What will be the consequences if I delay my self assessment tax bill?
What will be the consequences if I delay my self assessment tax bill? Keeping in mind the increased pressures on the taxpayers as well as agents due to this new strain Omicron HMRC decided to waive the self assessment tax penalty. HMRC has estimated that almost half of the self assessment tax payers have submitted their tax returns, however, if you are included in the other The deadline for the the tax year ending 5 April 2021 is 31 Jan 2021, you should have filed your self assessment and should have paid your t If due to some unforeseen circumstances you are not abhalf who have not submitted your self assessment tax return for the tax year 2020 to 2021 you should do it by the deadline which is 31 Jan 2022, If you think you are not able to file your return and pay the tax due by the deadline provided you have a valid excuse for that as well you don’t have to worry about the penalty charges as HMRC is waiving late filing and late payment penalty by extending the deadline by one month. It should be noted that the deadline for the self assessment tax return is not extended, it is only the penalty which is waived. So the interest will still be charged on any outstanding payments from 1 Feb 2022. The waiving of the penalty as announced by HMRC means the following: However, you should not delay your filing and payments unnecessarily if you have all the information needed to file the tax return and and you have enough finances you should go ahead and file your tax return, make the tax payment and get done with it. Filing your self assessment on time and paying your tax can be beneficial in the following ways: If you are looking for a tax agent to fill in your self assessment tax return contact Taxaccolega and our team of accountants in Croydon will help you meet your tax deadlines. Call us at 020 8127 0728 Source:https://www.gov.uk/government/news/hmrc-gives-self-assessment-taxpayers-more-time-to-ease-covid-19-pressures 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 *
Trading loss – should I de register as being self-employed?
Trading Loss Should I de Register As A Being Self-Employed? In the past year the performance of many businesses has gone down the graph. Many high street retailers were forced to close their business as they were not making enough profits. While talking to an event manager, Helen, who was working as a sole trader, reported that her business did not perform well and she did not have any profits to report. In the future she thinks that she will have to diversify her business and is looking to start a different business. Would it be wise to de register herself as a sole trader so she didn’t have to fill in self- assessment tax return until she closes her business and start a new one. De registering for self- assessment if you are earning less than £ 1000 per year might sound like a good idea as it will save the hassle of filling the self-assessments and the anxiety of meeting the deadlines and incurring penalties if the deadlines are not met. However filing the self-assessment tax return even though you are not are earning less than £ 1000 a year or you are making a loss can be advantageous: For example, after the outbreak of the Covid- 19 when the sole traders and other self-employed who were facing difficulty in the cash flows, the government introduced certain grants to help them with the cash flows. The self-employed who were facing some financial difficulty were given a grant through a Self-employed income support scheme. These grants were given to those who had traded and filled in the self-assessment tax returns for 2018/19, 2019/20. Those who didn’t fill in the self-assessment tax return had to suffer as they couldn’t get the grant as they couldn’t proof to HMRC that they were doing business, making profit or loss and that the business activity has decreased due to Covid-19. If you want tax free child care you need to be filing self- assessment tax return in order to prove that you are self-employed and you might want to continue sending in self-assessment tax returns even though you are making loss. IF YOU HAVE DECIDED TO DE- REGISTER Firstly, you should inform HMRC that you no longer want to fill in the self-assessment tax return by filling this form here. If you want to discontinue filling in the self-assessment tax return because you are earning less than £1000 you can mention in the form that you stopped being self-employed on 5 April. Secondly, you should send your final self- assessment tax return. While you will be stating your trading income and the expenses occurred for the tax year you should also calculate if you owe any capital gains tax on any assets that you might have disposed of. Don’t forget to claim any of the following relief if they apply to you as it will reduce your tax bill: TERMINAL LOSS RELIEF Your loss in the last tax year can be offset against the profit in the last three years. ENTREPRENEUR’S RELIEF You might be eligible for entrepreneur`s relief if you owned the business for at least 2 years and you sell a business asset. If you qualify for entrepreneur`s relief you might be able to reduce your capital gains tax bill. You might also want to cancel your VAT registration if your trading income isn’t meeting the threshold or you are planning to close down your business. To learn more about the relief click here. If you want an accountant in Croydon to help you with the tax returns or with your final tax return contact Taxaccolega at 020 8127 0728 or drop us a message at here and we will be happy to get back to 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 *
Setting up an online store
Setting up an online store The e commerce market is currently experiencing a boom all over the world. UK`s e commerce market is one of the biggest markets in Europe and it is still growing. Many small start-ups are emerging to capitalise the huge opportunity created by Covid-19 in the online market place. If you are one of those who want to start your own business you will have to analyse the market trends and come up with a product which you want to sell. Once you have established a business plan you will have to choose a business structure for your business. You can chose among 3 types of business structures: you can either run your business through a limited company, sole trader or a partnership. Each structure has its own different sets of legal obligations. To read more about the legal obligations when running a limited company click on the link here. In the following blog we will discuss the steps that you should take if you want to start your online business as a company. STEP 1: Register your business with the Companies house.You should think about your business name and the things you will be selling before you register for your business. You will get a certificate of incorporation. Keep that document safe. It confirms the company number and the date of formation. You will have to create the government gateway ID when you will register you company. In case you don’t want to have limited at the end of your company name you will have to register via post. STEP 2: Register your company for corporation tax. You can do this at the same time you are registering for your company, however, you have 3 months after you start your business to register for corporation tax. If you wait for longer than 3 months to register for the corporation tax you might have to bear penalties. STEP 3: If you plan to hire employee and they will be earning £120 per week you should register for PAYE. As an employer you will have to report their salary and deduct tax and National Insurance for your employees. You might want to hire an accountant who can take care of running your payroll. STEP 4: You might also have to register for VAT if you expect that your taxable supplies will be more than £ 85 000 by the end of the month in which you started your business. You might also want to register voluntarily for VAT and send VAT returns every quarter from the effective date of registration. STEP 5: Before you start selling online you need to get a domain name. You can go this through many e commerce platforms such as Go daddy or Shopify. You can connect yourself with an e commerce platform such as amazon and Shopify. Through Shopify you can get a domain name, host a website and sell through it. Remember that you when you are selling online you will access to the international market. You will have to follow rules for international trading for example there are different VAT rules when you are distance selling. You might want to consider hiring an accountant to sort out your taxes and do your book keeping as accurately as possible so you don’t have to bear any penalties. If you are one of the start-up businesses and you need an e commerce accountants in Croydon do not hesitate to contact Taxaccolega at 020 8127 0728 or drop us a message here. Our expert team can help you set up a company and advise you on matters related to accounting and taxation of your company. 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 *
Self-assessment deadline extended
Self Assessment Deadline Extended Image HMRC has extended the deadline for filing your self-assessment tax return. You won’t get a penalty if you file your self-assessment tax return online by 28 Feb. The extension is for filing only, Interest will be charged on any tax liability from 1 Feb 2020. So individuals who are finding it difficult to file the returns this week can make an estimated payment. This announcement is seen as a relief for many who were supposed to file their self-assessment tax return by 31 Jan 2020 and were not able to do so because they are going through some unusual circumstances due to Covid-19. Earlier, HMRC had decided to treat the late filing differently. They had decided to send the penalty who would fail to file their return by 31 Jan 2020, however they made it clear that if the late filing was due to any unusual circumstances a claim can be made against that charge. If an individual has a valid reason due to which they couldn’t file the tax return they can claim against it and HMRC also made it clear that it will accept Covid- 19 as an unusual circumstances to waive off the penalty depending on how it has affected the individual. This would not help lift the pressure off the person who was not able to file the return as he will be stressed out about getting the penalty and then going through the hassle of making a claim and all the paper work involved. On the other hand, HMRC will have to process so many claims and that would have been time consuming as well. This extension is definitely going to save time and resources of the government and will give` breathing space’ to individuals who are going through difficult times. If you can HMRC is encouraging individuals to file the return by 31 Jan 2020. Thorough self-assessment tax return you have to declare your untaxed income and claim any expenses. According to the website Gov.Uk you need to file the tax return for the tax year 2019/2020 which runs from 6 April 2019 to 5 April 2020 if the following applies to you: ● You are a sole trader and have earned more than £ 1000 in the tax year 2019- 2020. ● You run a business as a business partner ● You received rent from a property in the tax year 2019- 2020 ● You have income from savings, dividends, any foreign income. ● You get child benefit You will also have to file self -assessment tax return if HMRC has asked you to for any other reason. Have you UTR number, National Insurance number ready along with all the income that you have not reported yet. You will also have to report any capital gains that you had during the tax year. You might also have to report your foreign income for example, you sold your property back home. To know more about the foreign income check read our blog on reporting foreign income in the UK. If you are going through any financial crisis and you think you won’t be able to pay your income tax bill, you can set up a payment method and spread the payments over a period of 12 months. You first need to file the return, HMRC will process how much you have to pay and then an instalment method can be arranged with HMRC. If you are self-employed and you want to get your self-assessment done on time you can contact Taxaccolega at 020 8127 0728, we are accountants in Croydon and we can complete the self-assessment tax return on your behalf and submit it once you have approved it. 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 *