The Smart Move: Why You Should Use a Tax Accountant for Your Self-Assessment

In the world of personal finance, few things are as certain as taxes. Each year, individuals across the globe prepare to navigate the labyrinth of tax regulations, deductions, and forms required for their self-assessment. While some opt for the DIY approach, a growing number are discovering the numerous benefits of enlisting the expertise of a tax accountant. In this blog post, we'll explore why using a tax accountant for your self-assessment is not just a smart choice but often a financially savvy one.

 1.   Expertise and Knowledge: Tax accountants are professionals who specialize in tax laws and regulations. They stay up-to-date with the latest changes in tax codes and have the experience to navigate complex financial situations. This expertise can help you minimize your tax liability legally.

 2.   Maximize Deductions and Credits: Tax accountants have a keen eye for identifying deductions and credits that you might overlook. Their attention to detail can result in significant savings, ensuring you're not paying more taxes than necessary.

 3.   Reduce Stress and Save Time: Preparing your own taxes can be time-consuming and stressful. It often involves sifting through a mountain of paperwork and deciphering intricate tax jargon. Hiring a tax accountant frees up your time and reduces the stress associated with tax season.

 4.   Avoid Costly Mistakes: Filing taxes incorrectly can lead to penalties and audits. Tax accountants are trained to minimize errors and ensure that your return is accurate, reducing the risk of costly mistakes that can haunt you later.

 5.   Year-Round Assistance: A tax accountant's support isn't limited to just tax season. They can offer financial advice throughout the year, helping you make informed decisions to optimize your tax situation and financial health.

 6.   Audit Protection: If you're audited by tax authorities, having a tax accountant on your side can be invaluable. They can guide you through the audit process and ensure that your rights are protected.

7.    Customized Strategies: Tax accountants can create personalized tax strategies that align with your financial goals. They consider your unique circumstances to help you make the most of available tax benefits.

 8.   Peace of Mind: Perhaps one of the most valuable aspects of hiring a tax accountant is the peace of mind it brings. Knowing that a professional is handling your taxes can alleviate anxiety and allow you to focus on other aspects of your life.

 9.   Cost Savings: Contrary to common belief, hiring a tax accountant can often result in cost savings. The deductions and credits they can uncover, combined with the reduction in errors, can more than offset their fees.

10.    Legal and Ethical Compliance: Tax accountants operate within the bounds of the law and adhere to ethical standards. This ensures that your taxes are filed ethically and legally, eliminating any worries about potential legal repercussions.

In conclusion, the decision to use a tax accountant like Tax Affinity for your self-assessment is an investment in your financial well-being. Their expertise, ability to maximize savings, and dedication to compliance can make the process smoother, more accurate, and less stressful. Ultimately, it's a smart move that can pay dividends in terms of both financial savings and peace of mind. So, this tax season, consider enlisting the help of a tax accountant like Tax Affinity and reap the rewards of a stress-free and financially optimized experience.

By Anni Khan at Tax Affinity Accountants

Tax Affinity Accountants are the number rated and recommended Tax Accountants in London. With branches in Worcester Park and Kingston upon Thames and Epsom and Ewell they are considered in the Industry to be expert business accountants and tax advisors for both individuals and small & medium sized businesses (SME's). Helping and supporting both individuals and limited company owners / self employed people throughout the UK and the world, they regularly help clients grow their business providing tailored advice and support. Their support has been considered invaluable by many clients and key to their success.

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.

Tax Affinity Accountants are rated as experts in Tax and Accounting Industry and because of our experience and expertise with Tax we can help clients to both legally minimise their tax and make the best plans for the future.

We never recommend breaking any rules but instead using our expertise know that there is more than enough scope with the framework to legally reduce taxes and still have the peace of mind. And because we stay abreast with the latest changes and developments we are are always at the forefront of advising clients when things change.

And you know your in safe hand because Tax Affinity are experts in tax law with a good working relationship with HMRC. There to there to help and support clients if they are involved in a HMRC tax or VAT investigation or have a Worldwide Disclosure / Let Property Campaign letter etc to respond to. We are always able to successfully support and guide clients to the best possible outcome. Just ask one of our many happy clients who sing our praises.

Below is a list of just some of the things we can help with. If what your looking for is not listed we most likely are still able to do it but just didnt want to make the list too long.

Give us a call and have a chat with one of our tax experts or come into one of our high street branches - we will be happy to help.

-          Inheritance tax planning for landlords with estates between £1million - £250million
-          Capital gains tax planning
-          Transferring properties into a limited company - Incorporation
-          Offshore tax planning
-          HMRC Tax and VAT Investigations
-          Code of Practice 8 and 9 investigations
-          Alternate Dispute Resolution
-          Tax Tribunals
-          Forensic Accounting
-          Worldwide Disclosure Facility
-          Let Property Campaign
-          HMRC Check of Self Assessment / Tax
-          Contractual Disclosure Facility (CDF)
-          Code of Practice 8 / 9 / 11 / 14
-          Section 144 Enquiry
-          Section 12A TMA 1970 Notice Investigations
-          Code of Practice 11 (Local Compliance Offices)
-          Code of Practice 14 Investigation (Company Tax Return Investigations)

By Anni Khan at Tax Affinity Accountants

Tax Affinity Accountants are experts Business, Tax and Accountancy. With branches in Worcester Park and Kingston upon Thames and Epsom and Ewell they are considered in the Industry to be expert business accountants and tax advisors for both individuals and small & medium sized businesses (SME's). Helping and supporting both individuals and limited company owners / self employed people throughout the UK and the world, they regularly help clients grow their business providing tailored advice and support. Their support has been considered invaluable by many clients and key to their success.

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.

The new UK Chancellor (yes another one...can you believe the UK had 4 Chancellors in 4 months in 2022) has given his first budget. And as before we have refined the main points and facts for business owners including SME's and entrepreneurs. So you can easily navigate and plan ahead with clarity.

The main points from the budget are:

1. Energy price guarantee for homes will remain at £2,500 extended for only 3 months until end of June. It was set to rise to £3,000 but that has now been cancelled. And no new support announced for business bills.

2. Corporation Tax for a limited company will rise from 19% to 25% from 6th April 2023. Small company's with profit of less than £50k will still pay the lower 19%. But companies with profits between £50k to £250k have to pay between 19% and 25% but are allowed to claim marginal relief. Company profits over £250k will be taxed at 25%. And companies with group ownership of other companies may end paying close to 26.5% (effectively) because the corporation tax for Group Companies was increased also - sadly all important details missed by the main stream media.

3. Tax-free yearly allowance for pension cash out to rise from £40,000 to £60,000 after being the same for the past 9 years.

4. Fuel duty (tax) frozen so the 5p cut to fuel duty/tax on petrol and diesel which was due to end in April, has been extended for another year.

5. Maximum amount a worker can accumulate in pensions over their lifetime before paying extra  tax currently £1.07 Million will be cancelled. Now there is no limit.

6. Tax on tobacco to increase by 2% above inflation for normal and 6% above inflation for hand-rolling tobacco.

7. Those who are already drawing down on their pensions, the total amount they can save tax free under the Money Purchase Annual Allowance is increased from £4,000 to £10,000 from April 2023.

8. 30 hours of free childcare for working parents in England expanded to cover 9 months to three year olds.

9. New £600 "incentive payment" for people becoming childminders, and the rules have been changed in England to let childminders look after more children.

10. Immigration rules to be relaxed for five roles in the construction sector, to ease labour shortages in the Industry. These categories are:

• Bricklayers & masons
• Roofers, roof tilers and slaters
• Carpenters and joiners
• Construction and building trades n.e.c
• Plasterers

11. Super deduction of 130% will end on 31/03/23 and move back to 100% AIA for plant and   machinery purchased and can be used directlty against corporation tax payable. A list of typical purchases is lasting until 31/03/26:

• computer equipment and servers
• tractors, lorries, vans
• ladders, drills, cranes
• office chairs and desks
• electric vehicle charge points
• refrigeration units
• compressors.

If your worried how these will effect you and need more specific guidance to help your business carry on growing during turbulent times then contact one of our Tax Affinity expert business advisors today (click here). With their countless years of knowledge and expertise they can guide your business to success even in the toughest of economic conditions.

By Anni Khan at Tax Affinity Accountants

Tax Affinity Accountants are experts Business, Tax and Accountancy. With branches in Worcester Park and Kingston upon Thames and Epsom and Ewell they are considered in the Industry to be expert business accountants and tax advisors for both individuals and small & medium sized businesses (SME's). Helping and supporting both individuals and limited company owners / self employed people throughout the UK and the world, they regularly help clients grow their business providing tailored advice and support. Their support has been considered invaluable by many clients and key to their success.

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.

Economic conditons rise and fall but one thing is certain the most successful small to medium sized businesses always keep growing and increasing their profits. So how do they do that? Well here at Tax Affinity we are expert business advisors and we help and support thousands of business owners in the UK and overseas with exactly that.

Giving business owners tailored and specific advice to help keep their business growing and increasing in profits no matter what the economic conditions. In short giving everyone the same level of guidance and support that large corporate CEO's get but for a fraction of the price.

Why? Because we feel everyone should have access expert support especially small and medium sized businesses because they are the engines and driving force of every economy.

So here is a quick list to get you started and when you need more specific and tailored support contact us and we will be happy help.

1. Change the way you do things 
Simply you will need to generate more sales while decreasing expenses. Sounds easy but in reality it can be quite hard. To increase your sales you may have to change the way you do business and start offering new goods and services that complement your current goods and services.

To reduce expenses, keep an eye on expenses and start to identify which ones are excessive and a waste of income. Find out if some parts of your admin work that can be outsourced to reduce wages bills eg accountancy, payroll, vat etc. We at Tax Affinity often help clients by taking over the work load from business owners helping them cut costs and increase profit. Look closely at employees and identify the ones who are less productive and cut down their hours to part time from full time or simply let them go. Switch suppliers of utilities and explore new cheaper or free energy sources such as solar power or a rain collection tanks on the roof for the washrooms.

2. Motivate new customers to try your product/service
Another quick fix to increase profits is motivating new customers to try your products and services with specials deals, discounts, or short-term giveaways. Maybe think about a relationship-based sales model that gets customers coming back by offering monthly or annual subscriptions, or a grouped bundle of visits at a discounted price.

3. Stay in front of the customer make sure to be available
See what can sets you apart from your competition. Regularly check and promote your positive reputation. Use your website, emails and social media to connect with clients. Think about sharing advertising with a complementary business and find ways to get referral sales using affiliate marketing to get new customers. Plus get rid of old, unproductive business alliances that may be dragging you down. Check their reputation - if they are going down then your perceved to be the same too by association. Do more marketing and networking by setting up group meetings online, offer online downloads and access to shared info.

3. Maximising your cashflow 
Cashflow is king and making sure you always have enough is very important. Chase customers to pay on time and make sure that you add charges for late or delayed payments. If they do pay late then you will be paid more. Some people say offer a reduced monthly payment plan to lock in clients longer term, we don't agree because its a universal law that the cream always rises to the top and the best don't discount because they are the best. Get better instead of cheaper.

4. Dump useless employees
All businesses have employees who steal, or work purposely slow etc. Identify them and replace them with new more enthusiatic and efficient ones. They are just another asset in the business and your not responsible for them and their families. They should have bore that in mind before being lame at work. Think about automation which may allow your business to use software or robots for work and reduce monthly wages bills .

5. Make Everyone a Salesperson
From telephone to email to face-to-face meetings, every employee has the opportunity to spread your company's message and engage in potential sales-generating behavior. Everyone needs to pitch in to help by cutting costs, selling, networking on the web, marketing, and more.
If you can get your employees invested and motivated to sell your message by encouraging self-development through roundtables, conferences, lunch meetings, and webinars you'll be well on your way to creating an organization that is built around increasing profits.
Remember, it pays dividends to reward your employees that seek continuing education, or who make an extra effort to represent the company inside and outside of work.

By Anni Khan at Tax Affinity Accountants

Tax Affinity Accountants are experts Business, Tax and Accountancy. With branches in Worcester Park and Kingston upon Thames and Epsom and Ewell they are considered in the Industry to be expert business accountants and tax advisors for both individuals and small & medium sized businesses (SME's). Helping and supporting both individuals and limited company owners / self employed people throughout the UK and the world, they regularly help clients grow their business providing tailored advice and support. Their support has been considered invaluable by many clients and key to their success.

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.

On 17/11/2022 Jeremy Hunt the Chancellor for the UK Governments expressed their plans for the coming year and the contents of his autumn budget. As before we have read thorugh the detailed report and listed the main bullet points for small business and the self employed.

Personal Income Tax
There are no changes to the personal tax thresholds. And they will remain at the current level until April 2028. This also includes the National Insurance Contribution threshold for PAYE and self employed. Minimum wage for people aged over 23 to increase from £9.50 to £10.42 an hour from April 2023

Company Dividend Tax-Free Allowance (DIV)
The dividend tax free allowance threshold will be reduced from £2,000 to £1,000 from April 2023. And this will be reduced even more in 2024-25 to £500.

Additional Rate of Income Tax (Higher Tax band)
From April 2023, the higher rate band will be reduced from £150,000 to £125,140. Which means anyone earning above £125,140 will now be taxed at the 45%. Apart for Scotland.

Annual Investment Allowance (AIA)
The Annual Investment Allowance will be permanently set at £1 million to help promote growth in the economy.

Corporation Tax (CT600)
From April 2023, the Corporation Tax is due to increase to 25% if a company’s profits exceed £250,000. Companies whose profits are between £50,001 to £250,000 will be subject to a tapered relief. Companies whose profits fall below £50,000 will remain at the current level of 19%.

Capital Gains Tax-Free Allowance (CGT)
Also rumoured before the budget, the threshold for Capital Gains Tax will be reduced from £12,300 to £6,000 from April 2023. Similarly to the dividend allowance, a further reduction will be seen in 2024-25 to £3,000.

Employment Allowance (Employer NIC)
The Employment NIC Allowance will stay at £5,000 meaning that eligible employers.

Road Tax
Electric cars, vans and motorcycles will start to pay road tax from April 2025.

Energy
The household energy price cap has been extended for one year beyond April 2023 but has been made less, with typical bills capped at £3,000 instead of £2,500 a year.

By Anni Khan at Tax Affinity Accountants

Tax Affinity Accountants are experts Business, Tax and Accountancy. With branches in Worcester Park and Kingston upon Thames and Epsom and Ewell they are considered in the Industry to be expert business accountants and tax advisors for both individuals and small & medium sized businesses (SME's). Helping and supporting both individuals and limited company owners / self employed people throughout the UK and the world, they regularly help clients grow their business providing tailored advice and support. Their support has been considered invaluable by many clients and key to their success.

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.

The UK now has a new PM Rishi Sunak after the shock resignation of the previous PM Liz Truss due the GBP (Sterling)  stock market crashing after the announcment of her mini budget just weeks ago. So the new Chancellor Jeremy Hunt announced a raft of reversals listed below that seem to have temporarily reassured the markets and IMF etc. But what are they in a quick short read - well see below:

1. Cut to Corporation tax down to 19% from 25% - cancelled
2. Removal of 45% higher rate tax - cancelled
3. Personal Income tax cut from 20% to 19% - cancelled
4. Alcohol duty freeze - cancelled
5. VAT free shopping for overseas visitors - cancelled
6. National Insurance reverse of 1.25% - retained
7. No stamp duty on first £250,000 - retained
8 First time buyers no stamp duty on first £425,000 - retained
9. IR35 rules reversal - cancelled
10. Removal of bankers bonus cap - retained
11. Freeze on energy bills for 2 years - amended to 6 months only now

By Anni Khan at Tax Affinity Accountants

Tax Affinity Accountants are experts Business, Tax and Accountancy. With branches in Worcester Park and Kingston upon Thames and Epsom and Ewell they are considered in the Industry to be expert business accountants and tax advisors for both individuals and small & medium sized businesses (SME's). Helping and supporting both individuals and limited company owners / self employed people throughout the UK and the world, they regularly help clients grow their business providing tailored advice and support. Their support has been considered invaluable by many clients and key to their success.

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.

 
UK Chancellor, Kwasi Kwarteng announced a series of tax cuts & changes in his mini-budget on 23rd Sept 2022, and yesterday did a U-turn on cancelling the drop from 45% to 40% on the highest tax rate.

A quick list of how the mini-budget will affect tax payers is listed below:

1. Income taxes
The top rate of income tax for those earning more than £150,000 per annum was reduced from 50% to 45% by a previous Chancellor in 2013 this was planned to be lowered to 40% but has now been cancelled by the government U-turn and will remain at 45%.

From 6th April 2023 the rate of income tax on income between £12,571 & £50,270 per annum will be reduced from 20% to 19%.

2. National Insurance reversal
Chancellor confirms the 1.25 percentage national insurance rise introduced earlier this year by the previous Chancellor will be cancelled from 6th November 2022 i.e. from December’s payslip onwards.

3. Stamp duty cut
Before there was no stamp duty to pay on the first £125,000 of a property’s value. It has now been doubled to £250,000.

The no stamp duty threshold for first-time buyers will rise from £300,000 to £425,000.
The max property value for first-time buyers’ stamp duty relief will rise from £500,000 to £625,000.

4. Corporation tax stays at 19%
Corporation tax rises have been scrapped, the previous Chancellor Rishi Sunak announced that the rate of corporation tax would be increasing from 19% to 25%, from 6th April 2023.

So now businesses with profits below £50,000 will stay at the 19% rate, as well as businesses with profits over £250,000 that were meant to pay 25% rate ie everyone stays at 19%.

5. Changes to IR35
From 6th April 2023, the previous IR35 rules introduced in 2017 and 2021 have been reversed. Allowing individuals to contract instead of work as employees again ie self employed off-payroll working through a limited company.  The changes mean its up to the contractors themselves to make sure they have the right status and are paying the right amount of tax instead of putting the burden on employers.

6. Strikes legislation
The government says it will legislate to stop “militant trade unions” from closing down key infrastructure through strikes.

The laws will require unions to put pay offers to a member vote, to ensure strikes can only be called once pay talks have genuinely broken down, he says.

7. Investment zones
The government confirmed that almost 40 investment zones will be created with tax breaks for businesses. Areas included are the West Midlands ,Tees Valley, Norfolk and the west of England etc.

8. Energy Bills
Freeze household energy bills at £2,500 for a typical household and a price cap on energy bills for commercial properties also.

9. Investment
(AIA) Annual investment allowance, the total amount a company can invest tax free, stays at £1 Million.
 
New & start-up companies are able to raise up to £250,000 under a scheme giving tax relief to investors in their business

Share options for (PAYE) employees doubled from £30,000 to £60,000

10. Bankers’ bonuses
Chancellor confirms the bankers’ bonus cap will be scrapped.

By Anni Khan at Tax Affinity Accountants

Tax Affinity Accountants are experts Business, Tax and Accountancy. With branches in Worcester Park and Kingston upon Thames and Epsom and Ewell they are considered in the Industry to be expert business accountants and tax advisors for both individuals and small & medium sized businesses (SME's). Helping and supporting both individuals and limited company owners / self employed people throughout the UK and the world, they regularly help clients grow their business providing tailored advice and support. Their support has been considered invaluable by many clients and key to their success.

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.

The government's records for the past 12 months to March 2022 showed that consumer prices have risen as much as 13.4% in some sectors. This is much higher than the 9% reported a few weeks ago. It is therefore prudent to assume when bad news is highlighted by the government or a corporate entity it will most likely be understated.

Now that the ONS has issued more accurate figures its important medium to small sized businesses know the exact figures when it comes to costs to make sure they can budget correctly and choose to either absorb or pass on costs. So the business owner can safely steer the business through a recession or downturn.

A quick list of UK inflation figures is below and it is advised that business owners plan and manage these as soon as possible:

• Transport: 13.4% 
• Furniture, household equipment and maintenance: 10.3% 
• Clothing and footwear: 9.8% 
• Housing, water, electricity, gas and other fuels: 7.7% 
• Restaurants and hotels: 6.9% 
• Food and non-alcoholic beverages: 5.9% 
• Recreation and culture: 4.9% 
• Alcoholic beverages and tobacco: 4.8% 
• Education: 4.5% 
• Health: 2.5% 
• Miscellaneous goods and services: 1.9%
• Communication: 0.7% 

Tax Affinity Accountants are rated as the number one business advisors for medium to small businesses. So if your a business owner who is effected by the inflation rises and need expert guidance and support then get in touch today and we will be happy to help you plan a strategy to steer your busines to growth and success.

By Anni Khan at Tax Affinity Accountants

Tax Affinity Accountants are experts Business, Tax and Accountancy. With branches in Worcester Park and Kingston upon Thames and Epsom and Ewell they are considered in the Industry to be expert business accountants and tax advisors for both individuals and small & medium sized businesses (SME's). Helping and supporting both individuals and limited company owners / self employed people throughout the UK and the world, they regularly help clients grow their business providing tailored advice and support. Their support has been considered invaluable by many clients and key to their success.

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.

On the 23rd March 2022 the Chancellor of the Exchequer announced the UK goverments mini budget. With a long speech and pages and pages of information. We did the hard work and went through the whole report to get to the bare facts and save our clients time and sanity. Listing the  important and relevant points below:

1. From the 6th July 2022 (6/7/22 to 5/4/23) the threshold at which National Insurance payments start will rise to £12,570 from £9,568 (in 21/22 tax year). Importantly it means the NI threshold will not rise from 6th April 2022 but 4 months later, so higher NI will still be payable from 6/4/22 to 5/7/22.
2. Employers National Insurance threshold will rise from £4000 to £5000 from 6th April 2022 onwards.
3. Temporary tax cut by 5p per litre, for both petrol and diesel vehicles, starting from 6pm on 23 March 2022 to 22 March 2023 (12 months).
4. Drop to zero VAT (from 5%) on energy-saving equipment including solar panels, heat pumps and insulation as energy bills surge. This will last for up to 5 years. Does not mention about fitting labour costs which may still have 20% VAT applied.
5. Promise to cut the basic rate of income tax from 20% to 19% from April 2024.
6. Temporary £1 Million Annual Investment Allowance is extended to 31st March 2023. Which allows businesses to deduct qualifying plant and machinery (not cars) in one against taxable profit go up to a limit of £200k. 
   
7. Help to Grow: Digital; offering eligible SME's a 50% discount on approved software worth maximum of £5000 per business.
   

If you or your business is affected by these changes and you want help and support contact us today.

By Anni Khan at Tax Affinity Accountants

Tax Affinity Accountants are experts Business, Tax and Accountancy. With branches in Worcester Park and Kingston upon Thames and Epsom and Ewell they are considered in the Industry to be expert business accountants and tax advisors for both individuals and small & medium sized businesses (SME's). Helping and supporting both individuals and limited company owners / self employed people throughout the UK and the world, they regularly help clients grow their business providing tailored advice and support. Their support has been considered invaluable by many clients and key to their success.

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.