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Accountants Guide for Expats

Accountants Guide for Expats

If you work or live abroad or intend to do so, you need to know that changing your residence from the UK to abroad will impact your tax status.

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Working and Living Overseas

The tax status of expatriates is one very complex issue. If you are not meticulous with your tax planning,
you may find yourself subjected to punitive tax obligations. In addition to having changed your UK tax
status, you will also need to take into account the tax laws of the country where you now live.

Statutory Residence Test

First, you will have to take into account the new expatriate benchmarks as set out in the New Statutory
Residence Test, as set out by the tax authorities.

A good understanding of how it works will be helpful to help you determine:

1) How any income from your investments in the UK will be treated
2) The Capital Gains and Inheritance Tax rules
3) The consequences of selling any of your assets in the UK (such as stocks)

As such, you need to have an expert review your contracts to determine what aspects of your income are
impacted by the change in tax status.

Expatriate Tax Advice if you are leaving the UK

Once your tax status is established, the professionals will assist you with planning your financial affairs so
that you can minimize your tax obligations. Areas that would need to be taken into consideration include:

1) Advise on how tax would be treated in your new overseas resident country and in the UK.
2) Inheritance Tax planning
3) Taking into account efficient asset disposal
4) How to deal with investments

Tax Returns as a Non Resident

In addition to tax planning, you also need to know your filing obligations for both your new residence
country and the UK. We can help you stay compliant and avoid any liability by making sure that:
1) All tax returns and obligations are documented and,
2) Filled out accurately and
3) Filed in a timely manner so that you do not have to pay any late filing fees

Tax Planning when you come back to the UK

This will be the complement to tax planning when you are leaving the UK. You need to take care of similar
issues to make sure you avoid any pitfalls and lessen the amount of tax you have to pay.

Expat Tax Extenuation Professionals

We have specialist tax professionals who provide advice to expatriates on how to perform efficient tax
planning and on tax mitigation.

Deliveroo driver Tax return accountants guide

Deliveroo driver Tax return Accountants Guide

Will Shu the founder and also the CEO of the Deliveroo received motivation after his amazing journey to a great city that was endowed with rich restaurants but they only had one shortcoming! most of these rich restaurants could not really do the food delivery. Will Shu decided to initiate the best local restaurants that could deliver foods to the client s doors.

Deliveroo has since seen a greater growth that’s is approximated at 650% following its convenient and the most reliable food deliveries! Customers can really get their full supply by just making a call. The restaurants partnering with this amazing company has also seen the growth of over 30% and has really done great in creating job opportunities for the people.

Independent self-employed drivers sometimes find it difficult handling issues of the tax. Some drivers are really not educated on the bookkeeping and also the taxes and sometimes they pay the excess or even subjected to some penalties.

All these issues can be really sorted out when a proper accountant who understands s the tax mechanism is employed. You can always contact us for assistance.

 

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Four major bookkeeping requirements for efficient Tax management;

1. The deliveroo driver must have the register with HMRC using there website as self-employed

2. The second step is to ensure that business transactions documents such as the receipts and the expenses are just kept for the year end.

3. The Deliveroo driver should also ensure that they do the self-assessmen tax return which consists of the income and expenses before 31st January of every year.

4. Other liabilities such as the pending tax or the national insurance must be paid before the 31st January every year.

Allowable expenses

Drivers of the Deliveroo are entitled to some allowable expenses which have really done a lot in reducing their tax bill. Taxes are always paid on the amount that is left after subtracting the allowable business expenses. They include;

Mileage claim

Mileage claim is always entitled to the drivers who own a car. When the claim is made, the eligibility to claim for the cost of the car, servicing and also the insurance is canceled. The first 10,000 miles  attracts the rates of 45p and then after which it attracts 25p thereafter.

Car purchase

Purchasing a new vehicle will actually make you liable to claim all the cost in a few years with the following rates;
up to 130g/KM will entitle you to an 18% capital allowances while those that exceed 131/KM will entitle you to an 8% capital allowance.

Car Lease payments

There is also an allowable deduction for the car lease at whilst working as a Deliveroo driver. You can always deduct the amount that is obtained from the cost of the lease, insurance and also the repair cost every month!

Service charges and commission at Deliveroo

Deliveroo drivers can claim deductions for the following services; Tolls and parking charges, insurance, the bank charges, car cleaning, accountants fees vehicle and public liability fee.

Finding a good accountant for your business

Finding the best accounting firm has always been an easy task following the large variety of accounting firms that really offer the same service. They offer the accounting services to the Deliveroo drivers who find the accounting work tedious. GM professional accountants has played an important role in providing deliveroo drivers with mobile apps that enables them recording of the daily transactions.

Among the key roles played by the firms are;

1. Create a Self assessment record with HMRC
2. Are responsible for the bookkeeping and accounts to judge the real profit of the driver.
3. Provision of the mobile Apps that will enable the drivers to do record keep
4. Keep track of all the business expenses and also the income.
5. Keep a record of all the vehicle details such as the mileage.
6. They also provide the preparation of accounts for filling to HMRC

Other roles are the bits of advice on the importance of the record keeping and also they do help in issues that prevent a tax investigations.

For the individual accountant, it can go up to 250 GBP while companies may cost more than 600 GBP. It’s always advisable to check the ratings of any accountant before hiring.

Tax return guide for foreign income

Tax return guide for foreign income

Income tax can be payable on foreign income, the common types of income that are taxable in the UK are foreign interest on savings, employed or trading income from abroad, rental income on properties located outside the UK and income from overseas pensions.

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Foreign income is considered to be anything from outside Scotland,England  Northern Ireland and Wales.

accountants for foreigners

How to calculate what you need to pay

The first thing that you need to identify is whether you are resident in the UK. If you are not considered resident in the UK then that means you do not have to pay tax on foreign income. There is also double taxation treaties between the UK and some countries , this ensures that you are not taxed again for the same income. If you have already paid income tax or capital gains tax on overseas employment inc0me or gains, then you may apply for foreign tax credit relief if there is a double taxation treaty. you will still pay up to the UK limit and will not receive a refund if you have overpaid.

Filing your Tax return on foreign income

You will need to register for self assessment and there are deadlines to register depending on the tax year. Example, if you had income to report on the 01/07/2017 , then you will need to file the 2017/2018 self assessment tax return and the deadline for this is 31/01/2019 (electronic returns). You will need to notify HMRC latest by the 05/10/2018 in this example. once you have registered , you will recieve  a Unique tax reference number (this can take up to 4weeks). This number is important, without this number you will not be able to file your tax return. GM professional accountants specialise in foreign income tax returns and have tailer made tax planning solutions. This ensure you are in safe hands and are getting expert advice.

 

Top tips on Filing your Self assessment Tax return 2017-2018

Key points on how to file your self assessment tax return 2017-2108 

Deadline to register

Its important to understand that you will need to notify HMRC before the 5th October if you need to file your tax return 2017-18, Otherwise you may incur a penalty. You can register online or by paper, the online method is usually quicker, the UTR number can take up 4 weeks to arrive in the post. You cannot file your tax return if you have not received your Unique tax reference number.

accountants for limited companies

Information needed to file your tax return

The information you will need will depend on your source of income.

Simple income Tax Tax returns

  • P60 or P45
  • P11d
  • Pension income

Property income Tax return

  • Rental income Statements
  • Mortgage interest certificate
  • Service charges
  • Repairs and maintenance costs
  • Accountancy costs

Self employed tax returns

  • Sales invoices
  • Purchases
  • Expenses
  • Bank statements

Capital Gains property Tax returns

  • Sales completion statements
  • Purchase completion statements

The information listed above is what you will need to complete the basic tax return and you may need other information depending on your circumstances.

Other information needed

  • Interest income
  • Dividend income

The deadline to file the electronic tax return 2017-2018 is the 31st Jan 2019. GM professional Accountants can help you in the preparation and filing of your tax return. It is important to complete a tax return if you have been issued with one. If you ignore the filing deadline and do not file by the deadline. you can be looking at fines that can run into the hundreds.

You must submit your tax return by the 30/12/2018 if you would like the tax to be collected from your wages. The UTR number can take up to three weeks to afrrive if you have lost your number. Ensure you order this in time  order file your tax return by the deadline. GM professional Accountants are based in London and Ilford.

 

 

 

What is a Director’s Loan Account

Director’s Loan Account.

 

If you run a limited company, there are a few financial things you need to understand to help you run your company better. One of these things is the director’s loan.

 

According to Her Majesty’s Revenue and Customs, a director’s loan is any money which you take from your company which is not;

 

  • Your wage, expense refunds and dividends.
  • Funds you have previously loaned or paid for your company.

accountants for limited companies

 

Even though the money that is in your company’s bank account is not technically yours, you can have access to it through the director’s loan account.

 

Any time you withdraw money for any other reason, that money ought to be recorded in your DLA. Depending on your activities, when your company’s financial year comes to an end, the company will be owing you money or you owing the company money. This should be noted as a liability or an asset in your company’s annual accounts balance sheet.

 

  1. The contents of a DLA.

 

These are the things included in a DLA;

 

  • All cash withdrawals that you made from the company as its director.
  • Individual expenses which you paid using the company’s fund or a credit card.

 

Business expenses are the type of expenses that might be incurred exclusively, entirely and necessarily during the executions of your employment duties. Anything else that does not fall under this is therefore a personal expense. Your director’s loan account should include evidence of all transactions which involve your finances, together with the company’s as well, to make sure that it will stand up to HMRC’s scrutinies.

 

Running your own limited company is to some extent risky, and that is the reason why HMRC will keep your director’s loan account under review through the yearly tax returns of the company to make sure that rules and regulations are followed to the latter.

 

  1. Who is eligible to apply for a director’s loan?

 

Just as the title suggests, in order to be eligible to take a director’s loan from your company, you first need to be a director. There are several reasons why you would take a loan from your company, the important thing to know is that that loan has not been subjected to the company’s or your personal tax. If you pay the whole loan back 9 months to the year-end of the company, you will not owe any tax. However, if your DLA gets overdrawn at your company’s year-end, then you will be forced to pay tax.

For example, if you get a loan in March 2017, and the year-end for your company is April 2017, then you will have to pay back the loan by February 2019. It is important to know that any overdue director’s loan account will have to pay the tax at 32.5%.

 

  1. Is it important to record the director’s loans?

 

When you started your limited company, you established it as a legal entity, so it is essential to remember that your relationship with your company is legally separated. This means that your company has its own statutory duties and responsibilities, that is the reason why any amount withdrawn ought to be recorded.

 

  1. What if you owe your company money?

 

The moment you owe your company 10,000 or more, that loan is automatically classified under benefit in kind. Furthermore you will be forced to record it on aP11D since it will be liable to both your company’s and your personal tax. Other than that, you will also pay a Class 1A National Insurance at a 13.8% rate on the whole amount.

 

  1. A written off loan.

 

The moment that your company decides to write off your loan you will need to consider taxes and accounting, it is advisable to consult an accountant so that he can help you decide on the next course of action.

 

  1. Monitoring of the director’s loans by the HMRC.

 

It is part of HMRC’s job to monitor all the DLA’s which are frequently overdrawn. Sometimes it is possible for them to come to an agreement that the money should stop being a loan and make it your salary instead, therefore it is strongly advised that you regularly monitor your director’s withdrawals to make sure you don’t go beyond the 10,000 thresholds.

 

A Tax Advisers Guide for the Let Property Campaign

A Tax Advisers Guide for the Let Property Campaign

The residential property landlords now have the responsibility to comply with the new income declaration scheme. The payment of tax is an obligation that every citizen should meet in the United Kingdom. This noble cause prompts Her Majesty’s Revenue and Customs believe in the need for landlords should get the opportunity rightly disclose their taxes. Let Property campaign fills the gap by providing the necessary knowledge to people with income from property.

Let property campaign accountants

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Why it is important to make the disclosure

The main advantage you get due to voluntary disclosure is the favourable terms in the payment of the tax you owe. Notably, tax evasion results in penalties. Therefore, it is important to undertake a voluntary and full disclosure of the unpaid tax to benefit from the low penalty rates that are associated with it. Meanwhile, if you decide to wait for the HMRC to discover that you are evading tax, you will be dealing with higher penalties. The penalties can be 100% of what you owe. When you add the higher penalties to the likely cost of  investigation , voluntary disclosure is far much cost effective to the landlord.

Why it is important to use a professional Tax Adviser

Landlords are susceptible to several tax errors which may be deliberate or due to misunderstanding. Our Tax advisers will help you to know whether the Let Property Campaign applies to you or not. There is an instance when you can be a landlord and you fail to realise. A simple misunderstanding of the rules that occur when you inherit a property or renting out your flat to cover mortgage payment is part of what makes one liable to unpaid tax. In such cases, a professional adviser will be helpful in attaining updated tax affairs.

Additionally, the Let Property Campaign has a wider scope. It varies significantly with the previous disclosure systems. This means you may not have a complete grip of all that is required of you in this regard. The professional adviser becomes handy in guiding you through the steps you need to follow based on your circumstance.

How far back do I need to go with my declaration?

The declaration goes as far as when you started receiving the letting income. It is important to keep a record, especially of the expenses as if you do not have the proof of these, then you will not be allowed a deduction. The Tax adviser will assist you between capital and revenue expenditure.

What happens if I cannot pay the tax?

If you cannot pay what you owe, you must contact HMRC before the submission of your disclosure. The HMRC will make decisions depending on your current financial position to advice accordingly. The Let Property Campaign is something to consider because payment of tax is an obligation to be met by every citizen.

How to handle a personal tax investigation 

How to handle a personal tax investigation

How to handle a personal tax investigation

How to handle a personal tax investigation

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

Likelihood of a tax investigation

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

Tax investigation notification

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

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Dealing with a tax audit

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

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

 

How To Choose Accountants For Contractors

How To Choose Accountants For Contractors

How To Choose Accountants For Contractors

If you are searching for a skilled and qualified accountant that is able to specialize in a particular field, such as contractor accounting, then there are several key points that need to be fully considered prior to using the services of the right person.  Here are several tips to consider for choosing a reliable accountant:

1. Qualification.  In the process of searching for the right accountant, you will often come across a range of accountants offering a range of services. It is often the case that contractor accountancy requirements are often unique and specific. It is therefore vital to choose a specialized accountant that is qualified in this particular sector. Many of the larger accountancy practices or high street firms are more likely to focus on dealing with large corporations, personal tax planning, or small businesses which might not be suitable for your specific needs. In an initial interview with an accountant, you should ask whether they are specialized in dealing with matters that relate to contractors and that they are fully qualified on such requirements as the IR35. This is a key consideration and will often drop many of the high street based accountancy firms.

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

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

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

How to Choose Tax Accountants Online

Finding the Best Tax Accountants online

Filing your own tax returns can be a daunting experience and getting professional help an expensive ordeal. This is why more and more people are choosing to go online and finding themselves tax accountants online. Choosing tax accountants online not only helps you save time but helps you save money too. A simple Google search will give you access to thousands of tax accountants online but should you always trust them? The answer is no!   Calling yourself an accountant doesn’t necessarily make you one too. In order to be an actual accountants, one needs to have the proper certifications. In the UK, you can check a firm’s status by logging on to their Accounting body website.  

GM Professional Accountants are trusted tax accountants,  you can search through our reviews given by our clients on google and Yellow pages.

 

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Accountants in Ilford

 

The following list will tell you all that needs to be checked- 

Experience 

The first thing that you need to check is how experienced your accountant is. Is he/she a beginner? Have they worked with any companies similar to yours? Do they have famous clients? This is because experience matters. The more practice your accountant has had, the better they will be at their job.   If you’re filing tax returns for an individual, accountants that are beginners will be able to do the job pretty well too.   Qualifications  You need to make sure that your accountant has the necessary qualifications for the job they’re doing. In the UK, the most commonly recognized bodies are ICAEW, CIPFA, AAT and ACCA. Stay away from fake websites that lure customers by offering low fees, chances are the accountants aren’t qualified at all.  

Trust 

Choose your tax accountant online wisely. After all, this is the person who will have knowledge of every intimate detail of the finances of your company. The accountant could have loads of experience and be properly qualified but until you feel you can trust them, it is not advisable to hire them.   Transparency and Integrity  Before you hire a tax accountant online, make sure that you communicate your company’s rules and regulations. This ensures that the accountant is aware of the policies and he doesn’t deviate from them. Make sure that the accountant is following the generally accepted accounting principles. It is very important to have an accountant who has values and has integrity. You can ask for a list of old clients and verify with them. 

 

Why I Should Hire GM professional Accountants to do my taxes 

GM professional accountants is a trusted firm comprising of registered tax agents who are experts in their fields. The tax accountants are well qualified individuals who have complete knowledge of the tax laws in the UK. Whether you’re an individual or a business, the accountants at GM are committed to serving their clients and offering them the best financial advice. Not only do you save money but you can be sure that your finances are in good hands.

Specialists bookkeeping for Amazon seller

Specialists bookkeeping for Amazon seller

 There are many things one can look for in getting specialists bookkeeper in Amazon field. They are required to set priorities that will meet the bookkeeping and vat requirements, by having an understanding of the vat principles that will help to govern various activities within the Amazon field.

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The bookkeeper should understand the current events on overseas VAT regulations and accounting software packages when it comes to technology, be well conversant with the cost of different rates of vat and be ready to assist in these matter when problems arise.  

Accountants in London

GM Professional Accountants possess recommendable qualities and knowledge which we have attained from years of experience that includes tax planning, and be able to demonstrate those qualities into tax savings. GM Professional Accountants have experiences in the aspects of UK vat and this  boosted our reliability and makes our clients feel comfortable to focus on their business.

 There will be successful and progressive business when the bookkeeper implements good ledger skills and easily bonds with them by responding to various queries and concerns.

 Specialist bookkeepers understand the requirements of the Amazon Company to various services and can come up with strategies to solve business-related problems.

 When it comes to finances, they should be knowing how to secure account data, paying attention to every detail in the statutory accounts for accuracy. Find a good bookkeeper from a trusted source for instance, checking our google reviews and our accounting body.  Also, consider a bookkeeper who understands the local surrounding within the business area who will provide good detailed services to a customer that is remotely located.

As with any other business, effective bookkeeping for Amazon seller will need to provide current answers to many queries for an incredible financial outcome. First, there should be appropriate ledgers on invoices and expenses of a given period of time then the income and expenses analysed, this should allow you to make informed decisions.

 when it comes to tax assessment to avoid over or understatement of taxes, bookkeepers can help strategize for these taxes and many liabilities, giving a good report to the owner and planning for bank loans that will boost the business. It will also, provide a clear picture of how the company finances are progressing without missing out on any detail. Bookkeepers also maintain the aspects of finance intact with the goal of driving forward the business in a rewarding manner.

Call nowCovent Garden office address, Amadeus House, 27B Floral Street, London, WC2E 9DP, Ilford office address, 14 Clements Court, Clements lane, Ilford,Essex, IG1 2QY Tel: 0208 396 6128,