet Fees, Costs, and Bills
  • All Learning Materials, e.g., Books

[To claim computer hardware equipment, look over ‘Capital Allowances’ section below]

Working From Home

If, as a tutor, you do a considerable amount of work from home, you may be able to claim a certain portion of your costs on your tax returns. This can include things like:

  • Heating
  • Electricity
  • Mortgage Interest / Rent Costs
  • Internet & Phone Use
  • Council Tax

You will want to have an accountant on hand to help effectively divide out your costs based on the amount of time spent working from home. Our accountants are especially skilled in this, and, with only a few questions, can get you a realistic number for how much you can put on your returns.

Gm professional accountants have offices located in London Canary wharf, Wimbledon  , Birmingham and Essex.

HMRC Self Assessment Late Tax Return Penalty Notice, What to do?

HMRC Self Assessment Penalties

Paper self-assessment tax returns were due on October 31st, and online self-assessment tax returns are due on January 31, 2022, to pay what is owed. Failure to complete a return by the due date can result in a penalty. Automated penalties are sent to those failing to complete a return, and can be sent in error.

With a reasonable excuse, a late tax return penalty can be challenged, but when you fail to submit your return the HMRC will demand payment.

 

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What Are Some Reasonable Excuses For Filing Your Tax Return Late?

A reasonable excuse is required to challenge a tax return penalty. Don’t ignore the tax department, as they are not going to forget about you.

Common reasons why people are late in submitting a return are:

  • You may not be eligible for self-assessment.
  • Postal delays
  • Illness or death of a loved one.
  • Software meltdown
  • Acrimonious divorce proceedings

The penalty incurred is usually 5% of the amount owed, and if the return is three months late you will pay a penalty of 100 pounds, so it is important not to delay, and get help to make a valid appeal.

 

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Employment Rights

Employment law does not usually cover self-employed people, as they are considered their own boss. However, they still have protection for health safety and discrimination. Their rights are set out by a contract signed with their client.

 

HM Revenue and Customs (HMRCMay regard someone as self-employed for tax purposes and often need to check whether they are exempt from PAYE or whether they have employee’s rights.

If the employment status is proven to be wrong. Both individuals and their employees may have to pay the unpaid tax or lose entitlements.

 

Checking Employment Rights

A person is considered self-employed and does not have the rights of an employee when they submit invoices for the work done and are not under direct supervision when working. They use terms like consultant or independent contractor to describe themselves.

 

Excuses For Late Filing of Tax Return

If you failed to file a return by October 31, you are not alone, as the deadline is missed by over 800,000 people a year. It is obviously a huge waste of HMRC time to process all these excuses. So in 2015, a press release from the HMRC revealed that the standard 100 pound fine for failing to submit a return on time, would be waived without inquiry for those offering a reasonable excuse for lateness.

 

Your Appeal

If you are feeling anxious about your ability to successfully appeal to HM Revenue and HMRC, it may be for the following reasons.

  • Late return
  • An inaccurate return
  • Late payment
  • Incomplete records

When you do appeal an HMRC expert who was not involved with your penalty decision will conduct a review.

You may be appealing over customs duty incurred, and if you are offered a review, you can accept it to state your case. Alternatively, you can appeal to the tax tribunal, and if your excuse is reasonable your penalty may be canceled.

 

Procedure to Appeal

If the HMRC issues you with a penalty letter, use the form that accompanies it to appeal.

There may be some extra documentation to fill in for Self Assessment, VAT, PAYE, and Corporation Tax.

You can get your penalty canceled if you failed to send a tax return because you no longer need to. So if you are no longer working, you can probably explain this online. If you are going ahead with the appeal you will need.

  • Date of penalty
  • Date of filing your Self Assessment
  • Excuse for late filing

If you are appealing the 100-pound late penalty you can do your appeal online by setting up a Government Gateway Account.

Otherwise, submit your written appeal:

Self Assessment

HM Revenue and Customs

BX9 1AS

United Kingdom

When appealing on behalf of a partnership for a late return, submit your appeal by post using the SA371, The nominated partner must make the appeal. Do not pay the fine before checking if you can appeal as there are penalties of 1600 pounds or more for one year.

 

How much do you get fined for late tax return in 2021 and 2022? or Will I get fined for late tax return?

Conclusion

As you can see, the HMRC assessment is complicated, if you don’t feel able to meet the requirements and deadlines, employ the services of a tax expert.

Accountants for Etsy UK Seller businesses

Accountants for Etsy Ecommerce businesses

There is little doubt you have heard of Etsy, the online marketplace where buyers are connected with sellers offering handmade, craft and vintage items.

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Whether you are considering becoming an Etsy seller or you are one already, it would be prudent to consider taking on an accountant. Appointing a professional who is well-versed in the financial requirements of a small business leaves the owner free to concentrate on the things that matter to them: building their customer base and increasing sales.

Which Accounting service does an Etsy seller need?

No matter whether you have just started or have been trading for some time, you will have financial affairs that require management. Some of the particulars of what you need may change, others are constant.

Bookkeeping is a prerequisite for a business to function properly. In addition, limited companies need to be aware of several other obligations including quarterly and annual filing of accounts, RTI and PAYE reporting, VAT returns and Corporation Tax liabilities.

Not only does efficient financial work reduce the likelihood of being subjected to an audit, but should that come about, a professional accountant can help you handle it.

Dealing with Companies House and HMRC can be a daunting experience for the uninitiated not least because laws and regulations change. On top of that, in the event your business is selected for a random check into VAT or Corporation Tax, HMRC will want to see evidence that you have been claiming the correct amount of VAT or that revenue and expenses have been properly declared.

If you are one of the business owners who employs staff you will be aware of how time-consuming a procedure payroll processing can be. If you are not, you may be interested in learning more about rules around your residence being your place of work.

A knowledgeable expert will do the heavy lifting where it comes to paying your staff and will also be able to advise you on which expenses you can claim to minimise your outgoings, distance selling thresholds and when to register VAT. thresholds and when to register VAT.

Allowable expenses include:

Commissions

Purchase of goods

Postage and carriage

Subscription fees

Residence as office

Accountancy fees

Marketing Fees

Directors Salaries

Hiring an accountant will give you peace of mind and a safety net if things take an unexpected turn.

Looking to the future

It is not solely about reactive measures – accomplished accountants are also able to provide proactive assistance. Drawing up business and sales plans, producing economic forecasts and advising on pricing are further forms of invaluable support for the ambitious entrepreneur who is keen to succeed.

To be certain you get the quality of service you seek, be sure to look for and appoint a licensed accountant with experience in the type of work you need done. It is a false economy to cut corners in this respect.

Recruiting a professional accountant will save you time, money and stress. That way, you will be in a position to dedicate your efforts to the very thing that drew you to Etsy in the first place: the chance to interact in a marketplace without too much hassle.

Here at GM Professional Accountants we are committed to saving you money. Get in touch for a no-obligation chat about how we can help you.

Micro Business Accountants Guide

Micro-Business

What are Micro-Business Accounts?

Every business must file the statutory company tax return with HMRC. However, small and micro businesses have several options for submitting their returns. You can save money and time by submitting your return in a simple micro-entity account format.

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According to the Companies Act 2006, we can classify a limited company as a micro business if any two of the following three conditions are true during a particular financial year.

It may not have an annual turnover above £632,000.

The balance sheet total may not exceed £316,000.

It may not have an average of more than ten employees in the financial year.

How Do Micro-Entities Do Accounting?

Microbusinesses can do accounting by:

  1. Opening a bank account
  2. Tracking their income and expenses
  3. Developing a bookkeeping system with digital records
  4. Setting up a payroll systems
  5. Investigating import tax
  6. Determining how they will get paid
  7. Establishing VAT procedures
  8. Determining their tax obligations
  9. Calculating net profit margin
  10. Finding good accounting partners

Business Expenses

You can think of any expense as a business expense by determining whether it is for private or business use.

Setup Costs: You can include the pre-trading expenses in the first period of your accounting.

Office Costs: They include printing, stationery, internet, separate landline phone for business.

Clothing Expenses: Protective clothing and uniform except for everyday clothing costs

Insurance and Subscription Expenses: Recognized body relating to business and public Liability insurance

Banking Expenses: Bank charges, annual arrangement fee, credit card expenses

Transport Expenses: Mileage allowances with car parking charges, Specific percentage of motor expenses for business

Using Home for Business: You can use HMRC rates or actual expenses incurred in the period.

Subsistence Costs: You can claim it if you are away for more than five hours.

Hotel Expenses: If you need an overnight stay in a hotel for a business trip

Disallowable Expenses

The taxable profit is different from your accounting profit. The expenses are also disallowable if they are wholly and exclusively not for business purposes.

Drawings for personal use; however, wages are allowable for a limited company

Goods for personal use

Part of landline/ mobile and internet, if you use it for both business and private

Entertaining customers, suppliers, and clients

Repayment of interest on a loan

Business gifting for entertaining

Donation amount

Late filing penalties, motor fines, and similar expenses

An Icing on the Cake

We provide a personal accountant for small businesses to help in:

Giving necessary tax advice whenever required

Managing your salary planning, dividends, taxes, and VAT issues

Filing PAYE, VAT, corporation tax returns, and annual accounts

Why Choose GM Professional Accountants?

We provide accounting software as default in our all-inclusive monthly packages. You can quickly manage your routine bookkeeping activities on your phone app or computer. You need not postpone your work till the end of the day as you can do these activities online on this software. For instance, send invoices and record receipts online.

We take care of complex and time-consuming activities: E.g., Preparing P&L account; Checking business cash flows; Checking if business finances are in a strong position; Filing tax returns, etc. The best part of associating with us is that you need not spend hours together in front of mundane spreadsheets.

We have offices in London, Manchester , Birmingham and Essex.

Tax-Efficiency

Small entities need to keep as much of their earnings as possible to maintain positive cash flows and be profitable in business. We can help you make this possible by advising you about ways to keep your business accounting in line with HMRC rules. You will end up paying as few taxes as legally feasible because we ensure that you retain more of your earnings.

Top Tips for choosing an Accountant for Veterinary and a Vet business

Accountants Guide for Veterinary and Vet business

Today, many professional services are outsourced, we are all so busy that we focus on our own area of expertise and find it impossible to make time for day-to-day financials. So it makes perfect sense as a vet or veterinary nurse to use a specialized firm of accountants to handle business finances, insurance, tax, and all other money-related things. This leaves you totally free to restore the health of our pets and manage other professional challenges.

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When Planning a Veterinary Practice

The structure of a vet practice is complicated, so it is important to plan it correctly from the beginning to make the most of your deductions. Involve your vet accountant from the start and they will explain the best structure to you.  You can choose from a Limited company, sole trader or a partnership.

Meals and Travel Claims

  • When you work back often at night, or on weekends you will be paid an allowance by your employer for meals. Although you can claim meals without receipts, if you show a calculation, it is better to keep the receipts. In fact, keep all work-related receipts and then hand them to the accountants and let them work it out.
  • Accommodation and travel to nonlocal conferences are also claimed, as is travel between two different jobs.
  • Another claim is transport usage, including driving your own car for work, tolls, taxis and all public transport.
  • Home visits to clients’ animals.
  • When using your own vehicle, always use a mileage sheet that you keep in your car for work-related travel, then at the end of the year, you can submit the form to the accountants to calculate reimbursement.

Work Clothing

Often a uniform is required for work in a veterinary practice, and you may wear ‘scrubs’ or a white coat! Uniforms are expensive, so if you are required

to wear one as part of a team, by company policy, this will be another tax claim at the end of the year.

A work uniform may have a logo or an identifying emblem on it and is something that can’t be worn away from work.

Uniform Claims Include

  • PPE (personal protective equipment). this may include gloves, face shield aprons, and boots.
  • Laundry dry cleaning and repairs to your uniform.
  • UV skin protection, sunglasses, and a hat if working outdoors.

Training for the Workplace

You will be required to attend work-related training, and to pay for it. You may be the office WH&S (work health and safety), representative and this requires annual retraining with additional modules, often LMS online from home. Any books purchased related to training can also be claimed.

What is not Covered

You cannot claim HECS help fees.

But if you are doing an ongoing University or TAFE work-related course, you can claim the fees for that course, also the books and stationery.

Tools and Equipment in the Workplace

Buying and repairing equipment used at work, like specialized surgical equipment, computers, and phones electronic diary.

Other Expenses related to Work

Any professional membership

Insurances, all professions are required to be fully insured, and to have certain practicing certificates that are renewed annually. These expenses can also be claimed, says you may also be able to claim a deduction for reporting, plus gifts and donations.

Personal superannuation. If you have concerns consult your accountant, as it will be better to hand all this over to him/her.

Telephone and Internet Services

When you are making phone calls from home or your personal mobile keep a diary, for a month and then the accountant can aggregate the figures throughout the year.

You can only claim a proportion of monthly fees that relate to your work perhaps including email and training (LMS).

Other Expenses

There are other deductions that can be claimed by all employees, and your accountant will want to claim some of these as well.

  • If you are donating regularly to a charity just give an amount and get a receipt. Don’t buy raffle tickets, as if you receive something in return it negates the deduction.
  • Deduct bank fees on investment accounts.
  • You probably have income protection insurance and accident insurance. Your accountant can deduct this insurance or a part of it.
  • Keep all receipts that may be deductible, and when you have a meeting with the accountant you can ask them.

Tax Changes

Last year in the UK and many other countries there were some interesting changes to taxation rates. Amongst the changes were.

  • A married allowance for transfer for basic rate payers
  • Changes to Mileage rates.
  • Changes to business deductions.
  • Corporation tax rise coming in 2023

This type of income relief was bought in to stimulate the economy during the Covid shutdown, and to a larger extent, it seems to have worked.

This was combined with general tax cuts for the public, that were given to all working people.

Advantages of using a GM Professional accountants. 

  • We will have a better understanding of your structure and finances.
  • We  can monitor the performance of your vet clinic and suggest changes.
  • Good advisory services for you and your staff.
  • Enforces certain standards

Conclusion

Because everyone in your Vet practice is so busy, there is never enough time to spend monitoring your finances. In fact, they are much better monitored by your specialist accountant who brings a financial perspective to everything he does. This will free you up to do your real work, and if you become bogged down in financial administrative stuff you will lose a day a week, and that is a waste of professional time for you and your team.

Accountants Guide for WRITERS AND AUTHORS

ACCOUNTING SERVICES FOR WRITERS AND AUTHORS,  self employed.

We have specialist accountants who can submit accounts for writers and authors to HMRC. We provide accounting services for full-time writers and even for occasional writers. We do our best to learn about their account status and optimize their tax liabilities.

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The foremost question to answer is whether you are employed or not. You are most probably self-employed if you are not working for publishers or news companies directly.

Our tax experts team will find out whether they can consider your income from self-employment as a trading income or not. The team handles your account directly to ensure that if any tax payment is due. They pay due taxes two times in a year by choosing the self-assessment system of tax payments.

In case you work as a writer or author for an employer, our team ensures that your employer correctly deducts taxes at the source. Moreover, if you have several income sources, our tax experts help you in declaring them correctly.

If you handle many contracts in the UK and abroad, we depute a dedicated accountant to manage the accounting activities. The team also ensures two essential things: secure payment of due taxes by optimizing the tax payments and ultimately ensuring that you comply with the taxation laws. Nobody would ever like to get into HMRC investigation problems. However, it is quite possible to put yourself into trouble because the UK taxation laws are too complicated. We work intending to provide peace of mind to our clients.

HOW TO WORK OUT YOUR TAXES?

If you are working as a writer, you may have several income sources. They may include the income from writing books or writing ad-hoc articles, or even copywriting, and we account for all of those income sources. It is vital to understand that HMRC wants to classify taxpayers rightly as employed or self-employed. Our tax experts help you register in the correct category since HMRC has clearly defined the precise rules to determine the right position.

In rare cases, some writers and authors fall under the category of “Reserved Trading Income Status,” which they earlier referred to as “Reserved Schedule D Status.” They will be deemed self-employed and will continue to be taxed accordingly to discharge tax payments properly by ensuring no possibility of any employment break.

THE ALLOWABLE EXPENSES FOR WRITERS AND AUTHORS TO CLAIM?

An Expense refers to something essential to operate the business. Below is a list of allowable tax deductions for writers and authors from their tax liabilities.

* · MARKETING COSTS – Business cards, reprints of your work
* · WEBSITE COSTS – Hosting a website and maintaining it to promote your working
* · TRAVELING EXPENSES – Train tickets, petrol costs, etc
* · ACCOMMODATION – Hotel expenses for overnight stays for business purposes
* · COMPUTING EQUIPMENT – Laptops, printers, and editing software
* · INSURANCE FOR THE ABOVE COMPUTING EQUIPMENT – To protect your livelihood
* · COMMISSIONS – Fees paid to literary agents

For a self-employed person who works from home, we can suggest to include household expenses which you can attribute to your business. Those costs include fees for heating, phone service charges, a room used as your office, etc.

DOUBLE TAXATION AGREEMENTS

The UK government has double taxation agreements with several other countries. As a taxpayer, it is your responsibility to optimize the taxes payable in those countries. We provide guidance and assistance to authors and writers for avoiding double taxation. If you do not prevent or reduce your taxes in time, HMRC can refuse to give any relief later. Our expert team ensures that such a situation never arises.

If the other country does not fall under the double taxation ambit, we suggest you ensure full compliance and thereby help you avoid excess tax payments.

THE COMMON PITFALLS

Taxpayers usually make a common mistake of showing income net of VAT or any commission to agents. It is a wring practice. You should always declare gross income and show such commission and VAT expenses separately and claim as a deduction from such income.

Last year, we detected a new type of problem of new cash basis. HMRC referred to it as simplified expenses. If you opt for this, you cannot set-off losses against other income and limit some claims to costs. The earning basis provides more flexibility, which implies that you declare the income as earned instead of received and declare the costs as incurred instead of paid.

Notice to deliver a company tax return letter Tips

Notice to deliver a company tax return Accountants 

 Company tax return defined

A tax return for a company can also be referred to as the CT600 form. This form is filed by companies and associations to report their expenditure, income, and the tax figures due to the HMRC. Companies are required to file their tax returns annually. However, there doesn’t exist any universal deadline for company tax returns like there exists for self-assessment tax returns for individuals. The reason for this is because companies have different accounting periods and therefore the filing of returns is done at the end of a company’s internal accounting period.

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Who needs to file a company tax return?

Anyone who runs a limited company must file for company tax returns at the end of the companies’ financial year. To enable the filing of these returns, one must first register with the HMRC. For sole traders and partnerships, all you need is to register for self-assessment tax. On the other hand, upon setting up a limited company, you must register with the company’s house for you to be able to start filing the returns. It is also at this stage where you will have to register your company for corporation tax and Pay as you Earn(PAYE) tax since your company will have employees who will be liable for PAYE tax. If you register your company through post through the use of third-party software or agent, the requirement is for you to register for corporation tax as a separate thing. Also, you should ensure that you have done the registration within 3 months after you have started doing business. This is determined by the selling, buying, advertising, renting premises, and having an employee. Once the HMRC does an assessment and determines that you are liable for corporation tax, it will send you a notice for the filing of a company tax return. Upon the receipt of this notice, you must send a company tax return regardless of whether you made a profit or a loss. Also, if you do not receive this notice and you are aware that you owe tax, you are expected to reach out to HMRC for tax assessment. Failure to contact HMRC will make you liable for prosecution for failure to declare tax.

How to file a company tax return?

Many people prefer to file their taxes online. To start, you need to have computed your companies’ taxable profits for the period. The taxable profits are computed by deducting tax allowances and business expenses from the total company’s income for the period you are reviewing. When making the company’s first return, you should create a new user ID on the HMRC website and proceed with the prompts. Paper CT600 form is only applicable to Welsh people and for those who have not been able to file their returns online. Also, the HRMC has written down a list of excuses that are reasonable for one to use this form. Once you choose to use this form, you must fill WT1 form which explains why you have chosen to use this form.

When to file a company tax return?

You need to file a return exactly 12 months after the end of your accounting period. In most instances, the company tax period is the same as the company’s financial year. However, in the first year of operations, the financial year may cover slightly more than 12 months and this is allowable. Most companies set up their financial year based on the month in which they were formed. In this instance, your financial year will run from the last day of the month in which the company was formed to the following year were 12 months’ end. If the accounting period covers more than 12 months you will be required to file 2 returns.

Cost of a Company tax return

The cost can vary depending on your activity. If your revenue is below the (85k) vat threshold you can expect to pay between £650 to £840 plus vat. This will include the yearly bookkeeping, Statutory accounts and the CT600. To produce the CT600, you will need to first complete the bookkeeping , accounts and then the CT600.

GM Professional Accountants Specialise is Corporation tax returns, we have offices located in London, Manchester and Birmingham.  

Accountants in Birmingham

Accountants in Birmingham

  • We have a three best-rated accountant’s award
  • We are experts in small business accounting
  • We are self-assessment tax preparation and filing specialists
  • We provide fixed fees which we agree upon in advance

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If you are in Birmingham and need the services of accountants then you are in the right place.. We understand that finding a dependable local accountant that has expertise in a variety of needs and services is hard. As such, we have experts in the different accounting specializations that will provide for the variety of needs that your company or you as a person may require.

With our company, you get access to services that include:

  • Tax filing for Personal self-assessment
  • Preparation and filing of CT600 and accounts for Small business Limited Company services
  • VAT filing and VAT advice
  • Services for contractor accounting
  • Payroll and pensions auto-enrolment services
  • Company incorporation services
  • Property income tax and capital gains tax
  • Self-employed and self-assessment tax return services

From our offices in Birmingham, we make available accounting services to private persons and companies alike. Among the services that you can get from our experts include general tax advice on the variety of packages we have and assistance to ensure that you are compliant and have filed your tax returns before the deadline.

What makes us the best as compared to other accountants in Birmingham is that we have the know-how, expertise, and commitment to our clients that always have them coming back. Our clients know that they can rely on us to be one step ahead of the curve since we are always on top of any new developments including any modifications to HM revenue structures and regulations and changes to customs tax regulations and laws.

Our accountants have all the information on the laws and regulations to ensure that you are compliant. They will also provide information on the tax obligations and any expenses arising from the variety of tax regulations relating to your business. When you let us work on your accounting and returns, we will ensure that all your self-assessment and tax returns are prepared and filed in an accurate and timely fashion. Moreover, our company provides packages tailored for small businesses such as the preparation of corporate accounts and filing of taxes.

Accounting for Limited Companies

We provide accounting for companies’ house, HMRC and tax returns, and filing for CT600. Our packages include everything you may need including bookkeeping, trial balances and the making of final accounts. By providing comprehensive accounting services, we ensure that you or your business is compliant with all the rules and regulations that apply in the jurisdiction.

We make sure that all the information you file with the authorities is accurate for each task. This makes it possible to spot opportunities for allowable expenses so that you can pay less tax. By taking advantage of our comprehensive services, you can free more of your time that can then be used for more critical activities such as marketing. This will help grow your business since you will not bogged down doing mind-numbing accounting and bookkeeping tasks.

As such, we can guarantee that when you work with us, you are working with accountants who take your business affairs seriously and with expertise and caution borne of experience. Nonetheless, despite our seriousness with the task, we always strive to provide a personal touch to every client. It is vital to know the tax requirements of your Limited Company which is deemed a legal entity upon its formation.

As a sole trader, there is no real distinction between you and the business and hence you can take out money from the business as you wish. However, things are different when your business is designated as a limited liability company. With such a designation, money can only be taken out in the forms of directors’ loans, gratuities, dividends, or PAYE earnings. The rules governing the working of a limited company and the tax requirements can become quite convoluted and hence it is important to contract an accountant as soon as you start operations.

Tax Returns for Self-Assessment

The filling and groundwork for self-assessment ought not to be a stressful or expensive undertaking. From out offices in Birmingham, you get to enjoy cheap, comprehensive, affordable and hassle-free tax returns without having to leave the city.

Capital Gains Tax

We are specialists in capital gains tax and have helped many clients needing such services in Canary Wharf and the nearby suburbs. We help prepare and file PPR and Letting relief to help our clients reduce the amount payable on the capital gains tax. Nonetheless, we always advise that you contact us early enough so that we can advise you on the planning and documentation procedures that you need to take into account while preparing your returns. Many people who do not get the advice or plan well in advance tend to get huge capital gains tax bills, since they lack an understanding of the working of CGT.

R & D Tax Credits

We are specialists in R&D tax credits that the government provides as incentives to businesses in the United Kingdom that invest in innovation. This credit can either be claimed as a refund or help to reduce corporation tax.

If you run an SME (Small and medium-sized business) you could be eligible for one or both of the following credits:

  • If you have made a loss you can claim 14.5%
  • You can claim up to 130% more of your eligible Research and development expenses in the forms of a tax adjustment. In addition to the expenses themselves being fully tax-deductible, you will have a deduction totaling 230%.

Freelancer accounting services

We provide accounting services for freelancers that may be working either as Limited companies or sole traders. We assist you in claiming permissible expenses by providing services that include assistance with self-assessment groundwork and filing, statutory accounts, issuing dividend vouchers and bookkeeping. Our packages are designed to meet your fiscal and legal requirements.

Property Tax return

Due to the abolishment of tear and wear allowance and the restriction on mortgage interest, preparing and filing property taxes is now a more complicated affair. As such, it is critical to get tax planning advice right from the start so that you can determine the correct split between partners and spouse. Advance tax planning provides huge tax advantages as it gives you more control.

E commerce online business

We specialise in Ecommerce platforms, this includes Amazon accounting services, shopify, paypal, Ebay and various drop shipping platforms, Our services are tailor made, affordable and hassle free. We understand the distance selling rules and place of supply of goods and services. There are different rules from business to business, business to consumer and reverse charges. This is a specialist sector and we have experience and expertise in this department.

How to Choose the Best Umbrella Company

How to Choose the Best Umbrella Company in 2020

Contractors working with IR35 or those that may not have a definite date when they intend to spend contracting may be best suited going for a PAYE umbrella company option as opposed to a limited company. While contractor limited companies tend to be more tax-efficient, top-rated umbrella companies can make available convenient contracting solutions for businesses that are uncertain if contracting is something they intend to do for the long term.

But just what do umbrella companies provide to contracting companies and how do you determine what type of company is the best fit for your needs. Here are ten guidelines on how to select your umbrella company solutions provider:

 

  1. Determine if the company provides trading solutions that are a good fit

Umbrella or limited company – what should you use? Ensure that when you are going through the options, you opt for something that offers what your business needs. One of the best way to do this is to explain your needs and situation to a contractor accountant and the umbrella company, who will then offer advice on the best structure.

 

  1. Do Your Research on the Umbrella Company

Even if you determine that your company would be best served under an umbrella structure, it is critical to dig into the background of the company providing the solutions, including the duration for which it has been in operations and how good its credit rating is. Ask if the company will move your company’s money out of the country at any stage of the process. If it will, then that means the company may be an offshore tax solution provider rather than a true PAYE umbrella company.

 

  1. Ensure you Understand the Fees Involved

Many umbrella solution providers are not upfront on the costs and fees involved and hence it is important to get that information so that you are aware of what you will be expected to pay every month or every week. Prior to signing on to a contractor umbrella arrangement, determine if the fees charged are all-encompassing or if you will need to pay add-ons such as processing fees, filing tax forms, and expenses processing fees. If a service is offered free, ask why and how the company is able to do that.

 

  1. Make sure you Sign a Full Employment Contract

As a contractor under an umbrella company, you will be deemed an employee of the company providing the solution. As such, you will need to sign a full employment contract offered by the company so that you get to enjoy all the legal benefits and rights that all employees in the UK have a right to. Check prior to signing up that the company provides a full contract of employment.

 

  1. Determine how Claiming Expenses Works with the Company

Research and find out how claiming expenses works since there are companies that will make exaggerated claims asserting that you could save a lot of money on taxes through applying for contracting overheads without receipts. If the solutions provider advocates for such, do further investigation since if the company promotes or runs fraudulent expenses, there could be other aspects of its operations that may be non-compliant too. Note that it is possible for an umbrella company to claim a dispensation but this is not enough evidence of compliance. All it means is that the company is not obligated to submit a P11D form for every single contractor signed up with them.

 

  1. When and how you get paid

Check to ensure that the umbrella company typically pays on time after the submission of timesheets. You will also need to confirm that the contract does not have any “pay when paid” clauses. This is because such clauses are inappropriate for you as an employee. As an employee, you are qualified for statutory sick and holiday pay and minimum wage.

 

Confirm that Tax Paperwork is Included in the Solution

You may have to submit tax returns and if the solution provider does not include a dispensation, you may be required to file a P11D annually to account for business expenses. Moreover, the umbrella company provider should provide a yearly P60 and as such you should confirm that these are not charged extra but are included in the monthly or weekly fee charged.

Expense Free Exit

You are an employee of the company and hence you should never have to pay when you decide to leave. However, you should ensure that you understand the conditions and terms of employment and adhere to things such as termination clauses and notice periods just to be on the safe side. In some instances, you may find that the company has withheld some of your money for sick or holiday pay. In case there is any surplus, insist on it being paid when you get the final payment from the umbrella company.

 

Find out what kind of Support and Help is provided

It is highly likely that you will have a prosperous and long relationship with your clients. However, things can go wrong and you will need the umbrella company to provide support and help at such times. For instance, if you are accused of misconduct and umbrella company should have a human resources department that will offer advice and support and if possible offer representation at tribunal hearings.

 

Frequently Asked questions

What is the meaning of umbrella pay?

When you sign up as a contractor to an umbrella company, you become an employee of the company. Given this relationship, the agency pays the Umbrella Company which will deduct national insurance and PAYE contributions among other deductions and then pay you a salary just like any other employee.

 

What is the legal Status of Umbrella Companies?
The umbrella company is the third party and acts as a bridge between the employee and the agency. The contractor outsources some functions with regard to payrolls such as tax deductions and contributions which are then handled by the Umbrella Company. The outsourcing of such functions to umbrella companies is lawful.

 

Are Umbrella Companies Responsible for Paying Your Tax?

The agency pays your money to the umbrella company including any expenses and then the company will deduct National Insurance and tax before paying the contractor through the established PAYE system. As a contractor, you will receive your salary from the umbrella company after the necessary deductions have been made. The company will also deduct their fee before paying you.

 

Are Umbrella Companies a Rip Off?

It can be a massive rip off for agencies to employ staff under umbrella companies. They provide higher rates that will in no way compensate for the employers NI and holiday pay you will be required to pay.

 

Do Umbrella Companies Offer Holiday Pay?

It is critical to dig through the regulations and only then approach the agency with evidence of entitlement to holiday pay. You as the contractor is not employed by the agency but rather the solutions provider is. As such, the agency does not have to pay any holiday pay as they do not have a contract with you. However, the umbrella company owes you holiday pay since you are their employee.

Online Accountants Manchester

Online Accountants in Manchester

  •  We are Small Business Accounting Specialists
  • We specialize in Self-Assessment Tax Returns
  • All our services are provided on Fixed Fees agreed upon in advance

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If you need accounting services in Manchester, your search has come to an end. We are Online Manchester accountants, providing video live meeting from your home. We know that finding a reliable accountant is not that easy, particularly if you are looking for accountants who can cater to a range of needs and provide the services that your business needs.

The following are some of the services we provide:

  1. Tax return services for Personal Self-Assessment
  2. Self Employed and Self-Assessment tax returns
  3. Preparations and filing of CR600 and accounts for Limited company and small businesses
  4. Property income tax and capital gains tax
  5. VAT returns and VAT advice
  6. Company incorporation services
  7. Contactor accounting services
  8. Payroll and pension auto-enrolment services

We provide accounting and other business services to private individuals and businesses. Among our services are assistance in the filing, submission, and fulfilment of your tax obligation before the due date, and general tax advice on a sliding scale.

We have gained a reputation for our experience, skills, and dedication to our clients. We are always up to date on the happenings and developments in the field of tax accounting.

We make it our business to be updated on any changes in HM revenue systems, regulations and customs tax laws.

Our specialists will guide you in how to be compliant with all the laws including any regulations and tax expenses that may arise from those regulations. When you choose to work with us, you can be sure that we will file your self-assessment and tax returns in time and accurately. We have different packages for your small business that include the preparation of your company accounts and the filing of your tax returns.

Limited Company Accounting

For your limited company, we provide companies house, HMRC and CT600 tax returns services. We provide a range of services that include preparation of final accounts, trial balances and general accounting to ensure that your company is in compliance with all the laws and tax regulations in your jurisdiction.

This will ensure that all the accounting and tax information is accurate, which increases allowable expenses and could probably reduce your tax payable too. Working with GM professional accountants as a small business, you can delegate the tedious bookkeeping tasks to us so that you can have the time to work on more important activities to build your business.

As such, we design our packages with a personal touch even as we use our caution and expertise from long years of experience to give you the best service. It is important to understand that once a limited company is formed, the designation comes with tax obligations of a separate legal entity from the owner.

You can do whatever you like with the money the business makes as a sole trader. However, since the limited company is a separate entity, money can only be withdrawn in the form of directors’ loans, bonuses, dividend or PAYE income. The laws that a limited company has to adhere to including the tax obligations can be a complicated mess and it is always advisable to engage the services of an account if you intend to set up one.

Self-Assessment Tax Return

The filing and preparation of self-assessment returns should not stress you out or cost you thousands. Our Online accountants, will work with you so that you can have cheap, hassle-free and affordable self-assessment preparation and filing without needing to leave Manchester.

 

Self-Assessment Tax Returns Online

When we work with your business, you can be certain that professional tax experts are working on your returns. The specialists will provide advice and answer any questions on any queries you may have obligation-free.

The service is offered free of charge when you get the tax returns package . Our professionals are always available to prepare your tax filings fast and accurately so that you never have to worry about penalties imposed with noncompliance.

Moreover, our specialists have the experience and expertise which they will use to review your filing to ensure that you get the maximum tax refund available. In addition, they will also offer advice on expenses related to personal tax returns that can then be claimed to reduce tax payable. If you are either a company director or are self-employed you will be required to file self-assessment tax returns. By getting advice on tax planning and the proper, accurate filing of returns, the process can be made as painless as it should be.

Property Tax returns

Since the coming into effect of the mortgage interest restriction regulations, it has become even more critical to get an accountant if you want to get the most appropriate tax planning advice. The wear and tear allowance has been scrapped while the renewals method is now law. Our firm always reviews your tax positions and provide recommendations on where you need tax planning so that you can be in compliance with HM revenue customs regulations.

 

Accounting for Contractors

We have custom packages made specifically for contractors that operate their small limited companies and offer tax planning services to ensure that you save as much as you can on your taxes. This will result in an increase in your profits. Our accounting experts have expertise in VAT and will offer guidance on expenses that are exempted. We also advise you on the 24-month rule and how to use it to claim subsistence and travel expenses.

Capital gains tax

GM Professional accountants specialize in capital gains tax as we have helped many people claim Letting relief and PPR to reduce tax owed on capital gains. This can always be planned ahead of time and hence it is critical to get the advice of a professional. A lot of people misunderstand capital gains tax, which often results in a huge bill if one is not careful.

Tax Credits for R & D

Our firm has specialists in Research and Development tax, which come in handy particularly at a time when UK businesses engaging in innovation can take advantage of government incentives. These incentives can be claimed as surrender able loss or reaction in corporation tax so that your business can get a refund.

Small and medium-sized enterprises can get the following incentives for R&D

  1. 230% of R&D expenses including the existing 100% in addition to another 130%
  2. Companies making losses can claim up to 14.5 percent on allowable losses

Accounting services for Freelancers

We offer freelance accounting services for both limited companies and sole traders. We help you claim allowable expenditures. We also help you with self-assessment preparation and submission, bookkeeping, statutory account and issuance of dividend vouchers. We have customized packages to meet your financial and legal needs.

E commerce business accounting services

We provide accounting and tax services on various E commerce platforms, The sectors that we specialise are in are  Amazon FBA, paypal, shopify Ebay and drop shipping platforms. We provide guidance on place of goods and services for vat purposes. Guidance on distance selling rules.

3 Piccadilly Place

Manchester

M1 3BN

Tel: 0161 883 3198

Tips for Small Company Formations

Company Formation Agent Accountants for Startups

Ready to set up your Company?

It is vital  for your small business to get the company structure, share classes, shareholding, and articles of association accurate during the setting up stage at companies house.

At GM Professional Accountants, we pride ourselves in providing the most ample advice on the setup of new limited companies. We have offices based in London, Manchester and Essex.

During the setting up of a Limited Company, Company Formation is just the first step of many. You will need to consider start-up activities such as registration with HMRC business taxes, which is a service most conventional company agencies do not provide.

We provide comprehensive services that include tax and accounting compliance registration that include:

  • VAT Registration
  • Registration of Business addresses including Mail Forwarding Services
  • Registration for PAYE

What to Expect from Our Company Set Up Services for your small business

  • Online company formation in only three hours
  • Company name availability search
  • Documents by post or email
  • Registration of the company for Corporation Tax, PAYE and VAT
  • Business startup pack
  • Recommendation on the most optimal business structure
  • Accountants’ letter to help in the opening of a business bank account
  • Articles and memorandum of association

The Different Types of a Limited Company

Private Limited Company by Shares – Most Popular

This is the most popular type of limited company and is the favourite for freelancers, small businesses and contractors. The limited company typically issues profits and shares via dividends.

If you are a member of a business that is limited by shares, the obligation that is owed is limited to the number of unpaid member shares if any.

If the company becomes insolvent, the shareholder is not legally required to make any contributions to offset any debts of the business.

Company Limited by Guarantee

This business structure is mainly favoured by charities.

If the company is dissolved, it is the shareholders responsibility to contribute to the total sum of money they agreed to guarantee for it.

If a company that is limited by guarantee is liquidated or wound up, then every member will need to contribute to the amount they guaranteed. This is to offset the debts the company owes while they were a shareholder. The amounts involved are typically relatively small.

Setting up Fast

If you have ever tried to set up a company, you know that it can be a frustrating experience as there is a lot if paperwork to fill in and forms to submit.

GM Professional Accountants Do It All for You

We can complete the paperwork and submit the forms so that you are set up for trading as soon as possible.

Filling out the Forms

We will take charge of all the paperwork. This will include the compliance requirements of the company formation such as Memorandum of Articles and Articles of Association.

Some of the businesses that favour this type of company formation include freelancers, small businesses and contractors. The limited company will typically issue their profits and shares via dividends.

Shareholders of companies limited by shares are limited to the amount unpaid if any on the members’ shares. Once the member pays their shares in full, the shareholder does not have any liability for the debts of the company.

Victoria Accountants

Contractor, Personal & Property Tax Services near Victoria London

If you need the services of accountants in Victoria London then we are here to help. Our offices are conveniently located in the central business district, near Victoria London. We know that it can be tough finding local accountants that do a good job and serve your needs and provide a variety of services that you as an individual or your business may need.

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Some of the services we provide include:

  1. Tax return services for Personal Self-Assessment
  2. Self Employed and Self-Assessment tax return services
  3. Property income tax and capital gains tax
  4. Preparation and filing of accounts including CT600 for small and limited companies
  5. Incorporation services for companies
  6. VAT returns and VAT advice
  7. Auto-enrolment services for payroll and pensions
  8. Accounting services for contractors

 

From our offices in  London, we provide our services for individuals and businesses. Some of our services include assistance to help you submit your tax returns before the deadline and general tax advice depending on the package you select.

Unlike many accounting firms in London, we have a reputation for our dedication to our clients and have the experience and skills you need. We have made a name for being up to date on the latest changes in HM revenue systems and regulations and customs tax laws.

Our accounting specialists will advise you and help you be compliant with all tax regulations, including advising you on the financial effect of the different tax regulations. When you work with us you can be certain that your self-assessment and tax returns will be filed accurately and in time. Our firm has a range of packages fit for small businesses, including getting company accounts in order and filing of tax returns.

 

Accounting for Limited Companies

Our services include the filing of accounts for companies house and HMRC and CT600 tax returns. Our different packages include everything from the preparation of final accounts, bookkeeping, and trial balances to ensure that your company is in compliance with tax laws and regulations in your jurisdiction.

This ensures that all the accounts and returns that you file are accurate so that you can claim allowable expenses and reduce the amount of tax payable. By working with us as a small business owner, you can hand over the tedious accounting tasks, which frees your time for more productive business endeavors.

Therefore, our company provides a range of packages that ensure that your business affairs are taken care of with expertise that comes from our many years of experience combined with a personal touch. We understand the tax obligations that come with the formation of the separate legal entity that is the Limited company.

 

As a sole trader there is not much distinction between the owner and business and you can use revenues and profits as you wish. But as a limited liability company, the money does not belong to you and as such the only allowable withdrawals have to be in the form of directors’ loans, dividends, PAYE income, and bonuses. The tax obligations and the regulations governing the working of a limited company can be very complex and hence it is important to hire a qualified accountant right from the get-go.

 

Self-Assessment Tax Return

The filing and preparation of self-assessment returns should not be a stressful or expensive affair. From our Victoria London base, we work with you to provide you cheap and hassle-free self-assessment returns without you needing to leave Victoria London.

Online Filing of Self-assessment Tax Returns

When you work with us you can be certain that you have professional accounting and tax experts working on your returns. The professionals will provide obligation-free advice and answer any questions you may have. You get this service for free when you buy the tax return package in Victoria London and any other location in London. Our experts are always ready to prepare your tax returns fast and accurately so that you do not have to deal with penalties among other noncompliance issues.

Additionally, they will employ their experience and expertise to review your returns to get you the maximum tax refund that you can get. Moreover, they will also offer advice on your personal tax return expenses claimable, which will reduce your taxes. If you operate a business as a company director or a self-employed proprietor, you need to file self-assessment tax returns. When you get advice on tax planning and the accurate filing of your taxes from a professional accountant, the process becomes easier and less stressful.

Personal Tax return for Company Directors, Accountant Guide

DO YOU NEED TO FILE SELF ASSESSMENT TAX RETURN AS A COMPANY DIRECTOR

Are Company Directors Required to File Tax Return in Self Assessment?

The subject question has had contradictory answers for many years. HMRC have maintained that tax return has to be filed by all directors quoting certain sections of the tax guidelines. However, the same guidelines have other sections which clearly exclude directors from the responsibility of filing tax returns in normal scenario. You need to dig deep into the tax laws in order to find out the correct answer. While HMRC have persisted with their stand, the position has been challenged with success in various tribunals.

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What’s the Lawful Position?

Company directors have no separate category as such. They fall under the same provisions as all other employees. If all your income has already been taxed at source and you have no other major income amounting to more than 2500, you don’t have to file tax return if you have not been issued with it. You can yourself check whether you are required to file tax return or not using the tool for self assessment updated by HMRC. The tool offers a set of simple questions to you, which when answered lead you to the logical decision.

One important point in this regard is the first question that you get from the tool. It may be reworded, but basically it asks you, “whether you were working for yourself or not”. If you were a director during the tax period, you must give “yes” as the answer irrespective of your stakes in the company. This is so because as the director, you are the boss and even though you are getting a salary, the same comes to your account only after tax is deducted at source. The subsequent questions are quite simple and easy to understand. Just answer them and you will get the decision whether you are supposed to file tax return or not.

Actions on Receipt of Notice to File Tax Return from HMRC.

If you are the company director and have no other major income that falls under taxable criteria, but have received a notice from HMRC for filing tax return, you need to act immediately. If you feel that you don’t have to file the return, you should write back to HMRC requesting them the withdraw of notice. If you fail to do this, you are liable to be penalized for not filing even if no additional tax is due on you. You should contact the GM with your UTR (Unique Tax-payer Reference) and NI number for an early resolution.

Procedure for Filing Tax Return. Get yourself registered online for self assessment. This may take about 10 working days for setting up the initial account before the return can be filed. The balance process for filing tax return is the same as for other individuals and is fairly simple. If you don’t have sufficient time to set up your online account and the deadline is closing in, you should opt to get your return filed through A tax consultant. Timely action is required in order to avoid penalties for late filing.

GM professional are specialist in personal tax returns , we can assist you in your filing and help to make the process simple. We have offices located in London, Manchester and Essex.

Choosing a HMRC registered accountant agent guide

HMRC REGISTERED ACCOUNTANT GUIDE

1. How to Choose Your accountant?

Selecting a good tax adviser can be difficult as well as prove to be expensive. However, if you consider the

following points, you can make an informed decision :-

(a) Experience. This is a key factor in making the right selection. An adviser with previous experience in the field can help you save a lot of money through his/her counsel. A tax consultant who can undertake bookkeeping, audit and is proficient in corporate or personal tax regulations can setup and manage your accounts in such a manner as to reduce your tax outflow. Experience in payroll services, tax investigation, VAT submission and landlord support along with the knowledge of current tax regime is an important parameter.

(b) Trust. It goes without saying that trustworthiness of your tax consultant can never be overemphasized. You can’t be sharing your personal and financial details with someone, whom you don’t trust.

(c) Qualification. If trust and experience are the 2 most important attributes, you can’t overlook the qualification of the tax adviser. A highly qualified tax consultant may seem to be expensive at the outset, but will ultimately be able to save you more money in the long run.

(d) Integrity and Transparency. You should select a tax consultant, who scores very high in integrity and informs you about all of his/her charges upfront. You should discuss the fees and costs of tax consultancy services with the adviser and an agreement must be reached. This kind of transparency is not only good for your business, but also aids in developing a healthy professional relationship. A consultant who commits to have a fixed fee structure is the best as you don’t have to spend time again and again on the same discussion.

2. HMRC approved (registered) accountants.

Tax planning and timely and accurate filing of tax returns are very critical for any business as well as individual. The rulings and procedures are often confusing. We at GM PROFESSIONAL ACCOUNTANTS provide you an end to end solution for this and are registered with HMRC as agents. With commitment to the job and knowledge of all tax related matters, we’re among the foremost Tax Advisers in London.

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3. GM PROFESSIONAL ACCOUNTANTS – The Right Choice.

Whether you’re an individual tax payer, proprietor of a trader firm or big business organizations looking for the best suited tax advice, GM PROFESSIONAL ACCOUNTANTS meets all your needs. Our bookkeeping services are arguably the best in the market and you’ll never have to worry about any wrong or inaccurate entries. With years of experience, we’ve earned more respect than profit because we put faith and integrity as our topmost goals.

Conclusion.

There are broadly 3 ways to manage your accounts and undertake tax management. First is that you do it yourself, which is perhaps the cheapest option but involves lot of hard work on your part. The second method is to take help from an acquaintance, which will have no guarantee of success. The last method is to hire a good tax consultant and although it may seem to be the most expensive method, it saves your hard- earned money. A bit of research can assist you to get the best quality tax adviser at reasonable prices.

GM Professional Accountants have offices located in London , Manchester and Essex.

Earning over 100k tax return guide

Tax implications of earning over £100k

Tax Filing for High Earners

If you earn more than 100,000 annually, you need to file your assessment tax returns with the HMRC. If you have not been sending your tax returns, you should register by the 5th of October after the tax year in which the income was realized. We can handle your tax returns and help you avoid penalties.

 

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Do I Need to File a Returns if I’m Paid PAYE?

If you happen to be earning more than 100,000, you are classified as a high earner and the HMRC will be looking very closely at your money. Most high earners have more complexities in tax returns due to having more than one source of income. This calls for annual filing of self-assessment tax returns, which will ensure that all income is accounted for.

HMRC will also require that high earners file their returns since it can impact how much of your Personal Allowance will be tax-free. In HMRC language, this is what is referred to as the “adjusted net income”. The figure does not take into consideration Personal Allowance though it will comprise several types of tax relief. It boils down to a loss of 1 of tax-free Personal Allowance for each 2 over 100,000 of the adjusted net earnings. Things can get complex, which is why the HMRC requires that you file a tax return to make everything clear.

Can Submitting a Tax Return Result in Double Taxation?

You do not have to worry about double taxation as the HMRC will not tax the same income twice. However, it is easy to get it wrong if you are unfamiliar with the Self-Assessment system. There are many tax return deadlines and rules that come with Self-Assessment. You will have to register for it and you are likely to pile up penalties if you make mistakes in your filings.

Even if you somehow don’t fall into the pitfalls of Self-Assessment, you could still find that you are paying more tax than you should. Depending on the situation, you might get tax breaks on allowances that might be applied to the taxable income. Most people do not know how much they can claim for or may try to claim more too much.

What Information do the Tax Authorities Need?
HMRC will need a detailed accounting of all your income and expenses. This will include information about earning sources such as share dividends, employment, pensions and interest among others. The authorities will also expect that you declare all employment benefits. The tax authorities will also expect that you declare your allowable expenses too. It can take some getting used to and dropping the ball is more common than you may think. Contact GM If you need any advice or help.

1. Deadlines
2. Directors
3. Penalties
4. Claiming expenses
5. Common mistakes

Will you help with my Tax Returns?

Absolutely! As some of the best tax specialists in the UK, GM Professional accountants provide Self-Assessment tax return services that will be excellent if you have complex tax circumstances. We will take it off your hands and work on your total taxable earnings and then file the returns for you. Our experienced tax experts will ensure you are in compliance with the HMRC regulations and save you money while at it. Contact us and learn how we can help you with your returns.

Accountants Guide for Courier Drivers

COURIERS’ TAX RETURNS

Online shopping is one of the most developing segments in business. The development of online shopping has led to the creation of more jobs. One of the tasks that online shopping has created is courier freelancing.

How To Become A Freelance Courier

The first thing you need for you to work as a freelance courier is a van. You can use your van, or if you don’t have, you can hire. A freelancer courier can take jobs from courier companies like UPS or FedEx. Also, if you are capable, you can begin your own courier company.

Pros and Cons of The Two Courier Options.

– If you have to work under any other courier service as a freelancer, you will have no worry about how you will source for clients. However, your agreement with these companies will always tie you down.

– If you begin your own courier business, you will have the freedom to choose the clients you can work for, and you will put in a lot of efforts. Your inputs either hard work or finances would determine how many clients you will get.

How to Advertise Your Courier Services

Are you planning to begin your own courier services company? There are a few tips that may be helpful you can use to get clients. Some of the techniques are:

– Develop a website. Developing a professional website will help in boosting the credibility of your company. You can list your services on the website and also the prices for your services. Also, the site is a good point where you can communicate with your clients.

– Social networking. There are a lot of social media platforms with steady users which you can use to grow your business. You can run adverts on these platforms where you can target individuals looking for freelance courier services. You can use Facebook, LinkedIn, Instagram or Twitter to create your market base.

– Business cards. A freelancer can design and printout business cards. The cards should show your services, names and also contact details. You can then give the cards to your friends, family members, and even potential clients.

– Create adverts. Not everyone uses social media. You can use local advertising as your medium of communication. Adverts are cheaper and quickly meet your target audience.

How To Become Better in Your Courier Services

If you begin your own courier company, the better you are at your job, the chances of getting more clients are higher. Some of the skills that some of the best couriers have are:

– Stick to deadlines. Once customers purchase or request for goods, they usually need them in a short time. Due to the loads of packages you have to deliver, it would be wise to create a plan which will allow you to

stick to their schedules.

– Have adequate knowledge of the streets. In case your navigation system breaks down during your deliveries, you need to have sufficient experience of every street. It will help you to keep time even without a nav system.

– Stay fit. Since you will be spending a lot of time sitting in your van, you need to be healthy. Also, you will need to be fit for you to load and off-load your van.

– Be a good driver. This is one of the essential requirements that you need. You should have a valid driving license and also stick to the Highway Rules.

Accounting as a Courier.

There are a lot of benefits that you will enjoy in being a freelance courier. However, as a freelancer, there is one major challenge which is accounting. If you are employed, your tax is taken care of in the PAYE form. As a freelancer, You have to prepare your financial records and pay for the Self-assessment tax return. It’s done annually, and it may be challenging for you. It can distract you from your busy delivery schedules.

Getting Accountancy and Tax Advice.

You can contact GM :Professional accountants to prepare your the financial records at the end of the year. We specialise in this sector and provide bookkeeping, tax return services and company accounting services.  For the courier agency to operate smoothly, we will provide general tax advice on accounting and tax returns. It will be perfect if you keep your records up to date each month as this will allow you to make an informed decision.

R&D Tax for Small busineses – Research & Development tax relief

What Exactly Are Research And Development (R&D) Tax Credits?

Research and development or R&D tax credits are incentives from the government engineered to reward UK businesses for investing in innovation. They are, therefore, a valuable source of money for companies to invest in improving their R&D. They can also use the cash to hire new staffs and ultimately grow their businesses.

Small and medium-sized enterprise (SME) R&D can claim for the following:

  • Can deduct an extra 130% of their qualifying R&D expenditure from their profit, plus the normal 100% deduction, this is a total of 230% deductions.
  • A loss making company can claim a tax credit , the rate is 14.5% of the surrenderable loss

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The money is refunded in different ways. For one it can be paid as a negative corporation tax or as a tax refund at the end of a financial year.

Examples of R&D costs are supporting software/Saas, subcontractor costs, testing, management, prototyping, technical analysis and developing manufacturing processes.

Who Qualifies For R&D Tax Credits?

R&D covers all sectors. It takes place in everything from digital development to construction and from chemical engineering to cheese-making.

However, you must provide proof to the HMRC that your technology was complex. Here you must submit technical and financial details of your innovations. The HMRC has detailed criteria, and your R&D must meet them.

1. Technology

One rule of qualification though is that a project qualifies to be R&D if it offers a modification to an existing service, process or product.

If it’s not yet clear whether or not you are having qualifying R&D, here are some illustrations:

If you have a platform whereby people can upload videos using image recognition to tag and analyze these videos, then you might qualify.

There are logistics in business that auto determines how products will be shipped to the appropriate locations on time. The same logistics also determine the most reasonable price to sell those products in those locations. If you have such a platform then you might qualify.

However, you will not qualify for R&D if you deal with setting up a Drupal site or WordPress.

Besides those platforms, the qualification also depends on factors such as performance and scale. Here are examples on that:

If a search tool offers quick results when a person searches across terabytes of data from thousands of corporate shared drives, then it might qualify. However, if the tool searches across a few and simple documents stored on a hard drive, then it cannot qualify.

A site that allows people to send images and short messages to 400 million active users every day, it might qualify. But if the website enables them to share the images or messages between each other than it will not qualify.

2. Cost

If your innovation did cost you at least 100k or more on skilled engineers/developers to create it, then it probably might qualify.

3. Technical Uncertainty

At times you might be developing a product/service and you are not certain whether it could be created to the recommended specification. In such a case the outcome is uncertain and the innovation could be R&D.

4. Innovation

Speaking of innovation, you might have succeeded in projects that others have failed in. in such a case, your innovation could probably be Research and development.

As for those participating in common innovations that other people can easily do, then that is not R&D.

5. Qualifications

As for qualifications, the thumb rule applies here. Let’s say you have competent and smart people with formal qualifications who spend lots of time on a project. If so, then it could be an indication that the project is R&D.

On the other hand, if your technology does not involve such skilled people, it might not necessarily imply it is not R&D. Have a look at other details on technology.

Technology Qualifies For R&D Under These Circumstances:

1. The Finances

For technology to qualify, you must have spent lots of money developing it. Not only spending money but do so in the right way that convinces HMRC to consider you for R&D tax relief.

2. Rules
Apart from finances, your company must be UK based to qualify for R&D Tax Credits.

Additionally, your UK business must have spent finances creating a technology that adheres to the aforementioned criteria. Some of the ways of spending money on technology include:

i) PAYE deductions for employees
ii) Buying materials for the project and the excess ones can’t be sold for full value iii) Paying subcontractors to deliver your project
iv) Software licenses for delivering the project

The spending, however, must be within the last 2 financial years – at times 3 years.

While there are other details, you might qualify for R&D if you meet those criteria. The Pricing of R&D Tax Credits

There are several government funding specialists in the UK. Each has their own pricing for R&D filings. But as for us at GM, we charge 15%.

What sets us apart from the rest is that we are transparent. As in we don’t have hidden fees or charges. Our pricing varies based on your research and development expenditure. Nonetheless, we focus on advancing your R&D Tax Credits using our special Advance Funding product.

How Much Refund Will You Get?

The tax refund depends on your specific situation. However, there is a rule of the thumb used here, which is:

i) A large business doing R&D gets around 11% of its R&D costs refunded.

  • Can deduct an extra 130% of their qualifying R&D expenditure from their profit, plus the normal 100% deduction, this is a total of 230% deductions.
  • A loss making company can claim a tax credit , the rate is 14.5% of the surrenderable loss

So far everything sounds great, but how do you get the refund?
First, you should write a technical narrative and make it as convincing as possible. In the narrative, ensure you include a clear table of all the financial calculations.

Once done, amend the CT600 and file it with HMRC. From there you can decide whether to file it yourself or hire a specialist like GM. If you are a DIY person and want to handle everything, you can proceed. Just ensure you fill details in the correct boxes in the CT600.

Along explain why your innovation qualifies for R&D Tax Credit. Include a calculations table to support your claim amount.

The idea is to convince the HMRC that you know what projects and costs qualify for R&D. if your application is successful, you’ll receive your refund in the next two to eight weeks.

In case MHRC thinks your filling is incorrect, you will get an HMRC inquiry. It entails several questions, which will delay your refund. The worst it can get is gruelling meeting along with penalties for incorrect filling.

Accountants near Enfield 

Accountants near Enfield

If you have been on the search for an accounting firm near Enfield, there is no one better than GM Professional Accountants. We are conveniently located in Ilford Essex and Covent Garden, both a few hundred meters away from the train Station.

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It is not easy to find accountants near Enfield who can take care of all your accounting needs. This is where we come in as we provide the following specialist services:

1) Your capital gains and property income returns
2) Accounting services for contractors
3) Professional VAT advice and VAT filing
4) Filing of Self-assessment and personal returns
5) Preparation of accounts and returns, including all CT600 which are needed for limited company and small businesses

6) Enrolling you for pensions and payroll
7) Incorporation services for your company
From our offices near Enfield, we serve businesses and private individuals who need advice on tax, and how they can be compliant with tax regulations including meeting their deadlines.

We are known for being always up to speed on all the changes in HM revenue, the ever-changing accounting regulations, and the customs tax regulations in the UK. We have professional accountants who will get you on compliance and will help guide you on where expenses are likely to arise so that you can reduce your tax burden. Working with us, you can rest assured that we will always ensure on-time filing of self-assessment returns that is always accurate and punctual. Our firm has the best accounting packages for small businesses and we will help you prepare all your accounts and file them on time.

Limited Company Accounting

If you have a limited company we provide HMRC and companies filing and preparation of the CT600 tax returns. We do provide comprehensive packages that include bookkeeping, preparation of trial balances, and the final accounting, to ensure that you are in conformity with all regulations. We will also review all the accounting information to ensure that you can claim any allowable expenses.

With our assistance, you can let go of all the tedious accounting and bookkeeping tasks that you have had to do and instead work on more productive aspects of running and developing your business. Therefore, our services are customized to ensure that your business gets the care and attention of experienced experts in our company.

A limited company is a complex business entity and you need to understand important aspects about it including the fact that it is a legal entity. While the lines between the business and owner are very much blurred in a sole proprietorship, this is different from a limited company. While you could take out money from the business account as a sole trader, you cannot do the same with a limited company. All withdrawals from a company are only in the form of PAYE income. dividends, bonuses, or directors loans. With all the complications, it is important to engage an accountant before you even set up, to avoid any missteps.

Self-Assessment Tax Filings

Self assessment and the filing of returns tend to be a stressful and expensive affair though it need not be so. GM Professional accountants guarantee the efficiency at cost effective prices from our offices near Enfield, so that you do not have to stress out about your tax affairs.

Filing Your Online Returns for Self-Assessment

Working with us you can be certain that your filings are in the hands of tax professionals. We will consult with you on your returns and answer any queries about tax filing that you may have. Moreover, you will not have to enter into any extraneous contracts before we do this. Our office in East London offers this free of charge as a component of our tax filing and returns package.

Our expert tax accountants will prepare your filings correctly and in a timely manner so that you can be compliant at all times. They are professionals that will review all your filings to find any claimable expenses and help you maximize your allowances.

If you are running a commercial enterprise either as a self-employed person or as the director of a corporation, you are required by law to fill out and file self-assessment returns. Simple and accurate tax advice and planning are what you need to make your filings relatively pain free.

Capital gains tax

GM professional accountants provide expert advice on capital gains tax, you may be selling a home or have just sold some shares. we help you understand the implications and provide tax planning solutions for your needs. The capital gains tax allowance is renewed each year as your personal allowance. Its important to plan out disposals to maximise on the allowances.

Contractor accounting services

GM profesional accountants are specialist contractor accountants, we ensure that you are aware of the allowable expenses under the 24 month rule. We guide you on the vat schemes , as the rules have changed and the flat rate vat scheme has now become less attractive. We provide monthly packages for limited company contractors, this usually includes payroll, statutory accounts, CT600 filing, and the personal self assessment tax return.

Call us now for a free no obligation consultation.

Accountants in Covent Garden

Accountants in Covent Garden – West End

  • We are Specialist Small Business Accountants

  • We specialise in Self Assessment Tax returns

  • We provide Fixed Fees for all our services agreed in advance

  • Awarded the Three best rated Accountants

If you are looking for accountants in Covent Garden in the West end then you have come to the right place, with our offices in the central business district and a few minutes’ walk from Covent Garden train station. We understand how hard it can be to find a reliable local accountant who will offer the variety of services and needs that you as a person or business may require.

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We provide the following services:

  • Personal Self-Assessment tax return services
  • Small businesses Limited company services (We prepare and file accounts and CT600)
  • VAT advice and VAT returns
  • Contractor accounting services
  • Pensions and payroll auto enrolment services
  • Company incorporation services
  • Capital gains tax and property income tax
  • Self-Assessment and Self-Employed tax return services

From our base in Covent Garden in the West end, we provide our services to businesses and individuals. Among our services include general tax advice on the different packages we offer and assistance to help you meet any of your tax obligations before the deadline.

Unlike any other accountants in London, we have made a name for ourselves from our commitment to our clients, great skills and experience. We are known for always being ahead of the curve on any new developments in the accounting field including any changes in customs tax laws and HM revenue regulations and systems.

Our accountants will provide all the information you need to stay on the right side of the law, and the expenses that will arise from the different tax regulations. When you decide to work with our firm, we will ensure that we accurately file your tax returns and self-assessment accurately and in time. Our company also have some of the best packages for your small business that include the filing of tax returns and getting your company accounts in order.

Accounting for Limited Companies

We provide services to help file CT600 tax returns and accounts for HMRC and companies house. Our packages include everything from trial balances, bookkeeping, and preparation of final accounts to make sure that your business is compliant with all the tax regulations and laws in your jurisdiction.

This ensures that all the information that you file is accurate for each task and that you get to enjoy allowable expenses that reduce your tax burden.   With our services, you as a small business owner can save time for more important business activities as you will not have to do tedious bookkeeping tasks.

As such, our accounting firm designs packages that will take care of your business affairs with caution and expertise borne of experience, while still having that personal touch. It is critical to understand the formation of a Limited company as a separate legal entity and the tax obligations that come with such a designation.

As a sole trader, you have no restrictions on how you use the money the business makes as there is no distinction between the business and the owner. As a limited liability company, money can only be taken out of the business bank account as bonuses, PAYE income, dividend, or directors’ loans. The rules that govern the operation of a limited company and the tax obligations can become quite complicated, making it critical to engage the services of an accountant right from the start.

Self-Assessment Tax Return

The preparation and filing of self-assessment returns need not be an expensive or stressful affair. From our offices in West end. Working with us on your self-assessment returns means you get to enjoy hassle-free, affordable and cheap tax returns without having to leave Covent Garden.

Online Filing of Self-assessment Tax Returns

When you give us your business you can rest assured that your returns are being handled by professional tax experts. Our experts will answer any questions and provide advice on any queries you may have without any obligation on your part. The service comes free with our tax return package in Covent Garden and the entire London. Our professional tax accountants are always on hand to prepare and process your tax returns accurately and fast so that you never have to deal with any noncompliance penalties.

Moreover, they will use their expertise and experience to review your filing so that you can get the maximum tax refund that you deserve. Additionally, they will also provide advice on personal tax return expenses that you can claim to reduce the amount of tax payable.  If you run a business either as a self-employed individual or as a company director, you need to submit self-assessment tax returns. Getting simple advice on how to file accurate returns and on tax planning can go a long way in ensuring that the tax return filing process is as painless as it can be.

 

Address: Amadeus House, 27B Floral Street, London, WC2E 9DP

Accountants in Camden Town

Finding a local accountant near  Camden Town

GM Professional Accountants

Why not contact us today on  0208 396 6128 for a free consultation

  • GM Professional accountants are Specialist Small Business Accountants

  • We provide Fixed Fees for all our services agreed in advance

  • Awarded the Three best rated Accountants

Trying to Find a local accountant near Camden can be challenging, GM professional accountants specialise in the following:

  • Small businesses Limited company services (Preparation and filing Accounts and CT600)
  • Contractor Limited company services
  • Company incorporation services
  • Self Assessment Tax return services and Self employed Accounts
  • Property income tax and capital gains tax
  • Payroll and pensions auto enrolment services
  • Vat returns services and vat advice
  • Bookkeeping services
  • Personal Self Assesment tax return services

 

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We believe communication is key, we regularly keep you put to date with the deadlines, so that you can concentrate on your work. We have been included in the three best rated accountants website for providing excellent service. Our clients are kept up to date and informed in advance on their filing deadlines. We go the extra step with our reminders and phone calls to ensure that you understand the process. We also focus on the area of allowable expenses to ensure that you are claiming the right expenses in your field.

Limited Company Services

For limited companies that are new startups, we know that you will need extra support, we provide general tax advice in all our packages. This ensures that you are in control and have the right information to make an informed decision. It is important to appoint an accountant at the start of your business, this will ensure that you do not encounter the directors loan account pitfall. This is a common area where individuals do not differentiate between the company and their own money. With MTD Digital coming into effect in April 2019, you will need to keep electronic records and comply with the new legislation.

All limited company directors will at some point need to do a personal tax return. This is matched simultaneously with the company accounts. you can be withdrawing the income as PAYE, Dividends, or bonuses.

Self employed accounts and self assessment Tax return

We provide simple and easy packages for self employed individuals, it is important that you register at the latest by the 5th October to obtain your UTR number. This is the number that is need to file your self assessment tax return. The tax year runs from the 6th April till the 5th April.

Property Income tax

We provide rental accounting and tax services for income from property. Things are now getting more difficult with the new Mortgage interest restriction and the abolishment of the wear and tear allowance. You will now need look at the renewals method and ensure that the correct amount is being claimed.

Contractor Accounting services

We have tailor made packages for contractors , whether your inside IR35 or outside IR35. We can assist in you both and file you RTI returns monthly or issue the dividend vouchers. With the new limited cost trader rules, the FRS vat scheme is becoming less attractive and we can ensure you maximise on the input vat which is within the law.

Capital gains tax 

Our firm specialises in Capital gains tax , We have assisted many individuals to claim the PPR and Letting relief to reduce the Capital gains tax. This can be planned in advance and it is important to obtain advice at an early stage. CGT is misunderstood by many and this can lead to an inflated tax bill if your not careful.

 

For further information on Accounting and Tax Services ,

Contact GM Professional Accountants today on 0208 396 6128

 

Accountants for Contractors

Accountants for contractors Limited Company

When deciding to contract, it’s important to  understand the benefits of a limited company. The first real benefit is that it has veil of corporation. This means that you are not directly responsible for the debts of the company. The company is a separate legal entity and you are an officer of the company and in most cases taking a salary , dividends, or bonuses.

Go professional accountants have tax planning strategies to ensure you get the right balance between these streams of income. This can help Lower corporation tax as well as personal tax.

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The filing requirements for contractors

After incorporation you have 12 months till the accounting period end. At this stage you will need to produce statutory accounts, CT600 and abbreviated accounts. You will need to file accounts after 9months from the period end. The corporation tax is payable 9months and 1 day after the period end. accountants for contractors London

Personal tax

If you are taking a salary or dividends . You will need to keep note of these as paye taxes are collected monthly/quarterly.  Dividends are calculated per tax year in your personal self assessment. This runs from the 6th April till the 5th April. The personal taxes are due on the 31st Jan. 

Expenses for Contractors

This is a common question for contractors and dependent on IR35. If you are outside IR35 and in a temporary contract under 24 months. Then travel and subsistence is usually allowable. This is normally the main expense for contractors. This must be reasonable and not excessive as with any other expenses.

Why choose GM professional accountants

Gm professional accountants specialise in contractors. We ensure you understand the complexities of contracting and provide tailor made solutions to suit your needs. Call us now for a free quote

How to handle a personal tax investigation 

Tax investigation Specilaists 

How to handle a personal tax investigation
How to handle a personal tax investigation

A considerable number of businesses will confront a regular tax investigation at any time of normal operation. More serious duty review is likely if HMRC doubts that your tax returns are incorrect.  A tax investigation or inquiry is certain to be a very difficult and stressful situation which can be quite costly in the long-term to resolve if it takes a long time to settle. Also, if you find that you are overly distracted by an HMRC tax investigation, it is likely to cause difficulties in being able to properly concentrate on your day-to-day activities of running the business. Be free to take an expert advice where you can`t settle tax audit by your own just after it starts.

Likelihood of a tax investigation

You ought to expect regular tax investigation in case you are enlisted for VAT or other have workers paid via PAYE. The duty audits will inspect your records and frameworks, concentrating on commonly mistaken areas.   Routine tax reviews are considerably less likely with regards to income duty or organization tax. Rather, the attention is emphasized on tax audits where HMRC has the motivation to trust you are either committing mistakes or intentionally concealing income.   Normally, tax reviews can be done after a period of five years, while just a couple of per cent of wage duty and company tax return are investigated every year.  Some of the most noticed reasons for the HMRC to start an investigation include records that differ vastly from similar business in the same industry, using round numbers on all entries and not the exact figures, unexplained or unusual fluctuations in the declared amounts, low-quality record keeping, a tip-off from a tenant or disgruntled employee, and certain high risk areas of business, such as construction or jobs that are likely to involve cash payments. Also, about three per cent of investigations is started on a purely random basis.

Tax investigation notification

The investigation process starts with the arrival of a letter from HMRC, indicating to you that an inquiry has been initiated into your financial affairs. Usually, you will be asked to clarify certain things and submit a few business records and therefore, you will need to take the right action to make certain this situation is resolved as effectively as possible.

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Dealing with a tax audit

On first getting the notification of being investigated you need to avoid getting into a panic and stay calm. Even in those situations where you have made errors on your tax return, you might still find that it is possible to rectify the issues by making any payments due as soon as possible. Unless a tax return features many intentional errors of a significant size, there are very few instances where a case ends with a custodial sentence.  You ought to seek guidance soonest possibly after notice of a tax investigation.  You might need to request that your bookkeeper checks your records and frameworks. The tax review will be snappier, easier and not most likely to prompt punishments if you can provide precise, updated data when the reviewer visits. It is best for you to get in touch with a tax audit specialist, who can guide you about the proper course of action to be followed from here. Quite often, expert help may lead you to identify oversights or errors on your part that could have given rise to the inquiry. You may attempt disclosing the same to the HMRC and working out a quick settlement with least amount of penalties.  In most of the tax investigations, HMRC carries out a complete review of your business matters. They may even delve into private affairs, such as investigating your expensive personal possessions. You will be requested to meet their inspectors for in-depth questioning. They might also ask you to provide comprehensive explanations and records to prove your statements. When it comes to providing any requested information or meeting with an investigator, you really want to remain truthful and provide the necessary information. Lying to the HMRC investigators is just likely to course more problems over the course of the tax review. Also, you want to make certain to be fully prepared for an in-person meeting and offer any evidence requested.

Once a duty audit has begun, it can take a few months or even more. Your bookkeeper can advise you on the way forward if HMRC is demanding too much data, taking a long period of time or generally acting irrationally.

GM Professional accountants offices are located in London , Essex and Manchester. 

 

Accountants For Cryptocurrency

How To Choose Specialists Accountants For Cryptocurrency.

If you are looking for a specialist, experienced and one of the best accountant that is able to specialise in a particular field, such as cryptocurrency accountant in London, then there are several key points that need to be fully considered prior to using the services of the right person.

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The nature of the asset

A recent article in the Financial Times1 suggested

“Cryptos may be based on nothingness, but it doesn’t necessarily follow that they’re worthless. In fact, the value they provide might depend upon them being linked to nothing, rather than something. This is a kind of security that crops up very rarely, like precious metals, or great works of art.”

The exponential growth of transactions in bitcoins and other cryptocurrencies has inevitably caused significant questions about how these activities should be treated in financial statements. Just think about the values involved. If we take a market capitalisation of bitcoin in February 2019 as circa $69.61 billion, the cumulative market capitalisation value of all 11 cryptocurrencies referred to in these notes is circa $105.53 billion, with bitcoin accounting for 66% of this market value.

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In July 2018, the International Accounting Standards Board considered

  •   How an entity might apply existing IFRS standards in accounting for cryptocurrencies
  •   Whether new standards are required
  •   Whether this should this be a priority for the IASBThe answers to these considerations were clear
  •   Not sure how we should apply current standards, as a cryptocurrencydoes not directly meet existing definitions of a financial asset
  •   Yes, standards are required
  •   Yes, this should be a priority, we can expect more regulation to be issued around this whole area of cryptocurrencies, but priority in these circles does not mean quick, so we need to find a solution in the meanwhile.

There are various options available to us within our current classification of assets, as discussed briefly in the module screens.

Cash

IAS 7.6 suggests “cash comprises cash on hand and demand deposits”

IAS 32 suggests “cash is a financial asset because it represents the medium of exchange”
As cryptocurrencies are not supported by any central bank the regulators believe that they cannot be classified as cash or cash-equivalent.

Non-cash

IAS 32 and IFRS 9 suggest that the holder of a non-cash financial asset has the contractual right to receive cash or another financial asset in exchange for their holding.
Again, generically, cryptocurrencies cannot be deemed to have this attribute.

Investment

IAS 40.5 defines an investment as being something held either for “use in the production of goods or services” or for “sale in the ordinary course of business”
This might apply to some cryptocurrencies, in some instances, but not from a generic financial reporting perspective.

Intangible

IAS 38.8 defines an intangible asset as “an identifiable non-monetary asset without physical substance.
This would seem to be the most likely definition that could be aligned to the majority of cryptocurrencies in the majority of situations.

This would then raise the question of how to arrive at the correct balance sheet value – cost or fair value, and how the ‘asset’ should be impaired. Given the already referred to variability of the cryptocurrency markets this will always prove an interesting challenge for preparers and auditors.

Inventory

One final option might be to account for a cryptocurrency holding as inventory, recognising the lower of cost or net realisable value, but this will raise a whole raft of other considerations.

Suffice to say that there is, as yet, no firm guidance or conclusions from the IASB. As with much of todays financial reporting, preparers and auditors need to justify their treatment of individual instances and be prepared to defend their underlying judgements.

The future

If this brief module has shown you nothing else, it will have made you realise that the understanding of cryptocurrencies, and the associated blockchain technology which underpins their existence is a complex matter, and not for the faint-hearted. The currencies themselves and the technology are increasingly permeating our financial world so, as accountants, we need to have at least some understanding of what we are dealing with, and, as in so many cases, what questions we ought to be asking.

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Here are several tips to consider for choosing a reliable accountant in London:

Reviews

During your interviews, it is a good idea to have a list of questions ready for the accountants. The most important, and often overlooked, the question is whether they are a licensed CPA. Many people simply assume that all accountants are licensed. You don’t want to hire someone who does accounting on the side and never got around to being licensed. Find out how many accountants work with him at his firm. Having a large number could save you money because you could use the cheaper ones for less important issues. You also have to make sure the firm is used to dealing with a business of your size when choosing an accountant.

cryptocurrency

Experience

When looking for the cryptocurrency accountants it is also good to consider how long they have been in service. A contractor accountant with many years of experience has the capacity to do a good job since he/she has done the same thing over and over again. An accountant with a good experience know the various challenges likely to be encountered and how to deal with them. On the other hand, a contractor with little or no experience at all is most likely not going to give you the desired result.

Qualification

In the process of searching for the right accountant, you will often come across a range of accountants offering a range of services. It is often the case that cryptocurrency accountancy requirements are often unique and specific. It is therefore vital to choose a specialized accountant that is qualified in this particular sector. Many of the larger accountancy practices or high street firms are more likely to focus on dealing with large corporations, personal tax planning, or small businesses which might not be suitable for your specific needs. In an initial interview with an accountant, you should ask whether they are specialized in dealing with matters that relate to cryptocurrency and that they are fully qualified on such requirements. This is a key consideration and will often drop many of the high street based accountancy firms.

Reliability 

Oftentimes, when people are choosing an accountant, the individual’s personality is forgotten. You have to remember that you will be working closely with this person, so make sure you choose someone you and the rest of your employees can trust. Convenience also should play a part in your selection. You may have found the perfect accountant. The only problem is that his firm is located hours away from your company. He no longer is the perfect accountant. Choose someone in your area because these are the people you know well and can trust.  The above are some of the things to look at when choosing an accountants for cryptocurrency.

Purpose of this Brief

This brief sets out HM Revenue & Customs (HMRC) position on the tax treatment of income received from, and charges made in connection with, activities involving Bitcoin and other similar cryptocurrencies, specifically for Value Added Tax (VAT), Corporation Tax (CT), Income Tax (IT) and Capital Gains Tax (CGT).

Readership

Anyone making charges or otherwise receiving income, in whatever form, from activities involving Bitcoin (or other cryptocurrencies), including:

Bitcoin miners

Bitcoin traders

Bitcoin exchanges

Bitcoin payment processers

Other Bitcoin service providers

Background

Bitcoin is seen as the worldʼs first decentralised digital currency, otherwise known as a “cryptocurrency”. The advent of cryptocurrencies such as Bitcoin is a new and evolving area and determining their legal and regulatory status is ongoing. Cryptocurrencies have a unique identity and cannot therefore be directly compared to any other form of investment activity or payment mechanism.

HMRC understands that Bitcoin operates via a peer to peer network, independent of any central authority or bank. All functions such as issue, transaction processing and verification are managed collectively by this network. All Bitcoin transactions are recorded in a shared public database called a “block-chain”. New Bitcoin is produced when a new block is attached to the chain. A new block can only be added to the chain when the answer to a complex cryptographic algorithm is solved. Participants in this activity are known as “miners”.

As well as mining, activities include the buying and selling of Bitcoin and providing exchange facilities for parties to trade Bitcoin with recognised currencies. Bitcoin may be held as an investment or used to pay for goods or services at merchants where it is accepted. In the UK, there are already a number of outlets, including pubs, restaurants and internet retailers, that accept payment by Bitcoin.

VAT treatment of Bitcoin and similar cryptocurrencies

As an EU tax, the VAT treatment for cryptocurrencies adopted by the UK must be consistent with any treatment that may eventually be implemented across the EU.

Given this, the evolutionary nature of these cryptocurrencies and the legal and regulatory environments in which they currently operate, this brief outlines HMRCʼs provisional VAT treatment pending further developments; in particular, in respect of the regulatory and EU VAT position. Taxpayers can rely on the VAT treatment outlined below unless and until HMRC announces any changes. Any changes will not apply retrospectively.

For VAT purposes Bitcoin and similar cryptocurrencies will be treated as follows below, this in no way reflects on how they are treated for regulatory or other purposes:

(1)Income received from Bitcoin mining activities will generally be outside the scope of VAT on the basis that the activity does not constitute an economic activity for VAT purposes because there is an insufficient link between any services provided and any consideration received.

(2)Income received by miners for other activities, such as for the provision of services in connection with the verification of specific transactions for which specific charges are made, will be exempt from VAT under Article 135(1)(d) of the EU VAT Directive as falling within the definition of “transactions, including negotiation, concerning deposit and current accounts, payments, transfers, debts, cheques and other negotiable instruments.”

(3)When Bitcoin is exchanged for Sterling or for foreign currencies, such as Euros or Dollars, no VAT will be due on the value of the Bitcoins themselves.

(4)Charges (in whatever form) made over and above the value of the Bitcoin for arranging or carrying out any transactions in Bitcoin will be exempt from VAT under Article 135(1)(d) as outlined at 2 above.

However, in all instances, VAT will be due in the normal way from suppliers of any goods or services sold in exchange for Bitcoin or other similar cryptocurrency. The value of the supply of goods or services on which VAT is due will be the sterling value of the cryptocurrency at the point the transaction takes place.

Corporation Tax, Income Tax and Capital Gains Tax treatment of Bitcoin and similar cryptocurrencies

As with any other activity, whether the treatment of income received from, and charges made in connection with, activities involving Bitcoin and other similar cryptocurrencies will be subject to Corporation Tax, Income Tax or Capital Gains Tax depends on the activities and the parties involved.

Whether any profit or gain is chargeable or any loss is allowable will be looked at on a case-by-case basis taking into account the specific facts. Each case will be considered on the basis of its own individual facts and circumstances. The relevant legislation and case law will be applied to determine the correct tax treatment. Therefore, depending on the facts, a transaction may be so highly speculative that it is not taxable or any losses relievable. For example gambling or betting wins are not taxable and gambling losses cannot be offset against other taxable profits.

For businesses which accept payment for goods or services in Bitcoin there is no change to when revenue is recognised or how taxable profits are calculated.

Corporation Tax: The profits or losses on exchange movements between currencies are taxable. For the tax treatment of virtual currencies, the general rules on foreign exchange and loan relationships apply. We have not at this stage identified any need to consider bespoke rules. For companies, exchange movements are determined between the companyʼs functional currency (usually the currency in which the accounts are prepared) and the other currency in question. If there is an exchange rate between Bitcoin and the functional currency then this analysis applies. Therefore no special tax rules for Bitcoin transactions are required. The profits and losses of a company entering into transactions involving Bitcoin would be reflected in accounts and taxable under normal Corporation Tax rules.

Income Tax: The profits and losses of a non-incorporated business on Bitcoin transactions must be reflected in their accounts and will be taxable on normal income tax rules.

Chargeable gains – Corporation Tax and Capital Gains Tax: If a profit or loss on a currency contract is not within trading profits or otherwise within the loan relationship rules, it would normally be taxable as a chargeable gain or allowable as a loss for Corporation Tax or Capital Gains Tax purposes. Gains and losses incurred on Bitcoin or other cryptocurrencies are chargeable or allowable for Capital Gains Tax if they accrue to an individual or, for Corporation Tax on chargeable gains if they accrue to a company.

Future implications

The tax treatments outlined in this brief are for tax purposes only. They in no way reflect on the treatment of cryptocurrencies for regulatory or other purposes.

Given the evolutionary nature of these cryptocurrencies, HMRC will issue further guidance as appropriate.

GM Professional accountants have offices located in London, Manchester , Birmingham and Essex,

Accountant to claim tax refunds

Claiming Your Tax Refund

Claiming Your Tax Rebate
Claiming Your Tax Rebate

It is estimated that 1 in 3 people in the UK have overpaid on their taxes but are not even aware of it. This means that you too could be due a tax rebate which could amount to several hundreds or even thousands of pounds. Applying for a tax rebate typically means filling in numerous forms and completing a number of calculations and if you don’t have any experience of dealing with this kind of thing (which very few of us really do) then you may consider it to be too much hard work or your tax rebate claim may be unsuccessful despite having a genuine case.

The actual amount of tax you are required to pay on an annual basis will depend on your personal circumstances as well as how much you earn but it will usually amount to several thousands of pounds and could be anywhere from around one fifth of your total earnings to nearly a half.

If you have overpaid for any reason then you are entitled to claim a tax rebate and receive that money back. After all, it is money that you have worked hard to earn so why shouldn’t you claim it back if you have unknowingly overpaid? Whether you have only worked a part of a year, were made redundant part way through the year, or you are set to leave the UK you may be due some tax back.

The difficult financial situation that many of us find ourselves in means that every penny counts and none of us can really afford to lose an average of nearly 1,000 from our annual salary. You could spend the money on a family holiday, on paying bills, or on updating and upgrading your car. Most of us place our faith in our payslips, our employers, and the Inland Revenue to get taxes right and we don’t even check that we are being charged the correct amount. If you are part of a PAYE scheme then you could be owed several hundred pounds in backdated, overpaid tax and you should consider starting
a tax rebate claim in order to try and get this money back.

How to Calculate Your Tax Rebate Effectively

A number of taxpayers keep a check on all these issues with the help of a professional accountancy services provider. They help them in managing their accounts and keep them updated with such type of news so that they can file all the documents on time. Several tools are also available in the market, which is capable of estimating your amount for a return. These tools demand an input of all the relevant information for computing your return on the income tax that has been paid. These tools are available for free of charge and are very easy to use. If you are not willing to use these tools, you can always opt for professional accountants who will assist you in this task and provide you with refund estimation
in advance.

Every nation has different tax policies which depend on various internal factors. Thus, for estimating most accurate amount, you will need to provide certain personal information like marital status, yearly income, number of dependants, age, etc. These factors will define that for what amount of tax  refund you are liable. If any exemptions are there, the accountants will consider the factors from above to provide estimations.

Generally, the government decides if any year requires them to provide tax rebate to people who have made more tax due to some erroneous calculations. A rebate is decided for all the eligible tax payers by taking in account their different activities. This figure depends on different policies and from nation to nation. There are different schemes introduced every year in a country based on the current progress. They are provided as a facility to the citizens for cutting down on their taxes. These generally include different forms of investments, donations and various personal factors like if someone has low salary, belongs to armed forces, a widow, etc.

A lot of the above things depend on your accountant’s skill and the way they deal with it. It is always better to file your tax return on time to avoid any penalties which might cost you much more than what you had to pay. While working for your business, you tend to forget these things because of the daily work tasks that require much more attention. If you fail to abide by the deadlines which are set by governing bodies, it will become difficult for you to get any exemptions because of your bad record. This is the reason that putting all this in the hands of professional is a much better option.

GM Professional accountants have offices located in London, Essex, and Manchester.

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How to maximise your CIS HMRC Tax rebate

Claiming Your Tax Rebate

It is estimated that 1 in 3 people in the UK have overpaid on their taxes but are not even aware of it. This means that you too could be due a tax rebate which could amount to several hundreds or even thousands of pounds. Applying for a tax rebate typically means filling in numerous forms and completing a number of calculations and if you don’t have any experience of dealing with this kind of thing (which very few of us really do) then you may consider it to be too much hard work or your tax rebate claim may be unsuccessful despite having a genuine case.

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How much Tax have you Paid

CIS Tax rebate in London

The actual amount of tax you are required to pay on an annual basis will depend on your personal circumstances as well as how much you earn but it will usually amount to several thousands of pounds and could be anywhere from around one fifth of your total earnings to nearly a half.

If you have overpaid for any reason then you are entitled to claim a tax rebate and receive that money back. After all, it is money that you have worked hard to earn so why shouldn’t you claim it back if you have unknowingly overpaid? Whether you have only worked a part of a year, were made redundant part way through the year, or you are set to leave the UK you may be due some tax back.

The difficult financial situation that many of us find ourselves in means that every penny counts and none of us can really afford to lose an average of nearly 1,000 from our annual salary. You could spend the money on a family holiday, on paying bills, or on updating and upgrading your car.

Most of us place our faith in our payslips, our employers, and the Inland Revenue to get taxes right and we don’t even check that we are being charged the correct amount. If you are part of a PAYE scheme then you could be owed several hundred pounds in backdated, overpaid tax and you should consider starting a tax rebate claim in order to try and get this money back.

How to Calculate Your Tax Rebate Effectively.

A number of taxpayers keep a check on all these issues with the help of a professional accountancy services provider. GM professional accountants help them in managing their accounts and keep them updated with such type of news so that they can file all the documents on time. Several tools are also available in the market, which is capable of estimating your amount for a return. These tools demand an input of all the relevant information for computing your return on the income tax that has been paid. These tools are available for free of charge and are very easy to use.

If you are not willing to use these tools, you can always opt for GM professional accountants who will assist you in this task and provide you with refund estimation in advance. Every nation has different tax policies which depend on various internal factors. Thus, for estimating most accurate amount, you will need to provide certain personal information like marital status, yearly income, number of dependents, age, etc. These factors will define that for what amount of tax refund you are liable. If any exemptions are there, the accountants will consider the factors from above to provide estimations.

Generally, the government decides if any year requires them to provide tax rebate to people who have made more tax due to some erroneous calculations. A rebate is decided for all the eligible tax payers by taking in account their different activities. This figure depends on different policies and from nation to nation. There are different schemes introduced every year in a country based on the current progress. They are provided as a facility to the citizens for cutting down on their taxes. These generally include different forms of investments, donations and various personal factors like if someone has low salary, belongs to armed forces, a widow, etc.

A lot of the above things depend on your accountant’s skill and the way they deal with it. It is always better to file your tax return on time to avoid any penalties which might cost you much more than what you had to pay. While working for your business, you tend to forget these things because of the daily work tasks that require much more attention. If you fail to abide by the deadlines which are set by HMRC, it will become difficult for you to get any exemptions because of your bad record. This is the reason that putting all this in the hands of professional is a much better option.

 

Pension auto-enrolment 

Pension auto-enrolment Services

Benefits of pension auto-enrolment

Governments have put in place laws and regulations that protect employees from too much workload given to them by their employers. It is evident that some employees stop working at their original workplaces before they make any savings for future benefits. For this reason, head of states in collaboration with departments that manage employees’ welfare has put up infrastructure that is geared towards the betterment of workers.

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Pension auto-enrolment
Pension auto-enrolment

One of this is the pension scheme. Employers are, therefore, required to automatically enroll their new workers into the scheme so that they are able to benefit like the older workers. Pension auto enrolment makes it easy for newly recruited workers to join the pension schemes immediately they are officially accepted as workers in any company. Workers do not have to be selected in terms of qualifications before they are automatically enrolled into the scheme. Proof of being hired is the only qualifications that workers need to have, and they will be automatically enrolled.

Employer duties for auto enrolment

Duties of the employers vary as there are different types of workers that can be employed. The employers must first come up with the most appropriate pension scheme that suits his or her business. The pension must be able to facilitate automatic enrolment for the types of workers intended. Next, the employer needs to make sure that the employees are informed of the scheme and its benefits. This is because if workers do not know anything about the pension scheme, there are fewer chances of them joining the same. After that, the workers are tasked with making sure that all the employees are automatically enrolled into the scheme. Employers will then contribute enough funds towards the scheme as per the law requires.

This is done regularly as much as the employees are still employed by the organization in question. Another important duty is to make sure that the amount contributes towards the pension scheme is calculated and automatically deducted from the employees’ salaries at the end of every month. Another duty of the employer is to make sure that the pension enrolment of all the workers is properly managed so that workers who are not paying for the scheme are well differentiated from those who do. Employers will also need to make sure that the pension regulators are continuously updated with correct information about workers who are paying for the pension scheme.

Reasons for choosing GM firm

The firm is known for its strict adherence to the employees’ laws and regulations. Many workers would want to work there because their rights as employees are protected. Above all, the company pays good money towards the pension scheme for its workers. For this reason and more, GM is known to be the experts when it comes to taking care of employees and employees welfare. In addition to that, they have a well-structured plan of how to manage employees who opt in and out of the pension scheme. Pension auto enrolment has made GM more popular when it comes to addressing employees’ issues.Their workers are also one of the most knowledgeable among workers of other companies since they are given enough knowledge about the benefits of joining a pension scheme and many more. These are some of the reasons why they are experts in the same field.

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Accountants for Limited (LTD) company

Accounting Services for Limited company

What are the filing dates for limited companies?

If you are the owner of a limited company, then you should know that for filing the first set of accounts, they should be supplied no late than 21 months from the date of incorporation. So for instance, if a company has been established on January 1st, 2017, which will be having January 31st, 2018 as its accounting reference date; so the accounts should not be late than October 1st, 2018. Likewise, the subsequent set of financial records should be supplied no late than 9 months from the following accounting reference date. So if we follow that same dates as mentioned above, then this would be on October 1st, 2019.

Another important point owners should be aware of is that they can file their accounts as soon as the accounting reference date has passed, they don’t have to specifically wait until the deadline. And for filing the first Annual Returns, they should be filed no late than 1 year and 28 days after the incorporation date.

Choosing a online accountant for your small business

What are the allowable expenses?

When you are running a limited company, these are some of the expenses listed below should be expected:

· Employee Salaries

· Pension Contributions

· Sustenance cost while absent from the workplace

· Parking, mileage allowance, and travel costs

· Costs of accommodations when absent from regular place of business

· Costs of printing, stationery, and postage

· Charges of training courses those are applicable to obtain for the business.

· Insurance of the business and its corporation tax as well

· WIFI(broadband) and telephone packages

· Cost of all IT equipment and software.

· Marketing and advertising costs for the business.

· Expenses for incidental overnight stays

· Expenses of the company car

· Expenses for company parties

· Magazines, books, and publications for your Business.

· The expense for the employee’s who have to take eyes tests because they use computers.

· Yearly private health check for all the personnel

What type of accountancy services will limited companies need?

Limited companies need this type of accounting services:

1. VAT and Accounting: The Company will have access to an online bookkeeping and management information portal; they will also get advice and calculation on VAT returns and payments.

2. Payroll: Both advice and calculation on RTI PAYE payments and returns, setup of the monthly payroll and many other things are included

3. Tax: They will be responsible for preparing and filing the year-end corporation tax return with HMRC

4. Bookkeeping: They will be doing the groundwork and filing of year-end financial records with HMRC and Companies House. And they will also be preparing management accounts for every month.

5. Company Secretarial Services

6. Constant Advice and Support

Choosing an online accountant?

When you have to choose accountants for limited companies, hire a specialist who has an immense knowledge about accounting at GM Professional accountants we have relevant knowledge about your sector.

Choosing the right Accountants in London?

To choose the right accountant for your limited company in London, you can trust GM professional accountants. With our 5-star ratings and the best rated accountants in a number of areas, your in safe hands with our tax experts.

GM Professional accountant have offices located in Manchester, Essex and London.

Accountants for Traders

Accountancy and Taxation Services for Traders

As a trader, you need to meet a range of significant tax deadlines annually. We have compiled a list of the most critical ones to assist you to fulfil your obligations. Deadline date may be subject to change. That is if, they fall on a bank holiday or weekend, therefore, payment may be required to be completed on the last working day before the deadline.

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Filing Dates for Self-Assessment filing

On 31 October. If you are one of those taxpayers who have received a notice from HMRC to file your tax on paper and not online, you need to do so by 31st October.

30 December. If you have less than £3000 in tax dues, you must file your tax returns online so that HMRC can collect it through your tax code.

31 January. If you are willing to file your tax returns online, you must comply by midnight 31 January. Bearing in mind, you have to have a government gateway sign in and password to do this, and the process obtaining the credentials can take up to 10 days – so it is always advisable you apply in advance more so if you are filing returns for the first time.

Also, you will be required on January 31st to make your first payment. This payment is equal to fifty percent of your tax liability the tax year just ended and will be transferred to next year’s tax bill.

6 April. This makes the beginning of a new tax year. If HMRC believes that you require completing, a self-assessment, you can expect to receive a tax return paper soon after this date.

31 July. On this date, you will be needed to complete your second payment.

Accountants for traders in london

 

Filing Dates for Limited Company filing

For limited companies you have 9 months from your accounting period end to file your accounts and tax return. For example, if your accounting period is

01/01/2016 – 31/12/2016 then 01/10/2017 is the latest date to file your accounts at companies’ house and HMRC.

 

Allowable Expenses

If you are a business owner, your enterprise will have several operational costs. You can debit some of the running costs to total your taxable only if they’re allowable expense. Some of the costs you as a business can claim as allowable expenses include; Clothing expenses, travel costs office costs, financial costs, costs of your business premises, and staff costs. Please note that allowable expense doesn’t include cash taken from your Business to pay for private purchases.

Filling end year returns as a sole trader can be tedious and can lead you to lose concentration on your business. Accountants for traders like GM Professional Accountants help you have a peace of mind.

GM Professional Accountants

GM Professional Accountants provide accountancy services to business owners. They relieve you from the hassle and time taken to complete end-year tax returns by being stress-free knowing that you are totally compliant with HRMC and up to date with all tax-related guidelines.

The accountancy services take care of all the taxation and accounting requirements for business for a competitive low-cost monthly fee. Also at GM Professional Accountants, we offer other accounting services which include aiding one in registering a business and give support and assistance going forward. GM Professional Accountants regularly review your Business to check whether it’s running the most tax efficient way.

Gm Professional Accountants have offices located in London,  Essex and Birmingham.

 

How to Avoid Paying Capital Gains Tax on Your property

Tax Advisers on planning and dealing with Capital Gains Tax on Your Home

Capital gains tax or CGT is the tax on profit paid when one disposes of an asset. It is charged on profits made from selling any property that is not your residential home. Fortunately, you can waive this tax, and a London expert on tax matters shows you how.

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Capital Gains Tax Rates

The amount of CGT charged in the UK on assets differs according to certain categories. For individuals, the capital gains tax rate ranges between 18% and 28% of the amount gained on disposing of an asset. Trustees or representatives of say a deceased person is required to pay 28%of the gains made from disposing of assets they are trusted with or representing.

Any gain that qualifies as Entrepreneurial Relief will be charged 10% on gains. Private companies not based in the UK will be charged 20% on gains for disposing of assets that were owned by the UK. Property whose Annual Tax on Enveloped Dwellings has been paid will be viable for a 28% capital gains tax.

capital gains tax on property

Annual Tax Allowance or Exemption

Residents in the UK are eligible for tax-free allowance on CGT. This tax relief is applied annually and under certain conditions. Individuals who are domiciled in the UK qualify for the annual tax exemption on gains. Trustees or representatives of an estate previously owned by a deceased individual also qualify for tax exemption. Thirdly, trustees of disabled persons also get an annual tax relief on asset gains.

On the other hand, there are individuals or groups that are not eligible for an annual tax-free allowance in the UK. This includes any individual who is not a permanent resident in the UK but owns assets in the UK. Private foreign companies holding assets on UK soil also do not qualify for annual capital gains tax exemption. Anyone who has claimed remittance basis from a foreign country instead of the UK will also not qualify for annual exemption on capital tax gains.

Annual Exempt Amount

The annual exempt amount is a marked amount which qualifies individuals and companies for annual relief on capital tax gains. This amount varies with each year depending on revisions made by the UK government. For the period 2016 to 2017, the annual exempt amount on gains made by individuals was £11,100. This amount has been revised to £11,300 for period 2017 to 2018. For trustees, the annual exempt amount for 2016 to 2017 is £5,500 which will increase to £5,650 for the period 2017 to 2018.

To avoid capital tax on the gain, individuals and trustees must ensure their total annual profit does not exceed the set annual exempt amount.

Other Ways to Avoid Capital Gains Tax

Capital gains tax will only be applicable when an individual or trustees sell property that is not their own residential home. Selling anything else like a business, second home, or shares automatically mandates the paying of capital gains tax.

Capital gains tax on a second home applies where one is selling a buy-to-let home or a resort home. The capital gains tax paid will be high but one can make it lower. Once a profit or gain has been made, deduct expenses like legal fees, stamp duty, real estate fees and any other expense. Secondly, deduce your allowance from the remaining amount. Calculate the gains tax on the net amount using your income tax status; this will likely be between 18% and 28%.

Letting relief is another way to avoid paying capital tax on gains. This relief is offered on any gains made from selling property that has been the taxpayer’s home for a period of time. This relief also applies if the said property was once rented out as residential accommodation. However, capital gains will be charged albeit it will be a smaller amount of what would have been originally charged.

The regulations on capital gains tax keep changing each year. It is important to consult the advice of tax accountants to calculate how much you should pay or whether you qualify for tax relief.

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Legitimate Ways to Beat the Taxman In The UK

Legitimate Ways to Beat the Taxman In The UK

Although paying less tax is the desire of every tax payer, it remains a dream to most of the taxpayers in the UK because tax avoidance has been limited to multi-national corporations; not small businesses. Besides, findi

Legitimate Ways to Beat the Taxman In The UK
Legitimate Ways to Beat the Taxman In The UK

ng information on how to reduce your tax bill may be tricky. However, all is not lost as far as saving tax is concerned as there are various practical ways for individuals and small businesses to minimise tax. One way to get information on how to save your taxes is to consult tax experts such as tax accountants. The following are applicable tax saving mechanisms you can apply:

i). Top Up Your Pension

This involves contributing more into your pension scheme. This should be done by your employer, who should be responsible for deducting the pension from your salary before it is taxed. For instance, if your yearly earnings amount to £50,000 and
your yearly pension contribution is £3,000, then your taxable income will only
be £47,000. However, if you decided to contribute only £1000 a year towards
your pension, your taxable income would be £49,000, meaning you would pay
more tax.

ii). Trust A Spouse

Trust is a major building block of your relationship with your spouse or civil partner. Likewise, trust can be handy when it comes to saving your taxes. All you need to do is to determine who pays lower tax between the two of you. Moving your savings into the name of the spouse or civil partner with the lower tax rate helps you to save a great deal. For instance, if one of you is under high tax rate and the other is a basic taxpayer, it would be economical to move your savings into the name of the spouse or partner that pays taxes on the basic rate to reduce your tax bill.

iii). Dividend Allowance

Dividend allowance refers to a certain amount of dividends that may otherwise be taxed as an income. To be precise, it is tax exemption for up to a certain amount of dividend income. Dividend tax allowance policy in the UK came into effect in April 2016 to replace the previous dividend tax credit. Each taxpayer in the UK who gets dividend income is entitled to this tax exemption. This exemption is not in any way dependent on the amount of non-dividend income you get. Worthy noting is the fact that your first £5,000 dividends from stocks and shares is not taxed. This simply means that you can be exempted from paying tax on up to £10,000 per year as a couple.

iv) Claim Expenses

Claiming expenses helps you to lower your tax bill if you are either a private landlord or a self-employed individual with small businesses. In this case, you have the liberty to deduct expenses from your income before paying tax. While your expenses as a self-employed income earner may include office service, stationery, equipment repair and car services; mortgage interests and property maintenance may constitute part of your expenses as a private landlord.

Saving tax may prove crucial if you are to reduce your annual expenses and maximise your income. Whether you run big or small businesses, or you are an employee, getting it right at all times is of paramount importance. It is therefore safe to take full advantage of these tax saving tips and apply them to the a tee. Additionally, professionals like tax accountants are handy when you are in need tax saving information- make use of them too.

LATE TAX RETURN PENALTY ACCOUNTANTS  

 PENALTIES FOR LATE TAX RETURNS

The tax year always holds up from 6 April until the 5 April following year. At the end of the tax year (after 5 April) the employees should receive a P60 form from their employer. This form contains the current year income statement, the amount of tax withheld and social security. This must be sent to the HMRC (tax office) by the employer.

If a person leaves his job during the year, the employer must issue a P45 form, which also contains the income, the withheld tax and the social insurance. This form has three copies and the next workplace should transmit copy 2 and 3, that the new workplace may deduct the tax appropriately and return it to the tax authorities.

Smallbusinessaccountants

It is essential that the new workplace receives the data of income from the previous working places, otherwise it will not deduct properly the tax advances, and the person will possibly have tax backlog at the end of the year that he will be required to pay to the tax authority.

 

But who is obliged to submit it?

 

• If you are self-employed

• If you had at least £ 2,500 of untaxed income in the current tax year 

• If your saving or investing was over £ 10,000 before taxation

• If profit was derived from shares, second homes and the sale of other taxable assets

• You are a director at a company (except if it is a non-profit organization and you weren’t paid for it)

• If your or your partner’s salary exceeded £ 50,000 and you required child support

• You have incomes from abroad, after which you must tax 

• You live abroad, but you also gained money from Britain 

• Your salary exceeded £ 100,000

 

If you work as an employee, your employer will arrange this, so you can ease the belly, because you do not have to do anything in this matter. However, the information may be useful for everyone. 

 

According to the British tax authorities (HMRC), tens of thousands of small taxpayers could avoid the lump-sum, simply by an earlier administration of the declaration. Those who administrate before 30 December have the opportunity to pay in installments if their payment obligation is less than 3,000 pounds. Those who owe less than £ 3,000 and want to pay in installments have to return their tax online until the midnight of 30 December and have to request a PAYE (Pay As You Earn) code.

 

 

The late return fine

 

Late return is a quite costly passion. Tax declarations arriving after 31 January are penalized by a late fee of 100 pounds, even if you have no tax liability or you pay your tax on time, and that’s not all.

 

If the tax return is delayed for three months, you need to count another 10 pounds per day late fee, so the 90-day pro-rata late fee and the original 100 pounds fee may climb up to 1,000 pounds. 

 

If the return is delayed for six months, then you have to pay 300 pounds or the 5% of the debt besides the original punishment, depending on which is higher. In case of a 12-month delay another penalty will be added and in severe cases the duty may be even reduplicated. 

 Contact GM professional Accountants and choose a Local accountant to assist in your tax affairs. Gm professional accountants have offices located in London, Essex and Manchester. 

Setting up a limited company in the uk

Setting up a limited company

Getting into business is exciting, there are so many challenges and opportunities that await you. You might be at the point now where you have decided to set up a limited company. There are considerations to make sure this is the right decision for you, so make sure you are informed.
Let’s go through the simple process of setting up a limited company, then talk about some of the benefits of it, then some frequently asked questions.
How to setup
This process is simple. The easiest way to do it is via the companies house online portal. The form you need to fill in is very simple, however there are some details that you need to have on hand before starting the process.
– Company name. This is obvious, however, your name must be unique, and if you want to chose something that will represent your company well. Think of something that properly sums up what you do, your mission statement, and how you are going to add value to your potential customers.
– Shareholder, director and secretary. It doesn’t matter if you are a one man band, or a growing team, you will need to allocate these roles straight away. They can all be the same person if you are working alone. These allocations are very important. Take advice as to what the best choice would be. Allocating shares or roles incorrectly now could lead to some awkward situations down the line. These need to be backed up by a memorandum of article of association. This is the paperwork that confirms all the roles.
– Company address. Every company is required to have a registered address. If you are a lone wolf and don’t want it registered to your home, then even renting a mail box is allowed.- Register for corporation tax. This again can be done through the government’s portal. This needs to be done within three months of starting your business. You can do it here, https://online.hmrc.gov.uk/registration/newbusiness/introduction
The actual process is very simple,you can set up a limited company online https://ewf.companieshouse.gov.uk/runpage?page=welcome. After you have done this, it is time to start running your company!
Benefits

Why should you create a limited company? Well in England and the rest of the UK, you can run a company as a sole trader. However, there are certain benefits to being a limited company.
Protection. If things go badly in your company, and you are unable to pay business debts, the limited company is liable and not you personally. This means that in the worst case scenario, you are protected. You may not want to think about that happening, but it is a prudent business move to consider all possibilities, and protect your risk.
Tax. Yes, the dreaded word. With a limited company, the structuring of your payments into dividends and salary making what you pay more tax efficient. The rules can confuse some people, HMRC have provided a great explanation on their site, check it out here. https://www.gov.uk/government/publications/dividend-allowance-factsheet/dividend-allowance-factsheet#examples. Being informed on this can mean you pay less tax, and take home more money.
Funding. This is an issue that many people are facing in the modern world. Many startups have the opportunity to receive funding. Seed funds, angel investors or crowdfunding are now possibilities for thousands of businesses. If you are a sole trader, it is going to be harder to convince a collective to fund your project. Investing into a limited company provides a much more solid framework to structure the deal in.
Professionalism. Your image can mean the difference between closing a sale or losing it. When dealing with larger companies, often times they want to feel like they are dealing with a legitimate and solid business. Having the Ltd at the end of your name can give your potential clients much more peace of mind.
FAQ

Is it expensive to register a limited company? No, it is £12 if you do it online. By paper it can go up to £40.
Are there special records I need to keep? Yes. You will need to keep accurate and through accounts, added to that you will need to keep the registers of members, and other similar items. Read all the details here, https://www.gov.uk/running-a-limited-company/company-and-accounting-records. Keep this in mind when setting up the company, a good start will save paperwork later.
Am I automatically trademarked? No. When you register a company name, that name will not be taken by another company. However, a trademark is something different. You will need to apply for a trademark for your company separately.
What about PAYE and VAT? These can also be done on the government portal. You are not automatically registered for these, so if they fit your requirements, then you can sign up for them too.
Wrapping Up
The key thing to remember when setting up a limited company is to stay informed. You will have a lot more responsibility now, so read everything you can, and make sure all the boxes are ticked. All the best with your business!

sole trader vs limited company pros and cons

Sole trader vs limited company pros and cons

Becoming self-employed is a career-changing decision. The need to conform to an employer’s standards is exchanged to being your own boss at the cost of handling all of the legal and financial aspects of your business. Hence, most business enthusiasts consider teaming up with a few individuals or with a relatively large group of people to ease the responsibility of keeping the business afloat. As a sole trader, you are the business itself. In a limited company, however, the business is an independent body where you are a director and a shareholder holding a portion of the company’s capital. However, success in business is a case-to-case basis. Some may find themselves paying more tax than necessary which is why it is imperative to decide on the best business structure early on and carefully plan out the course you want your business to take.

1. Legal Disputes

Sole traders are personally sued unless they are covered with applicable insurance such as employer’s liability. Limited companies can also be covered by insurance and more often, it is difficult and rarely a case in the UK to directly sue the chief executive of the company. Unless they are proven to have perpetrated fraud (as employers, as service providers or as taxpayers) and have committed offences against the law such as violating environmental acts.

2. Tax

Corporate taxes are considerably lower than income tax. Shareholders and employees are subject to PAYE (pay-as-you-earn) and NICs (National Insurance Contributions) based on their individual earnings where many other benefits may attract tax as well. An income tax based on dividends and other distribution types are rules among shareholders with a £5,000 tax-free allowance.

3. Losses

Sole traders can negate their trading losses against their other means income. However, in 2013-2014 in UK, there has been a restriction on the respite that may be claimed for losses and interest payments. On the other hand, limited companies can still neutralize their losses to other revenue sources but without compensating their income as an individual.

4. Profiting

Withdrawing cash from a sole proprietorship include no taxes while any income from a company, be it a dividend, a distribution or personal earnings, are subject to respective tax collection. Employment benefits received by a shareholder or their family and household are also taxable as with the shares and securities.

5. Borrowing

As a sole owner, you are free to run the funds of your business considering that tax relief and bank charges will be comparably controlled. On the contrary, a director may borrow business funds subject to the limits set by the Companies Act of 2006 where a tax charge of 25% is paid by the company if the loan is not paid within nine months. If the loan is interest-free, an individual tax is charged against the director based on their beneficial loan interest.

6. Accounts

There is no requirement to maintain accounts if you are a sole trader (although it is difficult to manage your business without keeping some). But you have the leisure of choosing cash or conventional accounting if you decide to do so. Further, you may need annual accounts to provide your personal tax return even if these accounts are not required by the HMRC (Her Majesty’s Revenue & Customs). Your taxable earnings must also be filed in accordance with the GAAP (Generally Accepted Accounting Practices) where you must hire a business accountant unless you can do the job yourself.

For limited companies, annual accounts are required in accordance with the Companies Act for filing with Companies House and should be in par with UK’s accounting standards. HMRC is imperative on the full accounts for Corporation Tax which should be submitted through the government’s provided format.

7. Selling the Business

Sole traders are personally taxed on any gain from selling the business under the CGT (Capital Gains Tax) while shareholders are taxed twice: corporation tax and dividend tax but may consider selling company shares than selling the trade or business itself.

8. Death

The sole proprietorship terminates when its owner dies unless they transfer all ownership to another. Limited companies can still continue to operate even when the executive officer dies because the business is an independent legal entity.

9. Personal Earnings

As you hold the funds of the business, a sole trader may withdraw any amount he wishes although paying a family member must be commercially supported for tax purposes. Members of limited companies have no limits on the amount of earnings they can receive. But these are subject to PAYE and NICs where service payment given to family members follow the same tax rules.

10. Expenses in General

Tax reliefs are obtained by declaring expenses exclusively incurred for sole proprietorship operations. The same can be said in a limited company, however, the private expenses of the director can be declared as a company earning, or a distribution if incurred by a shareholder.

With all the items presented above that show the differences between a business run by one person and a company shared by a group. A business enthusiast should be guided on which option to choose to make the best out of their planned business (this can also be a guideline for ongoing businesses that wish to restructure their operations) to maximize profits, minimize tax returns and ultimately, avoid bankruptcy.

GM Professional Accountants are Accountants in London that specialise in small businesses and self employed tax returns.

Dividends

It will be clear that for 2015/16 financial year, those with all or some of their basic rate tax band available will be better off taking dividends rather than salary during the year, as they will pay no further tax on the money they receive. Basic rate taxpayers are treated as having already paid 10% tax on the cash they physically receive. In light of the changes that are happening for the new financial year, it will be beneficial for basic rate tax payers to take advantage of this and pay dividends to yourself by 5th oh April 2016 without paying any tax. Delaying dividends till after 6th April 2016 may mean that you will have to pay an additional 7.5% on any dividends you receive after you exceed the threshold. The dividends tax free threshold for 2016/17 will be £5,000, which is added onto any of your personal allowances, which you may have only used some or none of your allowance. GM Professional accountants are small business accountants in London.

Blogs

Posted on 26/02/2016

Dividends

It will be clear that for 2015/16 financial year, those with all or some of their basic rate tax band available will be better off taking dividends rather than salary during the year, as they will pay no further tax on the money they receive. Basic rate taxpayers are treated as having already paid 10% tax on the cash they physically receive. In light of the changes that are happening for the new financial year, it will be beneficial for basic rate tax payers to take advantage of this and pay dividends to yourself by 5th oh April 2016 without paying any tax. Delaying dividends till after 6th April 2016 may mean that you will have to pay an additional 7.5% on any dividends you receive after you exceed the threshold. The dividends tax free threshold for 2016/17 will be £5,000, which is added onto any of your personal allowances, which you may have only used some or none of your allowance.

 

 

Posted on 22/01/16

Tax Return Month

Tax Returns are a legal requirement for Businesses, so it is important that you submit them before the deadline. There are two deadlines for Tax Returns, 31st October (paper submission) and 31st January (online submission). A number of businesses choose to submit their Returns online, as it quicker to submit and gives the business more time to submit their Tax Returns. This is the same for Self-Employed individuals.

Staying organised and having Bookkeeping done by a specialist reduces the chances of your Tax Return from mistakes and your return can be submitted very quickly. Accountants provide Tax packages that include Bookkeeping, which benefits the Small Business owner, as it reduces the cost of having to hire a Bookkeeper. Your accounts will be easy to follow and read if you hire an external auditor to check if everything is done correctly for your accounts. Payroll Services are extra costs on Accountancy Services, as employers need to be on a P.A.Y.E scheme, unless they hire subcontractors. The prices may vary depending on how many staff you have hired and they will give you advice for the most tax efficient way for your business to pay your staff members.

Tax Accountants also Specialise in Tax Refunds. Tax Refunds are a major issue for employed individuals, especially for those who have had multiple jobs within the Financial Year. This may have affected your Tax Code, but HMRC usually contact individuals if it has changed. If ever in doubt, contact a Local Accountant and they can answer your queries for you. This service is usually free of charge.

 

 

Posted on 22/12/2015

Travel and Subsistence

The government has approved that the changes will go ahead to prevent contractors from attaining tax relief on the costs on travel to work. This is including the cost of accommodation related to the travel or the cost of the contractors’ meals.

The change of travel and subsistence was declared earlier this year, at the time the decision was being made the government was considering to include everyone who worked via a PSC (personal service company).

We now know that the changes for Travel and Subsistence will not affect personal service company contractors, unless the contract is caught by IR35, the anti-avoidance rules. This means the contractor was registered as self-employed and worked as individuals rather than using a personal service company, he can then continue to obtain tax relief on travel and subsistence.

Though, this is not the end of the story. Changes to the anti-avoidance rules (IR35) are also likely, following a review this year (2015) by the Office of Tax Simplification. Any changes are likely to tighten the current rules and make it easier for HMRC to police and enforce.

Accountants in East London

Winding up for tax reasons

When companies strike off their company, the money within the company can sometimes be paid out to them as capital, so that the more kind capital gains tax regime applies. This is a way of avoiding income tax, but this planning is now likely to be stopped.

 

 

 

Posted on 27/10/2015

Latest Tax News

Dividends Changes

The new tax on share dividends, announced in last week’s UK Budget, has been the cause of both confusion and dismay. People have said they expect their retirement incomes to be affected rigorously by the new tax changes, while others are still baffled about how it will all work.

How will the new tax work?

The new tax free dividend income each year will be the first £5,000. Additional income above that, for basic-rate taxpayers, will be taxed at 7.5 per cent, 32.5 per cent for higher-rate taxpayers and for additional-rate taxpayers 38.1 per cent (8% increase!). The new tax changes will take effect on the 6th of April 2016. Taxpayers must prepare a self-assessment tax return to pay any tax due; no tax will be deducted automatically.

How does this differ from before?

Under the current tax dividends system, which ends on the 5th of April 2015, basic-rate taxpayers currently pay no tax on their dividend income, while higher-rate taxpayers pay a generous rate of 25 per cent and additional-rate taxpayers pay a whopping 30.56 per cent. Taxpayers in all the current bands pay less tax and have been paying less tax than normal income workers. This is because dividends are paid out of the company’s profits after they have suffered corporation tax.

Will everyone be worse off under the new regime?

No. While it will seem as though many taxpayers will pay more, you still have £5,000 tax free dividends to play with. Some basic-rate taxpayers may not go above that threshold. Some higher-rate taxpayers are also better off, as at the moment they pay tax on their dividends, which may be £100, but now they can earn up to £5,000 without being taxed. So thanks to the £5,000 allowance; basic rate, higher-rate and additional rate taxpayers can now play around to decrease profits to avoid paying tax.

What if some of my dividend income is within the tax-free personal allowance?

Dividend income is still eligible for the personal allowance you already receive. So next year you can earn up to £16,000 (tax free!), £11,000 from personal allowance, plus the extra £5,000 from the new dividends allowance. As a result, you will pay less or no tax.

 

 

 

 

 

Posted on 16/10/2015

Top 3 Tax Bill Tips for Small Businesses

Making sure your bank account balance matches your accounts

The base of your business’s finances is the bank account. Remember that the money coming in is food of your business and without a sufficient flow of money it may struggle to develop and grow, so this means you, the business owner, are required to regularly keep track of how much money you have in your business bank account.

Another tip, try not to use your business bank account for personal spending.

If you are not doing this by now, check whether you can set up a feed that will automatically pull this data from your business bank account straight to your accounting software, this way it will minimise data entry errors. Then make sure you at least check your business bank account weekly, if not daily; to make sure that your bank balance is correct in your accounting software and that all your day-to-day transactions have been recorded. And remember if your bank balance in your accounts does not match with your bank balance, you’ll have to look back at all your transactions and find out the difference; it won’t automatically match, this is why double checking and reducing personal expenditure will make it easy for you!

 Are your invoices up to date? Are you issuing invoices?

If you issue invoices to your customers, take advantage of your free time to check through your day books and make sure you have sent invoices for all the work you have done to the current date. It is the worst feeling when you are waiting for the money owed to you, but then you have found out you never actually asked your client to pay you for the work you have done!

It is a good idea to also separate paid and unpaid invoices, so you know who has and hasn’t paid you. On occasions there might be some invoices that have not been paid because the customer’s just forgotten and/or you just have not followed them up for payment. There may also be old invoices, like from the last tax year, in your accounts that have not been paid at all and won’t be, possibly because your customer has gone a-wall, out of business or they have come to terms with you that they cannot pay you. If you know the customers will never pay you, then write those invoices off, as they are bad debts, and then chase up those customers, now, who haven’t paid you for your hard work yet.

If you do not record any invoices, then you may be missing out on some money, so have a think about issuing them.

Record all of your ‘out-of-pocket’ expenses!

These ‘out-of-pocket’ expenses are expenses related to your business but have been paid by your personal account, or by cash. Don’t be afraid to put them in, it’s an allowable expenses that will reduce your tax bill! For example, you are a taxi or chauffeur driver, but you did not have your business bank card with you, so you paid in cash, you are allowed to put that expense in, because it is an essential expense for you business to generate money. You won’t pay this with your bank account on your accounting software; it will be paid by the cash account. So remember as long as your expenses are business related, you can put them in; it reduces the taxable profit for the year. So keep track of them!

Have a look at your wallet right now, some of the receipts you put in there may be business related, you may not have known to put it in there because sometimes it is second nature to shove the receipt in your wallet. Remember just put business costs in, not your lunch from the local fish and chips shop. If you have a bag where you keep all your receipts, look at them now, rather than the last week of your tax return, it saves you hassle and time if you record them daily or weekly.

 

 

 

 

 

 

Posted on 07/10/2015 posted by Umar Suhail

The following changes will be made from April 2016 for property income.

Wear and Tear allowance

From April 2016, Wear and Tear allowance is being abolished. This is important because clients can now deduct the cost of replacing/buying new furniture, as this is now an allowable expense.

If the landlord pays any expenses that would normally be paid by the tenant, then these should deducted from the invoices, which means the rent received (income) will be stated lower. The type of expenses that are allowable, and will deduct the rent received for the year are; utility bills (water, gas, electricity), council tax and/or for Northern Ireland, domestic rates.

Furnished lettings are allowable for the wear and tear allowance, which is calculated 10% of the net amount received from the rent. Unfurnished lettings do not receive this allowance, so the 10% wear and tear allowance is excluded from the deduction, this does include any expenses that would be normally paid by the tenant.

10% wear and tear allowance, what does it cover?

The 10% wear and tear allowance covers things like:

  • televisions
  • beds and other furniture
  • crockery or cutlery
  • movable furniture or furnishings, such as beds or suites
  • curtains
  • linen
  • fridges and freezers
  • carpets and floor-coverings

This list is not complete but gives an idea of what the assets the wear and tear allowance do cover.

What the 10% wear and tear allowance does not cover?

Wear and tear allowance relates to any changes or replacements of furniture and fittings made to the property, this is what makes it a furnished letting. It does not apply to the fixtures that are an essential part of the property.

Fixtures that are essential to the building are those that cannot normally be removed by either tenant or owner if the property is sold or vacated. Examples include:

  • Toilets
  • Baths
  • Immersion heaters
  • Washbasins

This list gives you, the property developer or new property developer, an idea of the assets that are fundamental to the building and are not included in the wear and tear allowance.

As these are items that are fundamental to the building, replacing these items are normally given as an allowable expense as repairs to the building.

Rent a Room

Rent a room increases from £4250 to £7500

Mortgage interest

From 2017-2018 the 25% of Mortgage interest on mortgages will be allowable as deduction at basic rate, see example below,

  • Then from 2018 – 2019 it will 50%
  • Then from 2019 – 2020 it will be 75%
  • And eventually in 2020- 2021 it 100%

Tax Accountants in London & Essex

Tax Accountants in London and Essex

GM Professional Accountants is a highly reputable accounting firm based in London and Essex. We provide professional accounting and taxation advice to businesses, as well as individuals.

Self-Assessment

If you live in London or Essex and are self-employed or engaged in business, you need to file personal tax returns each year. There are numerous rules and penalties for failure to comply with the tax obligations as laid down by the government. It is incumbent upon an individual to ensure his/her tax liability is calculated and that any tax owing is paid on time.

Basics of the Tax Year

Tax returns are normally issued at the end of every fiscal year. The Tax year runs from 6 April to 5 April the following year. For instance, 2017/18 fiscal years will run from 6 April 2017 to 5 April 2018. Her Majesty’s Revenue & Customs (HMRC) office issues tax returns every year to all individuals recognized under it, including those that are self-employed and company directors.

The deadline for filing tax returns is usually 31 January following the end of the fiscal year. All returns submitted in paper or manual format must be filed on 31 October before the fiscal year elapses. Anyone wishing to submit returns after this date must do so online, otherwise the stipulated penalties will apply.

Tax accountants in london and essex

Benefits of Using Tax Experts When Filing Personal Tax

Accountants can do tax returns filing on your behalf and advise you on the appropriate payments on account that you need to make. All you need is to give them all the necessary documents relating to the given financial year and they’ll do the rest for you. Most accountancy firms in East London can also help you make changes (corrections or amendments) to your tax returns by submitting the request to the HMRC.

Personal Tax Return

When filing personal tax returns you need to submit records of your income, expenditures and reliefs claimed. That means all the necessary documentation must be attached to the tax returns form. HMRC usually requires a number of books and records for inquiry. Employees and directors may be required to submit record of payment details (receipts and/or credit card statements), share options awarded as well as deductions and reliefs. Other documents that need to be submitted include interests and dividends, tax deduction certificates, gift aid cards, dividend vouchers and personal pension plan certificates.

Businesses are required to submit records of their invoices, bank statements and paying-in slips. HMRC may also need invoices for purchases and other expenses as well as details of personal drawings relating to cash and bank receipts. You might also be required to submit any personal financial records like certificate of interest to support any claims based on the particular amounts paid.

Benefits of Using a Tax Return Service to File Personal Returns

Working with a tax returns firm in London can be one of the surest ways of getting your personal returns filed on time. The process of submitting returns can sometimes be daunting, considering the number of documents and amount of time needed to complete the filing process. That’s why a tax return service can be of great help to you.

A tax return service firm can basically help you with the following:

-Advice you on all the documents that required when filing returns

-Complete a self-assessment form for you

-File returns before the deadline elapses

-Promptly pay any penalties associated with late filing of returns, if any

Income Tax

An individual’s taxable income is not usually the same as his/her total income. That’s because taxpayers in England are allowed a certain amount of income that’s tax-free. Some individuals may also be eligible to allowances and tax reliefs.

To arrive at your taxable income for a given fiscal year, you need to add your income from all sources, deduct personal allowance, non-taxable income and any other allowances and reliefs.

PAYE Deductions

At the end of each tax year, after 6 April, HMRC requires employers operating PAYE schemes to report to them on a number of employee income status. The employer is basically required to submit information regarding the total amount paid to the employees, the amount of tax income submitted and the national insurance contributions that have been deducted from their payments.

Income from Property

HMRC requires all property owners to pay income tax on any profit they make from renting out property. Profit here refers to the sum left after adding all rental income and deducting allowances and expenses. Apart from the basic rent, property income may also cover tenant payments for services such as utility bills, cleaning of communal areas and property repairs costs.

If you’re still paying mortgage on the property you’ve let out, you may need to include mortgage interest as an expense for the given tax year. Contacting a property income expert or accountant can help you get all the relevant documents and records in order before filing your returns. You might pay a certain fee for the service but it will be worth it in the end.

Capital Gains Tax

Capital gains tax is a tax charged on profits made from selling or disposing of an asset that has appreciated in value. Some assets are free of capital gains tax if your capital gains in a year fall under your given tax-free allowance. Disposing of an asset can be in the form of selling it, giving away as a gift, swapping it for something else or getting compensation for it (e.g. insurance payout).

Contacting a tax expert in London can help you understand the procedure on how to go about filing capital gains tax, if at all you are eligible.

Importance of Working with a Tax Advisor When Doing Self-Assessment and Tax Returns Filing

A tax advisor is an expert with vast knowledge on tax matters within a given jurisdiction. GM Accountants mainly provide consultation services to clients who need guidance on returns filing procedures and requirements. They can help you put together all the necessary tax documentation, assess them and provide advice on how to go about the filing processes.

Most of the advisors work in reputable accountancy firms in the city or are operating independently. If indeed a tax advisory firm is independent, it can provide perfect recommendations on the tax returns filing experts to go for in town. Tax advisors usually charge a certain amount of fee for consultation, based on your tax needs. You can always compare among the reputable tax advisors and advisory firm sin town to choose the most reliable and efficient.

Self Employed Accountants London

Made the decision to be Self-employed and need an accountant?

Self-Employed Accountants

If you have made the decision to be self-employed or to freelance then you will gain a significant advantage by having an accountant who has the experience with sole traders, freelancers, and self employed. GM professional accountants ensure that you understand the implications affecting sole traders and that you make the correct decisions. When starting self employment, you will have many questions such as what taxes do you have to pay, Class 2NI and Class 4NI thresholds, registering for self assessment and how to maintain your bookkeeping. Your tax year in majority of the cases will run from the 6th April till the 5th April. From our experience we have noted that you will need expert advice on allowable expenses, as this is an area where most individuals need assistance.

GM professional accountants help sole traders, self-employed and freelance individuals with the following:

  • Identifying allowable expenses
  • Handling compliance issues with HMRC
  • Maintaining your bookkeeping
  • Registering you for self assessment
  • Preparing sole trader and self employed accounts.
  • Preparing vat returns
  • Preparation and submission of your Self-Assessment Tax Return
  • Advice relating to Income Tax payments
  • Guidance on national Insurance contributions
  • PAYE RTI Returns

Why choose Gm professional accountants if your self employed?

We have the experience and expertise in your field. This ensures that you are compliant and maximising on your allowances.

We have a large existing client base and help you stay up to date with the latest changes to tax.

Efficiency is guaranteed with Gm professional accountants, we ensure that we exceed your expectations

Fixed fees and no additional charges

Give us a call today and let us deal with your tax affairs, we have packages from low as £30 per month.

GM Professional Accountants will help make accounting simple for our clients.

IT Contractor Accountants London

GM Professional accountants provide accounting and taxation services to  IT Contractors that are Freelanced.

When you become an IT Contractor, there can be a lot of implications surrounding your tax affairs. You will need to know how to organise our bookkeeping and managing your deadlines. GM Professional Accountants help to make the process efficient. We have dedicated staff that specialise in IT Contractors.

We educate you to ensure that you understand the implications and provide you with information to make your decisions.

We have experience and expertise in the contractor field, our Accountant team based in East London can handle your IT contractor issues and provide solutions.

Our IT Contractors Accountants compute your tax liability, this ensures you are provided with the best tax saving methods contractors.  We help you through the most complex transactions such as the Directors Loan to ensure you are aware of the extra tax charge.

GM professional accountants handle all your accounting and taxation affairs for our IT Contractor clients.

When you become an IT contractor through a limited company, it is important to understand the veil of corporation. Also it is important for you to understand the best tax planning solutions and expenditure that is allowable. It is vital to plan our strategy from the start otherwise it may become difficult to overcome extra tax at your year end.

The areas that you will usually be needing help in will be corporation tax, PAYE, and self assessment. You may need further guidance on allowable expenses and responsibilities of a director.

We provide you with the latest information to ensure you are compliant in your field. This is important as you may save more tax if these are implemented.

We offer great packages at competitive prices, our services are listed below.

  • Corporation Tax service
  • Company accounts
  • Self assessment
  • Dividend services
  • Paye services

At your year end there will be decisions to make for dividends and income tax implications. These are the areas which GM professional Accountants specialise in. We ensure that the best tax planning solutions are offered to our IT contractor clients. The process of preparations and submission should be transparent and hassle free. This allows you to concentrate on your job while we take care of your tax affairs.

Having specialist IT contractor accountants by your side helps lessen the burden and ensures that you stay on top of your deadlines.

Clients will have access to expert knowledge and the experience that GM professional accountants have.

CIS Construction Accountants London

CIS Construction Specialist Accountants based in London

If you are in the building industry, there is no escaping CIS tax returns. However, one of the pitfalls of the CIS tax returns is that if you make a mistake when filing, you can end up paying much more than you should. This is where GM professional accountants comes in with its experienced and professional team that assists construction workers to file their CIS tax returns. We are Specialists in this field and have experience and expertise in this field.

The CIS deductions are balanced off in the tax payers’ return at the end of the tax year and there may be a refund or additional tax to be paid after taking into to consideration the CIS advance payments.

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 How CIS Scheme Works?

It is mandatory for contractors to register for the CIS scheme.nSubcontractors have a choice not to register, but CIS deductions are taken at 30% rather then 20% from their pay if they have not registered.

How we can help?

There rates vary from  0-30% this will depend on the eligibility of the subcontractor. The purpose of CIS is to reduce tax evasion in construction industry, as this method takes tax in advance and ensures subcontractors register for self assessment. The process is complex and requires handling the expertise of CIS specialists in order to ensure that the process is prepared and filed correctly.

When you receive your wages or salary through CIS, the contractor slices off a huge chunk of your pay before you get any of it. This money goes to pay HMRC returns as an advance payment on the National Insurance and tax that you will owe. There is nothing your contractor can do to get out of this as they are required by law to do this. However, it can be quite painful as a subcontractor to have every penny you earn taxed, and yet not get your tax free Personal Allowance. The regulation was put in place to reduce tax evasion rampant in the construction industry, though as it stands, it is the honest contractors who carry most of the burden.

However, it is not all bad news as you can claim all the extra tax you paid when you file your Self-Assessment tax returns. Yeah, you still have to file your returns even when the HMRC has already taken 20% of your earnings. If you paid more tax than you should have, you are entitled to a tax refund.

Contact us now

I’m CIS, Do I still have to pay tax?

Yes, you will still have your tax deducted from the contractor (the tax is deducted before you get your pay) typically at a rate of about 20% of your earnings as explained above.

However, do not confuse this as being employed, as the CIS still counts you as self-employed even if you feel that you are not. The requirement to still continue filing annual Self-Assessment returns is the big difference. If you do not file the returns you could run into serious trouble that include:

-Loss of the tax-free Personal Allowance
-Loss of your entitlement to tax relief for any work expenses
-You will have trouble with the HMRC, which will come after you for not filing!

If you are still getting CIS statements when you should not be, contact GM professional accountants for a consultation. Our experts will explain how the system works, and ensure that you do not pay too much taxes, while still keeping you compliant with HMRC regulations.

You are self-employed but you have not been receiving any CIS statements from the contractors. What do you need to do?

CIS contractors have to adhere to strict rules regarding deduction and payment statements. They have to send these statements whenever subcontractors get paid and before certain deadlines.  If you have not been getting your CIS payments, you do not have to panic. More likely than not, it could be a simple admin mix. Contact the contractor and ask that they give you your certificates for the sake of keeping your Self-Assessment records current.

However, it is important to take care of the problem. It may just turn out that the contractor has not been filing correctly with the HMRC, which can cause problems for you at the end of the tax accounting year. If you can’t get anywhere with your contractor, consult GM for help and advice moving forward. We are experts in all tax accounting when it comes to the UK construction industry, and we will get right onto your case to get a solution fast.

CIS TAX RETURNS

You are self-employed, do you still need to file tax returns?

You have to submit Self-Assessment returns if you are engaged in any business or are self-employed. If you work in construction, you will more likely than not have to file under the Construction Industry Scheme (CIS). You will have to take into consideration a few extra points in your self-assessment returns when you are a subcontractor under the CIS. If you do not have a good understanding of how the system works, you can end up paying a lot of extra taxes that you should not be paying. If you believe that you may be entitled to a tax rebate, check out our packages for CIS tax refunds.

CIS TAX RETURN ACCOUNTANTS

I already contracted an accountant, can I still work with you?

It should be no problem that you already have an accountant as nothing could be easier than switching to GM professional accountants. All we will do is get you to sign a new 64-8 form if you already had your accountant registered as your agent. We can also contact your old accountant and explain everything to them.

If you like, we can help you avoid the awkward conversations with your old accountant, as we can furnish you with a template of termination of contract agreement to send to them.

We have served a lot of people who have their own accountants file their self-assessment returns even when they were contracted under CIS. Since we have a lot of industry expertise, we know best how to ensure you get the maximum rebates you are entitled to.

Our wide experience in the construction industry means that we can handle all the complicated regulations unique to the CIS that a general accountant may not have the expertise to handle. Instead of an hourly rate, we charge a simple package fee that includes everything up to aftercare throughout the tax year. This is the reason many clients have shifted all their tax accounting needs to GM.

We offer ongoing services that are more in-depth than anything out there. If you are VAT registered or have a limited company, our full GM Accounting package would be a great fit. It is a great package for Partnerships and Limited companies, as it helps grow your business and keeps you compliant and safe from the tax man. The packages are some of the cheapest in the industry starting from as little as 60 pounds every month.

CIS CONTRACTOR TAX RETURNS

On what areas of my business can I claim rebates on expenses?

Understanding what expenses you can claim when submitting your Self-Assessment returns is one of the most critical information you need to have. A lot of people have no idea what expense they can claim, and end up paying more tax than they should be.
Some examples of tax rebates you can claim in construction include:

1)Accountancy fees
2)Work travel expenses
3)Materials needed for work
4)Essential equipment and tools
5)General costs of running a business which is anything from advertising to stationery

Most of these are critical to the running of your business and can be claimed against the income that is taxable.

For more information on CIS subcontractor accountancy services, contact GM Professional Accountants

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CIS Tax Refund and Income tax returns

What is a tax refund?

A tax refund is money which has been returned from tax which has been overpaid. There are many reasons why you have overpaid tax, including:

  • You are taxed under an emergency code for a while when you start a new job.
  • If you have married or formed a civil partnership and you, your spouse or civil partner is born before 6th April 1935.
  • If your employer does not use the correct tax code or HM Revenue and Customs (HMRC) sends the wrong tax code to your employer.
  • You make payments on account for the following year, under the Self Assessment scheme, as you are Self-Employed. The payments are too high because of a change in circumstances, for example, the business profits have decreased. You may not have made a claim to reduce your payments on account and your final tax liability turns out to be a smaller amount than the tax you have actually paid.

You are a pensioner and your tax free personal allowances or receive more than one occupational pension has not been billed properly so you have paid too much tax.
You have multiple jobs. The employer at your second job will automatically deduct tax using the BR code (Basic Rate) so you may not get the benefit of all your personal tax-free allowances. This will frequently apply if you are a low-paid worker or a student.

Refunds under PAYE or Self Assessment

You can make a claim for a tax refund if you overpay tax under PAYE or Self Assessment.

For more information about claiming tax refunds if you become unemployed or for overpayments made because of your job, you can have a look at GOV.UK website at: www.gov.uk.

Refunds following a death

An overpayment of income tax may occur following a death. There is more information about this, which could be found on the GOV.UK website. Usually if a tax refund is made, the refund is counted as part of the asset for the person who has passed away.

Savings interest, Tax Refund

You may pay excessive tax on savings interest. You can make a claim for a tax refund if this is the case. To find out information of how you can get your interest tax free and claiming a tax refund on interest that you have paid tax on at the HMRC website. Go to: www.hmrc.gov.uk.

Overpaid on pensions or on cashing in small pensions, Tax Refund

You may pay too much tax when you cash in a small pension or on your pension. You find more information about claiming a tax refund for being overpaid on a pension at the GOV.UK website.

The time limit for claiming a tax refund

Claiming a tax refund, the time limited is four years from the end of the tax year, the tax year for which you paid too much tax. A tax year runs from 6th April 20X2* to 5th April 20X3* the following year.

You might be entitled to a tax refund and if you think you are entitled for tax refunds claim today so that you don’t lose the right to claim your money back.

Interest on refunds

HMRC must pay interest on a refund of tax if the repayment has been made after 31st January following the end of the tax year in which you overpaid the tax.

*Years are given as an example to show the split of the tax years.

Limited Company Accountancy Fee’s London

Accountancy fees for Limited Company’s

Accountants deal with a number of businesses in all types of sectors. They deal with preparation and submission of self assessments, bookkeeping, tax advice and tax planning, tax returns, CIS Tax, and company formations.

Accountant fees for Limited Companies are listed below:

•Sole trader accounts and tax returns range from–  £250 to £350*
•Limited companies accounts and tax returns – £650 to £850*
•Payroll per employee – £100- £120
*Prices are dependent on the size and scale of the work.

Gm professional accountants have self employed packages from £20 a month, small business accounting services from £60 a month this is an exclusive offer for 2019 and with limited numbers, contact us today on 0208 396 6128.

Get a Quote Now

 

Limited Companies

• The costs of trading as a limited company are larger than if you were a sole trader. Though there are significant benefits, mostly the saving of Class 4 National Insurance; and also the limited liability.

• The main accounting fees for Limited Companies will be accounts for the Year End, which then are filed at Companies house and returned to HMRC.

• Services of an accountant is highly advisable for a Limited Company. This is because the preparation of Year End Accounts is a legal requirement and requires specialist accounting knowledge.

• You will be probably paying yourself a salary as a director, if you trade as a Limited Company. This will require registering a PAYE scheme and administer a Payroll.

• Dividends can be paid if you are making profit, which you probably are paying yourself. You will also need to register for Self Assessment to pay yourself dividends.

• Small limited companies are not legally required for an auditor.

Small Businesses / Self Assessment

• Sole traders are permitted to prepare and file their own accounts and tax returns.

• Tax Returns (Self Assessments) can be done online but a small business may need a specialist online filing system.

• Accountants’ services will include tax advice, consultancy and general help with business issues which new businesses can benefit from.


Bookkeeping

• Accountants offer a bookkeeping service, which many of them do. Keeping good records of your business will be able to save the cost of this extra help, as it saves the accountants’ time from filing.

• As a busy business owner you may well conclude that it is a better use of time to concentrate on developing and growing your business, rather than spending hours doing your accounts and bookkeeping, and therefore you appoint a bookkeeper.

• Bookkeeping fees are considerably much cheaper than accounting costs. You are more likely to save money if you combine the whole accounting costs together. Make sure all the roles are clear, so they know what they are doing.

Software

• Online filing is now compulsory, so your accounts and tax returns can be filed online. Small business may require using specialist online system.

• Accounting and bookkeeping software, like Sage, will help a business owner complete the records before hand, which can reduce the accountant’s year end fees. The added advantage is that your records are updated, business reports will be ready to hand in and your accounts can be done quickly.

Limited Company Accountancy Fees

What do Accountants do?

• Most businesses accounts are legally required to be presented and prepared on an accruals basis. Adjustments are likely will need to made to the accounts to bring them to the legal standard, this does include sole traders.

• Accountants are also often tax advisors and are likely to be able to give you advice on tax strategy and potential tax savings.

• Accountants have many contacts and clients in various trades and professions. Therefore they are able to guide you to additional business services, like business planning, which may require additional service.

How Much are Accountant Fees for a Small Business

Accountancy Fees for Small Businesses

Accountants deal with a number of small businesses in all types of sectors. They deal with bookkeeping, preparation and submission of self assessments, tax advice and planning, tax returns, CIS Tax, and company formations. Accountants have a high quality standard at low rates.

Small business accountancy fees are listed below:

•Sole trader accounts and tax returns range from–  £250 to £350*

Gm professional accountants have self employed packages from £20 a month, small business accounting services from £60 a month this is an exclusive offer for August 2017 and with limited numbers, contact us today on 0208 396 6128.

 

Get a Quote Now

 

•Limited companies accounts and tax returns – £650 to £850*

•Payroll per employee – £100- £120

*Prices are dependent on the size and scale of the work.

Limited Companies

• Small limited companies are not legally required for an auditor.

• The costs of trading as a limited company are larger than if you were a sole trader. Though there are significant benefits, mostly the saving of Class 4 National Insurance; and also the limited liability.

• Services of an accountant is highly advisable for a Limited Company. This is because the preparation of Year End Accounts is a legal requirement and requires specialist accounting knowledge.

• The main accounting fees for Limited Companies will be accounts for the Year End, which then are filed at Companies house and returned to HMRC.

• Dividends can be paid if you are making profit, which you probably are paying yourself. You will also need to register for Self Assessment to pay yourself dividends.

• You will be probably paying yourself a salary as a director, if you trade as a Limited Company. This will require registering a PAYE scheme and administer a Payroll.

Self Assessment

• Sole traders are permitted to prepare and file their own accounts and tax returns.

• Self Assessments can be done online but a small business may need a specialist online filing system.

• Accountant services will include consultancy, tax advice and general help with business issues which new businesses can benefit from.

Bookkeeping

• Accountants offer a bookkeeping service, which many of them do. Keeping good records of your business will be able to save the cost of this extra help, as it saves the accountants’ time from filing.

• Bookkeeping fees are considerably much cheaper than accounting costs. You are more likely to save money if you combine the whole accounting costs together.

• As a busy business owner you may well conclude that it is a better use of time to concentrate on developing and growing your business, rather than spending hours doing your accounts and bookkeeping, and therefore you appoint a bookkeeper.

Software
• Accounting and bookkeeping software, like Sage, will help a business owner complete the records before hand, which can reduce the accountant’s year end fees. The added advantage is that your records are updated, business reports will be ready to hand in and your accounts can be done quickly.

• Online filing is now compulsory, so your accounts and tax returns can be filed online. Small business may require using specialist online system.
What do Small Business Accountants do?

• Most businesses accounts are legally required to be presented and prepared on an accruals basis. Adjustments are likely will need to made to the accounts to bring them to the legal standard, this does include sole traders.

• Small business accountants have many contacts and clients in various trades and professions. Therefore they are able to guide you to additional business services, like business planning, which may require additional service.

• Small business accountants are also often tax advisors and are likely to be able to give you advice on tax strategy and potential tax savings.

Ilford Accountants

Local accountant in Ilford

GM Professional Accountants

Call us now on  0208 396 6128 for a free consultation

  • Our vision and our customer reviews show that we provide:

    • A high quality valued service with over one hundred ‘5 star’ reviews “Eliminating stress”

    • Professional and experienced accountants with over 10 years of experience with HMRC

    • Quick, reliable and efficient responses tailored to your tax saving needs

    Let us making accounting simple for you. 

Get a Quote Now

If you need the best accountants in Ilford then your search has come to an end. We are a top accounting firm in Ilford, with our offices located in the central business district and a few minutes’ walk from Ilford train station.

Finding a local accountant and tax advisor can be one long and frustrating affair, especially since you may need to find an accountant that offers different types of services to make you compliant.

Some of our accounting and tax services are:

  • VAT advise and VAT returns
  • Capital gains tax and property income tax
  • Company incorporation services
  • Small businesses Limited company services (We prepare and file accounts and CT600)
  • Personal Self-Assessment tax returns
  • Pensions and payroll auto enrolment services
  • Self-Assessment and Self-Employed Accounts Tax returns
  • Tax Advisory Services
  • Contractor accounting services

We have our offices in Ilford where we help businesses and individuals beat their deadlines. All our packages include general tax advice and assistance on how you can stay compliant with tax regulations.

Unlike any other accounting firms in Ilford, our accountants are skilled and consummate professionals.

We are known for being up to date with all customs tax, HM revenue, and ever-changing accounting laws.

Our accountants will provide you the advice on expected tax expenses and work with you so that you can be compliant with all tax laws and regulations.

By working with us, you can rest assured that your tax returns will be accurate, punctual, and filed when they should.

Our company has customised packages for your small business, we will help you prepare your company accounts, file your returns and be compliant.

 

Accounting for Limited Companies

We help you file your returns and prepare your CT 600 tax returns for HMRC and companies house.

The packages we provide to make you compliant with tax regulations include bookkeeping, final account preparations and filing. This ensures that all the information you submit is accurate for each task.

We also do a review to determine if you are eligible for any tax breaks on allowable expenses.

By entrusting your accounting needs to us you and your staff can rest from the tedious daily bookkeeping tasks and instead work on more productive aspects that will help grow your business.

As such, we provide customised services that are delivered by professionals with care and expertise borne of many years of experience combined with a personal touch.

There is nothing more important than understanding the workings of a company as a separate legal entity.

Unlike your sole trader business where there is no clear distinction between the business, the owner and the businesses money alongside your money, this is very different.

In a company you are not allowed to take out any money from the company account as you would in a sole trader business.

Any money taken out needs to be bonuses, PAYE income, dividends or directors’ loans. Accounting for limited companies can be a very complicated affair.

Therefore, it is critical to engage the services of a professional accounting firm right from the very start to avoid any complications.

Self Assessment Tax return

The preparation of a self-assessment tax return should be easy, affordable and hassle free. Our specialists will look into your tax affairs and offer you tailor made solutions.

Online Filing of Self-Assessment Tax Returns

When you work with us you can rest assured that you are working with tax professionals who will offer the best advice and recommendations for any queries you may have. Our tax return package in Ilford includes a free no obligation tax return consultation.

You can be certain that our experts will process your returns accurately and fast to ensure that you are compliant with all tax regulations in your jurisdiction.

Our accountants have the skills and experience to review all your expenses and offer advice on how to claim maximum tax refunds for your personal tax returns.

It is required that you submit a self-assessment tax return if you are in business as a self-employed person or as a company director. Simple tax planning and accurate filing of returns can make the process relatively painless.

 

Accountants For Self employed in London

Accountants For Self employed

Our vision and our customer reviews show that we provide:

• A high quality valued service with over one hundred ‘5 star’ reviews “Eliminating stress”

• Professional and experienced accountants with over 10 years of experience with HMRC

• Quick, reliable and efficient responses tailored to your tax saving needs

Let us making accounting simple for you. 

GM professional are Accountants for self employed individuals. If you would like to operate as a freelancer or are self-employed, then this is by far the quickest and easiest way to start a business.

Get a Quote Now

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Why register as self employed?

The requirements to disclose are a lot less than a limited company as you are only required to complete a Self assessment tax return once a year. Also:

– You are in control of the business and are entitled to all the profits
– You are the business and not an officer which you would be under a limited company.
There are no restrictions of withdrawing funds from your bank account compared to if you were a limited company director then you would be withdrawing as a salary, dividend, bonuses or a loan account.

Before you set up as a sole trader or self employed

Anyone can set up as Self employed, although certain type of work will require you to obtain a permit or a licence from your local authority, such as Taxi Driving, Childminding or Street Trading. Setting up as a Sole Trader has some legal requirements you need to follow.

Planning to run your business from home? You may have to pay business rates for section of your home that you are using for business purposes. Depending whether or not you are using that part of the home for domestic purposes.
For example, if your work is online based and you work in your bedroom, it is very unlikely you will have to pay business rates because it is used for domestic purpose – but if you work in a separate room such as an office then you may have to pay business rates. You may need to bear in mind that you may need planning permission to work from home, depending on the type of business it is.

Any changes on your property for business reasons, such as a side extension for another access for your business or if your business will cause a disturbance in your neighbourhood; then planning permission may be necessary. You can receive more information on business rates and planning permission from the planning department in your local authority as every area is different.

Who registers as self employed?

Registering as self-employed does not require a lot of administration like a limited company. However,  you must register as self-employed by 5th October of the business’s second tax year of when you have started your self-employment or when you have started to trade. You may receive a penalty of £100 if you have failed to register and can increase after three months.
Contractors/Freelancers and people who own a Sole Trader Business are classified as Self-Employed. Contractors can be people who work on a contract basis, for example Builders, Plumbers, Electricians (CIS Tax), Locum GP’s and etc. You will receive a Tax Free code, which for the new Tax Year of 2020/2021 will be 1250L. If your income is over £100,000 then your personal allowance will be reduced. The personal allowance for individuals born before 6th April 1938 is £11850 for 2018-2019 tax year.

Registering for Self-Assessment Tax Returns for Self employed

Self Assessment Tax Returns are required to be submitted to HMRC by Self-Employed or Sole Traders. This requires you to fill out a Tax Return form; paper based or online (both of which have different deadline dates).

You must inform HMRC of your Sales and expenses with a simple three line format if you are under the threshold of 85,000 in a short return. In certain circumstances you may need to fill in the full self assessment tax return if you fall under a certain category that requires a full discourse of expenses in each box and balance sheet entries. Please refer to the HMRC website to see if that applies to you.

HMRC will usually send your Self Assessment Tax Return in April, but if your Self Assessment does not arrive by the end of April then you need to contact the Tax Office immediately and let them know otherwise you will receive penalties. If you are doing your first Tax Return you will need to fill in a self-assessment registration form first. Your National Insurance number must be with you when you are filing this.

Self employed Registration

A CWF1 form will need to be completed to inform HMRC about your business, which will also register you for self-assessment. If you are not self-employed you will need to complete an SA1 form. Once you have done this, HMRC will set up Tax Records for you and your business and will send you a UTR number (Unique Taxpayer Reference). This number you should never lose.

If you need an accountant to register as self employed sub contractor and you would prefer to do this online, then GM professional accountants specialise in registering as self employed and helping you to obtain a UTR number. You will not need to fill out a register as self employed form or phone as we can take care of the whole process, find out out more from GM professional accountants about registering as self employed within 3 months.

How to Register as Self-Employed

Anyone who is looking to become self-employed or is self-employed must register to be charged income tax and national insurance contributions with HMRC. You can register by phone, post or online, whichever way suits you. However, the most convenient way to sign up is by the online application.

You will need to have your National Insurance number on you, as you will need to provide HMRC with your details when you are registering for national insurance contributions and income tax. If you do not know or have not got your National Insurance number, contact Jobcentre Plus ‘application’ line, which can be found on their website.

It is important that you inform HMRC the moment you have started working, as it is not possible to register in advance. The information you will need to provide while registering as Self-employed are:

• National Insurance Number
• Name
• Date of Birth
• Business telephone number
• Telephone Number
• Your Unique Tax Reference (UTR) – only if you were within self-assessment previously
• The nature of your business
• Start date of self-employment
• Address
• Business address
• The business’ UTR – if you’re joining an existing partnership
• Email Address
• If relevant, the full name and date of birth of any business partners
Once you have done all of this you will receive a letter from HMRC stating your unique tax reference number.

Self employed Self-Assessment Payment Deadlines

You must pay the amount you owe by 31st January the following year if you owe any money by the end of the Tax Year (April), the April before January. The deadline for payment is the same whether you have filed your Returns online or on paper. You will need to pay both or one of the following:

• The balancing payment (the balance of tax you owe for the previous year)
• The first of the two ‘payments on account’ (the advance payments for the current tax year)

You will receive a self-assessment statement that shows the amount due for your return. If you do not receive this before your payment date, then you will need to work out the tax due yourself or by your accountant by registering for self-assessment online and selecting the ‘view account’ option.

If you’re asked to make payments on account, your deadline for making your second payment is July 31.

Maintain books as self employed

In order to stay organised with your accounts, you should file them by Accounting Periods. This helps you stay compliant and organised when you reach the quarterly and yearly deadlines, which makes your books easy to follow and be read. Keep Bank Statements, Purchases, Sales and Business Related Expenses separate from each other. If you do not maintain your records, this will lead to confusion and penalties with the local authorities.

Accounts are very important to keep up to date with, as it is the foundation for your tax returns, accounts and your net worth. This also allows you to check whether your small business is doing well over the years and see if there is anything you could do to expand your business. A profit or loss for the year can be created to see how well your business is doing in your current year once your bookkeeping has been processed.

allowable expenses uk
allowable expenses uk

Self employed Filing

As a Sole Trader  you will have to file tax returns annually. If you are VAT Registered businesses as self employed, your VAT returns must be done quarterly or Annually.

This means you will have to stay compliant and more importantly, organised at all times to help you make the year end process quick and efficient. When the new Digital Tax Scheme comes into place in the near future all Small Business and Self Employed Individuals will have to file and submit Tax Returns Quarterly, so it will be better if you organise your Accounts every quarter.

Staying organised when submitting a Tax Rebate is a must , depending on your legibility for Tax Refunds. You may have felt that you have been taxed unfairly so you can go over this with your Accountant. If you have still not received your p45 or p60 from your previous employers, contact your previous employers as soon as possible, especially if you are registering for Self-Employed.

They are likely to have these forms as it is a legal obligation for companies to keep financial and legal records for 6 years. Accountants may have a look at your p45 and p60 forms once you are looking to register as self-employed.

If you operate as a sole trader there are some legal formalities you will need to keep on top of. So to Register as Self Employed, contact GM Professional Accountants today for more information.

See further information on Ecommerce Amazon FBA sellers 

Capital Gains Tax Accountants

Capital Gains Tax Specialist

CALL US NOW FOR A FREE CONSULTATION ON 0208 396 6128

Benefits of Choosing the combined package

• A high quality valued service with over one hundred ‘5 star’ reviews

• Professional and experienced accountants with over 10 years of experience

Quick, reliable and efficient responses tailored to your tax saving needs

Call 0208 396 6128 for more information.

Get a Quote Now

GM Professional Accountants advise and provide service on Capital Gains Tax Return.

Capital gains tax is applicable when making a profit. This is normally when you sell an asset, this includes shares, property or business.

Currently, taxes are paid on the sale, they are subject to a number of factors such as the reliefs and incidental expenses.

The UK budget of 2016 included a number of reforms that determine the capital gains tax of an individual based on their income. For example, taxpayers that receive minimum income rates are liable to a CGT of 10% while those who get better income rates pay a CGT of 20%.

Lastly, the rates change when it comes to property sales. GM professional provide expert advice on properties and letting relief on our helpline on 0208 396 6128.

Capital gains tax on Shares

Investment experts buy and sell shares speculatively based on an underlying intelligence of the market trends. Secondly, It is important to note that you could either make a profit or a loss in the share business.

You can buy shares of a quoted company for a given price and then sell these at a higher price in the future. The difference between the selling and the buying price is effectively subject to a capital gains tax. Share transactions forms the basis of the capital gains tax.

Capital gains tax on property

The prices of properties are normally volatile with the passage of time. Some people participate exclusively in the business of buying and selling properties for the sake of making profits. The profit made from the sale is subject to tax after the deductions are made and these are legal fees and agent fees. Furthermore, it is important to note that gains from selling a first home is not subject to any form of tax.

Capital gains tax on business/ investment

You may plan to sell your business after it has gained some value. Furthermore, the proceeds made from the sale is also liable to the CGT. Lastly, in case you retain a stake of 5% or more in the business, under the business asset disposal relief you can be taxed at 10%.

Allowances on the CGT, the government of the UK has provided an incentive that encourages taxpayers to pay any capital gains tax due through the annual tax exemption. Therefore the financial year 2020/2021 has £12,300 tax free allowance.

Lastly, when £12300 profit is made then no tax is payable, the threshold will be updated each year.

The tax allowances will be renewed each tax year and cannot be carried forward. Filing tax returns annually will ensure that any CGT deductions made will be recorded by the tax authority and consequently.

Any government helpline usually guide citizens on how to file tax returns. Tax accountants normally provide an expert’s point of view on the technicalities related to tax returns. They will also provide invaluable advice on how to comply with the tax authority. We have been providing excellent services to our current clients in Ilford , barking, Romford and East Ham

Gm professional accountants have offices in London, Manchester and Essex