Self Assessment Tax Return Process

March 31st, 2020 By admin

This article I wanted to describe in detail the process we follow at Tax2u in order to help you with your Self Assessment Tax Return. We can offer support in the following languages: English, Spanish, Italian, Romanian.

Current financial year is 6th Apr 2019 to 5th Apr 2020
If you have registered for UTR/CIS to start to work as Self Employed anytime before 5th Apr 2020, you may now start to claim your Self-Employed Tax Return.

In the current challenging times we all live in, we want to help you calculate what your estimate draft tax return will be, we will do all the calculation for you at no cost and no obligations.

Do you want to find out how much tax you can claim back (or pay) to HMRC?

Here is how we can help:
  • You need to send us all your income details for all work you did between 6th Apr 2019 to 5th Apr 2020 (both Self Employed with UTR/CIS and if you worked employed, PAYE with NI)
  • You may have your income in one of the followings forms: CIS deduction certificates, Payslips, Invoices, or shown in your bank statements, P45/P60 forms.
How can you send us your info?
  • Your online dashboard is secure and you can upload information there 24/7
  • Please upload your information onto your online dashboard, simply log in here using the same email and password you used when you registered with us for UTR/CIS.
  • You may also simply send us an email and attach your documents, but please note that email is not considered a secure way to transfer your information
  • Once we receive your documents, we will verify if we have all dates covered from 6th Apr 2019 to 5th Apr 2020 and get back to you with our feedback on your Tax Return Estimate.
We may come back with a few questions like:
  • Have you also worked PAYE, with NI? If yes for what dates?
  • Have you had time with no work at all? If yes for what dates?

If you send us your bank statements from where we need to extract your income – please confirm what are the lines-name we need to consider as income and what Tax % was deducted from your income, if any. 

Once we have all your income details confirmed we will
  • Do all the calculations for you and advise you if you are due tax back.
  • Send you your Draft Tax Estimate and if are ok with it.
  • You will need to confirm if you want us to Your Tax Return for you.
  • After your tax return is submit it, HMRC will take 2-3 weeks to process it.

We are here to help support and advise all self-employed at all times.

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The Government have announced a grant, of up to £2,500 a month, to help the self-employed through the Covid19 Pandemic.  

The amount you can claim is 80% of your average monthly profit, up to a maximum of £2,500. 

The amount you can claim is calculated from your filed tax return over the last three years.  If you only started self-employment last year then HMRC will use your 2018-2019 tax return to base you amount you can claim.

Who is eligible for the grant?
You are eligible for the grant if

  • More than half of your early income is from self-assessment
  • Your yearly trading profit is less than £50,000 (income – expenses)
  • You must have filed your 2018-2019 tax return, this was due by Jan 31st, this year so if you haven’t done it yet you have 4 weeks to file it. If you need help to file your tax return for this period please click here.

Does this include construction workers?
The grant is for all self-employed workers, if you file a yearly tax return and more than 50% of your income comes from self-employment and you’re your profits are less than £50,000 annually then you can apply for the grant.

Who is not eligible?
You are not eligible for the grant if

  • Your yearly profits are more than £50,000
  • Less than 50% of your yearly income is from self-employment.
  • You have not completed your 2018-2019 tax return, this was due by Jan 31st, this year so if you haven’t done it yet you have 4 weeks to file it. If you need help to file your tax return for this period please click here.
  • Only 5% of the UK self-employed population aren’t covered by the grant.

When and how can you get the money?
You cannot apply yet for the scheme, although if you are eligible, tax2u will be able to advise you when the government released further information.
If you are one of our Gold Yearly Accounting Clients, then we will keep you updated on when you can apply, tax2u will also advise you how and assist where possible to make the application on your behalf.  At the moment, we are waiting to hear about how next steps.

Sign up for your Gold Yearly Accounting Service today and you’ll get it for only £12+vat a month for life time (normally £20+vat per month)
– costs are tax deductible against your income.

What to do until the money comes in?
If you are working in construction and have been paying CIS tax then your quickest method to get money is to submit your 2019-2020 tax return (if you are due tax back).  You can submit your tax return after April 5th 2020 and we can do this for you.  To get a free tax rebate estimate for your 2019-2020 tax return please click here.
There are other sources of finances the government have made accessible

We have received so many questions from our client around this so here are some quick-fire answers

Question 1: What do I do now?
A: Right now, there is nothing that can be done to apply or claim this money. We are waiting for HMRC to issue next steps but the government have been very clear in saying the money is likely not to arrive until June. 

Question 2: Can I carry on working?
A: Yes, you can carry on working, only if it’s save and you are following the government’s social distancing rules and taking precautions. We can still apply while your working and this will not affect your application.

Question 3: Can tax2u help file the claim for me?
A: Yes, we can help and advise you once we understand more from HMRC on how the grants can be claimed.  We can also help ensure your 2018-2019 tax return is completed.  You have 4 weeks to complete this so please start now

Question 4: If I’ve only recently started self-employed and not filed a tax return for 2018-2019 can I still get a grant?
A: No, unfortunately not. If you weren’t able to file a tax return for self-employed earnings in 2018/19, you won’t be able to apply.

Question 5: How long will the scheme last for?
A: The scheme is initially for 3 months, March, April and May but the Chancellor said it maybe extended.

Most importantly, please, everyone stay safe at home and follow the governments guidelines at all times.

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If you already have a UTR (Unique Tax Reference) number and you want to work in the CIS (Construction Industry Scheme) then you will need to activate your UTR number for CIS. There are two ways in which you can do this


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How HMRC fines calculated

July 20th, 2019 By admin

Self-assessment late filing penalties are issued when a tax return is filed after the official deadline.

Self-assessment tax returns must be submitted by midnight on the 31st January for the previous tax year. 

For example, for the tax year 2017/2018 (that’s 6th April 2017 to 5th April 2018), the self assessment tax return is due by midnight January 2019.

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The following are the critical dates you need to understand if you are self-employed or working in the Construction Industry Scheme (CIS).

Your start date, this will be the first day you started working self-employed, it’s from this date that you need to declare all your income to HMRC, this is done through your self-assessment tax return.

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We’re asked this question so many time by our clients.

Can I claim travel costs in my self-assessment tax return?

The simple answer is that you can reclaim “business” travel.

It’s important to understand exactly what “business” travel means if you want to ensure that your return is submitted correctly, while ensuring you are being as tax efficient as possible.

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How Long Does It Take To Get a UTR?

July 20th, 2019 By admin

Generally HMRC will issue your UTR within 3-4 weeks, it can be quicker but sometime it takes a little longer.  It’s all dependant on how business HMRC are, they do say that it can take up to 8 weeks.

What do to if it doesn’t arrive

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Your payslips / invoices are the most important bit of information you need to keep.

However, you also need to keep your bank statements and business receipts (read here about business receipts).

Right now I’m going to tell you what your Payslip will look like and why it’s important.

Read More