hmrc | G&C Accounting - Ealing, West London

HMRC Rental Income Investigations

Sun, 14 Jan 2024 22:50:10 +0000

HMRC Rental Income Investigations

Recently, we have been hearing from our new and existing clients about letters they received from HMRC to investigate if they have been getting property income without declaring.

HMRC currently employs a system to investigate rental property income that hasn’t been declared by taxpayers. This process is part of their commitment to ensuring compliance with tax regulations and maintaining a fair and transparent tax system. HMRC utilises information from third parties and open-source materials, such as from news, social media, Companies House, Land Registry etc. to identify discrepancies in individuals’ tax declarations.

In cases where rental property income is suspected to be undeclared, HMRC initiates investigations, but first they will contact you to confirm in writing whether you have or have not received property income.

Depending on the information you provide, HMRC will decide how to proceed. Obviously, failure to comply with tax regulations and declare rental income can result in penalties, fines, and legal consequences.

If you have received a letter from HMRC and unsure what to do next, get in touch with us as soon as possible. We understand that it can cause some anxiety but rest assured, we would be able to provide you with the best support and advice how to proceed.

Do you need to complete a Self Assessment tax return this year?

Mon, 04 Sep 2023 07:02:05 +0000

If you are unsure if you need to submit a Self Assessment tax return, get in touch with us for help. We work with clients in West London, including Acton, Hammersmith, Chiswick, Ealing, Hanwell and any surrounding areas and have experience in all accounting matters.

You can also check HMRC’s online tool to check if you have to return your tax assessment.

Normally, you need to complete tax return if:

are newly self-employed and have earned more than £1,000
have multiple sources of income
have received any untaxed income, for example earning money for creating online content
earn more than £100,000 a year
earn income from property that they own and rent out
are a new partner in a business partnership
are claiming Child Benefit and they or their partner have an income above £50,000
receive interest from banks and building societies (more than £10,000)
receive dividends in excess of £10,000
need to pay Capital Gains Tax
are self-employed and earn less than £1,000 but wish to pay Class 2 NICs voluntarily to protect their entitlement to State Pension and certain benefits

If you are not sure if you fall under one or more of these categories, contact us – we are waiting to hear from you for friendly, jargon-free advice.

IR35: One year on

Sat, 23 Apr 2022 09:45:16 +0000

It’s been a year since IR35 rules were introduced about off-payroll working rules if you engage contractors working through their own limited company.

Get in touch with us if you need to understand more how to implement the rules and how it can help your business. More information here.

31 January 2022: Self-Assessment Deadline

Sun, 05 Dec 2021 09:59:27 +0000

The deadline of returning your online and paper self assessment on 31 January is approaching, and we’d like to remind you that we are here to support you with every step of it.

If you need any help, clarifications and guidance with these dates, let us know. All the financial and accounting vocabulary used by HMRC can sound overwhelming and confusing, but we can explain everything in an accessible, supportive way and help you with all your self-employment needs.

Below are some resources for self assessment returns:

Contact Us

HMRC guidlines

File your online return

More information on HMRC website.

October Deadline Looming

Sun, 10 Oct 2021 07:28:43 +0000

Your HMRC paper tax return must be submitted by 31 October.

If even you don’t have any tax to pay, there will be penalties, if you send the form after this date. You can fill in your tax return and submit before 31 October, without waiting for the deadline.

You can request a paper for here and get in touch with us asap if you need help.

More information about Self Assessment and penalties can be found on the HMRC site.

Claiming Tax Relief if You Worked from Home

Mon, 05 Jul 2021 07:06:50 +0000

Employees who have worked from home during the pandemic but are now returning to offices can still claim tax relief on household expenses for this tax year, according to HMRC.

Eligible workers can claim the full year’s entitlement, worth up to £125 per year in the case have been told to work from home by their employer (even if it has been for one day during the tax year). You can claim it online or get in touch with us if you need further help.

HMRC also adds that: employees who have either returned to working in an office since early April or are preparing for their return can still claim the working from home tax relief and benefit from the full year’s relief for the 2021 to 2022 tax year.

You can either claim tax relief on:

£6 a week from 6 April 2020 (for previous tax years the rate is £4 a week) – you will not need to keep evidence of your extra costs
the exact amount of extra costs you’ve incurred above the weekly amount – you’ll need evidence such as receipts, bills or contracts

You’ll get tax relief based on the rate at which you pay tax. For example, if you pay the 20% basic rate of tax and claim tax relief on £6 a week you would get £1.20 per week in tax relief (20% of £6).

IR35: Arriving in April 2021

admin — Sun, 28 Feb 2021 11:34:36 +0000

According to Wikipedia, IR35 refers to the United Kingdom’s anti-avoidance tax legislation designed to tax ‘disguised’ employment at a rate similar to employment.

In this context, “disguised employees” means workers who receive payments from a client via an intermediary, for example, their own limited company, and whose relationship with their client is such that had they been paid directly they would be employees of the client.

Before IR35, freelancers owning their own limited companies were allowed to receive payments from clients directly to the company. According to the new changes, coming into force on 6 April 2021, all public sector clients and medium or large-sized private sector clients will be responsible for deciding the workers’ employment status. And depending on the status, the fees will be subject to tax and National Insurance contributions.

More information here:

HMRC: April 2021 changes to off-payroll working for intermediaries and contractors

We are specialising in advising business and charities on their contractors’ IR35 status and happy to consult over the phone if you have any questions. Write or call us – we’re always listening.

Spread your Self Assessment tax bill

Sun, 06 Dec 2020 12:29:52 +0000

Spread your Self Assessment tax bill

According to the government’s Winter Economy Plan, taxpayers are allowed to spread their payment over an additional 12 months from 31 January 2021 via an online self-service Time to Pay facility.

The taxpayers can use the Time to Pay service when their tax bill is between £32 and £30,000 – provided they don’t have:

any existing tax debts or payment plans already set up,
tax returns are up to date,
it is no more than 60 days since the tax was due for payment

The online payment plan service was already in place for tax liabilities up to £10,000, but this has now increased to £30,000 for Self Assessment taxpayers, to help ease the financial impact of the coronavirus pandemic. This can be set up via online self-service, but taxpayers who need longer than 12 months to settle their tax bill can still contact HMRC in the usual way.

Once a tax return for the year 2019-2020 is completed, the taxpayer can set up a direct debit and pay the tax owed in monthly instalments, up to a 12-month period. The majority of self-employed people will qualify for this service and can make the payments without even talking to an HMRC advisor.

Anyone using the facility will be required to pay any interest on the tax owed. Interest will be applied to any outstanding balance from 1 February 2021.

Please contact us if you’d like to learn more about this service and think are eligible.

Deadlines for 2019

Mon, 08 Jul 2019 09:27:15 +0000

As the deadline of making second payment on account on 31 July approaches, we’d like to remind you of some other important dates and deadlines this tax year.

31 July 2019 – the deadline for making second ‘payment on account’ to HMRC. This is applicable if you were self-employed inr 2017-18 tax year, owing tax of over £1,000 when you submitted your tax return for this period.

5 October 2019 – is the deadline for registering for Self Assessment if you’re self-employed or a sole trader, not self-employed, or registering a partner or partnership

31 October 2019 – the Self Assessment deadline for the tax year 2018-19 for a paper return rather than filing online. However, most businesses are currently filing their tax return online.

30 December 2019 – the deadline for filing your online tax return if you want the tax owed to be collected through PAYE via your tax code.

31 January 2020 – the deadlines for online tax returns and for paying the tax you owe

More information on HMRC website.