Tax Accountants in London and Essex
GM Professional Accountants is a highly reputable accounting firm based in London and Essex. We provide professional accounting and taxation advice to businesses, as well as individuals.
If you live in London or Essex and are self-employed or engaged in business, you need to file personal tax returns each year. There are numerous rules and penalties for failure to comply with the tax obligations as laid down by the government. It is incumbent upon an individual to ensure his/her tax liability is calculated and that any tax owing is paid on time.
Basics of the Tax Year
Tax returns are normally issued at the end of every fiscal year. The Tax year runs from 6 April to 5 April the following year. For instance, 2017/18 fiscal years will run from 6 April 2017 to 5 April 2018. Her Majesty’s Revenue & Customs (HMRC) office issues tax returns every year to all individuals recognized under it, including those that are self-employed and company directors.
The deadline for filing tax returns is usually 31 January following the end of the fiscal year. All returns submitted in paper or manual format must be filed on 31 October before the fiscal year elapses. Anyone wishing to submit returns after this date must do so online, otherwise the stipulated penalties will apply.
Benefits of Using Tax Experts When Filing Personal Tax
Accountants can do tax returns filing on your behalf and advise you on the appropriate payments on account that you need to make. All you need is to give them all the necessary documents relating to the given financial year and they’ll do the rest for you. Most accountancy firms in East London can also help you make changes (corrections or amendments) to your tax returns by submitting the request to the HMRC.
Personal Tax Return
When filing personal tax returns you need to submit records of your income, expenditures and reliefs claimed. That means all the necessary documentation must be attached to the tax returns form. HMRC usually requires a number of books and records for inquiry. Employees and directors may be required to submit record of payment details (receipts and/or credit card statements), share options awarded as well as deductions and reliefs. Other documents that need to be submitted include interests and dividends, tax deduction certificates, gift aid cards, dividend vouchers and personal pension plan certificates.
Businesses are required to submit records of their invoices, bank statements and paying-in slips. HMRC may also need invoices for purchases and other expenses as well as details of personal drawings relating to cash and bank receipts. You might also be required to submit any personal financial records like certificate of interest to support any claims based on the particular amounts paid.
Benefits of Using a Tax Return Service to File Personal Returns
Working with a tax returns firm in London can be one of the surest ways of getting your personal returns filed on time. The process of submitting returns can sometimes be daunting, considering the number of documents and amount of time needed to complete the filing process. That’s why a tax return service can be of great help to you.
A tax return service firm can basically help you with the following:
-Advice you on all the documents that required when filing returns
-Complete a self-assessment form for you
-File returns before the deadline elapses
-Promptly pay any penalties associated with late filing of returns, if any
An individual’s taxable income is not usually the same as his/her total income. That’s because taxpayers in England are allowed a certain amount of income that’s tax-free. Some individuals may also be eligible to allowances and tax reliefs.
To arrive at your taxable income for a given fiscal year, you need to add your income from all sources, deduct personal allowance, non-taxable income and any other allowances and reliefs.
At the end of each tax year, after 6 April, HMRC requires employers operating PAYE schemes to report to them on a number of employee income status. The employer is basically required to submit information regarding the total amount paid to the employees, the amount of tax income submitted and the national insurance contributions that have been deducted from their payments.
Income from Property
HMRC requires all property owners to pay income tax on any profit they make from renting out property. Profit here refers to the sum left after adding all rental income and deducting allowances and expenses. Apart from the basic rent, property income may also cover tenant payments for services such as utility bills, cleaning of communal areas and property repairs costs.
If you’re still paying mortgage on the property you’ve let out, you may need to include mortgage interest as an expense for the given tax year. Contacting a property income expert or accountant can help you get all the relevant documents and records in order before filing your returns. You might pay a certain fee for the service but it will be worth it in the end.
Capital Gains Tax
Capital gains tax is a tax charged on profits made from selling or disposing of an asset that has appreciated in value. Some assets are free of capital gains tax if your capital gains in a year fall under your given tax-free allowance. Disposing of an asset can be in the form of selling it, giving away as a gift, swapping it for something else or getting compensation for it (e.g. insurance payout).
Contacting a tax expert in London can help you understand the procedure on how to go about filing capital gains tax, if at all you are eligible.
Importance of Working with a Tax Advisor When Doing Self-Assessment and Tax Returns Filing
A tax advisor is an expert with vast knowledge on tax matters within a given jurisdiction. GM Accountants mainly provide consultation services to clients who need guidance on returns filing procedures and requirements. They can help you put together all the necessary tax documentation, assess them and provide advice on how to go about the filing processes.
Most of the advisors work in reputable accountancy firms in the city or are operating independently. If indeed a tax advisory firm is independent, it can provide perfect recommendations on the tax returns filing experts to go for in town. Tax advisors usually charge a certain amount of fee for consultation, based on your tax needs. You can always compare among the reputable tax advisors and advisory firm sin town to choose the most reliable and efficient.