I am renting a room. Can Rent a Room Relief apply to me?
I am renting a room Can Rent a Room Relief apply to me? When we are filing our self assessment tax return we need to make sure that we claim as much reliefs as we can when we are reporting our income to the HMRC in the self assessment tax return in order to minimise our tax bill and maximise our profits. As the deadline to submit the self assessment tax return for the tax year 2021-2022 is 31 Jan 2022 it’s time that we start doing our homework on our income, the reliefs so we are ready to file the tax return on time and avoid any penalties and any extra costs. Am I eligible for Rent a Room Relief You will be eligible for room relief if you let a furnished room to a lodger. It is an important condition that the room is furnished. If it is not furnished you cannot rent a room scheme. The room that you are renting should be part of your main home. If it is not your main home or if you are not in the UK when you are letting the room then you won’t be eligible. The Renting of the furnished room should not be used as an office to be used for rent a room scheme. You can use this scheme if the letting of that furnished room amounts to a trade for example if you run bed and breakfast. What is Rent a Room Scheme Rent a room scheme is a scheme where you get a relief of £7500 on your taxable renting profits if you meet the above conditions. If you have a joint owner you will get the relief of £3750. This is an annual limit even if you are letting the accommodation for less than 12 months. How Do I Work out My Taxes If the gross receipts are less than £7500 If the total gross receipts are less than £7500 then you will be exempt from paying any taxes. Please note that here we are talking about the gross receipts and not the profit. How do I Work out My taxes if the gross receipts are more than £7500 You have 2 options to pay your taxes and you can choose whatever method you want to use depending on your individual circumstances. However, if you want to use the Rent a room Scheme you will have to tell HMRC on time. You can choose between the two options below: Option 1: Option 2: If I made the loss, how can I use the loss in the future? If a loss is created using option 1 method you can use it in the future even if you are using option 2 method to pay your taxes. For more information on how to use loss, calculate rental profit, claim expenses and capital allowances contact our expert team of accountants in Croydon, London by calling on 020 8127 0728 or message us here Source:https://www.gov.uk/government/publications/rent-a-room-for-traders-hs223-self-assessment-helpsheet/hs223-rent-a-room-scheme-2021 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 *
Deadline for Reporting Capital Gains tax – Do I have to report them with the Self assessment Tax Return?
Deadline for Reporting Capital Gains tax Do I have to report them with the Self assessment Tax Return? How and when you report the capital gains depends on the type of gain you have made. Each time you sell something on which you are liable to pay Capital Gains Tax you have to report it to HMRC. There are different reporting rules in the following situations: If you sold the property in the UK on or after 27 Oct 2021. You will have to report and pay any tax due on the UK property within 60 days if the completion was on or after 27 Oct 2021. This means you should report it by 31 Dec 2021. If you don’t do this on time you will get a penalty from HMRC. If you sold the property between 6 April 2020 and 26 Oct 2021. You will have to report and pay any capital gains tax within 30 days if the property was sold between 6 April 2020 and 26 Oct 2021. Where to report and pay? You will have to report and pay by creating Capital Gains Tax on the UK property account. You will need your government gateway user ID and password. If you don’t have one you can create one. You can pay by using real time Capital Gains Tax Service. The property that you sold should not be your personal property it can be either of the following: Make sure that you have proper records You should keep proper records such as receipts, bills and invoices. You might want to include the following bills : How will you work out your gain? You will add all the gains from the property, deduct any costs such as cost of buying the property, stamp duty costs, any fees paid to the professionals such as solicitors, costs of any extensions done on the property. Once you will get the gain you have to work out if you are eligible for any reliefs such as incorporation relief, private residence relief , entrepreneurs relief, incorporation relief, gift roll over relief. For capital gains tax rates click here. If you sold any other asset as mentioned above, you will be reporting it to HMRC by 31 Dec . For example if you made a gain by selling a personal possession worth more than £6000 or shares and it falls within the tax year 2021/ 2022 you should report it by 31 Dec 2021. You can also report it in the self assessment tax return if there is another reason that you will be sending in the tax return. We at Taxaccolega, Property accountants based in Croydon can help you if you have a property business and you deal in buy to let property or you have business assets which you are interested in selling. If you need help with your self assessments do not hesitate to call us at 020 8127 0728 and our team of accountants 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 *
Employee shareholder – What tax advantages do I have?
Employee shareholder What tax advantages do I have? Who is an Employee Shareholder? An employee shareholder is an employee who owns shares in the company that were worth £2000 when they got them. When you own shares you have to think of 3 taxes: ● Income Tax ● National Insurance ● Capital Gains Tax Income Tax and National Insurance No Income Tax is paid on the shares uptil £2000 Capital Gains Tax If you got the shares before 17 March 2016 you will not pay any capital gains tax on selling the shares that were worth upto £50 000 when you got them. If you got shares after 17 March 2016 you will only pay Capital Gains Tax when you sold your shares and made a gain of over £100 000 during your lifetime. Your employer might as well offer you a salary package that includes shares. Every individual case is different, however since you get some tax advantages when you are offered shares through a certain scheme which we will discuss below you will be able save some money which otherwise you might be paying in your taxes, What are these Schemes? ● Share Incentive Plans ● Save as you earn ● Company Share Option Plans ● Enterprise Management Incentive Share Incentive Plan Your employer can offer you shares through the Share Incentive Plan through Free shares( offering shares of worth upto £3600), Partnership shares( Where you can buy shares from your salary before any taxes are deducted), Matching Shares, Dividends Shares. How Is it Tax Advantageous? You won’t have to pay any income tax or NI as long as you keep your shares in the plan for 5 years. If your shares were under the plan when you sell them you won’t have to pay any Capital Gains Tax on the profits that you make. However, if you have taken them out of the plan and then sell them where they have increased in value then you might have to pay CGT. For more information on this you can contact our team of accountants , Save As You Earn Under this Scheme your Employer will offer you a Savings Contract. Under this Contract you can save upto £500 and then buy shares for a fixed price. The period of the contact can be 3 to 5 years, How Is it Tax Advantageous? You won’t have to pay any income tax or NI on the shares when you buy them. The interest and any bonus at the end is tax free. However, you will have to pay Capital Gains Tax when you sell the shares unless you transfer them to ISA within 90 days of the scheme ending or to a pension directly from the scheme. Company Share Option Plan If you are offered this plan you can buy shares worth £30 000. How Is it Tax Advantageous? You won’t have to pay NI or Income Tax when you buy the shares on the difference between what you paid for them and what they were actually worth. You will be paying CGT on the shares when you sell them. Enterprise Management Incentive This applies when you work for a company with a value of 30 million or less. You won’t be paying Income Tax or NI if you buy the shares at the market value, however if you buy shares at a price which is less than the market value you will have to pay Income tax or NI. You will have to pay CGT as well when you sell them. Tax Implications are Summarised below in the table Share Plan Will I pay Income tax or NI Will I pay CGT Share Incentive Plan No as long as the share are in the plan for 5 years No as long as the shares are under the plan Save As You Earn No No. but in certain conditions you will Company Share Option Plan No Yes Enterprise Management Incentive No but with certain conditions you will have to pay Yes For more Information contact our expert team of accountants in Croydon, accountants in London and we advise you on the tax implications of your salary packages, tax implications if you own shares, how to report the shares and if you have to fill in your self assessment tax returns contact here:https://www.taxaccolega.co.uk/contact-us. 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 *
I have an online store what are the VAT implications?
I have an online store – What are the VAT implications? If you are thinking of starting a business online where you will be selling your product through your e store you will have to register your business as usual. You will also have to comply with other legal obligations such as registering yourself for VAT if you cross the threshold of £ 85 000.If you are supplying VAT able supplies and you are not VAT registered you will have to bear heavy penalties. Being online means that you will be selling products in UK as well as internationally. So when and how you will have to register for VAT? WHEN SHOULD I REGISTER FOR VAT? There are different thresholds for online businesses depending on where the business is registered and from where the business is being operated, who the customers are and what the product is which is being sold. It is a very simple concept, if you are operating your business from UK you will have to register for UK VAT. Just make sure that you charge the right rate of VAT. If you have an online store you should be aware of the terms such as : If the annual sales in distance selling exceeds £ 70, 000 the seller needs to register for UK VAT and charge VAT at the UK rate. You don’t have to register for VAT if you supply VAT exempt supplies such as equipment for disabled but you will be registering for VAT if you sell VAT exempt items but you are buying items of more than £ 85 000 from EU VAT registered suppliers. It is very important that you apply for VAT on time, you should register for VAT as soon as you think that your Vatable supplies will exceed the threshold of £ 85 000 in the next 12 months. Otherwise you won’t be able to charge VAT from your buyers as you won’t have your VAT number, however, you will be paying VAT to HMRC for this period. HOW SHOULD I REGISTER FOR VAT? Once you have crossed the threshold, you will have to register by post. By filling the form VAT1A if you are an EU business and distance selling the goods to UK you will have to fill in the form VAT 1A and post it to HMRC. Within 30 days of applying for VAT registration you will get a VAT registration certificate. It will have your VAT number, deadline of your VAT return and payment, and the effective date of VAT registration. PENALTIES HMRC defines some serious penalties if you default meaning if you are not able to submit the VAT return on time, or if you made a mistake in your return and you do not correct it within 30 days. HOW CAN WE HELP? We at Taxaccolega can help you register your business for VAT, prepare and submit your returns on time. We make sure that all the deadlines are met. Please feel free to call us at 020 8127 0728 or drop us a message here and we will get back to you. The above information is extracted from HMRC website: https://www.gov.uk/vat-businesses 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 *