How to Tell HMRC No Corporation Tax is Due for my Company

No Corporation Tax payment due

Regardless of whether it states that there is no corporation tax owed and as long as your business is still active, you still need to file a company tax return. Therefore, you must inform HMRC as soon as possible if you do not owe corporation tax for a specified accounting period. Failure to inform HRMC promptly will mean that they will send you a payment reminder.

If your company has no tax owed, fill out the following online form to notify HMRC that there is no corporation tax payment due:

Online notification of no payment due

It is advised to refresh your browser between submissions when reporting nil payments, especially if you are using multiple Corporation Tax reference numbers. As a result, the correct reference number will be employed.

Fill out the box below with your Corporation Tax payment reference number.

TIP: You can view the payment reference number in either of the following:

  • On your notice to file
  • On any reminders that HMRC sent you, or
  • By accessing your company’s HMRC online account
  • Select “View account” followed by “Accounting period”

To ensure that it is correct, keep in mind that the reference is 17 characters long and is specific to an accounting period.

 

How do I file a zero corporate tax return?

A professional accountant is familiar with the necessary information and can properly prepare all documents pertaining to your corporate tax return. By employing an accountant to complete the nil corporate tax return for you, you will be able to file it easily and securely.

 

Contact us now

 

How do you let HMRC know company is dormant?

The date the company became or will become dormant must be specified in writing to your local Corporation Tax Office so that HMRC can verify the information. Following that, the correspondence from HMRC will provide you with their contact information.

Do I need to tell HMRC My company is dormant?

When the business has been idle for too long, especially if it has ceased operations and has no other sources of revenue, you may need to inform HMRC that your company is dormant for Corporation Tax. Informing them will exempt your dormant company from paying corporation tax and filing a company tax return.

 

How long can a company be dormant?

If you purchase a company to safeguard your enterprise, the company can remain dormant for as long as you like. What other business owners usually do is that they purchase a company and keep it inactive. That way, no one will take an interest in purchasing the company they bought, and they can start its operations later on.

 

Does a dormant company need to pay Corporation Tax?

The good thing about a dormant company is that it does not need to file a company tax return, and it is not required to pay corporation tax. This is simply because there was no income being generated for a long time to file for a tax return or pay corporation tax.

 

 

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

VAT implications on selling to UK & USA customers and world wide

Providing services abroad.

 

The majority of services rendered to clients who are located outside of the UK are to be regarded as exempt from UK VAT. In this case, the sale is “VAT free,” so the value of the sale in Box 6 [Box 6] is the only input required on the UK VAT return.A corporate client, especially those in the EU in particular, may need to use the reverse charge to account for VAT in their own country. A UK supplier is no longer obligated to add wording like “customer may have to apply the reverse fee” on their sales invoice. Additionally, beginning January 1, 2021, services provided to VAT-registered consumers residing in other EU countries do not require an EC Sales List (but there is an exception for suppliers based in Northern Ireland). Selling services abroad is quite similar to exporting things, with the exception that in this situation, you are selling your skills rather than stuff.

 

Purchasing products from a different EU nation

 

The VAT regulations for imports now apply to purchases made by enterprises located in Great Britain that will be delivered to Great Britain. The provider does not impose any VAT on exports from the EU as long as the necessary requirements are satisfied. To release the products into Great Britain, businesses importing items from the EU must file customs declarations, pay import VAT, or use postponed import VAT accounting. Customs duties can also be due. For Northern Ireland, which is to be viewed as staying in the EU when doing business with EU companies, there are various restrictions. Therefore, the buyer accounts for purchase tax in Box 2 of the return when enterprises import items into Northern Ireland. Additionally, entries will be made in Box 4, Box 7, and Box 9 (the quantity depends on how much you are eligible to claim).

 

Purchasing products from a non-EU nation

 

Apart from the fact that the regulations now also apply to commerce with EU nations, there is no change to this procedure as a result of Brexit. Businesses must pay import VAT when products enter the UK, and the VAT can theoretically be recovered if the importer is the legal owner of the items and has the necessary documentation for input VAT recovery. The importer may also decide to use Postponed Import VAT Accounting to apply the UK import VAT that is owed. Keep in mind that when the products are imported, customs duties may also be required.

 

When you purchase a good from a non-EU nation, you effectively become an importer and are responsible for paying Customs and Excise Duty as well as Value Added Tax (VAT). The items would usually be held by the Customs Authority at the border until the duty and tax are paid, unless the terms of the transaction indicate something different.

 

Contact us now

 

Import VAT accounting was postponed (PIVA).

 

The importer of record has the option of using PIVA to record import VAT. As a result, the importer is not required to pay import VAT when the products are discharged into the UK; rather, the import VAT is reported on the VAT return as both payable VAT (sales) & receivable VAT (purchases), with the amount of recovery based on the company’s recovery status.

 

An improved cash flow situation is the effect of this.

 

This is how entries will be made:

 

Box 1 (Output tax)

 

The amount of postponed import VAT is based on the PIVA declaration from HMRC. This firm has delayed the import VAT. Box 4 (Input tax) includes the same amount of postponed import VAT from Box 1 as it does (if all the import VAT is recoverable) Box 7 (Purchases) The net import VAT amount should be shown as the purchase invoice amount plus any importation fees paid into the UK.

 

If an importer chooses not to use PIVA, they must pay the import VAT at the time the items are imported and are then given a C79 certificate to support the recovery of the VAT. For input VAT entries, fill out Box 4 (the amount depending on how much you are allowed to claim), and for purchase entries, fill out Box 7.

 

Providing products to an EU company with a VAT number

 

After Brexit, sales of products from the UK (except Northern Ireland) to an EU VAT registered firm are considered exports (formerly known as dispatches), i.e. zero-rated, provided that the seller can provide proof of the export documentation they have on hand. Box 6 should be used to record the sales amount. Intrastat disclosures and EC Sales Lists are no longer necessary. In accordance with the rules governing intra-EU trade (i.e., dispatches or sales of products between EU countries), Northern Ireland will continue to do business with EU countries. The transaction is zero-rated and should be reported in Boxes 6 & 8. Depending on the number of transactions, both Intrastat statements and EC Sales Lists will be required.

 

Selling products for export outside of the EU

 

In certain situations, the transaction is often not taxed at all, and this is noted in Box 6.

 

Purchasing international services

 

The reverse charge is applied to the majority of services provided by both EU & non-EU businesses. There are certain exceptions to this rule, such as the cost of entry to events, services tied to the property, and long-term rentals of goods. If you get an international invoice for a service that excludes VAT, you will often need to account for the VAT on a reverse charge basis. The reverse charge’s core tenet is that the client manages the VAT rather than the supplier. The services are seen as both a cost and revenue by the client.

 

The necessity to use the reverse charge is unchanged as a result of Brexit.

 

The following entries will be included in the VAT return:

 

Box 1 (Output tax)

 

combined with amounts for delayed import VAT and multiplied by the VAT rate for the service in the UK.

 

Box 4 (Input tax)

 

The same amount as Box 1, but with any import VAT payments that were delayed and any requirements for partial exemption taken into account.

 

Box 6 (Sales)

 

Enter the net amount less the invoice value.

 

Box 7 (Purchases)

 

Enter the net amount less the invoice value.

 

 

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

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.

 

Contact us now

 

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.

How to extend year end accounting period on companies house

Changing your company year-end

The cut-off date for accounting periods is usually the end of the financial year. However, companies can extend their accounting period by up to nine months. This can be done for several reasons, such as if the company is in the process of selling assets or taking on new debts. Extending the accounting period gives the company more time to prepare its accounts and ensures they are up to date.

 

A business may reduce its accounting period as much as it likes, but there are rules about increasing it. It can do so only once every 5 years and for up to 18 months.

To change your company’s accounting period, you must:

> Give notice to HM Revenue and Customs (HMRC). You can do this online.

> Change your company’s articles of association if they state when the accounting period should be.

> Inform Companies House of the change. You can do this by filing your annual return.

> include a copy of your last annual accounts – unless you’re exempt from sending them

> have written approval from all shareholders

 

 

Subscribe to our channel for the latest updates.

 

Subscribe Now

 

Normal company year-end

The normal year of a company commences on the day after the anniversary of its incorporation or (if it was formed by re-registration) on the day after that on which it was first registered. For example, if a company was incorporated on 1 January 2010, its first financial year would have ended on 31 December 2010.

The company’s next financial year would start on 1 January 2011 and end on 31 December 2011. However, a company may adopt an accounting reference period (ARP) different from its financial year.

The company’s first set of accounts will be due to be filed at Companies House 9 months after the end of its first financial year. Going by the example above, the deadline for filing the company’s first accounts would be 31 September 2011.

However, if a company has an ARP different from its financial year, the deadline for filing accounts at Companies House will be 6 months after the end of the ARP.

Can you extend the accounting period?

As mentioned earlier, a company may shorten its financial year as much as it likes. It can only extend its financial year once every 5 years. However, it is impossible to change the accounting period when the deadline for filing accounts at Companies House has passed.

 

Contact us now

 

Can I extend my Companies House filing deadline?

Companies House deadlines are statutory and cannot be extended. This is because the information in company accounts gives valuable insights into a company’s financial health. However, if there are extenuating circumstances, such as the company being in administration, or a disaster that destroys the company records, it may be possible to apply for an extension.

If you cannot file your accounts on time, you should contact Companies House as soon as possible. You must explain why you cannot file on time and provide evidence to support your case.

 

How long can a company accounting period be?

Your accounting period for Corporation Tax can be up to 12 months, but no longer. This is because your tax return must cover 12 months.

You can use the same accounting period for Corporation Tax and Self Assessment, but you don’t have to. For example, if your company’s accounting period ends on 31 March, you could use the same period for Self Assessment. This would mean your Self Assessment tax return would be due on 31.

 

What are the consequences of not filing accounts on time?

If you do not file your accounts on time, you will be liable for a late filing penalty. The penalty amount depends on the company’s size and how late the accounts are filed.

 

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

Top 7 Tips when filing (annual) Year-End accounts 2021/2022 to Companies house and HMRC

1 Prepare

You will never like that feeling of sudden rush and paranoia as you realise how days run faster than before. So, there you are, and voila! It’s time to prepare your year-end accounts. And they are going to haunt you up to the last minute. As we all know businesses in the UK are required to submit year-end accounts and everyone should comply. So, if you are planning to go on this smoothly, here are the 7 tips to prepare your year-end accounts for 2022.

If you want to approach the end of the year with sufficient resources and necessary tactics to overcome future challenges, preparation not only for you but for your team and the business is a must. No one wants to go to war unprepared. Be prepared for at least a few months before tightening your expenses and catching up on your P.O.s and invoices. Ensure that your records are all processed and put through the system.

Contact us now

2 Get Your Accounts Up-to-Date

List down all the figures that have been spent on and the unpaid balance from the debtors and all other financial records necessary. You’ve got to track the important figures such as the bills, invoices, and bank statements.

3 Keep Your Employee Data Accurate

Always secure accurate data of your employees and the expenses they have made during the year-end. The HMRC always checks the payroll and the expenditures to make sure that everything is synchronized when getting audited. If there are discrepancies found in the records, then your employee shall be held questionable and it will be difficult to trace back where it started. Double check their submitted expenditure reports before the year ends.

4 Organise Your Space

You get things done easily when you are surrounded by clarity and clutter-free. Segregate your files in order. Make a different partition for different paper files like receipts, invoices, and other files. This is not just about your office space but you can declutter and organise your space on your computer. If necessary, you can download apps to clear up the expense management process. This way, you can access the details easily when you are queried on any part of the accounts you are working on.

5 – Check Your Chart of Accounts

Check your Profit-and-Loss Report that is a part of your Balance Sheet. At the end of the year, the COA (Charts of Account) identifies and controls which accounts should be cleared down. So, you need to double-check and ensure everything is correct and updated.

6 – Check Your Data and Create a Backup

You can survive any catastrophic events only if you have a contingency plan. You’ve got to have plenty of options and backup plans if all other plans don’t work. This applies to year-end accounts too. For instance, by having an ERP system such as Dynamics GP, then you can back your financial data up. There will be no worries even when things go awry since you have a backup file.

7 – Don’t Panic

Everything is stressful during the year-end since all establishments are heading towards a new year. It is not shameful to admit that everyone gets much pressure and a high level of stress every year-and. So, if you are feeling that pressure and rush right now, just take a deep breath, declutter your mind, take things slowly at first, and organise your thoughts in the first place. Whenever you encounter problems whilst preparing your report, take a step back and evaluate everything and then resolve it.

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.

Subscribe to our channel for the latest updates.

Subscribe Now

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.

Contact us now

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.

Closing Limited Company with A Bounce Back Loan Implications

How long does an insolvency case take?

Liquidation can be a long and harrowing process but that doesn’t mean that you have to go at it uninformed.

An insolvency case can range from one to two years but it’s not unheard of for them to last longer. The rule of thumb is, that the size of the liquidation is a good barometer for the length of said liquidation. In the case of compulsory liquidation, three months seems to be the general average between the initial threat and the end-of-court proceedings. Although in either case, all time frames presented are just the time it takes for liquidation approval.

Subscribe to our channel for the latest updates.

Subscribe Now

What do insolvency companies do?

An insolvent company is a company whose assets are not enough to handle its debts and liabilities. It is a common occurrence for an insolvent company to be unable to pay off its debts.

What happens when you go into insolvency?

When one goes into insolvency, the company is forced to close down due to being able to pay off its debts and liabilities. There are two forms of insolvency: compulsory liquidation and voluntary liquidation.

What is the difference between liquidation and insolvency?

Insolvency is the state of being unable to pay your bills and debts. Liquidation is the process a company must go through once they have been deemed insolvent.

Can I liquidate my company myself?

Only a licensed insolvency practitioner can liquidate a company. As a result, you are unable to liquidate your own company unless you have been licensed for such a task.

Can an accountant do liquidation?

While only a licensed insolvency practitioner can handle the liquidation process of a company, your accountant can definitely offer some guidance and assistance as the process takes place. Though this is up to your discretion only. Whether or not you allow your accountant to help is up to the position your company is currently in.

Contact us now

How much does insolvency cost the UK?

In the UK, the insolvency fee falls within the range of four thousand to five thousand pounds but keep in mind that the size of the corporation will affect these prices. Not to mention that any small limited companies will have to contend with the price of VAT.

Can a company be struck off with a bounce-back loan?

Unfortunately, you can not strike your company off unless you have paid back your bounce-back loan. in situations such as these, your best course of action is to liquidate your company.

What happens to a bounce-back loan if a company closes?

During the process of liquidation, a bounce-back loan becomes unsecured debt as it is not secured against the company’s assets. Fortunately, this means that the lender must pursue the government for repayment in full.

Can I close my business with a BBL?

While it is certainly possible for a company with an outstanding bounce-back loan to be liquidated through a dissolution process, there exists a strong possibility that such a dissolution would invoke objections due to the debt being an unsecured one.

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

Probate Inheritance Accountants Guide

What should you expect from a probate service?

If you want gm to handle your Probate, we’ll do the following:

• Take care of the documentation and communicate with all parties involved, including HMRC as well as the Probate Registry.

• Determine the deceased’s inheritance tax status by analyzing their assets on the date of death, verifying the situation using the dead’s will (or intestacy provisions if there is no will), and calculating as well as reporting any inheritance tax liabilities;

• Produce estate accounts for the period between death as well as the date when assets can be transferred, allowing for any tax liabilities, then prepare tax returns for the period during which the estate is being administered;

• Prepare a tax return for the period ending on the date of death, calculating, paying, and deducting any outstanding tax liabilities from the estate;

• Arrange for the most cost-effective settlement of inheritance tax liabilities; and

• Get a probate grant or letters of administration.

Get a Quote Now

The advantages of hiring a probate accountant

Using a qualified accountant or tax counselor can provide a variety of advantages.

The first is confidence.

You may not be familiar with a solicitor, but many people, tiny company owners, have a trusted accountant they come to year after year for accounts, tax returns, and unbiased advice.

The second reason is that it is simple.

Your accountant may already be familiar with the deceased’s assets and tax obligations.

This allows the entire process to be completed fast and without the need for many individuals to be involved.

Finally, there is the possibility of increased efficiency.

Most of the work required for an accountant or tax advisor – compiling accounts & calculating both inheritance tax & income tax liabilities – is routine. They can also assist you with future capital gains and inheritance tax planning.

The cost is the ultimate advantage of employing an accountant.

It may be less costly than employing an attorney.

We charge a flat fee, although other attorneys charge a percentage of the estate’s worth.

Please contact us if you have any questions about GM’s probate service and if you are interested in tax planning measures to lower the estate’s value for inheritance tax purposes.

Is it possible to arrange for Probate without the help of a lawyer?

Many executors & administrators work without the assistance of a lawyer.

If the estate is complex, however, it is wise to get legal guidance.

If the provisions of a will, for example, are unclear, you should always seek legal assistance.

When someone dies, what happens to their financial account?

Most joint bank accounts feature automatic rights of survivorship, which means that if one of the account signers dies, the remaining signer retains ownership of the account’s funds. The primary account owner who survives can continue to use the account and the funds in it without interruption.

Is the next of kin liable for funeral expenses in the United Kingdom?

If they are listed as the executor of the will, and if they engage in a formal contract with a mortician to make funeral preparations, a relative’s next of kin is solely legally liable for covering or sourcing funeral costs.

Can a house be emptied before Probate?

The answer is straightforward: no.

Before disposing of assets, the executor must wait until the probate procedure is completed.

Is it possible to sell a property before it goes through Probate?

Technically, the answer “can you sell a property before probate” is yes. Even though you’ll require Probate to exchange and close, there’s nothing prohibiting you from putting your property on the market & accepting any bids you get before receiving the Grant of Probate.

Do all wills have to be probated?

No, not all Wills go through Probate, and certain Estates will still go through the procedure even if there is no Will.

When a person dies, who informs the banks?

Family members

When a client passes away, the bank is usually notified by family members next or of kin. It might also be a person who was appointed by a court to manage the deceased’s finances. A client’s passage may also influence the bank through Probate.

How can I get money out of a bank account that has been closed?

The beneficiary can claim the money after your death (but not before) by visiting the bank with such a death certificate & identification.

The bank will have your beneficiaries’ designation form on file, indicating that it has legal authorization to release the cash.

In the year 2021, how long will Probate take in the United Kingdom?

Within eight weeks of submitting your original paperwork, you should get the grant of Probate as well as letters of administration.

If further information is required, the process may take longer.

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?

Subscribe to our channel for the latest updates.

|

Subscribe Now

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.

Get a Quote Now

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.

Claiming Tax Relief on Your Cryptocurrency Losses (Luna)

Tax return filing for relief on Luna Cryptocurrency losses.

We released an article some years ago that examined how cryptocurrency revenues may be taxed. However, you may have lost money when the market crashed. As a result, this post will go over your choices for seeking tax relief on cryptocurrency losses.

The latest guideline from HM Revenue now provides some insight into obtaining tax relief on cryptocurrency losses – but only for individuals. HM Revenue has yet to issue their business and company guidelines. Despite the appointment of a cryptoassets task force by the chancellor, no special tax law for cryptocurrency transactions has been implemented.

How do I declare crypto losses on my taxes?

Individuals investing in cryptocurrencies are most likely subject to capital gains taxation. As a result, requesting tax relief on cryptocurrency losses will be subject to capital gains tax laws.

Subscribe Now

Subscribe to our channel for the latest updates

What expenses can be deducted when calculating a loss?

Certain expenses are deductible when computing your loss, and these are as follows:

  • The first payment in money for the cryptocurrency.
  • Transaction fees paid prior to a transaction being posted to a blockchain.
  • The initial ‘expense’ of exchanging one cryptocurrency for another.
  • Any advertising spent on behalf of a buyer or a vendor
  • The expenses of valuing or apportioning assets or liabilities in order to determine profits or losses. This might include the cost of a software subscription to calculate gains or losses.
  • Professional expenses for establishing a contract for the purchase or sale of cryptocurrency

In these cases, however, you cannot claim for the costs of mining activities (such as equipment).

How much of a loss can you claim on crypto?

If you still possess cryptocurrency and it has become worthless or of minor value, you can crystallize capital losses. Simply put, a negligible value claim considers the cryptocurrency to have been disposed of and reacquired at the sum mentioned on the claim.

Because bitcoin is pooled like shares, the insignificant value assertion must be made in relation to the whole pool, rather than the individual cryptocurrency units/tokens.

Get a Quote Now

Making a claim of minimal worth

To make an insignificant value claim, the following conditions must be met:

  • The cryptocurrency must be owned at the time the claim is submitted.
  • You must indicate the cryptocurrency’s value at the time of the claim. There is no formal definition, however according to HM Revenue, an asset has minimal value if it is worth next to nothing.

Reversing a claim

You can backdate an insignificant value claim if the following requirements are met:

  • You possessed the coin at the period mentioned previously.
  • At the time, the cryptocurrency had lost its value. The earlier time must be no more than two years prior to the start of the tax year in which the claim is submitted.

For example, you may file a claim on April 5, 2020, and it would be carried back to April 6, 2017.

This might be beneficial if you haven’t generated any capital gains in the current tax year but have in the prior two. Because your cryptocurrency must have already lost value at the time the claim is being backdated, this will be relevant only if the prospect of a negligible value claim was previously disregarded.

Tax on lost or stolen crypto in the UK

You may misplace your private key, rendering you unable to access your cryptocurrency. The private key still exists, but you no longer have access to it. Likewise, the coin is still there on the distributed ledger. As a result, losing your key does not constitute as a disposal for Capital Gains Tax purposes, and no loss may be claimed.

However, if you can demonstrate that there is no chance of retrieving the private key or accessing the cryptocurrency stored in the related wallet, you may be able to make an insignificant value claim (see above).

There is always the possibility of being a victim of theft or fraud if you invest in cryptocurrency. Because the individual retains ownership of the assets, HM Revenue does not consider theft to constitute a disposition. They have the right to retrieve them as well. This implies that victims of theft cannot claim a capital gains tax loss.

Furthermore, if you do not get the cryptocurrency for which you paid, you may be unable to claim a capital loss.

If you pay for and get cryptocurrencies, you may be able to make an insignificant value claim if it later proves to be worthless.

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

Changing Accounting Software Xero, Freeagent, Quickbooks

Changing Accounting Software using an accountant. 

Can I change my account system mid-financial year? Yes. Sometimes it’s necessary to rethink your options. There are several reasons why you might be forced to change your accounting software, including:

  • Your inventory has become huge and more complex
  • The need for more structured financial data that can be effectively managed.
  • The need for more financial modeling and forecasting
  • Increased regulatory requirements
  • The need to manage multiple currencies or multiple business entities

However, how easy is it to use a new accounting system mid-year? Well, you will have two software programs, one with the old information covering certain months and the new one. Sometimes this may lead to confusion since your customers might use different accounting software from the one you used to raise invoices.

Additionally, your chances of making errors are extremely high if you use two software packages simultaneously. This way, you can conveniently use your accounting data as training material.

Get a Quote Now

Changing an accounting software is sometimes necessary. But don’t think you will just get a new software program and pick it up from where you left your old software. This is a challenging process, and here are some of the problems you are likely to encounter:

Mismatching features

Your new software might not have the same accounting features as your old one and vice-versa. This can be challenging, especially when you still want to store all the data from your old software. But it’s possible to find a way around this by doing research.

Delay in using your opening balances

Moving your accounting systems before completing your financial year means going back and forth several times before you finally get everything right. For instance, if you will use Xero, you will simply start with the opening balance. So, make sure you finalize everything in the previous financial year.

You are not used to the new software

It will take time before finally get used to the new software. Meanwhile, you might not initially like it, and with the lack of familiarity, you might get a couple of things wrong, and everything might take longer. So, you need to have a learning mindset and be ready to make mistakes since the new features might have different names and reports stored in different places.

To avoid these challenges, should you consider moving your old accounting information to the new software? Well, it’s not necessary.

Generally, every accounting software will require that you enter your opening balance during the setup process. This includes information such as whom you owe money, who owes you, and your bank balance during the last financial year.

All these are important in ensuring that you have the correct customer payments and bank balances. Your invoices will also be correctly allocated to avoid losses. To effectively obtain an opening balance, first, get a trial balance from the current software and use it.

The downside of using a trial balance is that you won’t be able to see the sales invoices list raised or even click into the sales. You will simply have a total figure and the correct information on the balance sheet.

For a better balance sheet detail and if you are moving your accounting information to Xero, then consider using Move My Books – a service that will efficiently transfer your QuickBooks and SAGE accounting information without replicating your previous financial year’s accounting information.

If you are not going to use Xero, then ensure that you download all the important reports from the old software.

Conclusion

While changing accounting systems might be necessary, it’s challenging, costly, and time-consuming. However, people and business organizations are sometimes forced to do it because change is inevitable.

Even though there is a wide range of accounting software, Xero and FreeAgent are currently the top-rated on the market. If you manage a complex business, Xero would be a great solution since it has dynamic features. You can conveniently integrate it with 3rd-party payment applications.

Meanwhile, FreeAgent is suitable for individuals who need to frequently invoice their clients or have regular direct debits. If you plan to change your account system, do your research and be ready to learn because the whole process can be challenging. Plan for the new financial year a couple of months earlier to make the right adjustments without pressure.

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

Companies house email reminder, your Company Accounts are due, What to do?

Is it a requirement for Ltd companies to file their accounts with Companies House?

Every limited company must submit its accounts to the Companies House, regardless of whether it has been successful, operational, non-operational, or breaking even. For more information pertaining to HMRC accounts or tax-connected matters, you will need to reach out to HMRC in person.

Subscribe Now

Subscribe to our channel for the latest updates

How long will it take for accounts to appear on Companies House?

The Companies House strives to process all accounts filed online within 24 hours. Paper documents delivered by POST can take a week or more to process; therefore, it will take time before you can discover whether they have been accepted or declined.

Does Companies House accept the late filing of accounts due to Covid 19?

The Companies House grants extension to qualified companies provided they explicitly state how the issues surrounding COVID-19 are derailing filing in their application. Late filing of accounts attracts hefty penalties, so it is necessary to get it done on time. In order to avoid missing the set deadline, get in touch with Companies House Service (CHS) to learn of your filing deadlines.

When Must accounts be delivered at Companies House?

For example, business accounts running from 1st January 2020 to 31st December 2020 are ripe for submission. These accounts must be delivered at the Companies House no later than 30th September 2021 if a company is to escape a penalty.

Regardless of the status of your company, you must file your accounts. You will need to supply us with a single copy of your company’s accounts.

We advise filing of accounts in advance as some of our employees have been forced to proceed to leave in a bid to comply with the government coronavirus (COVID-19) directive. For this reason, it might take time to process documents conveyed to us by POST.

Filing online saves most companies money and time

Settle on an option that works best for your company

To file your accounts online, you need to have a company number and authentication code. Companies are issued with the authentication code, which is a six-digit alphanumeric code by the Companies House. To find out more about this, visit https://www.gov.uk/guidance/company-authentication-codes-for-online-filing

For companies filing their accounts through an agent or account, contact them and request them to file online.

Get a Quote Now
What happens if you fail to file your accounts with Companies House?

If the deadline passes and you have not filed your accounts with Companies House, brace yourself for hefty penalties. Failure to file your accounts on time for two consecutive years attracts a double penalty. You can be penalized, and your company gets de-registered if you fail to file your accounts with Companies or fail to send a confirmation statement.

Is it a requirement for a dormant company to file accounts

It’s normal for directors of a dormant company to pay little to no attention to the operations of their business, but this doesn’t mean they should not file their accounts with the Companies House. Failure to do so would attract hefty penalties to their ailing company, which would prove more costly. Companies House recommends owners of dormant companies file their annual accounts with it and also share with them annual confirmation statements. This should be the routine until the company resumes or ends its operations.

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

Statutory Notice Overdue confirmation statement Letter from Companies house

Who must submit a confirmation statement to companies house?

Each year, all limited liability firms must submit a confirmation statement. We’ll go over some of the ramifications of failing to provide a confirmation statement in this blog post. Let us first go over what a confirmation statement is for.

Get a Quote Now

What is the purpose of submitting a confirmation statement by a company?

Director’s affirmation that the information Companies House has on a company is accurate and up-to-date is the essence of a confirmation statement. Confirmation statements must be filed by all companies, even if they are no longer active or dormant.

Directors are required to provide a confirmation statement every 12 months, even if all the material is the same. A review period occurs every 12 months. Many issues can arise for the corporation and its directors if the submission date is missed.

Subscribe Now

Subscribe to our channel for the latest updates.

What happens if you don’t submit a confirmation statement?

Under section 853A of the Companies Act 2006, company directors are legally required to file confirmation statements. Failure to do so might result in personal culpability, penalties, prosecutions, and possibly the removal of the company from the register.

Section 853L of the Companies Act 2006 deals with the issue of failing to file a confirmation statement. It is an infraction under this section if a company fails to provide a confirmation statement on time by

• The organization

• Every firm director (including shadow directors),

• Whether it’s a privately held corporation or a publicly-traded one, every secretary and

• All of the company’s other indebted officers

It is possible to be prosecuted for failing to file a confirmation statement under the Companies Act 2006 if a company fails to comply with this requirement. Each of the company’s officers faces a fine of up to £5,000. Disqualification orders can be issued to directors, barring them from serving as company officers for a predetermined period. Strike the company of the list is another option.

Confirmation statements are a criminal offense and directors can be penalized in criminal courts if they fail to file them. Any criminal prosecutions for failing to file confirmation statements are distinct from and in addition to any penalties imposed by Companies House on the limited company for a late submission.

How late can you submit a confirmation statement?

If a confirmation statement is submitted late, it will not be penalized for being filed late. If you miss the deadline, you won’t be fined, but the firm could be removed from the public register if legal procedures are brought against you.

Can you resubmit a statement of confirmation?

Re-filing with the updated confirmation statement and the revised version of the form RP04 should be used if an incorrect confirmation statement is accidentally submitted with your application. Delivering a second file can be done in a variety of ways. Using the Web Filing service.

Is a dormant company required to provide a confirmation statement?

Companies House requires a confirmation statement to be supplied. Annual accounts for dormant businesses should be sent to Companies House. Although dormant corporations are required to file financial statements, their accounts are far easier to read and understand than those of active businesses.

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.

Get a Quote Now

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)

Subscribe Now

Subscribe to our channel for the latest updates.

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.

Get a Quote Now

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

Subscribe to our channel for the latest updates.

Subscribe Now

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.

What Is A First Gazette Notice For Compulsory Strike Off?

Why have I Received a First Gazette notice for Compulsory Strike Off

If you receive such a Gazette notice, that means that your company is going to be removed from the Companies House, and that will also mean that your company will cease to exist as a legal entity. This strike-off notice allows three months of leeway before it’s removed from the official register due to non-payment of tax or failure to file the company accounts.

Generally, there are two ways for a company to be struck off from the Companies House registry. One way is through voluntary dissolution because the company directors decided the company has no further use. The second way is because a third-party petitioned for compulsory dissolution.

However, when it comes to the compulsory strike-off, this event is typically initiated by the Companies house because of the non-filing of the annual confirmation statement or company accounts. The strike-off will be published in the Gazette. From then on, there will be a two-month period in which anyone can object to the strike-off. Otherwise, the company is going to be removed from the official registry.

Get a Quote Now

My company has been served with a first Gazette notice for compulsory strike-off – what should I do?

The first thing you should do is to assess what your plans are for the company. If the company is of no further use to you, then just allow the process to run its full course. Keep in mind that the strike-off application can still be objected to if your company has outstanding liabilities or debts.

On the other hand, if you want your company to continue, you will have to contact the Companies House and lodge a suspension application to request that the strike-off application be shelved. You also need to know the primary reason for the strike-off application so you can rectify it.

In most cases, you need to bring the company accounts up to do. This typically involves filing confirmation statements or missing accounts. It’s imperative that you all do this before the ‘grace’ period expires. Otherwise, you’ll end up with a huge mess in your hands.

Subscribe Now

Subscribe to our channel for the latest updates.

About the compulsory strike-off, can you choose not to stop it?

You have the option of allowing the company to be formally and officially closed and be removed from the registry. If there are outstanding liabilities and/or debts, then you will need to follow the route of Company Liquidation.

What are the consequences you will be facing with a compulsory strike-off?

Generally, any assets of the company (e.g., buildings, stocks, cash) will become the crown’s property. For the directors, they will be barred from becoming a director for the next 15 years because they have failed to act properly and effectively.

If a company is compulsory struck-off, what happens?

If that happens, the company does not exist legally and officially. Hence, it will cease all trades, and the crown will acquire the company assets. Keep in mind that only solvent companies can undergo a process of dissolving. As mentioned above, if the company still has debts and liabilities, the company must undergo a different route. Usually, that route is through legal dissolution through the office of Company Liquidation.

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

HMRC Corporation Tax Payment Reminder letter

Receiving A Corporation Tax Reminder Letter From HMRC

When the due date for your Corporation Tax bill is approaching, you will receive this letter as a reminder to send in payment for it. Take note that this is payable nine months and a day after your filing date, so if your accounting period finishes on the 31st of March, the payment is due on the 1st of January the following year. You may use the payslip to send along with your cheque to HMRC and file the letter with them.

Get a Quote Now

Tell HMRC no payment is due.

You should notify the HMRC if you have no outstanding debts to the government. If you do not make your payments on time, HMRC will issue payment reminders.

Subscribe Now

Subscribe to our channel for the latest updates.

Does HMRC send Corporation Tax reminders?

You can inform HMRC in one of two ways:

• completing the ‘no obligation to pay’ form

• returning the payslip with the note ‘NIL due’ that HMRC gives you on the reminder letter.

You are still required to file your company’s tax return.

What happens if you pay Corporation Tax late?

HMRC will charge your corporation interest if you pay your Corporation Tax late, do not pay enough, or do not pay at all. Interest is assessed from the day after the tax.

This interest will be paid until the tax is paid in full (i.e., usually nine months and one day after the end of your accounting period).

How do I work out my corporation tax payment reference?

The 17-digit reference is comprised of the ten-digit UTR + the sequence “A001” + a two-digit number (indicating the year in which the company’s year-end occurs) + the letter “A.

The UTR is the first digit of the reference. The 17-digit reference is issued to the firm, and the notification to produce a return (Form CT603) is delivered immediately after an accounting period concludes.

Can you delay the corporation tax payment?

Payment of corporation tax has been delayed. Generally, you will be required to pay your company’s tax bill nine months and one day after the end of your accounting period has passed in the majority of circumstances. If your payment is received late or incorrectly, HMRC may charge you a late payment interest rate of three percent (3% per month). This will be deducted from your corporation’s tax bill later in the year.

What happens if company accounts are overdue?

You will be subject to financial penalties if you fail to file your accounts with Companies House by the deadline. The penalty will be quadrupled the second year,  if you are late on your accounts for two years in a row.

Furthermore, suppose you fail to submit your reports or confirmation statement to Companies House on time, In addition to facing a penalty. In that case, your company may be forced to close its doors permanently.

Is your Corporation Tax payment reference the same every year?

You will require a pay reference with 17 digits to pay company tax. HMRC utilizes this information to determine how the money should be distributed. The first ten numbers are the company’s unique tax identification number (a UTR). The last seven digits of the number refer to the current tax year.

Is Corporation Tax reference the same as UTR?

Unique Transaction Reference (UTR) is a 10-digit number is sometimes referred to as a ‘tax reference’ or a ‘Corporation Tax reference’ by the corporation.

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.

Get a Quote Now

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 Enterprise Investment Scheme (EIS) ?

EIS Income tax relief declaration (30% relief) Tax return declaration.

Let’s be honest. If you are not willing to deal with high risk, you’re better off not investing in small companies. Some small companies will succeed and make their investors a lot of money shortly. However, others will have a hard time getting there – or worse yet, will declare bankruptcy.

Now, the government is aware of this issue and provides Enterprise Investment Scheme (EIS) investors with tax incentives. Said taxes reduce the negative impact of those investments that go wrong and increase the positive outcome of those that succeed.

Bear in mind, as a disclaimer, that tax rules may vary at any time given, and benefits rely on circumstances.

Contact Us Now

What is EIS Tax Relief?

Up to 30% of income tax relief

Provided that you invest £100,000, you can get up to a £30,000 tax reduction on your annual income tax bill. However, you must hold the shares for a minimum of three years to be eligible for this. Also, as expected, you need enough income tax liability from the beginning.

Generous contribution allowance

If an amount above £1 million gets invested in knowledge-intensive companies, you invest up to £2 million per tax year. A knowledge-intensive company refers to innovative and fresh businesses that spend on research and development.

Carry back

Provided that you hold the tax allowance, you’re eligible to carry it back. You can set off the tax relief to the previous year’s tax bill, which could result in receiving back the tax you already paid.

Tax-free growth

Considering you have claimed tax relief and companies qualify, there’s commonly no need for you to pay CGT during the realization of EIS shares.

Deferral of capital gains

If you acquire a taxable gain and invest it in an EIS-qualifying investment, you can defer the capital gain as long as the money remains invested and the EIS rules are met. You may earn a taxable gain by selling a property, for instance.

Profits generated up to three years before the EIS investment and one year after can be deferred. Yes, even if you have already paid the tax, you can postpone the gain.

Once you withdraw your funds, the gain reverts to you, and you must pay CGT at the current rate. Nevertheless, you might continue deferring said gain by investing in another EIS.

Inheritance tax relief

Provided that an investment in an EIS-qualifying firm is held for two years and at the time of death, it should be eligible for 100 percent inheritance tax relief.

Loss relief

Let’s say things don’t go as intended. You might choose to deduct any losses from your income tax bill, excluding the income tax relief obtained. Do you know what this means? It means that up to a loss of £1-£38.5 can be reduced.

It reduces losses and increases gains. How?

Say you invest £100,000 in an EIS. Due to the income tax relief of up to 30%, the effective net cost could be around £70,000. Along with loss relief, it can affect your ROI, regardless of your investment is successful or not, as shown in the table.

Loss relief permits you to compose off any misfortunes against income tax. In the event that your investment falls to zero, you could subtract the £70,000 loss from your taxable income.

This gives a potential duty saving of £31,500 and means the greatest viable misfortune loss could be just £38,500 (viable expense of £70,000 less misfortune help of £31,500). In the meantime, on the off chance that your investment grew by half, because of the duty help, you could be checking out a viable gain of 80%.

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

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.

Contact us now

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?

Subscribe Now

Subscribe to our channel for the latest updates.

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.

Get A Quote Now

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.

 

Contact us now

 

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.

 

Subscribe Now

 

Subscribe to our channel for the latest updates.

 

 

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.

Companies house authentication code, not received or not working which one?

What is Companies House Authentication Code?

Every time a new company is established and registered in the United Kingdom, they are given a special authentication code. This authentication code is known as a Companies House WebFiling code, containing a mixture of numbers and letters. This code is unique to your specific company and is a total of six alphanumeric characters. It is a very important security measure for authorized individuals for the purpose of updating/changing company details. In fact, this code is equal to a company officer’s signature.

Subscribe Now

Subscribe to our channel for the latest updates.

Why Is the Authentication Code Important?

This code is vital to your company because it is required for all online Companies House tasks. The code is needed for the following…

1.File annual accounts for your company

2.File directors and secretaries for your company

3.File the annual return and/or conformation statement for your company File documents in order to appoint a new director

4.File documents to resign a current director File documents to update the registered office File to add new shares

5.File to change the accounting reference date

6.Update Companies House with any relevant information

When you register a new company with Companies House, it will take approximately five days to receive your authentication code. If you need to request a new code or replacement code, it will be sent to your company’s office address.

Your code should be kept safe and treated with the same care as a PIN. If an individual gains access to your code, they can alter your company’s details. If someone you do not trust has access to the code, change it immediately.

What Happens If You Lose Your Authentication Code?

If you have misplaced or lost your Companies House code, there are a few ways to retrieve it. The way in which you retrieve your code is dependent upon how you formed your company. You should request a new code right away. Do not wait until you are required to file.

If your company was formed through Companies House, these are your options for retrieval…

Assuming the company was formed via postal service or online web, request a new code by signing up online.

If you already have an online WebFiling account, log in. Next, select “request authentication code.”

Ensure to correctly enter the company name and where it was registered. Once displayed information is correct, select the option “request code.”

A new code will automatically be sent to your company’s office via post. You will receive it in 3 to 5 business days.

For security purposes, Companies House is unable to send an authentication code through email or speak it over the phone

If your company was formed through a company formation agent, these are your options for retrieval…

Request a new code by logging into the customer portal on your formation agent’s website. Once you log in, you will be able to see your company details and authentication code.

If web access is not an option, you can also email or call your formation agent to request the authentication code.

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

Are books zero-rated for vat or Standard rated in the UK?

Are books zero-rated for vat or Standard rated in the UK?

What are the ramifications of these adjustments?

First of all and foremost, if you provide electronic publications, the VAT rate on those goods must be reduced to 0% with effect immediately and retroactive to May 1, 2020. Electronic versions of children’s picture and painting books, as well as e-books, e-booklets, e-brochures, e-pamphlets, e-leaflets, e-newspapers, e-journals, e-magazines, and e-periodicals, will be subject to the new zero-rating guidelines.

Get a Quote Now

Audiobooks and any e-publication with more than 50% of its content dedicated to advertising, audio, and/or video material, however, are exempt and will remain standard rated (20 percent ).

What If We Included Anything Extra With E-Books?

When a zero-rated publication is sent with something else, HMRC has issued the following guidance:

  1. If a firm makes a single supply of an e-publication, it is exempt from tax, but only if it is the primary element and everything else is secondary. In other words,
  1. the products/package have a single price;
  2. the source is marketed as a package;
  3. the other investments cannot be bought separately from the e-publication;
  4. some other products would’ve been useless without e-publication and are simply supplementary.
  5. your customers see the sale as only one supply of an e-publication with the new offerings as simply extra features.

The 0% VAT rate is applied to the whole supply if the other items are assessed to be supplementary to the e-publication for VAT purposes. A company produces a variety of products, each of which is different and self-contained, i.e. the things have the following characteristics:

They are offered separately and not as a package; they are available for purchase separately and not as a package; there is a time difference between components of the supply; and/or the supply’s pieces are not interdependent or interrelated.

As a result, only the e-publication is zero-rated, and the other supply is subject to the usual 20% VAT rate or VAT exemption, as applicable. According to government regulations, all firms must charge VAT on their customers’ purchases.

Rates of VAT

What are all the VAT Rules for Print Products? | What are the VAT Rates?

The UK government has introduced three sorts of VAT rates: Zero Rate, Reduced Rate or 5% Rate, and Standard Rate or 20% Rate. It’s worth noting that all print items are the same rating. There is either a Standard Rate or a Zero Rate for them. So, which goods are VAT-free and which aren’t?

Subscribe to our channel for the latest updates.

Subscribe Now

Printing Services at No Cost

The term “zero-rated” are goods and services that are charged at no cost. These items are, in certain ways, VAT-free however, you must keep track of them in your books and disclose them in your VAT return. There are examples of zero rated print products listed below:

Image books for youngsters, art books, picture books, and recipe books are among the books available.

  • Brochures and leaflets
  • Bulletins
  • Catalogs
  • Circulars \Directories
  • materials for the election
  • Distributed Leaflets and flyers.
  • Journals
  • Magazines
  • Manuals
  • Topographical plans, maps, and charts
  • Menus \Newspapers
  • Pamphlets
  • Periodicals
  • Publications
  • Price listings in full color
  • Reproduced/printed music
  • Programs on sports
  • Rate of Interest Products to Print

The standard rate is a 20% deduction from the selling price of goods and services. Unless the commodities are classed as Reduced Fee or Zero Rate, the majority of products and services have a regular rate. The following print products are standard rated:

There are two types of cards that may be used to make an announcement, Acceptance Announcement Cards and Appointment Cards .

  • Calendars and Certificates Business Cards
  • Slips of Appreciation
  • Coupons
  • Notes on Shipping
  • Diaries
  • Tickets for the lottery/draw
  • Envelopes\Folders
  • Forms
  • Completed Publications Greeting Cards
  • Invoices & Invitation Cards
  • Labels
  • Letterheads
  • Notebooks
  • Formats for Menus (Self Completion)
  • Book Orders
  • Photocopies
  • Postcards
  • Posters
  • Questionnaires
  • Books with Receipts
  • Stationery
  • Stickers
  • Tags \Tickets
  • Card of Visit
Exceptions To The General Rules

What are the VAT rules for printed goods? | Exceptions and Special Rules

There are a few exceptions to both the zero- and standard-rated product listings. Leaflets, flyers, and pamphlets are all examples of printed materials. Flyers, brochures, and pamphlets are zero rated unless they meet the criteria for being classified as such.

Brochures, pamphlets, and other printed materials.

Brochures and pamphlets aren’t legally defined, according to VAT Notice 701/10. This indicates that it’s “a question of fact and impression” whether a print output is a brochure or pamphlet. Single-sheet brochures and “pocket” brochures with a flap, on the other hand, maybe zero-rated if they meet the following criteria:

Transmit information contain a significant quantity of text, with some indication of contents or of the sending organization are not primarily meant to carry other things are sent fully assembled

Leaflets are needed.

They, too, are not defined by law, like brochures and pamphlets however, if the print goods are utilized for any of the following, they will not be considered leaflets and VAT will be charged:

  • as a calendar
  • in order to get access
  • to a location
  • to receive a discount on products
  • or services as reference material for completion
  • or return For Items with Completion Areas

Leaflets, brochures, and booklets are normally zero-rated unless they contain the following in less than 25% of their overall area:

  •  Unfilled Areas and waiting to be filled
  • Detachable and returnable parts
  • Standard-rated publications are those that are intended to be returned after completion.

GM Professional Accountants have offices Located in wimbledon London, Birmingham and Essex.

How to set up or create an Amazon Seller Account UK 2021

Are you contemplating starting a business online? We live in the digital age where many people spend time online. Setting up an online business is a good way to tap into this pool of potential customers. As it stands, over 2.14 billion people shop online, representing about 27.6% of the total population in the world. This statistic shows the growing adoption of online shopping by various people. Therefore, starting a business on a well-known platform is a wise and profitable investment decision. Amazon is such a platform. According to Forbes, 89% of people are more likely to purchase items from Amazon than other online shopping sites. In this post, we will focus on starting an Amazon business.

 

Starting an Amazon business

What makes Amazon great is that there are various ways of starting a business on the platform. On Amazon, there are many ways to succeed. However, they begin with choosing a business model and the products that you plan on selling. Regardless of your business model or your chosen type of product, setting up and running an Amazon Business remain the same. Below are the steps to set up and run an amazon business:

 

1. Choose a business model

There are many business models that you may use for your Amazon business. Settling on a business model plays a critical role in improving sales. Below are some models that you can use:

 

Private label: This refers to the process in which a retailer renames/rebrands a product that they have manufactured.

Wholesale: A retailer may buy goods at a discounted price or a low cost and then sell the individual units for profit in a retail market.

Dropshipping: This is a business model by which a seller transfers the customer orders directly to a supplier or a manufacturer instead of keeping their inventory.

Handmade: You can make your products like accessories, jewelry, home décor by hand and put them up for sale on the Amazon marketplace.

Retail and/or Online Arbitrage: Arbitrage refers to a method that retailers find a discount or low-cost goods on eCommerce sites and resell them on the internet.

 

2. Choose the fulfillment method

You can choose between;

Fulfillment by Amazon (FBA)

Amazon has among the most advanced networks for order fulfillment in the world. With FBA, you store products in an Amazon fulfillment center. Workers pick, package, ship, and offer customer service for your products.

Fulfillment by Merchant (FBM)

This refers to when retailers put their products on Amazon, but they handle the fulfillment of orders and customer service.

Each method has its advantages and disadvantages. Therefore, closely examine each before settling on either of them.

 

3. Settle on the products that you will sell

The next step is deciding which products you will be selling. You can sell fashion products, food products, handmade items, among many other categories. If you plan to sell handcrafted items, this process may be already sorted, although you still have ensured that there is a demand for the product on Amazon. Tools like Jungle Scout are essential for finding the highly demanded products.

 

4. Apply to become a seller

We will discuss the process of registration to become a seller in the next section.

 

5. Sourcing your products

Once your registration has been approved and verified, you can start sourcing for the product(s) that you will be selling. If you use a private label business model, you can find a manufacturer using the supplier database on Jungle Scout or Alibaba.

 

6. Creating your product listing

Finally, you can create your listing and use it as a basis for growing your Amazon sales.

 

 

Creating an account as a seller on Amazon

 

After figuring out the product(s) that you intend to sell on the platform, complete the process of registration as a seller. The process is as below:

 

1) Head to https://services.amazon.com

 

2) Next, scroll the page that is below the link showing how you can become a seller on amazon

You will see a link labeled “see pricing->”, click on it.

(With the “See pricing->” link, you can see the difference between professional and individual accounts. Thus, you can choose what registration to use”.)

 

3) Choose between professional or individual accounts

You have two options for seller plans on Amazon, Individual and professional plans.

Are you going to sell over 40 products per month? Then a professional plan is your best option. Whether you do not consider yourself a professional or sell as a hobby, the plan helps you save money. However, if you plan on selling less than 40 units a month, select an individual plan.

 

4) Key in your details and click “Create a new account”

After selecting a seller plan, a form will appear for you to enter your seller account’s credentials. Click “Next” when you are done.

You will see another screen requesting you to enter a Time Password (OTP) sent to your email by Amazon. It verifies your email. After entering the OTP, click on the “Create Your Amazon account” button.

 

5) Choose the location and type of your business.

Business Location

In which country is your business located? You must get this right because Amazon will verify it.

Business type

Amazon lets you choose from the following business types; Charity, Privately owned business, publicly owned business, state-owned business, or none (if you are an individual). You then have to enter all your three names. After this, click on the “Agree and continue” button.

 

6) Provide your personal information

After selecting the type of business, Amazon will ask for your details. To validate them, Amazon will ask you to give identification. It may be a driving license or a passport. For verification, they may ask you to provide your phone number.

 

7) Select your marketplace

After filling in the personal details, check the box below to select the marketplace(s). A marketplace, in this case, is the location of an Amazon store, amazon.co.uk, amazon.ca, amazon.in, among others. Click “next”.

 

8) Provide your billing information

This is a way for Amazon to verify your identity and ensure that your credit card information is valid. Amazon requests the credit card number, the name as it appears on the card, and the date of the credit card’s expiry. Click “next” at the bottom of the page when done.

 

9) Adding the Amazon store and the product information

After your credit card information is validated, Amazon will ask you several questions about the products you intend to sell and your amazon store. They include;

  • What is the name of your Amazon store?
  • Do you have UPC codes for your product(s)?
  • Are you the manufacturer? Who is your product’s brand owner?
  • Do you have registered trademarks for your products?

After answering these questions, click “next”.

 

10) Validation of the address

After completing the steps above, Amazon requests you to confirm the business address you had provided earlier (in the “personal information” screen).

If the displayed address is correct, click on the “confirm” button. A message appears showing that Amazon will send a postcard to that address. It also includes a verification code. When the postcard arrives, enter the code into the “enter the code” field. To finish the process of verification, click “next”. You are now in. All you have to do is log into https://sellercentral.amazon.com. To get started.

 

Conclusion

To ensure increased security, set up two-step verification on your Amazon account. However, note that there has been a change registration process for a seller on Amazon. It is primarily to help in verifying the seller’s details. To be prepared with the documents, read our article on “Amazon seller verification”.

 

 

GM Professional Accountants have offices Located in London, Birmingham and Essex.