6 Things you should know about Reporting the Capital Gains Tax when selling property.
6 Things you should know about Reporting the Capital Gains Tax when selling property When you are selling an asset, you should keep in mind that you will have to pay a chunk of tax to the HMRC. IS THE PROPERTY THAT I AM SELLING MY OWN HOME? When you sell your property which is your main home you won’t have to report any gains that you get. This means that you are eligible for Private Residence Relief even if you are a non-resident in the UK. A property will be considered your home for tax purposes if you have one home and you have lived in it as your main home for all the time that you have owned it and you have neither ever rented it out nor have you used the property for commercial purposes. IS THE PROPERTY THAT I AM SELLING A RESIDENTIAL PROPERTY? However, you will be reporting and paying Capital Gains Tax on any residential property that you sell. For example, if you are a landlord and you own a residential property which is not your main home then this property will be subject to Capital Gains Tax. TO WHOM AM I SELLING THE PROPERTY? You won’t have to report and pay any taxes when you sell your property to your husband/wife or to your children. HAVE I SOLD THE PROPERTY ON OR AFTER 6 APRIL 2020? If you have sold the property on or after 6 April 2020 you must pay any capital gains tax due within 30 days of selling it. HMRC will charge you interest and penalty if the CGT is not paid reported and paid on time. In this case you don’t have to wait to report the gain in the self-assessment tax return. Also note that this rule is only for the residential property, if you have sold any other asset on or after 6 April 2020 you can report is straight away using Real Time Capital Gains Tax Services or you can also report the gains in the self-assessment tax return. DO I NEED TO REPORT CAPITAL GAINS TAX EVEN IF THE TOTAL GAINS ARE LESS THAN THE TAX-FREE ALLOWANCE? Yes, if the total gains are less than the tax-free allowance you won’t have to pay capital gains tax, however, you will still need to report them. The tax-free allowance for CGT for the tax year 2021/2022 is 12300. DO I HAVE TO REPORT THE LOSSES? The losses for the year from the sale of the assets can be offset against the gains in the same year and for the losses of the previous 4 years this can reduce your capital gains tax bill. Therefore, it is very important to report the gains as well as the losses to HMRC. If you are selling a property and you what know about the tax implications and all the reliefs available, please do not hesitate to contact Taxaccolega at 020 8127 0728 we are accountants based in Surrey, Croydon, London and our team of expert accountants will be happy to advise you. CTA Box See How Much You Can Save CALL NOW Take the stress out of UK taxes and accounting today — speak with a top-rated Taxaccolega chartered accountant for personalised advice tailored to your business or personal needs. Book a free Consultancy Related Posts ID Verification × ID Verification Form For Companies House From 18 November 2025, UK law will require all company Directors and Persons with Significant Control (PSCs) to verify their identity with Companies House. Companies House will issue a personal code to PSCs. Taxaccolega (ACSP) can help collect data and assist. Please answer the questions and upload documents. Personal Details Fornames * Last Name * Date of Birth *
How Can I Prepare My Business for IOSS?
How Can I Prepare My Business for IOSS? The new VAT policies make sure that the international trade between EU and non-EU states is made easy. As an IOSS registered business you will be providing better service to your customers as they won’t be facing any delays in the deliveries and won’t have to deal with any surprise costs after they have bought the product. On the other hand, as a business you might also be reducing your administrative costs because when you are registered for IOSS you will be required to register only in one of the EU member states instead of registering in every single EU country where you have customers. If you are supplying your goods internationally to EU or non-EU states and the value of your consignment is below 150 you can register your business for IOSS scheme. As there are benefits associated with the IOSS scheme, many businesses want to register for IOSS as this will reduce the admin costs and also provide better customer services. AS A BUSINESS YOU SHOULD PREPARE YOURSELF FOR THE IOSS UNDERSTAND YOUR BUSINESS You should understand your business. You might be selling your products internationally both through a marketplace and through your own website. If you are selling your products thorough a marketplace you don’t have to register for IOSS as the marketplaces such as eBay and Amazon have already registered for IOSS and they deal with your VAT. However, for those products being sold through own website you will have to consider the value of your consignments and consider if it’s worth registering from financial as well as administrative point of view. KNOW THE VALUE OF YOUR CONSIGNMENTS The low value consignment relief has been abolished and VAT is due on all items exported to EU and non-EU states. The IOSS Scheme is only for consignments below £150, for consignments above this value they will have to go through the customs etc. Therefore, you should have a very fair idea as to what is the value of your consignment. CONSIDER RE PRICING YOUR PRODUCTS As part of the new VAT reforms the businesses are supposed to charge customers VAT based on where they are based. As the rate of VAT can vary in all the European countries this can affect the prices. You should have that it in mind while you decide the price of your product. And the correct VAT rate should be incorporated in the prices. TRAIN YOUR STAFF You should train your staff by providing them guidance on IOSS. If you sell your products through the online marketplace then you don’t have to account for the VAT. However, you will have to account for VAT on the other products. Sold through the website. You will also be accounting for VAT differently when you are selling in both international as well as domestic market. You should make sure that your accountants dealing with VAT have all information in order to avoid mistakes and waste time correcting them. If you want to register for IOSS or OSS we at Taxaccolega can help you with that. Just call us at 020 8127 0728 and our accountants in Croydon, Surrey will be happy to help you. If you have any queries you can drop us a message here and we will be happy to help you CTA Box See How Much You Can Save CALL NOW Take the stress out of UK taxes and accounting today — speak with a top-rated Taxaccolega chartered accountant for personalised advice tailored to your business or personal needs. Book a free Consultancy Related Posts ID Verification × ID Verification Form For Companies House From 18 November 2025, UK law will require all company Directors and Persons with Significant Control (PSCs) to verify their identity with Companies House. Companies House will issue a personal code to PSCs. Taxaccolega (ACSP) can help collect data and assist. Please answer the questions and upload documents. Personal Details Fornames * Last Name * Date of Birth *
Do I have everything I need to file my accounts in September 2021?
Do I have everything I need to file my accounts in September 2021 If you are a private limited Company and your company’s financial year end is December 2021, you need to file your annual accounts latest by the end of September. The deadline to file the accounts with the Companies House is 9 months after the Company’s financial year ends. While you need to file accounts with the Companies house you need to file your tax return with the HMRC. You can do this separately or you can also do it together using an online service. To file the accounts online you need to make sure that you have a full set of annual accounts made which should include: ● Profit and Loss statement ● Balance sheet ● Notes about the accounts ● Director’s report The annual accounts that you prepare should be according to the international standards that means that IFRS should be followed, or you can use UK GAAP. If you are not sure you can hire an accountant. We at Taxaccolega have a team of accountant who can help you with the making of the accounts accurately and according to the standards. You should have a record of income and expenses, company assets, liabilities and credits, you should also have a record of the inventory of the stocks at the end of the financial year. All the business bank account statements should be available which are needed to prepare the annual accounts. If your company is VAT registered, you should have all the VAT records of your business to fill in the VAT returns which are also reflected in your annual accounts. You should also make sure that you have all your PAYE records, in case your company is registered as an employer. You will have to incorporate all this information in your annual accounts, and you are required to keep a record of all the company documentation. To use the online service to file the accounts you will need: ● Your company authentication code You should apply to get this code as early as you can as it takes up to 5 days to get the code by post. Due to security reasons HMRC only sends these codes by post. You will need your company number, your email address to apply for the code. You will also be needing: ● Government gateway ID and password if you want to file the accounts and the tax return online. You should know when you are due to file your accounts and tax returns, if you are late and you do not submit on time you will have to face penalties. These are as low as £150 if you are up to 1 month late and as much as £1500 if you are more than 6 months late in filing the accounts. If you think you are not ready to file your accounts with the Companies house because you have a valid reason and because of an event which was not under your control you can tell the Companies House. If your business is affected by the Coronavirus, you might be able to apply for the extension of 3 months. If you have received any penalties you can contact us and we will appeal on your behalf. Our committed team at the Taxaccolega can help you with preparing and filing the accounts. If you are looking for accountants at reasonable rates in Croydon, Surrey, London contact us at 020 8127 0728 and our team of expert accountants having an in depth knowledge of PAYE, VAT and all the accounting standards will prepare your accounts and file them in the timely manner. CTA Box See How Much You Can Save CALL NOW Take the stress out of UK taxes and accounting today — speak with a top-rated Taxaccolega chartered accountant for personalised advice tailored to your business or personal needs. Book a free Consultancy Related Posts ID Verification × ID Verification Form For Companies House From 18 November 2025, UK law will require all company Directors and Persons with Significant Control (PSCs) to verify their identity with Companies House. Companies House will issue a personal code to PSCs. Taxaccolega (ACSP) can help collect data and assist. Please answer the questions and upload documents. Personal Details Fornames * Last Name * Date of Birth *
Can I make gifts which are exempt from tax
Can I make gifts which are exempt from tax There is a threshold of £325 000 below which you don’t give any tax. This means that if your estate is valued at £325 000 or below at the time of your death you don’t have to pay any tax otherwise you will be paying Inheritance tax at 40 % . This is reduced to 36% if you give at least 10 % of your net estate to charity. HMRC has given an opportunity to give gifts to their friends and relatives tax free during their life time. Many people would prefer making use of such tax exempt gifts so they don’t end up paying large sums of tax at the time of their death. Three things to consider when you want to give a gift to your life time are following: 1. Who are you giving the gift to 2. What is the gift. 3. When are you giving the gift 1. Who are you giving gift to: You can give a gift to your spouse, Civil partner , a UK registered charity or a political party without paying any tax on it. 2. What is the value gift? ● £3000 – This is an annual exemption. This mean you can give away a gift worth of £3000 each tax year without paying any tax on it. ● £250 – you can give a gift of upto £250 to anyone each tax year during your life time and no tax will need to be paid on this amount. ● £1000 – If you are going to a wedding you can make a gift of £1000 per person in each tax year. You can make a tax free gift of £2500 to your grandchild and £5000 to your child. If you are making small gifts from your income to your family and friends it is an exempted gift provided after giving the gift you are able to maintain your standard of living. The payments made to the elderly or children under 18 that contribute towards their living costs are also considered exempted gifts. 3. When are you giving the gift? The timing of giving the gift is very important. This is because if you give the gift to a relative or a friend and die within 7 year of giving that gift a tax liability will arise. This is known as 7 year rule. However, if you die less than 3 years of making the gift the inheritance tax will be paid at 40 % and the gifts made between 3 to 7 years before the death are tax at different rate known as ‘taper relief’ Years between gift and death Tax rate Less than 3 40% 3 to 4 32% 4 to 5 24% 5 to 6 16% 6 to 7 8% 7 or more 0% While giving a gift you should be familiar with the term Potentially Exempt Transfer: for example if you are thinking of giving your brother a sum of money you transfer the money to his account your brother won’t have to declare it to HMRC, if it’s within the exempt amount of £ 3000 per year. If it’s a larger sum for example £ 30, 000 and you transfer it lump sum in one particular tax year, you can transfer the amount and no tax will be charged on this. However, you need to declare this to HMRC and it will be considered potentially exempt transfer or PET. This means if the person making the transfer dies within 7 years of making the gift this gift will be added to the value of the estate and inheritance tax will be payable on this amount. HMRC has introduced these rules so that people don’t end up giving gifts on their death bed just to avoid paying inheritance tax. While giving and receiving gifts be ware there could be some Capital gains tax implications as well. If you need help in Estate planning we at Taxaccolega can help you with that. We deal with property transfers, inheritance tax arising on property transfers, shares and securities. Please do not hesitate to contact us at 020 8127 0728. For any queries you can fill the form on our website and we can help you. CTA Box See How Much You Can Save CALL NOW Take the stress out of UK taxes and accounting today — speak with a top-rated Taxaccolega chartered accountant for personalised advice tailored to your business or personal needs. Book a free Consultancy Related Posts ID Verification × ID Verification Form For Companies House From 18 November 2025, UK law will require all company Directors and Persons with Significant Control (PSCs) to verify their identity with Companies House. Companies House will issue a personal code to PSCs. Taxaccolega (ACSP) can help collect data and assist. Please answer the questions and upload documents. Personal Details Fornames * Last Name * Date of Birth *