hmrc Articles

Not everyone is a self-assessment early bird! But don’t stick your head in the sand, it’s not too late to get help with your self-assessment

The deadline for submitting your online self-assessment tax return and paying any tax due is 31st January 2019.  This is only just over three weeks away….but don’t panic!! 

Accountants are being booked up quickly as time runs out but at Umbrella Accountants, we always plan for the last-minute rush!  We have capacity to help you with your self-assessment – provided you don’t leave it until the very last minute!! Plus, if you quote ‘2019SA’ we will give you a 25% discount off the current fee!

If you miss the deadline by up to three months, then you will get an automatic penalty of £100. You could have to pay more if it is later than three months or if you pay the tax bill late.

So, what do you need to do to avoid the last-minute stress and heartache?  Here are our top tips.

What expenses can limited company contractors claim

If you contract through a limited company, there are certain expenses that you can claim against your income to reduce your tax liability.

If your limited company makes £50,000 and you claim back £10,000 in allowable expenses, the taxable profit will be £40,000.

There are some rules governing what expenses limited company contractors can claim.

CEST Questions as Judge Rejects IR35 Ruling
marketing | 25 October 2018
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More questions have been raised about the reliability of HMRC’s Check Employment Status for Tax (CEST) tool, after a judge rejected one of the tool’s assessments.

A contractor managed to reclaim thousands of pounds in overpaid tax after the CEST tool’s ‘inside IR35’ ruling was challenged in an employment tribunal.

At first, the contractor known as Mr Elbourn went to the tribunal to try and claim back employer’s National Insurance contributions, which he thought had wrongfully been deducted by an employment agency.

Making Tax Digital deadline: Time is running out for contractors
marketing | 4 October 2018
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Contractors are running out of time to comply with HMRC’s new Making Tax Digital (MTD) initiative, which requires them to keep digital accounting records and use approved software to submit tax information to HMRC.

The first MTD deadline, for limited company contractors that earn over the £85,000 VAT threshold, is just a little over six months away.

From April 2019, these contractors will no longer be able to submit their VAT return manually with HMRC’s ‘direct tools’. Instead they will have to use HMRC-compliant software like FreeAgent or Xero to keep digital records and automatically submit their VAT returns. 

 

Contractors’ 2019 Loan Charge Settlement Deadline Approaches

Contractors who have participated in a disguised remuneration loan scheme have until 30 September 2018 to send settlement information to HMRC, or they risk paying an enormous bill in the 2018/19 tax year.

Disguised remuneration schemes are tax avoidance schemes in which participants receive income in the form of a ‘tax-free loan’, rather than traditional income.

HMRC counts this type of loan as income and says that tax is due on it. In 2017, the government introduced the ‘2019 loan charge’ to retrospectively collect tax money from disguised remuneration scheme losers.

Christmas Plans: Don’t Forget Your Self-Assessment
marketing | 6 December 2018
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As Christmas draws closer, many contractors will be finalising their plans for the festive season.

You know who is in charge of wrapping presents, what time you’re going to travel to the in-laws and who’s cooking the turkey. But you shouldn’t forget about the tax return deadline in amongst all the merriment.

After all, you only have until 31 January to complete and pay your Self-Assessment.

Contractors Pushed Down Insolvency Payout Pecking Order
marketing | 8 November 2018
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Last week , we covered some of the biggest Budget announcements and how they would affect contractors. This included a big change to private sector IR35 rules and other smaller changes to tax and spending.

Buried a little deeper in the Chancellor’s Budget statement, we uncovered one more change that pushes HMRC further up the payment pecking order when a business goes insolvent.

IR35, Presenter, Eamonn Holmes, HMRC
marketing | 25 October 2018
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ITV host Eamonn Holmes is locked in an IR35 legal battle with HMRC.

The ‘This Morning’ presenter told the Mail on Sunday that he is the subject of a HMRC ‘test case’ which could result in him paying £2m in unpaid taxes if he is found to be in breach of IR35 rules.

Missed the First Loan Charge Settlement Deadline? Don’t Despair
marketing | 3 October 2018
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HMRC is targeting contractors that have participated in disguised remuneration ‘loan schemes,’ and time is running out to avoid an enormous tax bill next year. 

If affected contractors fail to make a settlement with HMRC by 5 April 2019, any outstanding ‘loan’ tax payments could be tacked onto their 2018/19 tax bill.

Unfortunately, the first settlement deadline has already passed. HMRC had instructed contractors to register their interest in settling and fill out relevant documentation before 30 September.

Take Home Pay Umbrella Companies
marketing | 29 August 2018
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The government has issued a warning about agencies and umbrella companies that claim to be able to help you save on tax and boost your take home pay.

Although everything may look legitimate and above board, these companies actually run tax avoidance schemes that could land you with a bigger tax bill and penalties, HMRC said.

The ‘too good to be true’ schemes work in different ways, but operators usually promise to reduce your tax liability and help you keep more of your income.

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