Did you struggle filing your tax return last month? Xero’s acquisition of Instafile promises to make tax preparation much easier next time around.
Instafile, which is only available through Xero Partners like CloudAccountant.co.uk, automates tax filing and reporting by connecting small businesses directly with tax authorities like HMRC.
If you are self-employed, you can claim back expenses against your income to reduce your overall business profit and the amount of tax you pay.
For example, if you earn £40,000 through self-employment and claim back £5,000 in allowable expenses, your profit will be £35,000, so you will only pay tax on this.
Many of these allowable expenses are obvious. And if you have been self-employed for a few years you will know most of them. But there are certain less obvious expenses that you might not have claimed for.
For personal tax, the new tax year starts on April 6 2018 and brings with it a host of tax changes and new regulations.
Will you get a tax cut or end up paying more?
There will be some winners and some losers this year, but whatever your financial position, you need to know how the changes will affect you.
Here are the five changes that we think are most important for personal finances.
Many Brits like to make some extra income by selling items on eBay or renting out a room on Airbnb, but many are unsure whether they have to pay tax on these earnings.
Now, cloud accountancy software company FreeAgent has warned these online sellers and room sharers that they could face a £100 fine if they don’t submit a tax return and risk further penalties for any outstanding tax.
HMRC is getting more sophisticated at tracking these kinds of online transactions and, as always, ignorance is not an excuse that washes with the taxman.
Cloud Accountant (a part of Umbrella.co.uk) now offer a tax reclaim service through their website.
Many people do not know they can claim tax relief in respect of cleaning your own uniforms or protective clothing, some union and professional subscription fees and tools or equipment you have bought personally to enable you to do your job.
Christmas is a popular time for submitting Self-Assessments to HMRC ahead of the 31 January deadline.
Last year, 16,000 people submitted their tax return online between 24 and 26 December. This included more than 2,500 submissions on Christmas Day and almost 7,700 the day after on Boxing Day.
More than 17,000 people also submitted their Self-Assessments on the New Year’s Day bank holiday.
A majority of British businesses agree that the cost of complying with the UK tax system has increased in recent years, according to new evidence from the British Chambers of Commerce (BCC).
A BCC survey of 1,100 firms found that three-quarters of businesses believe that the overall burden of tax administration and compliance has increased compared to five years ago.
The Government has granted HMRC strong new powers to make sure that online sellers are paying the right level of tax.
The key changes force online marketplaces like Amazon and eBay to clampdown on online sellers that aren’t paying the right level of VAT.
First announced in the Chancellor’s Autumn Budget in 2017, the new rules took effect last week.
They are designed to create a fair playing field between businesses that abide by tax laws and UK and international companies that flout them.
Financial Secretary to the Treasury, Mel Stride, said: “Whilst the honest majority pay what they owe, some businesses that sell goods online to UK shoppers are failing to pay the correct amount of VAT.
With the January 31 tax deadline fast approaching, accounting software company FreeAgent has warned anyone earning money through Airbnb, eBay, Gumtree and other websites to check their tax status before they land in hot water with HM Revenue and Customs.
FreeAgent believes that many people earning money on these sites are not aware that they need to declare the income.
Failing to pay before the January 31 self-assessment deadline will result in an automatic £100 fine. And after HMRC announced a new computer-powered crackdown on ‘sharing economy’ microbusinesses, many individuals could face further penalties for not paying tax owed.
From 6 April 2016 most companies have been required to hold a register detailing all the 'people with significant control’ (PSC) in the business. So far, guidance is not clear about the consequences of non-compliance, but the possibility of criminal charges or the prospect of HMRC investigations should be enough to get any company to fill in the form.
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