The English tax code is so complex, dense, and constantly changing that most people find it impossible to understand. Even tax experts can have trouble with the rules that govern the system.
We want to share the main sources of tax headaches and how Assets Accounting can help.
Personal Tax
1. Paying Your Taxes
We all want to pay as little tax as we legally can. But without proper guidance, it can be very hard to pay exactly what you owe under the ever-changing tax laws. Assets Accounting will make sure that your tax payments are timely, correct, and include every possible write-off and deduction.
2. Receiving a Letter from HMRC
Getting a refund from HMRC is a nice feeling. Any other kind of communication from HMRC can make your heart sink. If you get a letter from HMRC in your post, especially one that says you owe taxes, you must not ignore it. The sooner you deal with it, the easier it will be to sort out any tax problem. But you shouldn’t pay anything unless you’re sure the amount is right. If you need help checking a claim from HMRC, setting up a tax repayment plan, or understanding what the letter means, contact Assets Accounting right away. We will support you throughout the process, for your peace of mind.
3. Formulating your Financial Strategy
When you make important financial decisions, you are surely aiming for financial success and growth. Sadly, a decision made without consulting a tax expert can lead to much higher taxes, which can cancel out (or even exceed!) the benefits you’re hoping to achieve. Before changing your financial strategies, talk to our team at Assets Accounting. We will assess your personal financial situation, take into account current tax law, and advise you whether your move will have a negative impact on you when it comes to paying your taxes. We’re not here just for tax purposes; our goal is to help your wealth flourish all year round, year after year. We can answer your questions anytime, on any aspect of your personal or business finances.
4. Previously Obtaining a Poor Service
Sadly, clients sometimes come to Assets Accounting after they’ve had their taxes prepared by another accountant who did a poor job. These individuals are understandably annoyed, having wasted precious time and money, and are now reluctant to trust another tax expert deal with their returns. When you work with Assets Accounting, your tax preparation will be correct, complete, and result in the lowest tax payment legally possible. If you have any questions about any part of your tax filing, we will answer them, and explain our process to you.
We can provide all clients with a tailor-made proposal and quotation on a fixed fee basis to cover all services provided that suits your business needs.
To find out more about our services, email mail@assets.ltd.uk or call us on 0118 946 4700.
Capital Gains Tax
It is a happy coincidence when it is time tosell an asset and you find that there has been a healthy gain in its valuesince you bought it.
When that happens, there will almost certainlybe a tax to pay on the profit.
Here are the most common forms of CapitalGains Tax (CGT) people and businesses have to deal with:
· Assets in a business
· Stocks and shares which are not in a ISA(Individual Savings Account) or PEP (Personal Equity Plan)
· Property (unless it is your main residence)
· Personal possessions worth £6,000 or more(your car and certain other items are excluded)
Where you have made a gain on an asset, you will need to inform the HMRC if it exceeds the available annual exemption.
Assets Accounting can help calculate your liabilities over and above the tax reliefs (taking into accountany losses you might have had) you are allowed and make the filing on your behalf.
Self Assessment
Self-assessment explained
Self-assessment is a way of reporting your income and paying tax to HM Revenue and Customs (HMRC) and you need to do it when you are self-employed or you receive any other income that is not catered for under PAYE. You will need to submit a self-assessment tax return each year to pay income tax and National Insurance.
You can submit your tax return either Online or by post
Self-assessment: Do you need to file a tax return?
If you fall into any of the following categories, you will likely have to file a tax return:
• You have savings or investment income over £10,000 before tax
• You have foreign income
• You have self-employed income over £1,000
• You are a director of a company
• You have an income of £100,000 or more
• You claim child benefit and have an income over £50,000
• You have untaxed income of £2,500 or more, e.g. from property rental
If HMRC has sent you self-assessment forms by post, you must fill them in and send them back, or complete your tax return online. For more details on who needs to do a self-assessment tax return, visit the GOV.UK website.
You can find out who needs to complete a self-assessment tax return on the GOV.UK website.
When to file and pay your tax return
You need to submit and pay your tax return for the 2023/24 tax year by the following dates:
• If you are new to self-assessment, register by 5 October 2024
• If you are filing a paper tax return, send it by 31 October 2024
• If you are filing an online tax return, submit it by 31 January 2025
• If you are paying your tax bill, pay it by 31 January 2025
You may also have to make some payments in advance towards your next tax bill (called ‘payments on account’). These have a second deadline of 31 July.
To see if this applies to you, sign in to your personal tax account with your Government Gateway ID and look at your latest self-assessment return. This will show you when your next payment is due and how much you need to pay.
How much will you be charged if you are late?
You will have to pay a fine of £100 if you don’t submit your self-assessment tax return on time. If it is over three months late, you could also pay an extra £10 a day up to a limit of £900.
If you don’t pay your tax on time, you’ll have to pay an additional amount of:
• 5% of the unpaid tax after 30 days
• Another 5% of the unpaid tax after 6 months
• Another 5% of the unpaid tax after 12 months
You can use this GOV.UK calculator to work out your penalty if you have filed your tax return late.
Submitting your tax return
Online applications
In order to submit your tax return online for the first time, you need to register with gov.uk first. This can take up to 20 days, so don’t leave it until the last minute.
The registration process depends on whether you are:
- Self-employed or a sole trader
- Not self-employed, e.g. if you earn over £100,000
- A partner in a partnership
After you register, HMRC will send you your Unique Tax payer Reference (UTR) number and a letter telling you how to set up your Government Gateway account. Then you’ll get an activation code to complete the account setup.
Next, you can use the free HMRC Self Assessment online service on the GOV.UK website to file your tax return.
Postal applications
If you prefer to send your application by post, you will need to download form SA100from gov.uk.
There is also a helpform that shows you how to fill in your paper tax return.
When you have completed your form, send it back to the HMRC by 31October.
Address to send tax return to:
HM Revenue & Customs
Self Assessment
BX9 1AS
United Kingdom
To complete your tax return
You will need to collect all your records and papers to enter the right information when you complete your self-assessment.
These may comprise:
- Your 10-digit Unique Taxpayer Reference (UTR)
- A P45 if you have quit a job in the current tax year
- Savings and investment statements that show how much you have earned in interest and other income like dividends
- Your National Insurance number
- A P60 from your employer (if you have one) that shows your income and the tax you have already paid
- Documents that show any donations to charities or pensions that might qualify for tax relief
- A P11D or P9D that shows any benefits and expense
- A summary of any rental income and expenses
- Documents that show your self-employment income, including receipts, bank statements and accounts
Ways to pay your tax bill.
The deadline every year is 31 January for paying your tax bill.
Methods of payment are:
- Bank transfer (CHAPS or Faster Payments)
- Debit card payment (Credit card payments are no longer accepted)
- Cheque (by post)
- Paying-in slip from HMRC (that they will have sent to you)
Should you want to make your payments in installments, you can use a budget payment plan. The guide on how they work, and how to set one up is here.
Overpaid tax can be reclaimed and here is how to start the tax refund process.
Contact us today to learn more about how we help manage your taxes, email mail@assets.ltd.uk or call us on 0118 946 4700
Our core services
Our tax services make sure that your tax liability is calculated taking into account all allowed exemptions and deductions. We simplify the process by using accountancy software to accurately complete tax returns and calculate any tax liability that may occur, along with any payments that need to be made.
Corporation tax reliefs and rates change annually, so we ensure that we can provide all the right guidance and advice when looking at exemptions, allowances and deductions that may be available.
We will thoroughly review and prepare corporation tax returns in great detail in order to ensure you are complaint and that you don’t incur any penalties.
You may be looking at investments, a second property or another asset and our team can make sure you maximise your exemptions while simplifying the difficult area of capital gains tax.
We can help with the complex issue of personal tax, we know it can be difficult to understand, which is why we help every step of the way. We take away the time and stress by creating a tax planning strategy that suits your tax affairs, helping ensure you pay the least amount of tax. Our team will advise when payments are due along with what forms need to be filed and returned to keep you compliant.
How we help your business
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