by Acuaccounts | Jan 14, 2019 | accounting, tax
If you’re not used to filing self-assessment tax returns, they can seem like a minefield. Here are a few tips from our team:
DO get yourself registered for the self-assessment system. You’ll need a Unique Taxpayer Reference (UTR) number, and they’ll only send it by post. It can take a while, so don’t wind up missing a deadline due to a delay with receiving the letter! You will also need an account and activation code for the Government Gateway site if you want to file online.
DON’T ignore the deadlines or assume it’s okay to be a few days late. If you reach February and still haven’t filed your return, you’ll be walloped with a £100 fine. That’s just for starters, of course.
DO let the taxman know if you’ve got a genuine reason for missing the deadline. If it’s not your fault, he might give you a little breathing room. Don’t count on catching him in a forgiving mood and make sure your excuse is a good one. A major illness might get you off the hook for a week or two.
DON’T assume that you’ve been asked for a tax return by mistake. It can happen but ignoring the demand just because it’s unexpected is always a mistake. If you can prove you don’t need to file a return, HMRC will back off. Until you do, though, they’ll be expecting your paperwork on time.
DO file your self-assessment return even if you know you won’t owe any tax this year. It doesn’t matter how little you earned, HMRC still wants to know about it.
DON’T assume that HMRC doesn’t care about your hobby selling stuff on eBay. If you’re doing enough of it, they’ll call it a business and expect a self-assessment tax return from you.
DO remember to file your self-assessment return, even if you folded your business this year. You need to make sure your books are up to date until the very last day you were trading.
DON’T think you can skip over the self-assessment pages about renting out property just because you make a loss on it. Whether you’re up or down on the deal, you’ve got to account for the money.
The biggest “DO” of all: Talk to AcuAccounts if you need help with your self-assessment return or can’t understand why you must file one. Making a mistake or missing a self-assessment tax return deadline could wind up costing you more than just the tax you owe.
Far too many people are paying more than they should, simply because the rules are too complicated. AcuAccounts tax experts are here to help you understand the self-assessment process, even if you’re due a tax refund and providing support throughout tax return service and tax code queries.
by Acuaccounts | Oct 22, 2018 | latest news, tax
With the ever-changing tax laws the life of a limited company business owner has become more complex in recent times. So, keeping on top of submissions and due tax dates are ever more important.
Failure to meet deadlines will result in automatic penalties and could even mean your company gets closed down. Furthermore, HMRC are becoming stricter in terms of money owed for taxes with interest, surcharges and debt collectors as well!
What are the main filing deadlines?
Limited Company
Company accounts – to be filed at Companies House 9 months after the year end but beware as this is different for the first accounts.
Confirmation Statement – previously known as the Annual Return this must be filed at Companies House on the anniversary of incorporation
Corporation tax – payable 9 months and one day after the year end
Corporation tax return – to be filed at HMRC 12 months after the year end
Directors / Self-Assessment
Self-assessment tax returns – Personal Tax Year run from 6th April to 5th April every year. Returns must be filed by 31 January for the previous tax year
Payroll
PAYE – Paid monthly and due the 19th of each month
VAT
VAT Returns – filed and paid quarterly, 1 month and 7 days after the quarter end
Do not underestimate the amount of effort required to get your accounts together, finalised and filed. Unfortunately, it isn’t a five-minute job, leaving things until the last minute means that there are more likely to be complications and there is no time or allowance for the unexpected.
by Acuaccounts | Aug 21, 2018 | accounting, tax
The Making Tax Digital (MTD) for VAT deadline is drawing closer. It’s less than a year until UK businesses that are VAT registered and above the threshold will be required to keep their records digitally, and submit VAT returns to HMRC using MTD-compatible software.
Even so, there’s still plenty of confusion in the market around which online accounting software will be compliant with MTD for business’. And what it’ll mean for businesses and accountants. So we’re here to answer some of those frequently asked questions and make sure you’re kept fully up to speed with what is changing.
Difference between filing VAT returns now & the MTD method?
MTD VAT will be a different experience to the current VAT experience being submitted today. The VAT return is the same, but e.g HMRC will provide the returns to software, rather than people choosing dates for a return themselves. We will also make sure you’ll be able to make any required adjustments to the return before submitting to HMRC. There are other changes and differences too, so we’ll make sure you’re fully up to speed as soon as we are clear on the process from HMRC.
What else should you be aware of?
MTD for VAT is due to commence for VAT periods starting on or after 1 April 2019. So all businesses will need to comply with the new process from this date onwards. This means that many businesses will need to make a decision about their accounting software soon to avoid facing the complication of changing part way through their accounting year.
For example, a business with a 30 June 2018 year-end will need to use MTD-compatible software from 1 July 2018 to allow for the MTD requirements that will be required from April 2019.
by Acuaccounts | Aug 21, 2018 | accounting, tax
Making Tax Digital (MTD) will fundamentally change the administration of the UK tax system. On 13 July 2017 the government announced a new timetable and changes to the implementation, which mean that MTD will not take effect until April 2019 and will only be mandatory at that time for businesses over the VAT threshold.
Making Tax Digital is a government initiative that sets out a bold vision for a digital tax system to ‘make it easier for individuals and businesses to get tax right and keep on top of their affairs – meaning the end of the tax return for millions’. The aim of the initiative is to make tax administration more effective, more efficient and easier for taxpayers, through the implementation of a fully digital tax system.
What’s changing?
The current plans, in brief, are:
- The smallest businesses will be exempt from MTD – the “smallest businesses” will be businesses with annual turnover of less than £10,000.
- Taxpayers will send in summaries of their income and expenditure at least four times a year.
- More taxpayers will be able to use the cash basis of accounting.
- Businesses to use only Accountancy Software to control their records
For more details on this upcoming change speak to our Tax Experts.
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