BLOGS
Self Assessment Tax Return Deadline
February 14th, 2021 By admin
2019-2020 Self Assessment Tax Return deadline extended
2019-2020 Self Assessment (UTR / CIS) Tax Return deadline extended by 28 February 2021.
File your tax before 28 February to avoid late penalties from HMRC.
The financial year 2019-20 started on 6th Apr 2019 and ended on 5th Apr 2020
If you have registered for UTR (unique tax reference) to start to work as Self Employed before 5th Apr 2020, and you have not yet submitted your Self-Assessment Tax Return, you have until 28 February 2021 to submit it your Tax Return to HMRC.
Original deadline was 31 Jan 2021, but HMRC has said they will not issue penalties if you can not meet the deadline, but you do submit your Tax Return by 28 February.
Do you need help to calculate how much is tax return and submit it to HMRC before the deadline?
Here is how Tax2u can help:
- Confirm what work you did between these dates 06/04/2019-05/04/2020
- Confirm your 10 digits UTR (unique tax reference) number or CIS if you work in Construction Industry Scheme
- Send us all your income details between 6th Apr 2019 to 5th Apr 2020 (both as Self Employed with UTR/CIS and any employed PAYE income)
- You may have your income in one of the followings forms: CIS deduction certificates, Payslips, Invoices, or shown in your bank statements, or on the P45/P60 forms from your PAYE employer.
- Tax2u 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 you used when you registered with us for your UTR or CIS number.
- You may email us at [email protected] and attach your documents, please note that email is not considered a secure way to transfer your tax information.
- Once we receive your documents, we will verify and confirm with you any missing income between 6th Apr 2019 to 5th Apr 2020
- We will draft your Tax Return Estimate and NI contribution.
- 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, we can confirm your income & work related figure from there.
We will need your help to confirm what do we need to consider as income and work related expense.
If your know that tax were already deducted from your income, please send the backup documents that show the tax deducted.
What are work related expense that are eligible to be used on your Tax Calculation?
If your income is above the £12,500 tax threshold it will help if you kept receipts for your work related expense (such us PPE & Tools, Transport, Bank fees). These expense will be entered in the calculation to lower your taxable income.
Once we have all your income details confirmed we will:
- Do all the tax calculations for you and advise if you are due any tax back or if you have a tax due to pay to HMRC.
- Send your Draft Tax Estimate value for your review.
- You’ll need to confirm payment terms and authorise Tax2u to represent you.
- We’ll submit your tax return to HMRC and the will process it, normally in 2-3 weeks.
If you have a tax due to pay to HMRC, you can set up a Direct Debit payment with HM Revenue and Customs (HMRC)
We are here to help, support and advise all self-employed individuals at all times.
If you have any questions please email us know and one of our accountants will get back to you.
UK Government Grant for self-employed workers
March 27th, 2020 By admin
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
- Universal credit, meaning a single person aged over 25 could get a standard monthly allowance of £409.8
- Business interruption loan
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.
Activate your UTR for The Construction Industry Scheme
July 20th, 2019 By admin
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
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.
(more…)Critical dates for self-assessment and CIS tax returns
July 20th, 2019 By admin
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.
(more…)Can I claim travel costs in my self-assessment tax return?
July 20th, 2019 By admin
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.
(more…)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
(more…)What is a CIS Payslip or Deduction Certificate?
July 15th, 2019 By admin
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.
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