Category Archives: Tax Help

Tax Help

Tax Help

Selling items online? Renting a property? HMRC might be updated automatically from today.

New regulations today (1st January 2023) from HMRC

If you sell items online on websites such as Ebay, Vinted, Etsy or any other online selling site, be aware from 1st January 2023 HMRC now require sites to collect and upload sales details automatically.

The implementation of data reporting also applies to overseas website who conform to the Organisation for Economic Co-operation and Development (OECD) regulations, this could affect your property rental income, both domestic and international from companies such as AirBnB. Some companies will not be required to share information until January next year (2025).

For more information, please see the original article here

Tax Help, Tax News

Self assessment HMRC tax deadline moved to February 2022, there is a catch!

HMRC allowed self-assessment returns an extra month to be submitted back in January 2021, and you may have heard through the media that HMRC have extended the deadline again in 2022? 

It’s partially true, HMRC have stated they will not be issuing penalties providing you file before the end of February (28th February 2022), however much of the news surrounding this announcement appears to be leaving out one crucial factor, it may cost you!

If you delay your self assessment tax submission past the 31st January 2022 and it’s found you do have income tax to pay, you will still be liable for interest on your tax if you delay payment until after the 31st January!

If you feel you may not be able to pay your income tax to HMRC on time this year, please do not use that as reason to delay your self-assessment return.  HMRC have had a scheme running for quite a while now called a Time To Pay arrangement, if you think you might have difficulty paying immediately, it will definitely be worth checking out.  You can apply for this scheme online without making appointments to speak with someone from HMRC, provided your tax due is less than £30,000.

https://www.tax.service.gov.uk/pay-what-you-owe-in-instalments

If you have any questions about the Time To Pay scheme, or need your self-assessment return completed fast, please do contact us today.

You can find the complete website post from HMRC by searching the business section of HMRC’s website using the link below; it was published on the 6th January 2022 and is subject to change if HMRC change the regulations for the self assessment tax penalty waiver.

https://www.gov.uk/browse/business

You will also find information on that page regarding your class 2 national insurance contributions and how delay in payment could affect your benefit entitlements you are soon due to receive.  If you are in receipt of working tax credit / universal credit or similar, delaying submission of your return may affect these benefits too.

Tax Help, Tax News

Furlough updates and information for employers.

Coronavirus Job Retention Scheme

If you have still not filed your submission for the September CJRS, you need to act fast, the deadline is 14th October 2021. If there is a legitimate reason why you have not submitted your claim, its possible you may be allowed an extension, find out more here: https://www.gov.uk/guidance/claim-for-wages-through-the-coronavirus-job-retention-scheme

If you believe you have claimed too much or too little

If you believe you have claimed too much JRS and are concerned about interest and penalty payment, you can let HMRC know about this online here: https://www.gov.uk/guidance/pay-coronavirus-job-retention-scheme-grants-back

If you have not claimed enough JRS, you need to amend your claim within 28 days after the month the payment relates to, the very last date for September is 28th October 2021, you can find out more here: https://www.gov.uk/government/organisations/hm-revenue-customs/contact/get-help-with-the-coronavirus-job-retention-scheme

If you can not bring back your employees now furlough has ended

If you will not be able to bring back your employees after furlough, you must remember that the usual employment protections still apply, including redundancy rules. You can assist your employees to find new employment by pointing them toward the JobHelp website here: https://jobhelp.campaign.gov.uk

Tax Help

Self-Employment Income Support Scheme Update

The online service for claiming under the latest phase of the Self-Employment Income Support Scheme (SEISS) will open in the next few days. Here are the latest updates on the scheme and details of when HMRC will be contacting you.


Customers receiving their personal claim dates
HMRC have begun contacting eligible customers to give them a personal claim date, from which they can make their SEISS claim. HMRC will have contacted you either by email, letter or through the online service, depending on what contact details they hold.
You can make their claim from this personal claim date in late April, until the claims service closes at 11:59pm on 1 June 2021.


If you have not been contacted by HMRC
If you believe you are eligible for the scheme but are yet to hear from HMRC, their advice is to wait until the end of the month before contacting HMRC. They are inviting customers to claim on different days to ensure the system is fast and easy to use, so they can support millions of people quickly and easily.


Contacting ineligible customers
HMRC have also contacted self-employed people who have previously claimed SEISS support but are no longer eligible. There are several reasons for ineligibility, for example:
• not filing your 2019-20 Self Assessment return on or before 2 March 2021
• if the information on your 2019-20 Self Assessment return means you no longer meet the eligibility criteria,
• if you’ve permanently ceased trading.

Tax Help, Tax News

Can’t pay your tax?

HMRC has announced they will not be charging the regular initial 5% late payment penalty if you make payment by 1st April 2021, however its not all good news; The regular payment deadline of the 31st of January hasn’t actually changed, and you will be charged interest after this date.

If you are having problems paying your self-assessment tax, and need more time to pay, you qualify for a “Time to Pay” arrangement with HMRC, you can even set this up online here. You can also call HMRC directly on 0300 200 3822 for more information.

So what is a Time to Pay arrangement? In a nutshell it allows you to spread your payments to HMRC in regular monthly instalments, up until January 2022.

If you still have not filed your Self-assessment tax return for 2019-2020, you need to do this before the 28th February to avoid penalties.

Tax Help, Tax News

Claim your third SEISS grant now before its too late!

The deadline for claiming the third SEISS grant is fast approaching. If you are eligible, you must make your claim on or before 29‌‌‌ ‌January 2021.

As with the first and second SEISS grants, the third grant will be subject to Income Tax and self-employed National Insurance and must also be reported on your 2020-21 Self Assessment tax returns (to be submitted by 31‌‌‌ ‌January 2022).

Confirming a significant reduction in trading profits

Before you make a claim for the third grant, you must decide if the impact on your business will cause a significant reduction in your trading profits for the tax year you report them in.

HMRC cannot make this decision on your behalf because your individual and wider business circumstances will need to be considered when deciding whether the reduction is significant.

You do not have to consider any other coronavirus scheme support payments you have already received when deciding whether you reasonably believe that you will suffer a significant reduction in trading profits due to reduced activity, capacity, demand or inability to trade due to coronavirus during 1‌‌‌ ‌November 2020 to 29‌‌‌ ‌January 2021 (period covered by the third grant).

Tax Help, Tax News

Self Assessment 2021 Late Filing Penalties.

HMRC has announced that Self Assessment tax payers will not receive a penalty for filing 2019-20 tax returns late, as long as you file online by 28‌‌ ‌February 2021.  If you have not yet filed, you are encouraged to do so by 31‌‌ ‌January 2021, if possible.

You still need to pay your Self Assessment tax bill by 31‌‌ ‌January 2021! Interest will be charged from 1‌‌ ‌February 2021on any outstanding liabilities. You can pay online, or through your bank, or by post before you file.

If you cannot afford to pay by 31‌‌ ‌January 2021, you may be able to set up an affordable plan and pay in monthly instalments. But you will need to file your 2019-20 tax return before setting up a time to pay arrangement. More information is available on GOV.UK.

Tax Help

Landlord expenses you should include

Landlord expenses – a quick guide to some of the more common expenses you should include in your tax return, some of which are particular to landlords. You could be wasting significant money when renting our your property if you are missing these allowable expenses.

General information

As a landlord, you probably already know the government is removing the ability to include your buy to let mortgage as a business expense. If you are in a position where this will affect you, I recommend you contact us and discuss the solutions we have available for you.

If your property is used solely for rental, with no private use, you should be able to apply most deductions below. If you property is also partly, either by time or floor-space, used by yourself, you need to apply deductions proportionately.

Tax Relief On Domestic Items

From April 2016, if a domestic item within your furnished rental property requires replacement, you should be able to claim tax relief for the item(s). It is important to realise this only applies to replacement of an existing item, not the initial purchase.

HMRC define “domestic items” as beds, freestanding wardrobes, floor coverings such as carpet, curtains and linens. Electrical items such as TV’s, freestanding cookers, fridges, freezers, dish-washers, washing machines, tumble dryers. You should also be able to receive tax relief on plates, cups, saucers, and cutlery. This list is an example, we could not find an extensive list produced by HMRC.

As a final word on replacements, they should be as close to like for like as possible, and not a significant improvement. Replacing a 32″ TV with a 66″ TV is not a reasonable replacement, and you should only claim tax relief on the cost of the 32″ replacement, even if you purchase the larger model.

Tax relief on domestic items does not apply to fully furnished holiday lets and “rent a room” schemes.

Ongoing & Operating Costs

Utilities : your water rates , council tax, gas, heating oil, and electricity can be deducted.

General repairs to the building and maintenance, such as guttering, windows, doors etc; as with domestic items, any replacement items must be of similar specification, not an upgrade.

Maintenance wages, such as cleaners, gardeners, security.

Administration and marketing, including letting fees, advertising, phone costs directly associated with acquiring new tenants.

Insurance costs including buildings, contents and public liability.

Legal fees where the tenancy lasts a maximum of a year, and renewals for less than a fifty year term.

Accountants fees.

Vehicle running costs incurred while servicing your rental business.