Professional Bookkeeping Services Shropshire

Self-Assessment deadline moved to end of February

Incase you hadn’t heard the news and are still either putting off your self-assessment or frantically trying to get things together to file, the Self-Assessment deadline has ‘effectively’ moved to the end of February.

The Government has announced that late payment penalties are to be waived for one month. They are still encouraging everyone to aim to file by January 31, 2022.

But people won’t be penalised for late filing for one month.

If you need extra time due, you now have up until February 28, 2022, to complete your 2020 to 2021 tax return and pay any tax due.

People a...

Read more?

HMRC say tax phone scams have increased by 21%

A new HMRC update says that tax phone scams have increased 21 percent on last year, with nearly 800,000 tax-related scams reported in total.

A whopping 360,000 of those have been fake tax rebates, approximately.

As we draw closer to the Self-Assessment deadline on January 31, 2022, HMRC is warning that the self-employed should be on their guard.

Here are some things to watch out for – and how to protect yourself.

As the self-employed get ready to send their tax return this time of year, HMRC starts to send out emails and texts to taxpayers to offer them guidance and support.

H...

Read more?

Making Tax Digital For Income Tax Self-Assessment Delayed

The government has delayed the introduction of Making Tax Digital (MTD) for Income Tax Self-Assessment (MTD for ITSA) for a year, HMRC has announced.

The government says it has made the move in recognition of the challenges faced by many UK businesses as the country emerges from the pandemic.

It will now introduce MTD for ITSA in the tax year beginning in April 2024, a year later than planned.

Who is affected by MTD for ITSA?

Businesses with income greater than £10,000 per year from:

• Self-employment


• General partnerships with only individuals as partners


• Property busines

Read more?

National Insurance and Dividend Tax Rises Announced For Social Care Reform

From April 2022, the government plans to create a new social care levy which will see UK-wide tax and National Insurance Contribution (NIC) increases.

There will be a 1.25% increase in NICs on earned income, with dividend tax rates also increasing by 1.25%. The money raised will be ringfenced for health and social care costs.

The Levy will be effectively introduced from April 2022, when NIC for working age employees, the self-employed and employers will increase by 1.25% and be added to the existing NHS allocation. The Levy will not apply to Class 2 or 3 NICs.

From April 2023, once HM...

Read more?

Reasons to file your January Self-Assessment early

It’s coming..no not Christmas, the January 31, 2022 Self-Assessment deadline – it comes around earlier than you think, so here are some reasons to file early.

Number one, said tongue in cheek, is it will help everyone out – both you, your business, your family and your bookkeeper or accountant.

It’s the busiest time of year for us and with all the changes over the past 18 months, we simply may not be able to keep up with demand if everyone files last minute.

And if you file late you could incur a fine.

We know you’ve likely had enough of what to apply for and when and wou...

Read more?

Temporary Insolvency Restrictions to End in October

The Insolvency Service announced that the temporary provisions introduced to protect UK businesses from insolvency will be phased out from 1 October 2021.

Read more?

PM's £12bn a year tax hike to fund NHS and social care

Prime Minister Boris Johnson has announced that the Government is set to introduce a £12bn a year tax hike from April 2022 to address NHS backlogs and overhaul social care.

The tax rise will consist of a 1.25% jump in National Insurance (NI) contributions, levied on both employers and employees.

The raising NI, which represents a breaking of the Conservative manifesto pledge, is due to be rebranded as a “health and social care levy”.

In total, Johnson claimed that the new levy will raise almost £36bn towards the UK budget across the next three years.

The majority of initial f...

Read more?

What are Accounting Records?

If you run a small business, you may ask what are accounting records and how do I keep them?

This article will break it down into the different accounting records that a business may need to keep, how long to keep them, and the reports they produce.

The accounting source documents are the basis for all accounting and where the process starts.

What are Accounting Documents

Income

Depending on your business will affect the type of income documents the company will produce. They may consist of the following:

• Sales Invoices


• Till receipts


• Cash receipts


• Amazon, PayPal or eBay re

Read more?

How do you claim the fifth SEISS?

To claim the fifth SEISS grant, you need to find out where to find the turnover figures you’ll need before you claim.

You’ll need to tell HMRC about your turnover if you traded in 2019 to 2020 as well as any of the following tax years:

• 2018 to 2019


• 2017 to 2018


• 2016 to 2017

1. Work out your April 2020 to April 2021 turnover.


2. Find your turnover from either 2019 to 2020 or 2018 to 2019 to use as a reference year.

Read more?

Plans to give landlords more time to pay Capital Gains Tax

Landlords could be affected by extra changes being proposed to Capital Gains Tax.

The Office of Tax Simplification (OTS) has made a range of additional suggestions to the government, including an extension of the time allowed to make the payment.

Landlords are required to pay Capital Gains Tax on properties that are not their main residence.

Capital Gains Tax changes – what's being proposed?

The latest proposals come on the back of suggestions already made by the OTS.

Last November, it told the government that Capital Gains Tax should be increased in line with income tax rates....

Read more?