Tax News and Tips Archives - Page 10 of 11

News,May 2018

What is Uniform Tax Rebate?

George27/12/2022tax , Tax Issues , Tax News and Tips

Are you the individual who is responsible for taking the work uniform to the laundry? You are most likely to be in a position to make a claim for a tax rebate because of the cost you are dealing with for uniform maintenance. There are several taxpayers out there who have to wear the uniform in the form of safety garments and branded clothing, etc. To deal with this kind of tax, it is important to get to know about uniform tax rebate form P87. We may take this as part of the course and not realise that this is mandatory to reclaim the cost we spent on the cleaning of our work uniforms. Moreover, you need to have awareness about tax relief entitlements and what is the required process in order to receive the amount of money you have spent on your uniform maintenance. In this comprehensive guide, we have got you covered. As the discussion involves the answers to frequently asked questions about what is uniform tax rebate is, what the eligibility criteria are to claim a uniform tax rebate, what the worth of this tax is, and how you make a claim for your uniform. Reach out to our smart and clever-minded guys to get an understanding of the uniform tax rebate form p87 queries answered quickly. We will help to understand your queries instantly. What is a Uniform Tax Rebate? A Uniform tax rebate is also known as the name of HMRC uniform allowance or uniform benefits in the UK. This uniform tax rebate is a kind of tax that refers to a special tax for individuals who have to maintain their uniforms. This means that the specialist clothing in different work lines will have to deal with the cleaning, replacing, and repairing of their uniforms. There is a cost involved in keeping the uniform maintained, which can be claimed. However, a set of rules will have to be followed to check whether the individual qualifies for the tax or whether the clothing comes under the category of uniform or not. This also results in several people who plan to claim falling out of the category of calling their clothing a uniform. This is because they do not qualify according to the terms and conditions. What are the Eligibility Criteria to Claim a Uniform Tax Rebate? Every uniform person who is aware of the uniform rebate tax will wish to qualify for the criteria and get relief. However, certain conditions have to be met to get the cost of uniform maintenance back. The points one should consider to qualify are outlined below: You will have to be a taxpayer in the same tax year in which you intend to make a claim. You are paying for the laundry and other maintenance costs to keep your uniform clean. You are required to put on a branded uniform for your job as a nurse, shop worker, or firefighter. In some cases, a detachable badge is also allowed with the uniform. You do not receive any kind of reimbursement for the uniform maintenance cost. You are not given a uniform laundry facility at work. What is the Worth of a Uniform Tax Claim? People often enquire about the worth of a uniform tax rebate. Well, this totally depends on the kind of job you are doing which will decide the worth of the tax rebate. However, according to the basic rule of HMRC, most people get an estimated cost of around £60 within a tax year for the maintenance of uniforms and other work clothing. If you consider the basic rate of the tax, an amount of £12 can be received back from HMRC. And if you calculate this amount, it is 20% of £60. This amount can even rise up to an amount of £720 in some industries. You can even use the online calculator to check what your uniform tax is worth. How to Claim a Tax Rebate for Your Uniform? If the claim is basically about the washing cost of your uniform or your protective clothing, you do not have to worry about the procedure. It is a simple process in case of washing that even you can handle on your own without any hassle. The condition is that there should not be any other expenses incurred for the basic claim. All you have to do is get in touch with the tax office and share the details. You will normally get the amount of the money that you owe within a period of eight to twelve weeks. However, if there is any other cost involved, the scenario will be different. This can be the cost of tools and other equipment. This requires procedures where you will have to provide the pieces of evidence in a particular format, so this process becomes a little complicated to handle on your own. You will require the claim to be filled out on the form P87. You can either fill and send it online or print it and send it by post to HMRC. The Bottom Line Now that you have gathered a fair amount of information about the uniform tax rebate form P87, we can bring the discussion towards wrapping up. The uniform tax rebate is quite a basic procedure to handle on your own if it only involves the cost of washing. However, if there is any other cost involved in the claim, it will become complicated for you to handle it yourself. You will have to seek help from a professional to fulfil the requirement of a particular format and the required pieces of evidence. We hope these few minutes of reading will help you to understand the tax implications for the uniform tax rebate form P87. Our team of professional members loves to hear out your business problems and find out the possible and suitable solutions for the uniform tax rebate form P87 quickly. Contact us now. Disclaimer: The general information provided in this …

Accounting, Tax Year Dates for Sole Traders

George08/12/2022tax , Tax Issues , Tax News and Tips , Tax Saving Tips

Whether you are new to the business world or have just signed up for being a sole trader to mark your brand in the industry, you are in need of knowing your UK tax year dates and when your accounting period will start in this first journey. Well, your first accounting period is considered the moment your business has commenced. As a beginner, several people keep enquiring whether they have a choice of the accounting period or what are other tax implications to meet before the deadline approaches. This blog will work as a comprehensive guide to help you in gathering information about your basis period, what to do if you are taxed twice in the same self-assessment, whether you have the ability to change your accounting dates, and how will you deal with the opening year period and the business losses. Talk to one of our intelligent and clever professionals to get your further queries about UK tax year dates and how to meet them. We will ensure to come up with the best possible solution. What is a Basis Period? The basis period refers to a period of time in which the sole traders are required to fulfill the tax payment liabilities in every tax year. This is just similar to your accounting year. If you are in a partnership, each individual that is involved in the partnership will have to adhere to their own basis period. This is because of the fact that the implication of the basis period is for each individual and it can not be used to apply to a partnership as a whole. According to your profession or the type of trading customers you are following, the rules will be specific for the accounting period. Generally, the rules are as outlined in the following: The profit within a duration of 12 months will have to be taxed. In one tax year, the profit duration of 12 months will be covered only, not more than this. In the case of overlap profits, there are chances that the profit is taxed for a duration of more than 12 months. Are You Taxed Twice Under the Same Self-Assessment? As a sole trader or partnership, you must know that it is preferred to choose the deadline that comes at the end of the month. This is because such dates are more convenient to follow because you mostly have your payments in hand. Now comes the question that how the accounting period is related to the overlap profits as mentioned earlier. Overlap profits referred to the kind of experience when you are taxed two times in the same self-assessment period. This happens when you tend to change the date of your accounting period. Also usually at the beginning of the accounting years well. If you are the one who is experiencing overlapped profits, this is imperative to understand that you will have to inform HMRC immediately about this while doing our tax returns. This will allow you to make a deduction of these overlap profits at the opening of the accounting year or in the case you cease your business. Can I Change my UK Tax Year Dates or Other Accounting Dates? Many people consider changing the date of their accounting period because they do not find it convenient to follow according to their needs. Especially when the rates of income tax change, people are inclined more towards changing the dates because of the relevant advantages. You are allowed to decelerate or accelerate the time when your profits are taxed. We have outlined the accounting period changing details in the following and they are available with the guidance of HMRC as well. You are liable to get in touch with HMRC to inform them by the end of 31st January if you require any change of date in your accounting period. Your accounts period should not exceed the limit of 18 months. You must check the records of your serious five years and you should not have experience in changing the accounting period. You must provide a genuine and commercial reason that is requiring the change of accounting period. How Will You Deal with the Opening Year Business Loss? If you are dreaming about loss relief, be aware that if HMRC considers your business as a hobby or side gig, you will not be allowed to avail of the relief. Most of the people who are associated with cash accounting tend to carry forward their losses in such a case. 31 March and 5th April are two options on which the accounting year ends, so you can apply for the relief before these deadlines approve because otherwise, you will have to carry forward them to the next year. You need to know that you will be able to get the relief once and there is no chance of getting it again. The Bottom Line Now that you have gathered a fair amount of information about UK tax year dates, we can bring the discussion towards wrapping up. If you are a sole trader or in a partnership, you might require a change in your accounting period date at some point. However, you will have to be considerate of the rules and regulations to follow the protocol in this regard. We hope these few minutes of reading will help you to develop a better understanding of UK tax year dates as a beginner. As well as how to deal with them professionally in the future. If you seek professional help, learn more about UK tax year dates and how to meet them. Why wander somewhere else when you have our young and clever team of professionals at CruseBurke? Disclaimer: The information provided in this blog is about UK tax year dates, including the text and graphics, in general. It does not intend to disregard any of the professional advice.

What is ATED? Annual Tax on Enveloped Dwellings Explained

George07/12/2022tax , Tax Issues , Tax News and Tips , Tax Saving Tips , Taxation

ATED referred to the annual tax on enveloped dwellings. This is a kind of tax that is implemented on companies in the UK regardless of whether they are residential or non-residential. However, the condition is that they must own some residential dwellings in the UK. This does not cover all the residential properties but only the properties that have a valuation over the limit of £500,000. Before delving further into the discussion, we must be aware of the relevant basics of annual tax on enveloped dwellings. Here in this article, we will help you to gather information about what is an annual tax on enveloped dwellings, the kinds of dwellings associated with it, why it is important to know that property valuation and what are business reliefs available in this regard. Reach out to our smart and clever-minded guys to get an understanding of the annual tax on enveloped dwellings queries answered quickly. We will help to understand your queries instantly. What is the Annual Tax on Enveloped Dwellings (ATED)? In simple put, we can say that the annual tax on enveloped dwellings also known as ATED is about the tax implication on the residential properties that have a market value over the figure £500,000. It can be either for a limited company or for a partnership. This is imperative to know here that one of the partners has to be the company in this regard. If any of the property is falling under the category of limited company or partnership, it will be required to file the tax returns at the beginning of the financial tax year. People often enquire about the taxable value of the property at this point, and this totally depends on the market value of the property in the same tax year. If your property does not qualify as a dwelling, you will be out of the scope of ATED. What are the Dwellings Associated with an Annual Tax on Enveloped Dwellings? According to the government of the UK, a dwelling is known to be a property that is either owned by you entirely or you own a part of it. Also, the property will have to be used for residential purposes. The related parts that are associated with such buildings like the ground or the garden are also considered dwellings. It is imperative to mention here that every property’s market value differs from others. The valuation depends on the use of the property as well. There are no examples of two properties observed that have the same market value. There are a few examples of the properties that are excluded from the list of dwellings, we have outlined them in the following: Prisons The accommodations of the military The homes used as care homes The accommodation that is used for the boarding school The halls are used for the students and for their accommodation Hospitals The guest house The area that is used for hotels The properties are exempted from the inheritance tax The dwelling that is under the public property The properties that are under the ownership of charity organisations purely for the purpose of charity Why is it Important to Know the Value of Your Residential Property? The respective valuation date matters a lot in knowing the value of your property. The value of a property also goes up every year alongside the Consumer Price Index. The chargeable amount for the years 1 April 2022 to 31 March 2023 are outlined below. The annual chargeable amount depends on the property value. If the property value is more than £500k to £1m, the annual chargeable amount will be £3,800. If the property value is more than £1m to £2m, the annual chargeable amount will be £7,700. If the property value is more than £2m to £5m, the annual chargeable amount will be £26,050. If the property value is more than £5m to £10m, the annual chargeable amount will be £60,900. If the property value is more than £10m to £20m, the annual chargeable amount will be £122,250. If the property value is more than £20m, the annual chargeable amount will be £244,750. What are the Reliefs Provided to Businesses? It is possible to reduce the chargeable amount in a tax year. There are certain reliefs provided for this reason. If you want to claim the relief, you will have to prepare and submit Relief Declaration Return to HMRC. You can do it online so it is not considered to be a very time-consuming process. A few examples of the available relief are outlined below: It must be under the ownership of a provider who is registered and belong to social housing. It should be available for the public once in a tax year at least for a minimum period of 28 days. It must be associated with a property developer for the sake of property release. The Bottom Line Now that you have gathered a fair amount of information about the annual tax on enveloped dwellings, we can bring the discussion towards wrapping up. The details of annual tax on enveloped dwellings are important to consider before you begin to calculate the valuation of your property and what is the percentage of the increase in a tax year. You can even look for a relief to claim, however, the provider must be someone registered and trustworthy in this regard. We hope these few minutes of reading will help you to understand the tax implications for the annual tax on enveloped dwellings. Our team of professional members loves to hear out your business problems and find out the possible and suitable solutions quickly. Contact us now. Disclaimer: The general information provided in this blog about the annual tax on enveloped dwellings includes text and graphics. It does not intend to disregard any of the professional advice.

How to Manage Your Tax Credits Online in the UK?

George02/12/2022tax , Tax Issues , Tax News and Tips , Tax Saving Tips , Taxation

If you’re wondering how to manage your tax credit in 2025, the first thing to know is that the Tax Credit scheme is coming to an end. The UK Government has permanently closed the scheme for new applications and is gradually replacing it with Universal Credit. This article will help you understand what Tax Credits were, what’s changed, and what to do if you’re still receiving them. Paying your taxes via different payment methods may not be acceptable to HMRC. Get instant help from professional accountants and tax advisors to know how to manage your tax credit. What Were Tax Credits? Tax Credits were government payments to help people with low income. There were two types: Working Tax Credit (WTC) – for people in paid work on a low income. Child Tax Credit (CTC) – for people responsible for children. These payments helped with everyday costs and were based on your income and circumstances. Has the Tax Credit Scheme Ended? Yes. The Tax Credit scheme has been permanently closed to new claims.You cannot apply for Working Tax Credit or Child Tax Credit anymore.The scheme has been replaced by Universal Credit – a newer benefit that combines several payments into one monthly payment. What If You’re Still Receiving Tax Credits? If you’re already receiving Tax Credits, you can continue to get them for now, but you will eventually be moved to Universal Credit. This process is called managed migration and is being done by the Department for Work and Pensions (DWP). All Tax Credit claims will end by April 2025. You’ll get a migration notice letter telling you when and how to switch. Important: If you receive a migration letter, you must apply for Universal Credit within 3 months or your Tax Credits will stop. How Can I Manage My Tax Credit Before Switching? You can still manage your Tax Credit through HMRC’s services until you’re moved to Universal Credit. Here’s how: Update your income or personal details online or via the HMRC app. Renew your claim annually (if required). Report changes like a new job, new baby, or change in living situation. You can do most of this using your HMRC online account or the HMRC mobile app. What Should I Do When Moving to Universal Credit? Wait for your migration letter. Gather your personal details: income, rent, childcare costs, ID, etc. Apply for Universal Credit at gov.uk/universal-credit. Tip: Universal Credit is paid monthly and combines support for: Housing Children Disability Work income So you’ll no longer need to manage separate Tax Credit claims. Can Someone Help Me Manage the Transition? Yes. If you find the process confusing or need help applying for Universal Credit: Contact HMRC or DWP directly. Speak to a tax advisor or benefits expert. Use Citizens Advice or local council support services. The Bottom Line If you’ve been asking how to manage your tax credit, the answer has changed in 2025. The Tax Credit scheme is permanently closed and is now replaced by Universal Credit. If you still get Tax Credits, expect to be moved soon. Stay prepared by keeping your information up to date and watch for your migration letter from DWP. Need support during the switch? Our expert advisors at CruseBurke are here to help you every step of the way. Get the best taxation advice and consultation at CruseBurke in under two minutes. Feel free to reach out to us. We’d love to help you to sort out your tax problems. Disclaimer: All the information provided in this article on how to manage your tax credit, including all the texts and graphics, is general in nature. It does not intend to disregard any of the professional advice.

Voluntary Disclosure to HMRC: Is it Necessary?

George01/12/2022tax , Tax Issues , Tax News and Tips , Tax Saving Tips , Taxation

Whether your employment status is being a self-employed individual or you are a business owner, the management of taxes is always a complicated process for everyone. The expectation of occasional mistakes that occur unintentionally also requires your attention. Sometimes, people tend to declare their income to HMRC but the mistakes are found after a long time. However, there is a high chance that you can rectify your mistakes. The recent mistake that you have just realised while declaring your income to HMRC, opt for voluntary disclosure. Now, what is voluntary disclosure? It is a kind of activity that keeps you penalty free and safe even if you have made some unintentional mistakes. Now you aim to keep your finances straight to grow your business and stop worrying about mistakes. Here is the need to know certain facts. This guide will help you to understand everything related to this procedure. This involves the understanding of what is voluntary disclosure, what comes under it, when voluntary disclosure is required and what is its importance. Reach out to one of our professionals to get to know what is the best way to handle the queries about what is voluntary disclosure for your earnings in the UK. What is Voluntary Disclosure? You are liable to submit the multiple income streams that are helping you to make money in every way possible to HMRC. You will have to declare your income as it is and keep the factor of transparency alive with the process. HMRC ensure that the customers get the accurate amount written in the tax bills and there are no errors in the payments of tax bills. However, there are still cases of errors that occur in the tax bills or in the information provided by the customers which make the process complicated. This results in businesses and individuals paying less amount than what they actually owe to HMRC. Here comes the role of voluntary disclosure which helps to reduce the chances of errors on the tax bills. Even the previous mistakes in the tax payments can be rectified with the help of correct declaration. The payments can then be updated. This service is known by the name of digital disclosure service and is very helpful in this regard. Your discrepancies related to the income tax, corporation tax, national insurance or any other tax that you owe can be rectified easily with this. Once you sort out the matter, you will have a period of 90 days to clear the tax payment. What Comes Under Voluntary Disclosure? This voluntary disclosure can be used when a business or an individual wants to do a disclosure about any of the following: Corporation tax National insurance contribution Capital gains tax Income tax Moreover, if you feel like you were not in a position to declare all of your income to HMRC as a business, you can immediately opt for voluntary disclosure to inform HMRC. When is Voluntary Disclosure Required? It is required for all kinds of organisations, businesses, companies, and individuals to declare their income streams and the exact income so that HMRC is ensured that everyone is paying the accurate amount of tax. Current legislation is considered to check the level of accuracy in this regard. If you realise that is an error in submitting your tax returns or any other procedure, you can choose voluntary disclosure to get in touch with HMRC to inform them about the mistake. What Makes Voluntary Disclosure So Important? If you deliberately plan to hide some of the information about your income or provide false documentation to prove a figure that is not correct, you’re in trouble. HMRC will find it out later in the process. So if you are expecting that you can do it and HMRC wouldn’t know, this is a serious mistake that can result in putting you in some serious consequences. You will have to pay a huge amount in penalties and even go to prison for several years. However, if you choose to opt the voluntary disclosure, HMRC will become lenient with your case and mistakes. But if the mistakes are figured out in doubt and then from the process of investigation, you will not be spared and the consequences will be more severe than you expect. The Bottom Line Now that you have gathered a fair amount of information about what is voluntary disclosure, we can bring the discussion towards wrapping up. A voluntary disclosure to HMRC is important when you have realised a mistake in your tax returns as this allows you to get lenient treatment from HMRC and you can rectify your mistakes as well. This will help you and HMRC to pay the accurate tax bill. We hope these few minutes of reading have helped to develop a better understanding of what is voluntary disclosure and relevant facts. This will help you in future to handle your tax affairs efficiently. Get in touch with our young, clever, and tech-driven professionals if you want to choose the best guide for what is voluntary disclosure in the UK for your income. Disclaimer: The information about what is voluntary disclosure provided in this blog includes text and graphics of general nature. It does not intend to disregard any of the professional advice.

Tax Deductible Travel Expenses for Self Employed

George30/11/2022tax , Tax Issues , Tax News and Tips , Tax Saving Tips , Taxation

When you claim your travel expenses as a self-employed individual, the first important thing you need to do is identify which travel comes under a specific category. Whether you are self-employed or working with an organisation, the travel that you are covering daily as a commute to your permanent workplace will not be considered an expense that is deductible. It becomes an allowable expense when you are travelling to a workplace that is temporary. The cost and amount of money that you spend on ordinary commuting can not come under the allowable expenses. Many of you must be wondering by now what are self-employed tax-deductible expenses then. Further, this guide will help you to gather information about what are permanent and temporary workplaces, how are they related to travel expenses, what are allowable tax-deductible expenses for self-employed individuals, and what points you should be considering before you plan to claim the costs for tax purposes. Reach out to one of our professionals to get to know self-employed tax-deductible expenses for your earnings in the UK. Get in touch and you will be provided instant professional help! What are Temporary and Permanent Workplaces? Sometimes the regular workplaces are temporary, however, the grey area is still there and the point becomes complicated. When you are associated with a construction project and you expect to work there for a duration of two years at least, many of you might confuse it with a temporary workplace. However, the case is entirely different because of the duration. This is a permanent workplace. How are Temporary and Permanent Workplaces Related to Travel Expenses? If we talk about the salesperson who works in the field, this will also be considered his permanent workplace. The commute and travelling expenses from some areas will not be considered allowable expenses in this scenario. The travel that is done for the business meeting can be claimed while you’re doing your tax returns. In some cases, you might require to travel to visit a client. If you travel from the permanent workplace, these expenses will be considered, however, if you travel from home to the client the expenses will be allowable in a few circumstances. You can seek the help of a professional to understand the rules of HMRC for your unique situation. What are Self-Employed Tax-Deductible Expenses? Travel for business purposes comes first on the list of tax-deductible expenses. While you are on a business journey, it is imperative to understand that you need to keep all the related receipts for any transport you have used. This includes the uses of public transport as well like buses, vans, cabs, and taxis. The journey that is purely related to the business purpose will be considered. You can even use Transport for London’s “TFL App” if you are travelling in London. You should keep the receipts intact that are related to the toll booth charges, car rental, parking costs and congestion charges. A few salient features to consider in this regard are explained below. 1- Mileage Tracking In case you are the one who is driving, you will have to keep a track of the mileage. This should be 45p per mile for the initial 10,000 miles. This is the instruction for the cars and vans. This will help you to save a lot of money. 2- Cost of Travelling One of the frequently asked questions that people ask is whether you have to avail of a cheap form of travel while you are on a business trip. The simple answer is no. For example, you are travelling in the UK and the tube cost you pay is £5.90, however, if you find it easy to take a cab you can have one. Even if the cab is an expensive commute, you do not need to worry about that. What are the Things to Remember Before You Claim Expenses for Tax Purposes? The take-home points you must remember before you plan to claim the allowable business expenses are listed below. You should keep the record of your business travel intact to get approval and provide any kind of evidence that is required. Keep a record of the purchases that you have done for your business and ensure to keep it separate from your personal expenses. Your mileage log should be as detailed as possible. You can better use the automatic mileage tracking app. The partial parts of the journey may not include in the list of allowable expenses and your claim may not be successful if you add them. Ensure to understand your journey details to make an accurate tax return and get the claim of the maximum that you have spent. It sounds like a time-consuming process but it will help you to provide pieces of evidence when required. You can get in touch with the professionals if you are unable to understand the details of your journey and how to record them. The Bottom Line Now that you have gathered a fair amount of information about self-employed tax-deductible expenses, we can bring the discussion towards wrapping up. The deductible travel expenses for a self-employed individual might sound complicated to record every detail of the journey, however, you can use the automatic apps to do the needful and save time. The more detailed your record is, the more accurate the tax return you will be able to file. You can even take the help of an advisor for a better comprehensive guide. We hope these few minutes of reading have helped to develop a better understanding of self-employed tax-deductible expenses and tax rates. Get in touch with our young, clever and tech-driven professionals if you want to choose the best guide for self-employed tax-deductible expenses in the UK. Disclaimer: The information about the self-employed tax-deductible expenses provided in this blog includes text and graphics of general nature. It does not intend to disregard any of the professional advice.

How to Avoid Capital Gains Tax on Inherited Property?

George29/11/2022tax , Tax Issues , Tax News and Tips , Tax Saving Tips

Any type of property or house that is inherited is able to increase the value of an estate. However, you need to be very careful regarding this matter because if you do not handle it efficiently, you will end up paying more tax than you ever expected in higher tax bands. This mostly happens in cases where the inherited property is a house and its value has increased since the period you got it inherited. You are in a position to pay the capital gains tax when you plan to sell it. A hefty increase in tax liabilities is expected if the property value is raised. People often enquire about how to make the avoidance of capital gains tax possible on inherited property, in such cases. The good news is that there are a few tips on how you can avoid paying a hefty amount of capital gains tax in such a scenario. In this guide, we have outlined whatever you wish to know about capital gains tax. This involves the discussion of what is capital gains tax, what is capital gains tax allowance, how to avoid paying capital gains tax on inherited property, and how can you calculate the amount that you owe in form of capital gains tax on your inherited property. Talk to our best accountants and bookkeepers in the UK at CruseBurke. You will get ensured instant help if you want to know about how to avoid capital gains tax on inherited property. What is the Capital Gains Tax? Capital gains tax is implemented when a property is sold out with a price that is more than its original price when the individual purchased it. If you consider the investment portfolio, the capital gains tax are normally considered as selling stocks in terms of tax. It is implemented to the tangible assets in a similar way. This helps us to know that capital gains tax means that you are taxed on the profits that you have earned by the increases in the value of the inherited property. This relates to the benefits you get when you sell an asset. Let’s take the example of an artwork that you have purchased for £6,000, but the value of the asset increased at the time of selling and you sold it out for £36,000. Now consider the profit you have earned which is £30,000 in this case, this is the figure on which you will have to pay the capital gains tax. The amount of capital gains tax totally depends on what kind of taxpayer are you. Whether you are a higher-rate taxpayer or an additional-rate taxpayer. The number of your gains has also done a lot here and it helps decide the amount of your capital gains tax further. What Refers to the Allowance of Capital Gains Tax? For the year 2025-26, the amount of capital gains tax allowance is £3,000. Capital gains tax allowance refers to the amount you have earned as profit after selling an asset. This is before you have paid the tax on your profits. Your allowance will be combined if you have a joint account or join a venture of selling the assets with another individual. The previous capital gains allowances can not be used or carried forward to the next year. This is something important to understand here. However, you are able to combine the gains with another individual who is with you selling the assets. How to Avoid Capital Gains Tax on Inherited Property? There are observed two possible ways that can help you to avoid the capital gains tax and they are listed and explained below. 1- As Soon as You Inherit the Property, Gift it or Sell it: In this scenario, you will not wait for any further increase in the property value. This will help you to keep the value of the property the same at the time of inheriting the property and at the time of selling it. If you make it possible there will not be any capital gains tax for you to pay. However, this practice is not very appreciated by professionals because this decreases the value of a property. 2- The Inherited Property is Your Principal Property: When you make the inherited property your principal property, this will help to avoid paying the capital gains tax and you can sell the property on a later date as well. You will have to ensure that not any home out is happening during this period. How Do I Calculate the Capital Gains Tax on Inherited Property? People often find the calculation of the capital gains tax amount as a complicated process. If you break down the steps and follow one step at a time, you will be able to do it. The first step you will consider is to calculate your total gains. You will get the answer when you minus the value of the property at the time of inheriting from the selling value of the same property. Then you will have to deduct your capital gains tax allowance from the amount to get the exact taxable gains. This can be written as: Total gain = (value of the property when sold – the value of the property when inherited) – additional costs The Bottom Line Now that you have gathered a fair amount of information about how to avoid capital gains tax on inherited property, we can bring the discussion towards wrapping up. There are a few ways to avoid capital gains tax, however, if you follow them efficiently they will be beneficial for you. We hope these few minutes of reading will help you to develop a better understanding of how to avoid capital gains tax on inherited property. This will further allow you to handle your tax affairs efficiently in the future. Are you seeking professional help to know how to avoid capital gains tax on inherited property? Why not get help from the experts at the CruseBurke? Talk to us …

Can Self-Assessment UK Tax be Paid in Installments?

George28/11/2022tax , Tax Issues , Tax News and Tips

If you are the one who is wondering how to make HMRC agree upon the monthly instalments of your tax bills because you have a valid reason that is hindering your tax payments. The frequently asked question in this regard is can you pay tax monthly? Well, this totally depends on the kind of tax that you have to pay, it will help decide HMRC the possibility of the tax payment plan in instalments. The possible option that you have is to use the gateway account to set up the self-assessment payment plan. Anyone around you who is struggling with tax payments can be suggested to find the solution on this page. This article will help them to understand the possibility of paying the tax bills in instalments, what are the requirements of this procedure, how will HMRC help them, and how long this payment plan lasts. Seek no further help after contacting CruseBurke’s team of experts and advisors about whether can you pay tax monthly with peace of mind and within your budget. Can You Pay Tax Monthly in Instalments? It is possible to use your government gateway account for the self-assessment payment plan. This is also known as the time-to-pay plan. The following salient features are important to consider for this procedure: You can pay within a time limit of 12 months or less than that. There should be 60 days to reach the deadline at least. The payment you owe must be below the figure of £30,000. You must have filed the recent tax returns successfully. What Do You Require to Provide for Paying the Tax Monthly? To begin the procedure you can get in touch by using the helpline of self-assessment. This is the second option if you fail to do the self-assessment plan online. This mostly happened for the people who owe more than the amount £30,000 or need a very long period to pay the amount. When finally the time comes to set the plan, you will require a few things that are listed below: The information regarding the payments that you have missed in the past. The details of your bank account. In case you are carrying out a business, the VAT registration number will be required. The reference number of the tax bill you have not paid. Moreover, HMRC will require to gather information about a few things that might include the following: The amount of your savings and any kind of investment that is in the process currently. The usual monthly spending patterns. The amount of money that you earn. Whether there are any other kinds of taxes that are unpaid. Whether you are in a position to pay full tax. How much amount of money you will be able to pay in one month? Moreover, HMRC will also check what kind of assets and property you own and they will suggest you use your assets to pay as much as possible. How will HMRC Help to Work Out Your Instalment Plan? How much amount you will pay in one instalment monthly will depend on the amount you have after the rent and other utility bills are paid. The subscriptions and the fixed outgoing of money will also be taken into serious consideration. In usual practice, HMRC asks you to pay half amount of what you are left with after paying all the monthly bills and other subscriptions to pay the instalment every month. For people who are getting the pension, HMRC will consider this amount of pension as income in this procedure. However, this amount will not be a part of the savings. If you agree upon paying more than what HMRC has decided for your instalment every month. This will only work for your betterment. As paying early means that you are paying less amount of money. This is because of the fact that the interest is not added to the monthly instalments you are paying. For How Long Does the Payment Plan Lasts? Usually, there is no set limit to the last payment plan. This will depend on the amount of money that you can afford to pay every month and also the amount of money that you owe to HMRC as tax bills. The payment is flexible. If you have started to earn more and want to increase your monthly payment amount, you can simply inform by getting in touch with HMRC. The period of your payment plan can easily go longer or shorter. In case you do not inform HMRC about your circumstances changes, they will get in touch with you and discuss the recent changes and how can it affect your payment plan of instalments. The Bottom Line Now that you have gathered a fair amount of information about whether can you pay tax monthly, we can bring the discussion towards wrapping up. If you are stuck in a financial struggle and cannot afford to pay the tax bills, HMRC is flexible enough to offer generous payment plans. Consider making a short-duration plan to avoid paying the interest amount. This will help you to clear the due payment early as well. However, there are a few conditions to be eligible for this plan. We hope these few minutes of reading will help you to develop a better understanding of paying taxes in monthly instalments and the payment plan of HMRC. Are you stressed about your query ‘can you pay tax monthly?’ Feel free to contact our team of tax advisors and accountants to help you find accurate information and guidance. Disclaimer: All the information provided in this article on whether can you pay tax monthly, including all the texts and graphics, is general in nature. It does not intend to disregard any of the professional advice.

How Do I Get My Tax Refund After Leaving the UK?

George24/11/2022tax , Tax Issues , Tax News and Tips , Tax Saving Tips , Taxation

Are you the individual who is planning to work abroad or to live there and leave the UK? The first thing you must gather information about is the tax refund entitlement. This has to do a lot with the current tax status and the unique circumstances of your case that will help HMRC decide whether you are eligible for a UK tax refund. You will have to get in touch with the tax authority of the UK and HMRC to inform them about the date when you are leaving the UK and finally going overseas. This will help them to make the right calculations for your tax refund, if any. Moreover, there are plenty of online calculators available that you can use to calculate your amount of tax refund amount yourself. In this guide, you will find out what is leaving a UK tax refund is, what is the eligibility criteria, what is the amount of tax refund, and how can I get the tax refund before I leave the UK to settle overseas. Talk to our best accountants and bookkeepers in the UK at CruseBurke. You will get instant help whether you want to learn about leaving the UK tax refund. What is the Leaving the UK Tax Refund? Leaving the UK tax refund refers to an amount that you will have to claim within four years after leaving. This works as the timescale of the refund. The tax office will require a claim to be received, considering the limit of the timescale before you expect to receive the amount of refund. This can be the overpaid income tax that you paid in the same year when you left the UK to settle abroad or to move back to your country. Who is Eligible to Claim the Tax Refund after Leaving the UK? The UK residents who have now planned to move overseas are in a position to claim a tax refund. This is allowed because of the fact that you will no longer have the status of being a UK resident, and the tax implications will not be implemented anymore. You will have to pay the tax in the new country that you are planning to move in. For the cases who have lived for a long time in the UK or have worked here, and now want to move back to their own country, it is allowed to claim the tax refund before they leave the UK. However, you will have to be a PAYE employee and must have left the UK within the past four years. Also, consider that you were earning an amount that you were able to pay the income tax in the year of claim. How Much UK Tax will I Get after the Refund Claim? According to the information provided by HMRC, there is no upper limit decided for such cases. There are multiple factors that you will have to consider and it depends on the unique circumstances that will decide the amount of tax refund. Especially when you have more than one income source. For these factors, your situation will be considered to provide the amount of tax to your unique case. Because it always varies from one person’s case to another. The common practice is that you get the income tax refund for the same year in which you plan to leave the UK. HMRC will decide the amount of tax you have paid in the situation of leaving and the amount you would have paid if you were planning to stay in the UK. How will I Get the Refund if My Claim is Accepted? It is the job of the tax office to provide an accurate calculation of any overpaid tax and generate a P800 form that will have all the details about the amount of your tax refund. The breakdown of your tax refund will also be updated on your personal tax account if you own one, and the tax authority will post the form to your available address. Moreover, you are even allowed to explain to HMRC how you are comfortable getting the tax refund. You have the option of getting the tax refund to one of your UK banks through a bank transfer or receiving a cheque for the payment. There are several cases when people do not have a personal bank account in the UK. If that is the case with you, you have the option to nominate someone who will receive the tax refund in their account on your behalf. The Bottom Line Now that you have gathered a fair amount of information about leaving the UK tax refund, we can bring the discussion towards wrapping up. Getting a tax refund might sound exciting and add up to your existing amount of money while you are leaving the UK and planning to settle overseas. However, there are multiple factors that are considered to be entitled for the tax refund. If you meet the eligibility criteria, you will be lucky enough to get the amount. We hope these few minutes of reading will help you to develop a better understanding of how to be eligible for a tax refund while leaving the UK. Are you seeking professional help to know about leaving the UK tax refund? Why not get help from the experts at the CruseBurke? Talk to us now! Disclaimer: All the information provided in this article on leaving the UK tax refund includes all the texts and graphics. It does not intend to disregard any of the professional advice.

Time to Pay Arrangements with HMRC

George23/11/2022tax , Tax Issues , Tax News and Tips , Tax Saving Tips , Taxation

There are several companies and organisations in the UK that fail to meet the deadlines for tax bills. If you are also one who is carrying out a business in the UK and struggling with the tax bills, you might be offered an instalment plan by the HMRC to pay your tax bills easily. This will allow you to get your payments cleared by having a long period of time and in the form of instalments. To avail of this opportunity, you must have a basic understanding of the time-to-pay arrangement. This article will turn out to be helpful in this regard, and you will be able to gather information about what a time-to-pay arrangement is, what the criteria are to check eligibility, how you can negotiate with HMRC, and how to apply for the instalment plan. Reach out to one of our professionals to get to know what is the time to pay arrangement HMRC for your business in the UK. Get in touch now and get your queries answered quickly. What is the Time-to-Pay Arrangement with HMRC? The time-to-pay arrangement refers to a kind of agreement that is working between the taxpayers and HMRC in case you fail to pay the tax. This allows you to pay the tax in instalments by availing of a long period of time. This is the agreed duration of the period that is specified for the payment plan. This plan can work for all kinds of taxes; however, it is most commonly used for the sake of corporation tax. The companies use it for the payment of VAT and PAYE. If you are a limited company that is struggling with short-term cash flow difficulties, the time-to-pay arrangement is your handy solution. However, for the companies that have a usual habit of having tax problems and paying the tax late, HMRC will not entertain the instalments for such cases. What are the Criteria to Check Whether I am Entitled to Get a Time-to-Pay Arrangement? The main thing to consider for the HMRC when a company applies for the time-to-pay arrangement is that the company needs time to clear the payment in an easy way or to find an escape from the tax bills. When a company applies, it has to prove the genuine reasons with shreds of evidence that can explain the reason why it can not pay the tax bills at the moment. The genuine shred of evidence will be able to make HMRC feel considerate about the case to approve the time-to-pay arrangement. Moreover, the payment history from past records will also be checked by HMRC. HMRC makes decisions after checking the ability of a business to pay the instalments by its financial position. Also, the chances of future tax bill payments will be considered by HMRC. Is there a Possibility of Negotiation? There is a limit to the matter of negotiation, but HMRC is flexible for this. This is not the idea to put more pressure on a business that is already going through a rough patch. This means that HMRC is open to negotiating in such hard circumstances for a business. You can even hire a professional to do the job on your behalf. Because HMRC will respond well to a person who has a better understanding of their rules. How to Apply Online for a Time-to-Pay Arrangement with HMRC HMRC now allows eligible individuals and some small businesses to apply for a Time to Pay arrangement online, making the process quicker and more accessible. This service is ideal if you are experiencing temporary financial difficulties and want to spread the cost of your tax bill into affordable monthly payments — without needing to call HMRC directly. Who Can Apply Online? You can apply for a Time to Pay plan online if all the following conditions apply: You owe up to £30,000 in tax. Your tax return has been submitted on time. You are within 60 days of the payment deadline. You don’t have any other active Time to Pay arrangements. You can pay the full amount in monthly instalments within 12 months. If you meet these conditions, the online service is the quickest way to set up your instalment plan. Taxes You Can Pay with an Online Plan Self Assessment Tax (most common) PAYE (for sole traders) Corporation Tax or VAT may still require phone-based arrangements. How to Apply Log in to your Government Gateway accountYou’ll need your login details and your UTR (Unique Taxpayer Reference). Go to the HMRC Time to Pay portalApply for a payment plan Follow the on-screen steps Enter your tax owed Choose how much you can pay upfront (if anything) Select how many months you want to spread the payments over Review and confirm your arrangementIf accepted, your direct debit will be set up automatically. What If You’re Not Eligible? If you: Owe more than £30,000, or Need more than 12 months to pay, or Are outside the 60-day window …then you’ll need to contact HMRC directly by phone to request a manual arrangement. The Bottom Line Now that you have gathered a fair amount of information about the time-to-pay arrangement with HMRC, we can bring the discussion towards wrapping up. The business that is going through a struggling phase will have to prove the genuine reasons behind it to HMRC before expecting the payment plan and the flexibility of HMRC. We hope these few minutes of reading will help you to develop a better understanding and you will be able to deal with business struggles well in the future. Get in touch with our young, clever and tech-driven professionals if you want to choose the best guide for the time-to-pay arrangement with HMRC for your business in the UK. Disclaimer: The information about the time-to-pay arrangement HMRC for your business in the UK provided in this blog includes text and graphics of a general nature. It does not intend to disregard any of the professional advice.