It's April and this means the end of the previous tax year and start of the next. HMRC's personal tax year runs from 6th April to 5th April each year.

The start of the new UK tax year from 6.4.18 means there are new opportunities and new rules and allowances that now apply. So, it is a good time to take a moment and work through what is best for you and your personal circumstances to make them more tax efficient and plan and budget for the coming year.

The UK government and HMRC are ramping up their collection system and enforcement to try to get as much money in to pay for Brexit and other services etc so it’s up to each individual to become more vigilant to how they may end up with less in their pocket than previously.

Checking your income tax code regularly is now a necessity. Call HMRC immediately if something looks incorrect or out of the norm. Tax codes can often be incorrectly produced if there is a slight mix up in info and recent news reports have highlighted more changed tax codes than usual.

Complete your personal tax return for 17/18 early. It’s not worth waiting till 31st January 2019 when its actually the payment deadline day to work out how much tax is due if your self-employed because if you are owed a tax refund this means waiting till Feb / March 2019. Also, if you do owe tax then you have 9 months to plan and budget to pay for the sooner you know how much is due.

The personal tax-free allowance goes up to £11,850 from £11,500 and dividend tax allowance falls to £2000 from £5000, similar movements with other allowances means it helps to plan ahead to decide which year to receive and declare income. A good tax accountant can help with this - note an average bean counter (accountant) does not normally keep up to date with rapidly changing tax rules and regulations so may not be able to help.

We always recommend you speak to an expert tax accountant - they should save you far more in tax than they ever charge plus their fees are tax deductible - so it’s a win, win situation if your serious about planning ahead and paying less tax the correct way.

By Anni Khan at Tax Affinity Accountants

Tax Affinity Accountants are experts in Tax and Accountancy. With branches in Surbiton , Worcester Park , Kingston upon Thames , Cheam and Epsom they are considered in the Industry to be expert accountants and tax advisors for small businesses. Helping and supporting business throughout the UK, they regularly help clients grow their business providing tailored advice and support.

For more information visit www.taxaffinity.com. To read more interesting articles like this visit www.taxaffinity.com/blog. Please feel free to comment and share this with your friends.

Each year we receive thousands of pounds of HMRC refunds for CIS contractors that had tax deducted at source. And as the tax year 17/18 (ie year ended 5/4/18) comes to an end a claim for a CIS refund can be put it as early as 6/4/18.

With a 6 to 8 week turnaround by HMRC to check and pay out the refund its worth getting your CIS tax return done as early as possible to ensure a quick refund.

HMRC will not remind you of a refund balance due, and will cancel the tax payers ability to claim it back after 5 years have lapsed from the end of the tax year it was applicable in. So there is a limited amount of time to claim the CIS refund and if left to long HMRC will not refund it.

If you want help with your CIS tax return for year ended 5/4/2018 then please get it touch as soon as you can. With our tax expertise and specilist tax software that connect directly to HMRC we can calculate and submit the best return for you ensuring the highest refund that can be correctly claimed.

By Anni Khan at Tax Affinity Accountants

Tax Affinity Accountants are experts in Tax and Accountancy. With branches in Surbiton , Worcester Park , Kingston upon Thames , Cheam and Epsom they are considered in the Industry to be expert accountants and tax advisors for small businesses. Helping and supporting business throughout the UK, they regularly help clients grow their business providing tailored advice and support.

For more information visit www.taxaffinity.com. To read more interesting articles like this visit www.taxaffinity.com/blog. Please feel free to comment and share this with your friends.

In a nutshell it was typical political waffle and little substance. But what we want to know and what our clients want to know is what it means for them. Well check out the simple list below to save time and get straight to the main factual points.

• Minimum wage rates expected to keep rising. The National Living Wage will rise to £7.83 per hour from April 2018 - meaning more pressure on small business as wage costs rise and sales decrease, leading to further staff cut backs or new ways to automate work with fewer staff needed e.g. self-service.
• Country still has debt interest payments of £50 billion per year as before - no surprises there.
• £1.5 billion has been allocated to departments to prepare for Brexit in March 2019 - meaning less to spending on other areas such as NHS etc.
• £1.67 billion to be given to London to start building a further 27,000 affordable homes by end of 2021-22 - 27,000 properties for a city that houses 8.63 Million people (last count in 2017) means nothing much happening and developers pocketing the vast amount of the money and selling the flats at 300k plus. But there will be work for skilled professional tradesmen / women as sites get redeveloped.
• Consultation on a new VAT collection mechanism for online sales - e.g. Ebay, Amazon, Airbnb etc. sellers are to be targeted further as already explained on previous blogs. HMRC wants the tax on this hidden income and Ebay and Amazon have already cut deals with HMRC to not look at their own finances and instead give will happily provide HMRC info on sellers on their websites.
• Consultation on tax changes to discourage use of single-use plastic, including takeaway boxes and disposable cups - like plastic bag charge of 5p.
• Next revaluation of business rates to be brought forward by one year to 2021 - a lot of businesses ended up with nil business rates for small shops and double or more for large shops in the last change in April 2017. Meaning larger shops are becoming empty in out of town areas and the lack of government income from smaller units. Do they increase small unit from nil and reduce for large? - We think so it’s the likely outcome for 'no idea what it’s like to be self-employed' civil servants in Whitehall.
• Consultation launched on the role of cash in the new economy, including future demand for 1p and 2p pieces and £50 notes. Basically the most significant hidden point in the whole statement, basically it means they want to move to a European style system where everyone has to provide a receipt for work and cash payments above a certain amount are no longer permitted. The plan in the small print of actual statement (not speech) say they want to crack down on cash-in-hand payments and the government expects to rake in as much as £3.5 billion a year in tax from cash payments.
  

By Anni Khan at Tax Affinity Accountants

Tax Affinity Accountants are experts in Tax and Accountancy. With branches in Surbiton , Worcester Park , Kingston upon Thames , Cheam and Epsom they are considered in the Industry to be expert accountants and tax advisors for small businesses. Helping and supporting business throughout the UK, they regularly help clients grow their business providing tailored advice and support.

For more information visit www.taxaffinity.com. To read more interesting articles like this visit www.taxaffinity.com/blog. Please feel free to comment and share this with your friends.

All Personal Tax returns (self assessments) have to sent to HMRC by 31.1.18 and anytime after that will incur an automatic penalty of £100, which can rise up to £1300 the longer it remains outstanding. This is even if you had no tax due, as its a penalty for late submission not late payment of tax. Late payment of tax can incur more fines and interest upon the amount calculated at a daily rate.

Below is a list to help explain the fines process:

1. Three months late: You will receive a £10 fine for each day that it is late for the length of 90 days (£900) that is also on top of the £100 which gives a total of £1000.
2. Six months late: Along with the penalties already received you will either face a fine of 5% of the tax return amount or £300 and it is likely to be the one that is the highest.
3. In extreme cases HMRC could request 100% of the tax return amount meaning that your payment would be doubled.

Also penalties can be issued for incorrect tax returns:

1. If reasonable care has been taken: No penalty.
2. If seen as careless: 0-30% of extra tax owed.
3. Deliberate underestimation: 20-70%.
4. Deliberate underestimation and attempt to conceal: 30-100%.

Therefore it makes sense that everyone should seek the help and support of an experienced and qualified accountant or tax advisor. As a reputable firm of accountants, such as Tax Affinity Accountants, will usually save you far more money in saved taxes through their skill and knowledge than they will ever charge. Leaving you more time and money to concentrate on your business, especially in these difficult economic times.

By Anni Khan at Tax Affinity Accountants

Tax Affinity Accountants are experts in Tax and Accountancy. With branches in Surbiton , Worcester Park , Kingston upon Thames , Cheam and Epsom they are considered in the Industry to be expert accountants and tax advisors for small businesses. Helping and supporting business throughout the UK, they regularly help clients grow their business providing tailored advice and support.

For more information visit www.taxaffinity.com. To read more interesting articles like this visit www.taxaffinity.com/blog. Please feel free to comment and share this with your friends.

As of today there are only 16 working days till the 31st January 2018, which is HMRC's online self assessment deadline. Our team of experienced tax accountants, some who have worked in the top 5 accounting firms in the UK, advise everyone to make haste and ensure their tax return is done early to both minimise tax and the chance of late filing penalty.

The submission of the personal income tax return and the payment of any tax and NI due for the period 6/4/16 to 5/4/17 is midnight 31/1/18. And anyone who has not yet had their tax return done should start to worry about the 'up to £1300 fine plus interest on late paid tax' imposed by HMRC for missing the deadline. To put it further in to perspective there is an immediate penalty of £100 if the return even one day late.

The self assessment / personal tax return is required from the following types of people:

1. Self Employed (even partially) during the tax year 16/17 ie 6/4/16 to 5/4/17
2. Employed and earning over 100k for the year ended 5/4/17
3. Director or shareholder of a Company and taking dividends in the period as above
4. If you have received rental income in the period 6/4/16 to 5/4/17
5. You received savings and investments income in the period 6/4/16 to 5/4/17
6. You sold something and made a profit on the item, so are required to pay the Capital Gains Tax (CGT) eg selling shares, a property, an antique, Plant and Machinery etc
7. You have received income over £50,000 and you claimed Child Benefit
8. If you have not notified HMRC that you have left self employment and they have not confirmed that you do not need to do a 16/17 return
9. A letter / email / text from HMRC has been received by the tax payer advising them that they need to submit a tax return for the 16/17 year (note: only new registrants may get a reminder as HMRC expects old registrants to already know the deadlines and protocols required).
10. You received income from overseas including off shore companies (the law has changed)
11. You lived abroad and had income from the UK
12. You are retired and receive more than one type of pension and annual income payment pushing you over the personal income allowance
13. You have had a P800 from HMRC saying you have not paid enough tax in the year
14. You are  minister of religion or and Underwriter
15 Even if a person has died they may still need to submit a tax return to make sure they have paid the correct tax and those that receive an inheritance may need to pay for Inheritance Tax (HMRC will advise further).
16. If you have received a P11d and not paid the correct tax for the benefit in kind eg company car, private medical, gym, travel etc

So if you haven't already had your tax return done and still need to send / drop in your income and expenses information, please take heed of this reminder.

For those that have handed in their information, we will make sure it is done before the deadline and if there is any tax due we will advise you of this well before the deadline. We can even have your deadline extended in some cases as we are a registered authorised agent for HMRC.

And if your thinking of using an accountant - then make sure to note, not all accountants are the same. We recommend you use an expert in tax so he/she saves you far more in tax than you ever have to pay them for their service. A lot of accountants are using out of date knowledge they learned along time ago and never bother to keep up to date with the ever changing landscape of HMRC tax rules and regulations.

With fines up to £1300 plus interest on the amount of tax due. This means for some, the penalties can be much greater than the actual tax that would have been due. So don't delay, as you have little time left. And in the unfortunate even that you do miss the deadline  - most excuses and appeals are rejected by HMRC.

If you would like to contact us about having your tax return done by an experienced tax accountant then go to our contact us page and tell us your requirements today.

By Anni Khan at Tax Affinity Accountants

Tax Affinity Accountants are experts in Tax and Accountancy. With branches in Surbiton , Worcester Park , Kingston upon Thames , Cheam and Epsom they are considered in the Industry to be expert accountants and tax advisors for small businesses. Helping and supporting business throughout the UK, they regularly help clients grow their business providing tailored advice and support.

For more information visit www.taxaffinity.com. To read more interesting articles like this visit www.taxaffinity.com/blog. Please feel free to comment and share this with your friends.

Wishing you a Merry Christmas and Happy New Year from all at Tax Affinity Accountants!
 
Please note we will be closed from:
The 25th Dec 2017 to 1st of Jan 2018.  Other than these dates we will be open as normal Mon-Fri (10am - 6pm)

By Anni Khan at Tax Affinity Accountants

Tax Affinity Accountants are experts in Tax and Accountancy. Based in Worcester Park and Kingston upon Thames they are considered in the Industry to be expert accountants and tax advisors for small businesses. Helping and supporting contractors and self employed people throughout the UK, they regularly help clients grow their business providing tailored advice.

For more information visit www.taxaffinity.com. To read more interesting articles like this visit www.taxaffinity.com/blog. Please feel free to comment and share this with your friends.

With all the negative news currently in the media and retail sales warnings issued by a few large retailers (who may be using this as an excuse) in the run up to Christmas and New Year 2017. Its a good time to ignore the 'nay sayers' and pro-actively look at what positive steps can be taken to ensure your business sales and profits rise or at the very least stay level with previous years.

So we've compiled a short list based on our extensive experience and industry wide knowledge.

1. Go where the money is - be adaptable and look to see what is selling and sell more of that and stock less that which is in less demand. If its a different product or service that you don't offer consider adding this.
2. Give the customer what they want not what you want - listen to them and understand them properly and give them what they are looking for. Your customer will tell you how to keep things going in your business. Ask them, remember you have two ears and one mouth, use them in that proportion.
3. Make an offer they cant refuse - when things are difficult for a client make sure you have offers and special deals like the supermarket and larger traders do to entice them. This may mean offer something at a low price with the plan to sell another product/service that compliments that item and will make more profit.
4. Keep an eye on competition - make sure your business is not lagging behind on the four P's of the marketing mix - Product, Price, Promotion, Place. All four need to be excellent to ensure growth in a downturn.
5. Give away stuff to entice people to keep visiting - This doesn't mean give everything away at a knock down price, but more specifically could mean a good chance to clear out old stock items and have more space by getting rid of it at cost price. The customers get a good deal and you keep the cash-flow coming in.
6. Don't use bad economic conditions as an excuse - stay focused and think positive, don't listen to negative sources of information, look at the positive sources as well. Many large retailers have a positive outlook, its just  that media outlets like to dwell on negativity as bad news sells better than good. Compare your business to the bigger companies and see what they are doing and what you can do as well. The Director /  CEO that thinks and plans positively is the one that drive their business forward.

By Anni Khan at Tax Affinity Accountants

Tax Affinity Accountants are experts in Tax and Accountancy. Based in Worcester Park and Kingston upon Thames they are considered in the Industry to be expert accountants and tax advisors for small businesses. Helping and supporting contractors and self employed people throughout the UK, they regularly help clients grow their business providing tailored advice.

For more information visit www.taxaffinity.com. To read more interesting articles like this visit www.taxaffinity.com/blog. Please feel free to comment and share this with your friends.

Some of the main points for self employed and business owners from the UK Chancellor's Autumn budget announcement 22/11/17.

• Tax-free personal allowance on income tax to rise to £11,850 in April 2018 before £11,500
  
• Higher-rate tax threshold to increase to £46,350 before £43,000.
  
• VAT threshold for small business to remain at £85,000 for two years, same as before.
  
• £540m to support the growth of electric cars, including more charging points, remains to be seen.
  
• A further £2.3bn allocated for investment in research and development, remains to be seen.
  
• Rises in business rates to be pegged to CPI measure of inflation, not higher RPI, remains to be seen how it effects rates in 'real' terms.
  
• Digital economy royalties relating to UK sales which are paid to a low-tax jurisdiction to be subject to income tax as part of tax avoidance clampdown. Expected to raise about £200m a year, ie Ebay and Amazon sellers etc will be effected.
  
• Short-haul air passenger duty rates and long-haul economy rates to be frozen, paid for by an increase on premium-class tickets and on private jets, remains to be seen.
  
• National Living Wage to rise in April 2018 by 4.4%, from £7.50 an hour to £7.83. Bad news for employers as wages bills will rise.
  
• Fuel duty rise for petrol and diesel cars scheduled for April 2018 scrapped, ok but nonsense really as the prices vary so much from pump to pump and depends on which day you purchase also.
  
• Vehicle excise duty for diesel cars that do not meet latest standards to rise by one band in April 2018, bad news for older vehicles.
  
• Tax hike will not apply to van owners, no change then.
  
• Existing diesel supplement in company car tax to rise by 1%, bad news for diesel owners.
  
• Stamp duty to be abolished immediately for first-time buyers purchasing properties worth up to £300,000, good news to help push sales.
  
• To help those in London and other expensive areas, the first £300,000 of the cost of a £500,000 purchase by all first-time buyers will be exempt from stamp duty, good news to help push sales.
  
• 100% council tax premium to be levied on empty properties, bad news for landlords.
  
• Young person's railcard extended to 26-30-year-olds, good news for students and reduce travel for younger employees.
  

By Anni Khan at Tax Affinity Accountants

Tax Affinity Accountants are experts in Tax and Accountancy. With branches in Worcester Park, Kingston upon Thames, Cheam, and Surbiton they are considered in the Industry to be expert accountants and tax advisors for small businesses. Helping and supporting companies, contractors and self employed people throughout the UK, they regularly help clients with their payroll and pension. And help grow their business by providing tailored advice.

For more information visit www.taxaffinity.com. To read more interesting articles like this visit www.taxaffinity.com/blog. Please feel free to comment and share this with your friends.

Deadline: 31st October 2017 for Paper Tax Returns

For everyone already registered with HMRC for the tax year 6/4/2016 to 5/4/2017 they are required to submit their paper tax return by the 31st October 2017. And then to pay all tax and National Insurance payments for that period by the 31/1/18.

So if you have to declare a tax return for 2016/17 year then we urgently recommend you contact a reputable and experienced tax accountant like Tax Affinity Accountants (one of the most highly recommend companies in the accounting industry) as soon as possible.

It is of course possible to submit a tax return yourself and HMRC will direct you to do this, but what they purposefully fail to clarify is what various expenses and industry specific allowances are allowed to be claimed as legitimate deductions to help decrease your tax bill.

And a good accountant, as any successful entreprenur will tell you, is usually worth his/her weight in gold when it comes to getting your numbers right and paying the correct and least amount of tax.

At Tax Affinity Accountants our motto is that 'an accountant should legally save you far more in tax than they should ever be charging for their service' ensuring every client gets the very best service at a fair and reasonable cost. So our service more than pays for itself for all our clients.

So if you have to do a 2016/17 tax return (or any other year) and would like us to help you. Or are already one of our very satisfied customers then please get in touch with us as soon as possible and avoid the late rush and have the most time put into your accounts.

By Anni Khan at Tax Affinity Accountants

Tax Affinity Accountants are experts in Tax and Accountancy. With branches in Worcester Park, Kingston upon Thames, Cheam, and Surbiton they are considered in the Industry to be expert accountants and tax advisors for small businesses. Helping and supporting companies, contractors and self employed people throughout the UK, they regularly help clients with their payroll and pension. And help grow their business by providing tailored advice.

For more information visit www.taxaffinity.com. To read more interesting articles like this visit www.taxaffinity.com/blog. Please feel free to comment and share this with your friends.