Over 746,000 people missed the UK tax deadline to file their self-assessment tax return, risking a fine of £100 or more.
The HMRC have said that despite the high amount of late filers, 2018 has reached record numbers for taxpayers filing on time.
Angela MacDonald, director general for customer services at HMRC said
“ If you’re one of the small number that missed the deadline, please submit your return now to avoid further penalties. We really don’t want penalties, we just want tax returns.”
The current HMRC point system I place means that the HMRC are able to demand a penalty of £100 for late filing during the first three months after the deadline. After the three months, additional penalties of £10 per day can be demanded, up to a maximum of £900, followed by a further six and 12 months after the deadline.
In serious cases, if you’re more than 12 months over due with your tax return you may be asked to pay up to 100% of the tax due as well as any tax you owe, thus doubling the payment.
Should you have filed a tax return?
You must fill in a tax return if:
· you're self-employed, a business partner, or director of a limited company
· you're an employee or pensioner with an annual income of £100,000 or more
· you have a pre-tax investment income of £10,000 or more
· you're a 'name' at the Lloyd's of London insurance market
· you're a minister of religion
· you're a trustee or representative of someone who has died
I’ve missed the tax deadline, what can I do to avoid a fine?
If you have a genuine reason why you missed the tax deadline the HMRC may waive the penalty for a late return if you can provide a ‘reasonable’ excuse.
The HMRC states that a reasonable excuse for missing the deadline is ‘normally something unexpected or outside of your control that has stopped you meeting a tax obligation’.
· Death of a partner
· An unexpected serious illness
· Computer failure
Nationwide, it is becoming more and more difficult be granted an appropriate-sized mortgage. The number of people going self-employed within the UK is increasing every year, with self-employed workers now accounting for 15% of the working population (Jones, 2018).
There are a number of problems currently associated with being self-employed, i.e. the pension crisis and getting a mortgage. This article focuses on how to get a mortgage as a self-employed individual. Research has shown that 30% of self-employed homeowners feel that the mortgage process is biased (McDowell, 2018).
As a self-employed consultant you are likely to have several running costs and expenses. Theses costs and expenses should be taken away from your business income to work out your profits. Not all expenses are allowable for tax purposes, it is therefore important to be aware of you what you are and aren’t allowed in order to save money against tax and avoid a HMRC enquiry.
Chancellor Phillip Hammond’s release of the 2018 Autumn Budget revealed a number of changes for small business owners. Below is a brief summary of some of the changes small business owners should be aware of.
If you have stopped trading as a sole trade or you’re ending/leaving a business partnership then you must notify the HMRC. This will trigger the cancellation of your Class 2 National Insurance.
Currently there are over 2,200 families on the waiting list for Kensington and Chelsea social housing. Which compared to the 11,000 houses currently available, presents a huge issue for councils finding the families accommodation. The council has already spent its entire reserves of £230m on new housing for the Grenfell tower survivors, whom all fall into their borough.
Stamp duty is an area of much dispute and change in UK tax. Currently, you usually pay Stamp Duty Land Tax (SDLT) on increasing portions of your property’s price above £125,000 (for residential properties, like a house of flat).
The amount of Stamp Duty you owe can vary depending on whether or not the property is your first home and the purchase is £500,000.
Statutory accounts (commonly known as annual accounts) are financial reports that must be prepared and filed at the end of each financial year. For UK private limited companies statutory accounts are a compulsory part of the tax year.
As a business owner it is important to be aware of your companies tax obligations and liabilities. There are a number of taxes that small businesses are required to pay. Below is our breakdown of the taxes you should know about as a business owner:
The October 15th US tax deadline is just around the corner. Below we have put together a brief outline of how to get started and avoid the harsh penalties of the IRS’s long arm:
Inspired off of the Jean Royère’s furniture designs we went to see yesterday (pictured above) in the spirit of London Design Week, we have put together a brief guide for our clients on some of the expenses you can claim as a furniture designer.
There are generally much expenses incurred while working as a furniture designer than other freelance professionals. For instance, the cost of raw materials and machinery. Raw materials and any equipment required to assemble the furniture are all claimable against tax, assuming that you are buying both.