Tax News and Tips Archives - Page 7 of 7

Can Self-Assessment UK Tax be Paid in Installments?

George / 28/11/2022

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.

tax, Tax Issues, Tax News and Tips, Tax Saving Tips, Taxation

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

George / 24/11/2022

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.

tax, Tax Issues, Tax News and Tips, Tax Saving Tips, Taxation

Time to Pay Arrangements with HMRC

George / 23/11/2022

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.

Tax Issues, Tax News and Tips

The Benefits of Filing Your Tax Return Today

George / 26/09/2022

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

Tax Issues, Tax News and Tips, Tax Saving Tips

SDLT Multiple Dwellings Relief – A Beginner’s Guide!

George / 11/08/2022

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.