Tax News and Tips Archives - Page 12 of 12

News,May 2018

Are Influencers Evading Taxes?

Mia Hamilton23/09/2022Tax 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 …

SDLT Multiple Dwellings Relief – A Beginner’s Guide!

Mia Hamilton11/08/2022Tax 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 to gather imperative information about what is SDLT multiple dwellings relief, how can you be eligible to qualify, and the method to claim MDR. This will help you to 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 on liked 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.

What is A UTR Number And Why Do You Need It?

Smith06/07/2022Tax News and Tips

Every taxpayer should have a Unique Tax Reference (UTR), especially when they are self-employed and have launched a limited company. So, it is essential to know what a UTR number is and how to apply for this number and why it is important for you. Unique Tax Reference (UTR) is essential to pay your taxes and track your tax returns over the years. Otherwise, many complexities would have arisen if many people have had similar tax numbers. Therefore, HMRC assigns every person a unique 10-digit number to distinguish the taxpayers and maintain their records accurately. Let’s discuss what a UTR is and why it is essential to get one from HMRC. Moreover, we will explain the procedure of how to achieve a Unique Tax Reference (UTR) number and how long it takes to get the number in the process. So, let’s start our discussion! Are you confused about the Unique Reference Tax Number (UTR)? Please get help from the expert tax advisors at CruseBurke. What is a Unique Tax Reference (UTR)? Unique Tax Reference (UTR) is a number assigned to a taxpayer who is eligible for self-assessment tax returns. This eligibility becomes active when someone is self-employed or has initiated a limited company. HMRC uses this unique group of 10 digits to maintain a record of the returns of each taxpayer. Moreover, the taxpayers use this number to pay for their returns. The tax reference number ends with the letter K in most cases. Unique Tax Reference is used for the whole life of a taxpayer. However, if you lose your UTR, you don’t need to panic, you can simply contact HMRC and they will provide you with the UTR. Why UTR is Essential and Who Needs to get it? If you are a self-employed person, you have to manage and pay your taxes yourself. Similarly, a person who is the owner of a limited company or has a partnership in a limited company needs a tax reference number for the self-assessment tax return. The registration for self-assessment tax returns is possible only when you apply to the HMRC. They will assign you a number of 10 digits you will use to pay your tax returns. UTR is important as it helps HMRC maintain a proper record of your taxes paid or due and track the progress on your taxes. Similarly, the UTR helps the taxpayer in maintaining and tracking a record of their taxes. If you need Construction Industry Scheme (CIS) tax refund registration, UTR will help you get it. Similarly, working with consultants and tax advisors also requires a unique tax number. You can avoid hefty fines and penalties if you enter your correct UTR while paying your Self-assessment returns. On the same lines, a company needs a UTR number. It helps HMRC maintains a proper record of the taxes of a company. It is also a 10-digit number used for business tax, corporation tax and tax returns. Similarly, if you have not registered your limited company with HMRC, you will pay a heavy fee in penalty if HMRC comes to know about your business later and the absence of a unique tax number. How to Get a Unique Tax Reference (UTR) Number in the UK? A self-employed, owner or a partner in a limited company can get the Unique Tax Reference number from the HMRC either by writing a letter and ultimately posting or by applying online. So, it is essential to know about both procedures. A self-employed person is supposed to inform HMRC about their employment status or the company within ninety days of the start of business. Otherwise, HMRC will put a penalty fee for the self-employed or a limited company. First of all, if you launch your limited company and register it for self-assessment tax returns with HMRC, you will become eligible for UTR automatically. You don’t need to apply separately for this number. Secondly, you can write a letter in the name of HMRC, mention your self-employment, print out the letter and post it to the address of HMRC. Upon completing the process, you will get an activation code within 10 business days of the registration. After this, you can apply online to open an online tax account using the activation days. After 28 days, the activation code expires and you can use it no longer. So, you have to apply again for another activation code. What Documents are Required for UTR Registration? Following is the list of documents for completing the UTR registration process. Date of Birth Residential Address National Insurance Number Telephone Number Email Address The Date Self-Employment or Limited Company Started Business Address Business Telephone Number Type of Business What if You Have Your UTR Number? If you have lost your UTR number, you can find it on the following documents: Previous Tax Returns Notices From HMRC To File A Return Payment Reminders from HMRC Otherwise, you have to call at Self-assessment helpline if you fail to find your UTR number and the HMRC documents. In the case of a public limited company, you can apply online for the Corporation UTR number and HMRC will send the UTR to the address registered with the Companies House. Conclusion To conclude, we can say that UTR is important for self-assessment tax returns. It will help you keep track of your tax returns. You can check the record of your taxes on your tax account at HMRC. A self-employed or the owner of a limited company needs this UTR number for managing their self-assessment tax returns. Do you need help with your tax issues? Seek help from the top tax advisors in the UK at the CruseBurke. Disclaimer: All the information provided in this article on What is a UTR Number, including all the text and graphics, is general in nature. It does not intend to disregard any of the professional advice.

News,May 2018

Are Influencers Evading Taxes?

SDLT Multiple Dwellings Relief – A Beginner’s Guide!

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