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What are the Benefits of Filing Your Tax Return Earlier?

Filing a tax return may be time-consuming and frustrating, particularly if you wait until the last minute to do it. Although it may be tempting to wait until later in the year to file your personal tax return. There are several advantages to doing so early. Let our tax accountants help you with your tax return and other related matter, while you enjoy your winter coffee!
You must first register online if you have never submitted a tax return. HMRC will send you a letter with your 10-digit Unique Taxpayer Reference (UTR) and an account for the self-assessment online service once you have registered online. You will get an activation code for your online account within 10 working days (21 if you are overseas). The activation code must be entered the first time you log in.
Waiting until the Christmas and New Year rush to register might cause delays. As HMRC is particularly busy in the run-up to the January 31st filing deadline.

Determine Your Tax Liability

Filing your tax return as early as possible allows you to examine any planning alternatives and claim any permitted tax reliefs.
If your tax due is less than £3,000, you can choose to have it collected through your tax code. SK Accountants and Consultants Ltd makes sure to renew your claim by July 31st each year if you receive benefits or tax credits. Our accountants also tell the Tax Credit Office of your income.

You Have Time To Prepare For Tax Liability

Filing your tax return early does not mean you will have to pay it sooner; it simply provides you more time to prepare and budget for it. You must pay any tax due by the following deadlines, if applicable:
31st of January – any tax due for the previous year (commonly known as a balancing payment) and your first account payment. Your second account payment is due on July 31st.

Get Your Tax Refund As Soon As Possible

If you owe a tax refund, filing your return early will result in your refund being processed sooner rather than later. It might help with cash flow over the summer and fall months. Refunds often take much longer to process if you wait until January, as this is one of HMRC‘s busiest times.

Due to employee layoffs, contacting HMRC might be challenging at times. But it is considerably more difficult around the tax return deadline. Avoid deferring your tax filing until December or later, just in case you need to contact the HMRC and cannot reach them. If you are owed a tax refund, you might expect a lengthier processing time if you file your return during busy periods. However, our expert accountants will make sure that you get in touch with HMRC for your refunds.

Why Should You Choose SK Accountants And Consultants Ltd For Filing Your Tax Return?

We utilize HM Revenue & Customs approved software to:
Fill out your tax return
Determine your tax obligation
File your tax return online

Work with you to determine the amounts payable and when they are due
We may analyze your self-assessment tax return to see if any tax savings can be achieved. We will see if there are any anomalies that need to be resolved before the return is submitted as part of the aforesaid service.
This procedure lowers the chances of an HMRC investigation into your tax problems. If you are having trouble keeping up with your tax payments. We can look into delaying them or negotiating a payment plan with HMRC on your behalf. We can take the anxiety out of self-assessment tax returns by providing you with a fixed, competitive charge, enabling you to focus on operating your business.

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Are You Struggling With Your VAT Returns Too? We have solution

VAT has a lot of different criteria, dates, rules, and laws. So trust us when we say you are not alone in feeling a little overwhelmed by it. That is before you cross borders and factor in import and export VAT.  When it comes to managing their VAT returns, even the most senior VAT veterans rely on the help of qualified accountants. But don’t worry, SK Accountants and Consultants Ltd has everything you are looking for!

How Does The VAT System Work?

When your business’s taxable revenue hits £85,000, you must register for VAT returns. This means that taxable products and services must be subject to VAT. The VAT return amount is calculated as a proportion of the taxable sale. This is known as an ‘output tax.’

Selling

Different VAT rates exist, but the most prevalent one, known as normal VAT, is imposed at a rate of 20%. For instance, if you sell a taxable item for £100, you must charge VAT by adding 20% to the sale price. As a result, you will charge £120 from the consumers. You can also retain the sale price at £100 and pay the £20 VAT yourself from the sale earnings. This can help retain existing consumers, but that also means you are losing money.

Buying

You will have to pay VAT if you make a purchase from another VAT-registered firm. When the shoe is on the other foot, the term ‘input tax’ is used.

Your HMRC VAT Return

You will need to reduce the amount of input tax you paid to your suppliers from the amount of output tax you collect from your own customers. HMRC will get this information every three months (your accounting period).

You can refund the difference if you pay more tax to suppliers than you receive from consumers. You must pay HMRC the difference if you collect more than you pay to suppliers.

If your VAT taxable turnover is less than £150,000, you can instead apply for a flat-rate plan. This allows you to pay HMRC a predetermined percentage rather than having to calculate output minus input. Get in touch with any of our expert tax accountants if this all seems a little too overwhelming for you.

How SK Accountants and Consultants Ltd Can Help You With Your VAT Returns?

If you are new to VAT returns, we can assist you to evaluate if you need to register or not. And we will also keep an eye on your circumstances. So that if it becomes necessary for you to register for VAT returns, we can handle all of the paperwork. We will, on the other hand, see whether you are able to and would benefit from deregistering.

We will look at the VAT schemes you are qualified for, whether you are a new or existing firm, and determine whether you would be better off adopting one or a combination of them. Some VAT systems can result in tax savings as well as a decrease in bookkeeping responsibilities.

SK Accountants and Consultants Ltd will prepare your VAT return using your own accounting data. Or we can handle both the record-keeping and the VAT return for you. And we will do all we can to help you claim as much VAT as possible. Our tax accountants will help you, particularly on controversial items like mixed-use spending and motor operating expenses.

We may serve as your Agent for VAT issues, just like we can for other types of tax. Our accountants contact HM Revenue & Customs (HMRC) on your behalf. Although paper VAT returns are becoming increasingly rare, our software allows us to file your VAT returns with HMRC online.

Late VAT registration, inaccuracies, late VAT returns, and late VAT payments can all result in fines and perhaps interest. Allowing us to handle your VAT matters not only provides you peace of mind but also prevents you from squandering money on penalties and interest.

 

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Looking For Affordable Accountants in London? Look No Further!

You will need more than a desire to take your company to the next level. You will need a dependable group of employees that are as enthusiastic about your company as you are. So, selecting affordable accountants in London is one of the most significant decisions you can make as a business owner. Inexperienced business owners sometimes limit their accountant’s responsibilities to preparing and filing financial statements and tax returns.
At SK Accountants and Tax Consultants Ltd., we provide you with a wide range of value-added services. We help your business comply with current regulations, save money, minimize risk, manage growth and plan forward. As an entrepreneur, your finances will influence all of your important decisions. Thus, it is important to have an excellent accountant who will not only provide you with the information you need but also advise you.

Our Accountants Assist You In Reducing Your Workload

When your company grows, you will need all of your time to focus on day-to-day operations rather than compliance, tax, or bookkeeping. Similarly, if your company’s finances get more complicated, you will almost definitely need to hire a professional to manage them. Hiring an accountant will assist you in managing operations by suggesting process changes, and taking over financial and tax duties. Our affordable accountants in London introduce you to tools that will save you time and money.

Offering Insightful Business Advice

SK Accountants And Consultants Ltd have the necessary abilities, knowledge, and instruments to act as business advisors. Our accountants have tremendous experience working with clientele from different walks of life. Moreover, our experienced Tax Accountants have seen most of the difficulties and obstacles you will face. That is why hiring affordable accountants in London who are veterans as well may act as a fair counselor for your ideas. They point you to potential hazards and wonderful chances too. Our network adds even more value to your business decisions. They connect you with important contacts who can assist you in implementing complex plans and managing challenging situations.

Assisting You With Tax Returns

Tax returns must be managed efficiently and in accordance with HRMC requirements. Tax return errors can result in fines and large backdated tax obligations. HRMC compliance is essential for corporate success. You should contact affordable accountants in London who are experienced with tax returns to help you maintain records for HMRC. If you are not sure how this works, leave it to SK Accountants and Consultants Ltd. We are just a click away.

Helping In Determining Business Performance

Setting targets and assessing them against results will determine whether a firm will succeed or fail. The targets may be clients recruited, revenue raised, complaints received bills written down, and so on. Almost 90% of companies fail because they do not maintain track of their major objectives. They do not succeed because they do not assess how well the company is executing against those objectives. Our accountants assist in the development of performance assessments to help a business understand its actual performance in relation to the goals it established for itself. A corporation can comprehend its real performance in terms of the variables it considers relevant for long-term growth and sustainability using these evaluations.

Wrapping up!

At SK Accountants and Consultants Ltd, we believe in providing our clients with high-quality services, a professional and pleasant environment, and complete satisfaction. Not only do we take pleasure in the quality of our accounting and tax services, but we also take pride in the fairness and transparency of our fees.
SKATAX is a fast-growing low-cost taxation business that provides affordable accountants in London. Our most important asset is our highly qualified personnel, which have a wide range of expertise and a solid foundation. Our mission is to provide the greatest quality services while ensuring that our clients get the most value for their money, allowing them to grow and accomplish their goals. We vow to provide highly competent, dependable, and stress-free accounting and taxation services to our clients by treating them like family.

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What Are The Benefits Of Consulting With A Tax Advisor Or Accountant?

Taxation is an unavoidable fact of life that no firm can avoid. Businesses, particularly those in the taxation industry, must ensure that they are in compliance with business standards and government rules. The reality, on the other hand, is that tax reporting and filing may be a time-consuming chore. There is no room for mistakes when working with numbers, therefore you should strive to be as exact as possible. That is where the services of tax advisors or tax accountants are really beneficial. You can contact SK Accountants and Tax Consultants Ltd to take care of all of your taxation needs.

A tax advisor is someone who has extensive knowledge and expertise in the field of taxation. He or she has been trained and certified to assist you in handling and managing your finances and taxes. The objective is to assist you in minimizing your tax responsibilities. They are consistent with the law in the face of difficult financial circumstances. In the following part, we will look at the reasons why hiring a tax accountant for your business might be advantageous.

Extensive Knowledge In Tax Preparation And Filing

Because a tax advisor has a wealth of knowledge and expertise in tax preparation, you will undoubtedly benefit from working with one. Your newly hired tax expert will assist you in streamlining your finances and tax filing. They make sure that there is no room for mistakes in the process. Fortunately, there are several advisors accessible to you. However, it is better to go with a seasoned professional from SK Accountants and Tax Consultants Ltd. Our tax advisors work in order to minimize financial blunders as well as any legal ramifications.

The Ins And Outs Of Tax Laws

In terms of knowledge, a tax advisor should be knowledgeable in tax laws. He should be aware of all of the opportunities to save money. This is due to the fact that a tax accountant must take extensive training and get qualified before they can begin practicing. The technical nuances of tax regulations may be somewhat confusing for the typical employee. It is advisable to delegate financial management and tax filing to a professional accountant or bookkeeper.

Taxation In Accordance With Government Regulations

Another important factor to consider is how you as a corporation must comply with government regulations and standards. If you do not comply with the law, you may be subject to financial responsibilities and maybe criminal consequences. The worst thing that can happen to your company is for it to be forced to close due to non-compliance.  You must contact a tax accountant for your organization in order to prevent all of these issues.

Tax-Related Business Choices

What is great about working with a tax expert is that they are familiar with the legislation. You can have a great deal of trust in your consultant to make solid company judgments, especially when it comes to financial considerations. You are free to choose whatever path you like without risking legal breaches or financial ramifications. An experienced tax accountant can assist you in making informed business decisions that are beneficial to your organization.

Conclusion

If you have ever been involved in the tax filing process, you are probably aware of how time-consuming and tiring it can be. That is why consulting with a tax professional may make all the difference. As previously said, a tax advisor is a specialist in tax filing, tax systems, and government compliance. And they can assist you in making sound financial choices for your company.

There are a variety of reasons why consulting with a tax expert and a business accountant is essential while forming a corporation. Here are a few examples. Among the responsibilities of a tax, advisors are educating clientele on their tax choices, providing specialist advice, preparing and working with clients in finding the appropriate deductions, credits, and adjustments based on their financial predicament, and assisting clients in computing taxes based on their transactions.

 

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What was the outcome of your landlord tax returns this year?

A landlord tax expert might help you save money and save the hassle. SK Accountants and Tax Consultants Ltd. had a busy and focused finish to 2021. We have been completing tax returns for hundreds of landlords across the UK. Now, however, we have time to react to all of the last-minute inquiries. We received many questions from rental property owners searching for a professional accountant to help them with their landlord tax returns.

The dialogue is always the same. They have had a bad experience in the last few months. Or they believe that they are paying too much tax and want to know whether we can assist. Here’s what you can anticipate from a knowledgeable and professional property tax accountant.

  1. They are Familiar with the Landlord Tax Returns

When it comes to landlords, there is no one-size-fits-all solution, and your accountant should be aware of this. Some of you might be an “accidental landlord” if you inherited a rental property. If you moved in with your spouse, you may have also ended up with a rental property. You may also be someone who has purchased their apartment and is making a fortune renting it out. Aspects of your setup will be unique to you.

Non-resident landlords, for instance, must file tax returns in a different way than those based in the UK. And inadvertent landlords, particularly new ones, are confused about whether or not they are required to file a landlord tax return.

Most accountants have a few landlord clients, so they are familiar with the essentials. However, buying a home is almost always a long-term investment. Change happens, tax regulations change, your situation changes, you get married, have kids, your salary rises, and you want a retirement plan and a scheme to pass on your hard-earned assets. At every stage of their property ownership journey, SK Accountants and Tax Consultants Ltd. collaborate with landlords. From the initial property purchase through exit or succession planning, we have got you covered. It all starts to add up after a while.

  1. Business Costs

A professional accountant emphasizes taking the time to ask and answer a lot of questions. This usually reveals items our clients did not realize they could claim, as well as preventing them from making claims they may later regret. It is about understanding the difference between repairs and ‘capital upgrades,’ for instance – the former is normally deductible, while the latter is not.

  1. They will Take their Time with the Finer Points

A good property tax accountant will not be scared to work for themselves and will perform the necessary calculations to lower your tax bill. If you operate your real estate agency from a home office for a few days each month; you may be able to deduct a percentage of your domestic expenses as business expenditure.

But, if you just have one or two houses and use a rental agent, HMRC would very certainly refuse any business use of home deductions. It takes some effort and numbers to figure out your claim.

  1. They will Approach You with Suggestions

A landlord accountant does not simply keep track of what is going on; they also give recommendations to help you design your tax strategy. For instance, there may be tax benefits to transferring possession from you to your husband or wife, or vice versa. SK Accountants and Tax Consultants Ltd will always report something like this. We will be happy to assist you in crunching the data to make a conclusion if we notice it.

  1. Accurate and Timely Communication

Your accountant should react to your questions swiftly and in plain English. Sadly, as SK Accountants and Tax Consultants Ltd have learned from clients who have joined us in recent years; this is not always the case. Certainly, this does not relate only to property accountants, but it does assist to understand how landlord tax returns work. Obtaining the information you want from your accountant should not result in an unexpected invoiced cost.

 

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Interpreting Financial Statements and the Company Tax Returns CT600

For first-time limited company directors, a business year-end might be a difficult task, but you will know precisely what you need to complete for company tax returns and accounts with our detailed checklist.

Year-End Financial Statements Company Tax Returns

The purpose of the year-end accounts is to present a realistic and fair picture of your company’s finances. And it is critical to compare the company’s financial statements and company tax returns to those of other businesses on yearly basis.

From a small one with only £100 in sales to the greatest publicly traded organizations, every firm follows the same accounting rules and principles. Because of this uniformity, stakeholders, such as potential investors, consumers, and shareholders, can compare various organizations.

It allows you, as the director, to assess how well the company has performed this year compared to the previous year, as well as potential areas for improvement. You will also be able to verify your income or assets to other parties, such as banks, at the end of the year.

If you use online services, you will get a lot of this information in real-time throughout the year, but you’ll still have to fill out these year-end forms. However, many of the accounting concepts vital for producing accurate books will only be used by your accountants at the end of the year.

Company Tax Return (CT600)

The government and HMRC are two extremely significant external stakeholders in your finances. And the year-end accounts are submitted to HMRC via a Company Tax Return, often known as a CT600.

This includes the following:

  • Accounts for the entire year
  • Profits for the company
  • Adjustments to the tax system
  • Taxable profits
  • The amount of corporation tax payable

CT600s may only be used for 365 days, and thus if your accounts are longer (as they generally are during incorporation), they will be split into two CT600s. When filing with HMRC, you link the entire accounts to the CT600. In addition, HMRC will have more information than other external accounts users, who will only obtain the abridged accounts from Companies House unless you supply the full accounts, as is often requested by banks when applying for a business loan.

What Documents Does HMRC Require?

Company Tax Return

Your Company Tax Return (CT600) shows your company’s income, less any tax allowances and costs. The remainder — your profit – determines how much Corporation Tax your business must pay.

Annual Accounts or Statutory Accounts

Annual Accounts are a type of accounts to keep track of a company’s financial position. The following are the components of the Annual Accounts you must submit to HMRC:

  1. Income statement

The income statement shows the profit (or loss) you made for the accounting period.

  1. Statement of Financial Position

A snapshot of your company’s financial position as of the conclusion of its accounting period, indicating the total worth of its assets, liabilities, capital, and reserves.

  1. Footnotes

Information about your company’s and its directors’ transactions (such as loans, advances, and guarantees).

What Documents Does Companies House Require?

Suppose you utilize the financial reporting standard for micro-entities (FRS 105) to create your annual accounts. In that case, you must submit two documents to Companies House: the Statement of Financial Position and the Footnotes. Then, Companies House will publish the papers you provide on its website, where anybody may examine them.

What Are The Consequences Of Filing Late?

The penalty for reporting your CT600 late differs according to how much time you have gone over.

  1. You have to pay a total of £100 if you miss the deadline by one day.
  2. You have to pay a total of £200 if you miss the deadline by three months.
  3. HMRC will estimate your Corporation Tax amount and add a 10 percent penalty if you miss the deadline by six months.
  4. HMRC will add 10 percent to your tax due if you are 12 months late, for a total charge of 20 percent.

 

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Accounting and taxation services for e-commerce businesses in the UK

Whether you are just getting started with your E-commerce business in the UK on Amazon, Shopify, Etsy, Squarespace, Wix, or another channel, or you are a seasoned E-commerce entrepreneur. You will need a partner to help you keep track of all your earnings. You will also need someone familiar with all of the taxes that come with running an e-commerce firm. So, what’s the big deal about Accounting and taxation services for E-commerce businesses in the UK?

SK Accountants & Tax Consultants Ltd is dedicated to assisting you in keeping your e-commerce business on track with your goals and objectives. We offer the skills and knowledge as professional E-Commerce Accountants to streamline your management information. So, forecasting, and planning so you can manage and grow your company. Of course, we can also help you stay on top of your tax responsibilities. Contact us today for accounting and taxation services for e-commerce businesses in the UK.

E-commerce accounting

You may choose from various service tiers when selling your items on a marketplace facilitator (MPF), such as Amazon or eBay. These services are not free; for instance, distribution by Amazon (FBA) costs $2.16 for each item and can cost up to $138.11 per item (based on size). Amazon and other MPFs automatically deduct this fee before sending the money to you (the seller). These expenses should now be shown on your MPF platform.

However, seeing them combined with your expenses of products sold, vendor service fees. Other selling and administrative charges in your financial statements. Which gives you a clear view of how much money you’re generating with the service. We at SK Accountants & Tax Consultants Ltd. offer accounting and taxation services for e-commerce businesses. We set you up with cloud-based accounting software and then link it to all of your MPFs or your Shopify site to connect all of your sales data with your e-commerce accounting. Our Tax Accountants also provide monthly reconciliations and updates to your books. We assure accuracy and give you the financial data you need to make essential choices.

E-commerce taxation

Many of the items you sell online as an E-commerce firm are subject to sales tax, and one thing is sure: sales tax legislation is complex. There are several new tools available to assist you in meeting your sales tax responsibilities. However, these services still need you to make the ultimate decisions. You have to decide whether or not an item you are selling is liable to tax in the states. Which you have a relationship with. Another factor to consider when it comes to sales taxes is the risk of an audit. SK Accountants & Tax Consultants Ltd. is an accountancy firm with expertise working with auditors if your company needs a sales tax audit.

E-commerce firm

You must also submit corporation taxes as an e-commerce firm. This is not something to overlook. When looking for an accounting firm to assist you with your e-commerce business and filing your e-commerce taxes, keep that in mind. Too many accounting firms are not certified firms and lack the skills to handle your business’s taxes. Our SK Accountants & Tax Consultants Ltd team has been helping with accounting and taxation services for e-commerce businesses over the years. We handle all taxation filings, and we provide them not only on time but also precisely. Our service entails more than simply bookkeeping. We also advise you and your company on how to stay in compliance with all the tax laws.

Why should you hire SK Accountants & Tax Consultants Ltd for your accounting and taxation services for your e-commerce businesses in the UK?

We communicate with our clientele on a weekly or quarterly basis. We make sure to update their financial and tax affairs regularly. Our team of committed accounting specialists is always available to assist you and keep you informed. It would be best if you met with your management at least once a quarter. Our accountants will give you an update on your financials and where you stand on taxes. We will communicate any changes in tax legislation to you, and if your company expands, so will your staff. Our one-stop-shop philosophy provides accounting and taxation services for e-commerce businesses in the UK. We are a single accounting firm that can handle all their tax and accounting needs.

If you own an e-commerce business, you need a firm that knows what you are up against. And, SK Accountants & Tax Consultants Ltd is such a firm. Our purpose is to help you succeed in your business. We are a London-based firm that works with people and businesses of various kinds and sizes. Our goal is to help you save effort, cost, and time. So give us a call or set up a free appointment with our expert accountants. They have been practicing accounting for years!

SK Accountants & Tax Consultants Ltd

We provide advanced online accounting, bookkeeping, and business consulting services. We use technology to make compliance more convenient and time-consuming. Our accountants make sure that you are entirely in compliance with all applicable rules and regulations. Our expert team will advise and assist you in saving money through effective operations. This allows you to spend quality time with your family while expanding your business.

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VAT Return, TAX Management, Finance, Accounting and More

We strive to provide bespoke Vat Return and Accounting solutions to tax accountants and businesses. Read our VAT, financial, accounting, and tax-related blogs to get regular updates and information about these categories. We update our blog page regularly thus offer a vast range of topics written by experts. Our professionals provide you so that you can get all information related to the particular niche.

Being an accountant or businessman, you need excellent financial strategy and knowledge of all aspects related to vat return, tax planning, statutory accounts, and more. We are the leading tax consultant in London who work with the focus to provide you the best consultancy and services. Moreover, we strive to give you a complete insight into taxation, payroll VAT, and other accounting aspects. So that you can comply with all tax rules and regulations. Also, you will be able to take action to save money and increase business revenues.

Stay Updated with our High-end Blog Posts Related to Tax Planning, accounting, Payroll, VAT Return, 

Want to know the latest and best part of the VAT return and taxation world? If yes then you are at the right place. We understand that the accounting and tax industries are continuously evolving where a lot of categories and subcategories are available. So, you cannot do the best if you limit yourself to certain knowledge or accounting insights. For this, you need to stay updated on the latest accounting skills, strategies, VAT return policies, finance, accounting management and so much more.

Accounting Professional

Our blog posts are highly helpful for you to grow, thrive and become a successful accounting professional. However, the information you need is under the hand that you can get by just clicking and reading our blogs. We fully understand and research every topic we write about to deliver the most accurate. Get the latest and beneficial information related to tax, VAT, and more. While searching the topics to write blogs, we keep in view all the demands and questions. That may be in the mind of accounts, companies, and business persons. Hence, we ensure you will get the incredible and interesting blogs on our website that are written after thorough research.

We use all the resources and techniques to find interesting and beneficial topics. That can remarkably help you in your tax planning, VAT return policies. You can get other accounting, payroll, and everything that can give your business a boost by optimizing tax liabilities. We are well aware of all the latest news, updates, and information related to tax, VAT, and related topics.

Explore our interesting and conversant blogs to stay updated. Skatax delivers you about the evolving financial, accounting, and tax industry thus accelerate your knowledge.

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What is the procedure for filing a landlord tax return?

Whether you’re a landlord, a small company owner, or a sole trader, the Self-Assessment procedure is basically the same.

  1. Sign up for a Self-Assessment

To get started, you’ll need to sign up for Self-Assessment. If you haven’t already done so, you must register for Self-Assessment by the 5th of October in the tax year following the year in which you began collecting rental revenue.  If you don’t register by the deadline, HMRC may levy a penalty, so be certain to do so as quickly as possible.

When you register, you should be given a user ID and password for the Government Portal. You may use this to create your own personal tax account, which will allow you to handle your taxes online. Once you’ve registered, you may submit your landlord tax return by filling out the Self-Assessment tax return form online or on paper. Making Tax Digital, on the other hand, means that paper tax returns will gradually be phased away.

  1. Keep track of the deadlines for landlord tax return

Each financial year, the deadline for filing your landlord tax return is generally 31 October for paper returns and 31 January for online filings. The deadline coincides with the deadline for filing online Self-Assessment tax returns. There are consequences for missing deadlines, so don’t put off getting yours done.

  1. Sort through your data

It’s vital to maintain track of all of your income and spending so that you can simply locate them when it’s time to file your tax return. According to HMRC, you must keep track of the dates you rent out your property. For instance: All of your money spent and the rent you received. As per HMRC you need to preserve the lease or letting contracts, rent books, receipts, invoices, bank statements, mileage logs, and the cost of the car used for property business and its CO2 emissions for your records.

You also need the costs of any additional capital goods utilized in the property for furnished vacation lettings and commercial premises. Moreover, you must have all the papers pertaining to the purchase of the property.

The software will store much of this information; for instance, accounting software can manage and handle your records for you. You’ll also need your UTR number, which you’ll receive when you apply for Self-Assessment. It’s generally printed in HMRC correspondence about your tax return, but write it down somewhere secure so you can access it quickly when the time is right.

  1. Calculate your landlord’s tax deductions

You can deduct variety of costs from a landlord tax return. These can be deducted from your overall taxable profit. Some common charges are property repair and maintenance expenditures, as well as the replacement of household objects. You can also claim for leasing agent fees, fees for accounting and renting agents, insurance for landlords, and operating expenses. Furthermore, service charges, ground rent, cleaning fees, and advertising expenditures are all included as well.

Mortgage interest tax assistance has been decreased to 25% for 2019-20 and will be nil for 2020-21. It has been replaced with a 20% tax credit on mortgage interest payments.

  1. Complete the landlord tax return

When you fill out your landlord tax return online, the HMRC system reacts to the information you give, eliminating parts that aren’t applicable. It will inquire as to the source of your income, customizing the return to your specific circumstances.

Landlords in the United Kingdom will need to fill out the UK property component, which will notify HMRC about:

  • Rental revenue and other receipts from land or property.
  • Earned money by renting out furnished rooms in your own house.
  • Premiums from land leases in the UK.

 

  1. Payment of your tax

HMRC will compute your tax bill and send it to you. You may check how much you owe if you file online by going to ‘View your calculation.’ The fastest ways to settle your tax due are as follows:

  • Banking through the internet or by phone
  • Chapters (Clearing House Automated Payment System)
  • Online, you can pay with a debit or corporate credit card (personal credit cards are not accepted).
  • At your financial institution or building society
  • You can also pay by Bacs, check, or Direct Debit, although these methods take longer to process.

It’s critical to pay your account as soon as possible since there are consequences for failing to do so.

 

Changes in the tax code for landlords

Government announces the landlord tax adjustments. While we’ve tried to provide a comprehensive list of everything you need to remember for your tax return, the actual amount you owe will be determined by your unique circumstances and how things evolve in the future.

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5 Reasons You Haven’t Received the UK Tax Return Yet

Is your tax refund taking ages to arrive? If you’ve filed your tax return electronically, you should keep calm and wait for at least 21 days. According to the Internal Revenue Service IRS, the average time for a UK tax refund is around 21 days. However, if you are waiting for more than 21 days to get your tax refund amount– you should read this blog.
Before getting to the reasons why your tax refund is delayed, you should check your refund status online. The IRS has a dedicated webpage, “Where’s my refund?” for checking UK tax return status. Go on to this web page to check your refund status. If it doesn’t help as you don’t get enough information on it, you can always call the IRS to get every detail.
DISCLAIMER: You should only call IRS for your UK tax refund if,
• It’s been more than 21 days, and you haven’t received your tax refund.
• The ‘Where’s my refund?” webpage asked you to do so.
6 Reason why your tax refund is delayed
There are several reasons for the delay in your UK tax refunds. It may be because of your mistakes when filing your return or slow processing at IRS. Still, there can be many reasons you haven’t received your tax return yet. Let’s dig deeper to know about the 6 most common reasons for the delay in tax refunds.
A Note: Manually filing your tax return is obsolete and very slow. You should always file your tax return online; it’ll also help you get your tax refund quicker.
1. Errors in your tax return
Any type of errors or omissions in your tax return can cause a delay in your tax refund. The tax return with an error is sent for human review to get it corrected. In case your tax return had some errors, the UK tax refund process could be terminated until errors are corrected. It means you will have to wait for several days or weeks to get your tax refund.
2. Filing an incomplete return
If you’ve mistakenly filed an incomplete return, your tax return will go under review. As a result, the process of your tax return will be halted. The IRS employees will reach out to you with a directive to complete your return or file it again. You can experience a delay in getting the tax refunds until your request is in process.
3. Fall prey to tax fraud
Most people must be familiar with tax fraud. There are various types of tax fraud, including tax refund fraud, in which criminals claim UK tax refunds in your name. Considering the increasing number of tax refund frauds, we suggest you should do some checks as to why you aren’t getting your tax refund. In case you are a victim of tax fraud, immediately report to IRS authorities.
4. Incorrect bank account details
A typo in your bank account number can result in the transfer of a refund to another account. You must be very careful when entering bank details for the direct deposit of your tax refund.
5. Altered tax return details
According to new IRS rules, the taxpayers have to request approval to alter previous tax return details. If you have altered your tax return details to get a tax refund, you’ll have to wait for three weeks until those alterations appear on the IRS system and another 16 weeks to get your tax refund.
6. Tax refund offset for liabilities
IRS can offset your tax refund against any state tax liabilities without any prior notice. If you owe any taxes to the state, you should not expect a tax refund. You are more likely to receive a notice from the federal bureau’s fiscal service. However, you reserve the right to dispute the debt.
Avoid these mistakes while requesting the tax rebate to ensure that you get the tax refunds on time.

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