Frequently Asked Questions

Tax2u Ltd are an experienced accountancy service provider* specialising in supporting our customers to deal with

– UTR and CIS registration (regsiter for your UTR now)

– CIS tax rebates (choose a service)

– PAYE and Employment Tax Rebates (find out if you’re due tax back)

– Self-assessment tax returns (choose a service)

Anyone who is self-employed must complete a self-assessment tax return at the end of the tax year (5th April of every year) and at Tax2u Ltd we know that this can be a complicated process, so we do the hard work for you. click here to find out more about becoming our client

* Tax2u Ltd is a registered accountancy service provider as defined by HMRC. Tax2u Ltd are a registered HMRC agent** which allows us to act on our client’s behalf and deal directly with HMRC on their tax related issues.

** this does not mean that we are endorsed by HMRC.

If you’re owed tax back, we’ll get it for you.

Our team specialises in reclaiming overpaid tax for our clients. With your permission we’ll investigate your recent employment history to find out if you’ve overpaid tax or not. Find out if you’re due tax back click here

If you are self-employed and paid CIS tax in any period we’ll ensure we recover it for you.

If you’re self-employed and due to submit a tax return we’ll ensure that we claim back all your allowable business expenses to reduce your tax bill.

We have made the process as simple as possible – all you need to do is send us your payslips or invoices and any receipts you have relating to work.

You can send this to us either by;

· Uploading everything to your Tax2u Ltd online account

· Email us at [email protected]

· Or WhatsApp us on 020 7118 0097

We do the rest!

There are two main services that we offer

1. PAYE / Flat Rate Expenses Tax Rebates
2. Self Assessment Tax Returns
   1. If you work in Construction
   1. If you work as Self Employed with UTR

You don’t have to register if you only do certain jobs, including:

· Architecture

· Surveying

· Consultancy work

· Scaffolding hire (with no labour)

· Carpet fitting

· Making materials used in construction including plant and machinery

· Delivering materials

· Work on construction sites that’s clearly not construction, e.g. running a canteen or site facilities

CIS applies to people who work in construction only.

Under the Construction Industry Scheme (CIS), contractors deduct money from a Subcontractors payments and pass it to HMRC. The deductions count as advance payments towards the Subcontractors tax and National Insurance.

HMRC provide a personal allowance* of income before you are eligible to pay tax. By completing a self-assessment tax return after the tax year closes may mean you are due a rebate.

*Personal allowance in Tax Year 2022-23 – £11,850

*Personal allowance in Tax Year 2022-23 – £12,500

Once we submit your application for your UTR* or your UTR & CIS** it will take up to 4 weeks for HMRC to post this out you.

During this 4-week turnaround time there is no emergency tax code that can be applied. You will be deducted 30% tax while you wait for your UTR & CIS to arrive. Once this arrives and is active with your employer your tax will reduce to 20%.

We can help you to reclaim any overpaid tax at the end of the tax year.

If you are self-employed and YOU ARE working in the Construction Industry (CIS) you can work without a UTR & CIS, however this will affect how much tax you pay.

You will pay 30% tax without a UTR & CIS and this will reduce to 20% when your UTR & CIS are activated.

We can help you to reclaim any overpaid tax at the end of the tax year.

The scheme covers all construction work carried out in the UK, including jobs such as:

· Building works

· Site preparation

· Alterations

· Dismantling

· Construction

· Repairs

· Decorating

· Demolition

If you already have a UTR number and need to activated as CIS, you can either contact HMRC at 0300 200 3210 and register for CIS on the call or download the CIS 301 form here, print the form, fill the form in and post to HMRC as shown on the form.

We operate on a no-win, no-fee basis. If you are not due a tax refund, there is no fee for our service. We will give you the peace of mind of knowing that your tax code has been reviewed and is correct – all for FREE (if you are not due a tax refund). Any refunds received incur a fee as per our Terms and Conditions. There are NO hidden charges. You will also receive 100% of the increase to your net pay in all your future tax years.

You should complete a PAYE tax claim form if:

• You had worked and paid taxes anytime in the last 4 years
• You incur work expenses that are ‘allowable’ for tax relief
• The annual total of the work expenses you are claiming for is under £2500. If your expenses are £2500 or over, you will usually need to complete a Self Assessment tax return

This means an amount of money that a taxpayer can get towards tax relief . For example, the minimum deduction for the cost of washing your uniform is £60 per year. This means that if you pay tax at the standard rate band of 20%, then you are due a refund of £12 (£60 x 20%). A higher rate taxpayer would be due a refund of £24 (£60 x 40%).

You can claim a tax deduction for purchasing your own uniform/shoes, tools and equipment which are used exclusively to perform your job. Also, you can claim washing your work clothes.

The extent of tax relief that you will receive completely depends on the rate of tax you pay. For instance, if you’re a basic rate taxpayer who claims tax relief on £1,000 on allowable expenses, you are liable to obtain £200 which is 20% of £1,000.

If you file for tax relief claim for the current tax year, HMRC will adjust your tax code like it normally does and subtract less tax so as to account for this. If you’re claiming tax for a previous year, you’re likely to receive a cheque or bank transfer for the total amount you’re owed.

Click here and follow the instructions to start claiming your standard expenses.

It Takes approximately 8 to 12 weeks. Any requests for additional information from the HMRC Tax Office may increase your refund processing time.

Not necessarily. It is the taxpayer’s responsibility to make sure that all tax relief has been correctly claimed and included under your tax code.

You need to maintain clear records with receipts for expenses you wish to claim for. You don’t have to submit these along claim form however; HMRC can very well ask you to produce evidence of your claim. For instance, if your claim is related to business mileage, you will have to keep records of the places and distances of all your work-related journeys.

No, applying for a tax refund does NOT affect any other benefits claimed eg: working tax credits, child tax credits, JSA, ESA etc

If you worked in the UK in the last 4 years and have satisfactory evidence, then you are still eligible to make a claim.

Yes. You can claim tax relief for the last 4 years.

Anyone that was registered for self-employment during the tax year and failed to submit their tax return by the deadline. The tax year runs from 6th April to 5th April the following year. From the last day of the tax year you have until 31st January the following year to submit your tax return. If you don’t submit it HMRC will automatically issue you a fine.

There are stages to how much the HMRC fine will be. If you miss the 31st January deadline then you will automatically be charged £100. Then after 3 months you will be charged £10 for every day you don’t return it.

No, HMRC has you on their computer and will automatically print and send you a fine, you will see the fines accumulating on your HMRC log in, or if we are your agent we will be able to see your tax information on our account.

You would have received a fine for not completing your self-assessment tax return by the deadline. It means that you registered to work self-employed and therefore need to confirm your yearly earnings to HMRC so they can tax you correctly. If you worked under the Construction Industry Scheme (CIS) it’s likely that you are due money back. Please email us now at [email protected] so that we can assist you in bringing your HMRC account up to date.

HMRC reserves the right to cancel the fine if and only if you have brought your tax return up to date. There are certain circumstances under which HMRC will accept an appeal. If you want to know how to appeal your HMRC fine please email us at [email protected]

If you have told HMRC that you are self-employed then it doesn’t matter if you worked one day or even no days as self-employed. As far as HMRC are concerned you are registered as self-employed and they will not have visibility of the actual hours/days you work.

As someone who is self-employed it is your responsibility to keep HMRC updated of your working status and earnings throughout the tax year. This is done by submitting your self-assessment tax return. Failure to submit a self-assessment tax return can lead to HMRC fining you which could amount to £1000s. For support with your tax return please email [email protected]

If you have received a letter detailing a fine from HMRC or we have notified you of a fine you need to act on it swiftly. Failure to act on a fine letter will result in the fine increasing until your HMRC account is brought up to date.

Don’t panic, we can help you with this.

In the letter it will explain which tax year HMRC is missing your information for. All you need to do is send us your income information from that year and we complete your tax return and submit it to HMRC.

We also appeal your fine for you throughout this process.

We cannot guarantee the fine will be removed from your account, but we have a 90% success rate in removing fines from our client’s HMRC accounts.

If you are self-employed for any period during a tax year then you will need to complete a self-assessment tax return this includes;

A full tax year self employed

Part tax year as PAYE* and part self employed

Not working and then going self employed

*PAYE is the tax you pay under The Pay as You Earn (PAYE) system. This is how you pay both your income tax and national insurance (NI). Every time you’re paid, your company takes your tax and NI from your wages and sends it on to HMRC.

We have set up a hassle-free approach to helping you complete your self-assessment tax return.

Please send the following information to [email protected]

• Payslips/wage slips/invoices or bank statements to prove your income

• Work related receipts expenses for what can be claimed back on

• CIS Deduction Certificates (applies to CIS employees only)

Work related expenses are TAX DEDUCTIBLE which is not the same as being refunded.

For example, if you earned £15,000 in the tax year 2022-2023, this is how we would calculate it; Total income; £15,000 minus expenses; £2,000 equals total profit; £13,000*

*Please note that this does not consider any National Insurance contributions.

Once we have received your information we calculate based on your income, minus your expenses to gives us a total profit. Click here to claim to claim your tax rebate.

For example, if you earned £15,000 in the tax year 2022-23 this is how we would calculate it; Total income; £15,000 minus expenses; £2,000 equals total profit; £13,000

We use the profit to work out how much tax you either owe to HMRC or if you need to get a refund from HMRC for the tax year* and then we send you a copy of the draft for your approval. Once you have confirmed the draft we forward it to HMRC to get it processed. This can take up to 4 weeks for HMRC to process.

*If you are under CIS and have been paying tax throughout the year you may be eligible for a tax rebate.

Click here to pay your self-assessment tax bill.

Yes, if you are registered for self-employment you must file your tax return to HMRC every year. If not, you will be fined up to £100 every month from the due date.

If you missed the end of the previous tax year and need to submit two returns to bring your account up to date please see How do I file my self-assessment tax return?

Usually HMRC will take up to 4 weeks to provide you a refund. In some cases it may get delayed depending up on the refund claim and previous years status.

As per HMRC guidelines, the tax preparer must obtain client’s ID before submitting their tax return. If not, HMRC will fine both client and tax preparer for not following HMRC guidelines.

If you are registered for self-employment you must file your tax return to HMRC every year. If not, you will be fined up to £100 every month from the due date.

Your Unique Taxpayer Reference (UTR) is a number that HMRC uses to identify you for everything to do with your taxes.

If you are or planning to be self-employed it is critical you have a UTR number so that you can complete a self-assessment tax return at the end of each tax year (tax years run from 6th April to 5th April the following year).

If you do not complete a self-assessment HMRC will apply fines to your account.

Please call HMRC directly on 0300 200 3210. You will need your national insurance number and contact details to obtain your UTR.

If you are self-employed and NOT working in the Construction Industry (CIS) then you can work without a UTR, however when it comes to end of the tax year you will need a UTR in order to complete your self-assessment tax return after 5th April.

The scheme covers all types of businesses and other concerns that work in the construction industry, including:

• companies
• partnerships
• self-employed individuals

These businesses can be:

• contractors
• tax2u
• contractors and tax2us

Under the scheme, the terms ‘contractor’ and ‘tax2u’ have special meanings that cover more than is generally referred to as ‘construction’.

Contractor – A contractor is a business or other concern that pays tax2us for construction work.

Contractors may be construction companies and building firms, but may also be government departments, local authorities and many other businesses that are normally known in the industry as ‘clients’.

Some businesses or other concerns are counted as contractors if their average annual expenditure on construction operations over a period of 3 years is £1 million or more.

Private householders aren’t counted as contractors so aren’t covered by the scheme.

tax2u

A tax2u is a business that carries out construction work for a contractor.

Businesses that are contractors and tax2us

Many businesses pay other businesses for construction work, but are themselves paid by other businesses too. When they’re working as a contractor, they must follow the rules for contractors and when they’re working as a tax2u, they must follow the rules for tax2us.

Once we submit your application with HMRC it will take up to 4 weeks for HMRC to send you a letter with your UTR number.

If you are self employed and not working in the construction industry anything you earn over the personal allowance for the tax year is eligible for tax.

We can help you to complete your tax return and help you pay your tax bill in a timely manner.