Tax Return

Tax Return

  • 92% of Self Assessments filed by January 31st Deadline

    92% of Self Assessments were filed before the January 31st, 2016 deadline (2014/2015 Tax year). Reminder letter fr 3528836b

    However, out of those, 385,000 were submitted on the very last day and around 513,000 were completed, just two days before the deadline. The remaining 8% were filed late and received automatic penalty charges.

    Guess which people had accountants?

    While leaving your Self Assessment to the very last minute may seem ok for those who do not have an accountant, it does carry some risks. Here are just a few examples as to why it could be beneficial to you, to seek professional help, early on.

    Is the tax I pay right?

    No one expects you to know all the rules surrounding income tax, but how do you know the expenses you claim against your income are allowable? more, how do you know something you haven't claimed for isn't?

    Depending on the type of business, there are all sorts of expenses you can claim which helps reduce your tax bill you could be unaware of. An allowance for working from home, cleaning of clothing, telephone expenses to name just a few.

    Time to pay?

    Not only is January 31st the deadline to file your Tax Return online, it is also the deadline for when your first tax payment should be paid and cleared by, leaving your Self Assessment until the last day, doesn't really give you much time to reflect or work out, how your going to pay your tax bill.

    How much should I pay?

    Did you know, that any income tax due on self-employment over £1000 carries a 1/2 Estimate on Account, both in the January and July? You may have calculated that after expenses your tax will be £1001, but in actual fact, you will pay £1501.50 January 31st and another £501.50 July 31st.

    Although this extra tax will offset your tax bill for the following year, not having an understanding of income tax rules means you may not have accounted for the increased bill. And leaving your filing until the very last day, isn't going to allow you some time to find that extra money.

    Allow Time to Seek Advice

    You should always allow yourself enough time, to accurately calculate what you can and can't claim, what your tax bill will be, and how you expect to pay it. If you are unsure of what can or cant be claimed, telephoning someone on the last day isn't really going to help. Last year, the deadline fell on a Sunday, it's unlikely you will receive professional advice on that day of the week!

    Seek Professional Services

    While you may feel competent in completing your Tax Return, you won't know all of the rules surrounding tax, professionals will be able to find ways to reduce your tax bill to an amount you are due to pay, not what you think you should.

    Online tools only help so far as to calculate the tax due based on the information you provide, they can not tell you ways in which you can make savings, nor whether there are other things you are allowed to claim which reduces your tax bill.

    Depending on the amount of information you provide, an accountant won't charge very much to file your Self Assessment on your behalf, you can leave all the stress and worry of gathering receipts at the last minute, and you never know, you could end up being pleasantly surprised with the result.

    With just over two months left to file your Self Assessment, Why not contact Moonlite Accounts today to discuss this, and any other accounting needs.

  • Self Assessment Deadline Looms Once Again

    The 31st January will soon be upon us and with it a potential Income Tax Bill.Opt Stress man and pile of papers

    The date marks the deadline for online filing of your Self-Assessment, those of you who file your Self-Assessment by paper would have seen the deadline earlier in the year (31st October).

    Roughly 9% of people who are registered to file a Self-Assessment missed the deadline last year.

    From now until 14th January 2017, Moonlite Accounts are offering preparation and submission of Self-Assessments from as little as £99.

    We will assess your tax liability based on the information you provide, as well as use our knowledge of taxation to make sure you pay the right amount of tax.

    Contact us today to discuss your Self-Assessment needs.

  • The Death of Self Assessment

    From April 2018 businesses will start to change the way in which they must not only submit their accounting information to HM Revenue and Customs, but some will even have to change the way in which they keep their records.

    Called Making Tax Digital or MTD for short, HMRC's vision of a truly digital system is being brought to life. So what does this mean for you?

    No longer will you be able to file your Self Assessment by January 31st of each year, but instead, HMRC will require you to submit in year information.TR

    Every 3 months, HMRC will require you to provide them with Turnover and Expenditure figures, allowing the final quarter of the year to make any adjustments, such as, Capital Allowances etc.

    MTD doesn't stop there. No longer will keeping a record of your day to day business operations by way of an Excel spreadsheet be accepted as a reasonable method of bookkeeping. HMRC's digital plans are to ensure you must use some form of cloud-based accounting software.

    HMRC plans to implement their new digital system for the smallest types of self-employed businesses first starting in April 2018, and gradually bringing in other larger types of businesses shortly after.

    If you are like a lot of small sole traders, then you will relate to spending the last few weeks of the year, gathering paperwork in order to complete your Self Assessment and file it on time. However under the new plans, this will no longer be acceptable, instead, you will be required to gather this information every 3 months and submit them to HMRC.

    So what can you do, to ensure that when the time comes, you are prepared for the "digital switchover".

    Cloud-based accounting software can be costly, and although HMRC has stated there will be a free of charge solution for those who can't afford paid packages, it doesn't come with the knowledge and skills that accountants and bookkeepers have to ensure you pay the right amount of tax.

    It's estimated, that a sole trader, who currently does his own bookkeeping, and files his own Self Assessment, will see an increase of roughly £1300 a year in costs related to the digital change.

    Therefore it's never been more important, to secure yourself an accountant, such as Moonlite Accounts. Not only can you reduce this extra cost, but you will no longer have to worry about quarterly figure filing and year-end adjustments. Because accountants already use accounting software for their existing clients, they are able to spread the cost across their whole client base thus actually saving you money compared to going at it alone.

    So why not contact us today to discuss how Making Tax Digital will affect you, and how we can help to ensure you are prepared for the new digital taxation era.

     

     

     

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