Instant Quote
Call Me Back

News,May 2018

time-to-pay arrangement

Time to Pay Arrangements with HMRC

23/11/2022tax , 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.

Read more
UK royals who pay their taxes

The UK Royals Who Pay their Taxes

21/11/2022tax , Tax Issues , Tax News and Tips , Tax Saving Tips

There is no denying that there are so many benefits of the Royal family in the UK. The joy of having almost free personal butlers, lavish properties, crown jewels, and corgis are some fantastic examples. However, there is a set of rules that are specified for the royal family members that make their lives a little strict than normal people. Are you wondering about UK royals who pay their taxes by now? One of the strict rules is to fulfill the requirement of paying tax. The only difference you will find out is that the royals do not spend hours and hours filing self-assessment tax returns. This blog is based on the discussion of everything that you need to know about the tax liabilities of the UK royal family members, how are they taxed differently than normal people, are they being taxed at all or not. This will help you to understand the explanation of the exact tax liabilities that are to be fulfilled by the UK royals.   Reach out to our smart and clever-minded guys to get an understanding of the UK royals who pay their taxes queries answered quickly. We will help to answer your queries instantly.    The UK Royals Who Pay their Taxes? We all know that people are often of the view that they do not have any tax liabilities at all, but this is not true. The implications of tax are a little different in the royal member’s case. No one from the royal family is considered to be exempted from the royal family. The tax implications of the royal family are considered to be more complicated than the normal people’s tax liabilities. If you are a beginner, this is imperative to understand that the royal family members are not taxed in the usual way as you do. This is because of the fact that the royals are not considered ordinary British citizens. So the tax is implicated differently too.   Normal Jobs and the UK Royals – How are They Taxed Differently? A normal job like the ordinary citizen is not associated with any of the Royal family members. However, on behalf of the Crown Estate, there are a few responsibilities to fulfil for them as well. This Crown Estate is not under the ownership of any of the royal family members and not even the government. The hereditary possessions of The Sovereign in the right of the crown are considered to be something associated with it. Moreover, HMRC takes the responsibility of collecting the profits of the crown state. The fund share is then provided to the royal family members. Furthermore, Sovereign Grant is a way to pay the royal members. Crown state funds or any other relevant income that goes to any of the royal family members is not taxed and there is no tax paid on it. Precisely we can say that the royal family pay the government itself to provide them with the funds. This is why there is no tax on such funds.   Are UK Royals Being Taxed at All? This is a myth that the UK royals are not obliged to pay the tax of any kind. The funds that are received from the government through Sovereign Grants are not taxed. The major reason behind that is that this money is going from the royals. In simple words, the royals are paying this money to the government to pay them. When it comes to the personal income of the royal family members, they are required to pay the highest tax band because they come under the relevant category of being high earners. They pay the council tax on the properties they own, vat, and road tax as well. Moreover, this is surprising to know how much council tax can be generated on royal properties like Buckingham Palace just because of being big in the size. As council tax, an amount of approx £1,500 is paid every year for the royal properties. So you can imagine how much is being generated by the royals.   The Bottom Line Now that you have gathered a fair amount of information about UK royals who pay their taxes, we can bring the discussion towards wrapping up. The UK royals only get an exemption from tax on the amount that they receive through the Sovereign Grant. Otherwise, they are being taxed under the highest tax band because they are considered the highest earners. We hope these few minutes of reading will help you to understand the tax implications for the UK royal family members and whether there are any tax exemptions for them or not.   Our team of professional members loves to hear out your business problems and find out the possible and suitable solutions quickly.   Disclaimer: The general information provided in this blog about UK royals who pay their taxes includes its text and graphics. It does not intend to disregard any of the professional advice.

Read more
increase in national insurance tax

How will the Increase in National Insurance Tax Affect You?

15/11/2022tax , Tax Issues , Tax News and Tips

When there is a fluctuation observed in the tax rates of the national insurance, you will definitely be affected when you are residing in the UK. How much will you be affected has a direct relation with the amount of money that you are earning. According to the recent changes that are implemented from the month of July 2022, individuals with a low scale of salary are saved and will be able to increase their savings because of the increase in national insurance tax. The high earners on the other hand will not be able to save much if you go in comparison with the tax year 2021-22. Some people will even observe a sudden rise in the take-home amount of their salary. Further in the discussion of this article, we will gather information about what is national insurance to be exact, how will the increase in the national insurance tax rate can affect you, and how to use the NI calculator to calculate national insurance. Reach out to one of our professionals to get to know what is the best way to handle the increase in national insurance tax for your earnings in the UK.  What is National Insurance? The type of tax that is obligatory for employers and employees is known as national insurance and this is paid on the amount of money they earn on a monthly basis. In the case of individuals who are self-employed, they will have to pay national insurance on the amount of money that is earned from the business profits. If we talk about the basics of national insurance it was passed in the year 1911. At that time the purpose of introducing national insurance was to provide help to people who needed help with finding jobs or going through medical treatment during that period. After a certain period of time, the state pension was introduced for the financial benefits and gains of the people. The government sometimes withdraws some amount of money from the national insurance amount to support the relevant project for the betterment of society. It is imperative to add to the knowledge that it is allowable only for those who have crossed the age of sixteen. Since they are not eligible to get any retirement benefits. The main types of national insurance are four that are listed below: Class 1 – Employers and employees will pay for this class. Class 2 – It is a flat rate that is payable by self-employed individuals. Class 3 – This includes the voluntary contributions by people who are under no obligation to pay NI. Class 4 – If the self-employed business profits go above a certain level, this type of national insurance is payable. The Increase in National Insurance Tax Rates and How Will it Affects You? It has become to implement the recent changes of the increase in the tax rates of the national insurance after the new tax year was started. The ratio of this increase is between the limit of 12% to 13.25% for the employees. Individuals who are earning an amount of £4,189 or more than this within the period of a month will have to deal with the increased tax rates of the national insurance. Moreover, there is a piece of good news with this implementation of the increased rates in the national insurance tax that it will remain intact till the month of June only. The income tax threshold and the national insurance threshold will be the same from the month of July. You will be able to keep yourself away from the payments of national insurance and the income tax if your income is lower than the amount of £12,570. How to Measure the National Insurance Tax Rates With the NI Calculator? In the UK the employees have observed a sudden raise in the tax rates of the national insurance at the beginning of the tax year, however, this was sorted out because a sudden raise in income was also observed from the month of July. Most of you would like to have a clear idea about the effects of the sudden fluctuation in the tax rates of national insurance. The NI calculator can be a great help in this regard. To do the process of calculation, you will have to enter the amount of your income and the fluctuated rates and you will get the results of how the recent increase in the tax rates has affected your income. The Bottom Line Now that you have gathered a fair amount of information about the increase in national insurance tax, we can bring the discussion towards wrapping up. There is no denying the fact that the fluctuation in the tax rates can affect your income on a regular basis and if handled professionally, you will get a clear idea of how to calculate the changes and their effects on your salary. We hope these few minutes of reading have helped to develop a better understanding of the national insurance and tax rates. Get in touch with our young, clever and tech-driven professionals if you want to choose the best guide for the increase in national insurance tax in the UK  for your income.  Disclaimer: The information about the increase in national insurance tax provided in this blog includes text and graphics of general nature. It does not intend to disregard any of the professional advice.

Read more
benefits of filing your tax return

The Benefits of Filing Your Tax Return Today

26/09/2022Tax Issues , Tax News and Tips

You must have observed the financial matters associated with your business, they keep on fluctuating over a specific period. This asks for maintaining a smooth record of every financial detail so that you can focus on other opportunities that will help to grow your business valuation. This will further make your way to good tax planning as well. It is required for you to be organised financially in your business to enjoy the benefits of filing your tax return earlier. As this will spare you enough time and space to spend on applying innovative business ideas to make your name in the industry. This means you will be able to manage your tax affairs more efficiently. The information detail that is required for the filing of the tax returns usually involves important documents related to business finances and the bank statement. Moreover, there are multiple smart choices for arranging the data through accounting apps rather than doing it manually these days. This will allow you to gather error-free data and the process will be less time-consuming as well.   Get in touch with one of the young and clever professionals and discuss the benefits of filing your tax return. We ensure to provide the best guide to you.    Benefits of Filing Your Tax Return Early You must realise how advantageous it can get for you if you allow yourself to file your tax returns early. The deadline for filing the tax return is 31st January, which will remain the same and this is a plus point. This will allow you to be organised enough in managing your financial details, which plays an important role in filing the tax returns early. You may seek the help of your accountant in doing so. The most advantageous factor of filing tax returns before time is that you will not suffer any amount of hefty fines or penalties from HMRC. As well as this brings the factor of being organised with your financial details and records for the whole tax year. The importance of better record keeping is not denied neither its advantages. This way, you will keep your records up to date and will never have a chance to miss your deadlines. You will be able to expect your refund of overpayments sooner as well. Further in the discussion of this guide, we have listed and explained the prominent benefits of being an early bird in filing tax returns.   1- Don’t Risk Missing Your Tax Deadlines If you keep on delaying the process of managing your financial details, this will bring the risk of missing the deadline for filing the tax returns. This will result in the issuance of an automatic late filing penalty of the amount of £100 for you. Your past good record of filing the tax returns will not matter here. In the case of filing tax returns late for three months, an amount of £10 will be generated for each day until it reaches the peak amount of £900. If the period of delay is for six months, the delay penalty will be an amount of £300 and in some cases, you will have to pay an extra 5% of the number of your tax charges.   2- Enjoy a Quick Tax Refund Sometimes there is an error with your unique tax code sent by HMRC. Whether you are a director or an employee, you will have to apply for a tax refund in such a case. Receiving tax refunds and this scenario is not an unusual practice. Here you will observe the benefits of filing the tax returns earlier again. The sooner you have filed, the speedy will be the process of tax refunds by HMRC. In the case of late filing, this process can even gather the extra interest if it is in your bank account. So it is wise to file early so that if you are in a position to get a refund, you will get it early. Because January happens to be the busiest month for HMRC because of the deadlines.   3- File Your Tax Returns Now and Pay Later If you start to calculate what are your tax liabilities and initiate the process of filing for the tax returns now, this will give you a chance to focus on your budgeting and the management of cash flow. You will be more focused on other tax liabilities as well. However, in the case of people who are rushing in the 11th hour tend to have a higher chance of the mistakes and the factor of accuracy is compromised. As HMRC has declared already that errors in the details of filing tax returns will charge you fines. And of course, late filing brings penalties to suffer with. It is just recommended for you to be an early bird in this case. This does not mean that you are obliged to file the tax returns early. You can do it at any convenient time before the deadline.   4- Time is Money As we have mentioned earlier that being organised with your financial details and filing the tax returns early will spare you to focus on other business growth opportunities. It allows being more efficient with the management of your bank statement and other relevant affairs with the tax liabilities. You can use smart apps to manage the records of your business finances rather than handling those piles of papers that still have a chance of errors and displacement.   The Bottom Line Now that you have gathered a fair amount of information about the benefits of filing your tax return, we can bring the discussion towards wrapping up. There are multiple beneficial factors of filing the tax returns well on time rather than rushing at the last minute, which brings a high chance of errors. And HMRC gives a very slim margin to errors related to tax affairs.   We recommend finding professional help to further learn about the benefits of …

Read more
are influencers evading taxes

Are Influencers Evading Taxes?

23/09/2022Tax Issues , Tax News and Tips

Have you heard that there is no tax for influencers? Well, the case with online influencers is different. Online influencer tax is a real thing that is implicated for the individuals who are creating online content and then making extra pounds from this. One of the frequently asked questions enquires a lot about ‘are influencers evading taxes. People confuse online earnings to be tax-free or the content creators can evade the tax implications easily. This is not that simple and you know how slim the margin of such mistakes is with HMRC especially when it comes to tax affairs. It does not matter that you are working as an influencer as a part-time job or a full-time job, whatever earnings you are making through this forum, you will have to declare it to HMRC. You will do this while you are submitting your self-assessment tax returns. If you will try to hide your income through this source, you will have to struggle with hefty fines and other penalties as HMRC will get to know sooner.   Reach out to one of our professionals to know more about ‘are influencers evading taxes. We will love to offer instant help!   Who is known to be an Online Influencer? By now, you must be wondering who exactly is an online influencer and what is his nature of work. According to the social media definition, an individual who creates online content and has the power to have an influencing impact over his followers to act in a certain trend. In the fields related to the fashion industry, the followers tend to follow the influencers to an extent that they socially behave like them in several ways. The content creator is just another name that is used for online influencer. The major role these influencers are playing is to change society positively with the power of good content and trends. However, sometimes you will find them endorsing and advertising certain brands and their services and products. This will not only help brands to grow their sales but also their fan following is increased. The services and products recommended by trusted influencers become the talk of the town immediately. It is a popularly known fact that the global society is somehow connected by social media. Moreover, the job of an influencer seems to be challenging when you bring all the followers under one platform to get influenced by a certain brand or trend.   What is the Tax Limit That Influencers Owe to HMRC? Just like the individuals who are associated with self-employment, there is a tax-free personal allowance limit for online influencers as well. Which is  £12,570 for one tax year. In other words, we can say that unless your online earnings cross a certain limit, you will not be charged with any tax implications. Moreover, you will still be required to make the completion of self-assessment tax returns. As per the instructions of the Competition and Markets Authority (CMA), the influencers and their content tend to be very effective for the followers and endorsing brands observe a sudden increase and sales too. So the content creator will have to be very careful and choosy about the type of things they make for their followers.   Are Influencers Evading Taxes? The process of receiving the PR packages and the gifts from multiple brands makes the process of tax and relevant implications even harder for the influencers. This is because the receiving of PR packages and gifts from brands adds up to the amount of money the influencers are earning and this will automatically increase the figure of tax bills for them. However, when the question comes to whether the influencers are evading tax, we do know how strict the tax policies and HMRC gives no margin in the matter of tax. So there are no chances to evade taxes by the influencers. You and your earnings are seriously noticed by HMRC when you are working online. You will find yourself liable to declare your income sources and earnings to HMRC as whatever you do will come under the observation of HMRC later or sooner. You can be in trouble if you plan to hide your income streams and the extra pounds that you are making. The risk of loss in the future for your career and reputation will be heavier to handle if you do not adhere to the rules and regulations of the tax.   What is the Role of a Trading Influencer? Not all influencers are considered traders, according to HMRC. In Wales and England, as per the words of the Institute of Chartered Accountants, you will be known as a trading influencer only when you have a set routine that is scheduled to create commercial content regularly. Then your work is going for the marketing to get the financial benefits as well. However, in many cases, the content is created for the sake of enjoyment or hobby. The income is then not crossing the limit of the threshold, this means you are not defined as a trading influencer. This makes you free from the tax implications or relevant implications, however, you will have to complete your self-assessment tax returns still.   The Bottom Line Now that you have gathered a fair amount of information about ‘are influencers evading taxes’, we can say that being a content creator can be fun for the sake of hobbies and enjoyment. Only to a limit when the extra pounds are tax-free because you have not crossed the limit threshold. However, as soon as you reach a certain level, you will be liable to pay taxes and complete other requirements to keep your work venture growing smoothly.   Get in touch with our young, clever and tech-driven professionals if you want to know more about ‘are influencers evading taxes’.   Disclaimer: The information about ‘are influencers evading taxes’ provided in this blog includes text and graphics of general nature. It does not intend to disregard …

Read more
SDLT multiple dwellings relief

SDLT Multiple Dwellings Relief – A Beginner’s Guide!

11/08/2022Tax Issues , Tax News and Tips , Tax Saving Tips

People often wonder about available reliefs to offset their taxes when it comes to purchasing or selling a property. We will delve into the discussion of SDLT multiple dwellings relief, which will help you to learn about offsetting the payments of stamp duty when you plan to make a purchase of several properties at the same time. In such a case, the transactions are also done in the same go. This guide will help you gather imperative information about what SDLT multiple dwellings relief is, how you can be eligible to qualify, and the method to claim MDR. This will help you reduce your Stamp Duty Land Tax. We recommend finding professional help to further learn about SDLT multiple dwellings relief. Talk to our guys and get your queries answered quickly. What Is SDLT Multiple Dwellings Relief? Have you planned to purchase several properties in one transaction? Let’s take the example of an individual who is interested in buying properties from a developer, it can be multiple flats in one transaction. Or an individual who has planned to transfer his properties to a limited company. You have a chance to reduce your tax bills and save money with the help of multiple dwellings relief. Moreover, with the help of multiple dwellings relief, it is calculated on the average value of your property. The implementation of SDLT is then the rate is related to this average figure now. You are not considering the price of an individual property or the total price of a property purchase. This saves your amount of money and helps to reduce your tax bills. Several people get confused with the term dwelling. In simple words, a dwelling is known to be a flat or a house that provides living shelter to people. Moreover, regarding multiple dwellings relief, HMRC defines dwellings as a suitable building for one household. The properties that are in the process of construction are also considered dwellings according to HMRC. There are a few types that can come on the list of multiple dwellings relief. See the following listed options: The property is mixed-use like a flat that has shops with it. An annexe that is self-maintained and was bought with the main house. Flats and houses that are purchased in bulk. How to Qualify For Multiple Dwellings Relief (MDR)? There is a condition for purchasing two or more properties or dwellings in other words. This process has to be completed with the same transaction. The other option could be a series of linked transactions that are allowed to make you qualify for making multiple dwellings relief. In case a person is up for buying properties that are 2-5 in number. The condition of the residential property will be applied. On the other hand, if the person is up for buying multiple properties that are 6 or more in numbers. The property could be possibly for commercial purposes or residential. You can opt for no residential SDLT rates that are comparatively lower than the rates of residential SDLT. Introduction of A Linked Transaction When the process of buying multiple properties is carried out, the seller and the buyer remain the same in this condition. That is when it comes to the use of linked transactions. Transfer of personal property to your limited company is one such example. It is possible with the help of liked transactions that the value of all the properties is put together and that’s the figure on which SDLT will be applied. However, the disadvantage of this scenario is that the tax bill will turn out to be higher in comparison to an individual property. This makes multiple dwellings relief a better option to apply to like transactions. Learn to Claim Multiple Dwellings Relief You can save a lot of thousands from stamp duty by applying for multiple dwellings relief. It is advisable to reach out to a solicitor when you are buying a property to claim multiple dwellings relief successfully. In some cases when people overpay in form of stamp duty and realise it later. You have the option of retrospective multiple dwellings relief for a year. The starting date will be the date of filing the case. Moreover, there will be a requirement to provide solid shreds of evidence for multiple dwellings. The property floor plan and surveyor’s report can help in this matter. You should get help from a property tax expert in case you do not find a reliable solicitor. The Bottom Line Now that you have gathered a fair amount of information about SDLT multiple dwellings relief, we can bring the discussion towards wrapping up. It is important to have a basic understanding of multiple dwellings relief to reduce your tax bills and the amount of money you pay as stamp duty. However, the crucial criteria to qualify call for an expert’s help for seamless processing and to make the claim successfully. Most people tend to get the help of solicitors in this regard without knowing the fact that some of the solicitors are not good at handling such a case. It is suggested to speak to a property expert in this case. This way you will keep yourself protected from overpayment of stamp duty and go under the processor to get the overpaid amount back. We have these few minutes of reading that will help you to handle the SDLT multiple dwellings relief well and it turns out to be advantageous for you. Get in touch with our young, clever and tech-driven professionals if you want to know more about the SDLT multiple dwellings relief and how does it work? Disclaimer: The information about SDLT multiple dwellings relief provided in this blog includes text and graphics of general nature. It does not intend to disregard any of the professional advice.

Read more