Landlords HMRC Let Property Campaign

Landlords HMRC Let Property Campaign

HMRC has started a second campaign aimed at landlords, and undeclared rental income. The idea is to bring the tax affairs of landlords who are not declaring their income up to date. The campaign is targeted at both landlords and non resident landlords living outside the UK.

HMRC are offering under the campaign the best possible terms for income that has not been disclosed when it should have. Sizeable penalties can be imposed if you don’t submit any rental income on time. If you have misunderstood the rules and have a reasonable excuse HMRC will try and help.

Some landlords are under the impression that if they don’t make a profit they won’t have to fill in a tax return with their rental income. This is not the case and can lead to serious consequences.

Important

It’s common that once all allowable expenses are brought into the equation that a loss is made in any one tax year. Any losses can be carried forward into futures years, which helps reduce any tax owed in the future, meaning that by not declaring rental revenue the potential benefits will be lost.

More details on the Let Property Campaign can be found here

Tax Rebate Services offers a specialist service for landlords both in and outside the UK. We can help you complete your tax return and bring your tax affairs up to date ensuring that you meet any future HMRC deadlines.

Tony Shanks

 

BAOT Members Tax Relief

BAOT Members – Getting Tax Relief

If you are a BAOT member (British Association of Occupational Therapists) you will be entitled to apply for up to 75% tax relief on your annual BAOT subscription against the highest marginal rate of tax.

The BAOT have agreed with HMRC that 75% of the the annual subscription will be eligible for tax relief. A claim for tax relief on your BAOT membership fees can be backdated for the last four tax years.

How do I make a claim?

If you complete a self assessment tax return you will need to enter your subscription total in the relevant box to be given the tax relief. You must make sure you only claim back 75% of your total fee unless the tax relief given will be incorrect. If you have already completed a tax return, and not included your membership fee a claim can still be made by way of an amendment to the tax return.

If you don’t complete a tax return a claim can be made in writing. 

What else can I claim for?

Other expenses incurred because of your job can be claimed for at the same time. These include:

Other professional and union fees

Travel – using your own car to travel to different places of work because of your job

Uniform allowance –  for washing of work related clothing

Use of home – if you contractually have to use your own home for work purposes

Equipment – bought for work use 

How do I make a claim?

Being a member of the BAOT will usually mean your a very busy person. Dealing with your tax affairs can become a time consuming and frustrating process. Tax Rebate Services specialises in helping BAOT members claim what they can against their income tax. We make it easy for you and work on a no rebate no fee basis meaning there is no risk in making a claim. 

To get started you can claim online or by calling us on 0845 094 0005 or 01228 520477.

A bit about the BAOT…

The benefits include up to 5 million insurance cover against any one claim for: Professional indemnity, professional liability and product liability.

Professional indemnity is a form of insurance that covers against claims of poor advice, omission or negligence in the course of a professional service. The insurance covers any claim made in the UK or the EU

BAOT membership automatically grants you liability insurance against a wide range of risks that might arise from the day to day professional service of Occupational Therapy. This covers BAOT members except for private practice work where the individual earns more than £1,500 in a given tax year. 

Tony Shanks

 

Tax Rebate Services using Keytime

Tax Rebate Services Using Keytime

We’re changing accounting software providers, meaning all of our tax returns submitted through commercial software will now be done with Keytime.

Here’s a little bit about who they are and what they do…

Keytime are independent software developers who started writing software for accountants in 1989. Products include: tax, corporation tax, final accounts, payroll and practice management software. As far as we can tell, we are the only supplier to accountants who publish live satisfaction ratings, and we are honoured to have the trust of over 1650 practices. All of our software development is done from our offices in Oldham, near Manchester, where we’ve been based since 1989. www.keytime.co.uk

We hope this will be a long and happy relationship.

Tony Shanks

How To Correct A Self Assessment Tax Return

How to Correct a Tax Return and Claim a Refund

It is likely that you will make a genuine error when filling in your Tax Return – forgotten to add an income or an expense and therefore paid too much or too little tax.

Tax Rebate Services has helped countless Self Assessment tax payers amend their returns, claiming back expenses they didn’t enter when originally filling it in themselves.

It can be a simple process to amend your tax return, though you will have a time limit in which you can make these amendments, and importantly you need to know what you are amending is correct. If HMRC authorises the amendment, they will pay you back the extra or inform you how much more you will need to pay.

Claiming a tax refund

If you have made a mistake and appear to have overpaid, you will need to correct the tax return within the given time limit. The tax refund can be claimed at the same time.

If you are not required to fill out the Self Assessment form and wish to claim back tax, there are different forms depending on what you intend to claim tax back against.

Correcting your return

The deadline for making an amendment to your tax return is very generous – you have 12 months from the January 31st after the end of the previous tax year to make your corrections. This means that for the tax year 2012-2013, the deadline for payment is 31st January 2014, and the deadline for amendments is 31st January 2015.

You may be entitled to an extension on this date if you received your return later than expected (after 31st July). If this happens then the accompanying letter will give you the deadline for the return; consequently you will have 12 months from this date to file your amendment. So if your tax return for 2012-3 arrived on 1st December 2013, you will have until 1st March 2014 to return it. Consequently, you will have until 1st March 2015 to make any amendments.

If HMRC calculates that you owe more and consequently have to pay a penalty, they will tell you how much you’ll need to pay and how to go about paying it. Those who are due a refund will be given the option on how they will have it refunded.

How to amend an online tax return:

Many choose to fill out their tax returns online and if you complete yours by the 31st January, an online amendment is straightforward. Just follow the option to amend your tax return from the “At a Glance” page.

How to amend a paper tax return:

You will not need to send a whole new tax return. Instead, write to HMRC with the individual amended page(s). Ensure that the word “AMENDMENT” appears at the top of each page.

What if it’s too late to amend your return?

Sometimes mistakes do not become apparent until much later. It is advisable to write to HMRC as soon as possible – you will have four years from the end of the tax year to bring it to their attention.

For example, if you discover that you paid too much tax in the year 2009-10 (which ended on 5th April 2010) then you will have until 5th April 2014 to claim a refund. After this date, you will miss out and nothing can be done. A repayment claim for this four year period should include:

  • Details of which tax year you are claiming for
  • An explanation for why you feel you overpaid in that year
  • Evidence of the tax that you did pay in that year
  • Your signature
  • Details on how you would prefer to receive any due refund

If the mistake means that you owe tax to HMRC, they will include details on how much you need to pay and how you can pay.

How will any refund be made?

There are a couple of options you might consider. Many prefer to have it deducted from tax due on the current Self-Assessment form. Alternatively HMRC offers the following options:

  • Direct debit into your bank account
  • Through the post – this will take a little longer than a direct debit
  • To a nominee – you will need to include details of their account

HMRC aims to settle any claims quickly and most will be satisfactorily completed within fourteen days. Some cases will take slightly longer for fraud protection purposes. Online requests take up to four weeks and postal requests anything up to six weeks. 

Interest is payable on both late payments and late refunds. 

Tony Shanks

Are you due a tax rebate? Find out today – Click Here

2014/2015 P2 Notice of Coding

Why you might not get a 2014/2015 P2 Notice of Coding this year

Every year most UK tax payers are issued with a new tax code which is explained on a form called a P2 notice of coding.

Making sure your tax code is right is important to ensure your personal circumstances are reflected in your personal allowance, which is used to make up your tax code.

HMRC have this year decided to not issue P2 notice of codings to some people. There are three main categories:

The people who will not receive a P2 notice of coding are:

  • have the same tax code in the 2014/2015 as the 2013/2014 tax year
  • not in employment 
  • have no liability to tax

The reason given by HMRC is because there is no effect on their tax position. If a your circumstances change this may not be the case, so you should let HMRC know as soon as possible to avoid paying too much or too little income tax.

If you have received a P2 notice of coding it’s recommended you check the explanation given on how your tax code has made made up. Sometimes errors can be made, or your personal circumstances are different from past years, meaning your tax code needs to be adjusted taking the changes into consideration.

Tony Shanks

4.7 Billion Wasted In Tax

4.7 Billion Wasted in Tax 

The annual TaxAction report by Unbiased.co.uk have found that up to £4.7 billion is wasted because of tax inefficiencies. This basically means UK tax payers aren’t claiming back the tax that they are owed, and using the many tax reliefs that are legitimately available to them.

In summary the report goes on to say that the average amount each tax payer is going to waste is £161, and that 77% people in the last 12 months haven’t actively done anything to stop the waste of tax.

The core areas highlighted where the most wastage is seen include:

•  individual savings accounts 

•  tax relief on pension contributions

•  capital gains tax 

•  inheritance tax 

Another important statistic is that 38% of the tax paying public don’t feel confident in dealing their tax affairs without the help of a professional.

This is not surprising given the sometimes complex nature of the UK tax system, and the lack of knowledge by many tax payers on what tax reliefs they are entitled to claim.

PAYE Income Tax Overpayments

At Tax Rebate Services we would like to highlight the wastage of income tax by the employed. It can be an over looked area, with many assuming that they are paying the correct amount of tax. It’s not just the self employed that can reduce how much tax they pay, and you usually won’t get any tax you have overpaid back unless you claim it.

We are here to help you decide what tax reliefs you can claim back because of your employment, making sure you only pay the tax you need to.

Tony Shanks

 

Biggest Tax Cuts In Two Decades

Biggest Tax Cuts In Two Decades

With the new personal allowance for the 2014/2015 tax year increasing to £10,000 the Chancellor George Osborne hails what he says is “the biggest reduction of business and personal tax in two decades” and ”This week your business can keep more of the money it makes, so you can invest, expand and create new jobs.”

The new personal allowance will mean you don’t pay any income tax up to the first£10,000 of your earnings.

Mr Osborne added that the government is “backing businesses by cutting their taxes so they can create jobs, cutting the tax on hard-working people so their job pays, and holding back welfare rises and imposing more conditions on those claiming the dole, so that getting a job pays more”.

The new personal allowance for the 2014/2015 tax year is s big bonus for many lower earners. It means you don’t have to pay any tax on the first £10,000 earned. The new standard tax code for the 2014/2015 tax year is 1000L and will come in to use from the 6th April 2014.

Find out more on how the tax cuts could affect you 

Tony Shanks

Leaving The UK Tax Back

Leaving the UK Tax Back – What Can I Claim?

If you’ve left or are leaving the UK its likely you are entitled to claim tax back from the UK government. It doesn’t matter if you’re a UK citizen or a foreign visitor, as long as you have paid tax you could be eligible to make a claim.

What can I claim for?

A common myth…

It’s a common myth that if you leave the UK you claim back all of the income tax you have paid.

In most cases you will not be able to claim back all of the tax you have paid in the UK. It is possible in some very specific circumstances, but the vast majority of people leaving will only be able to claim back a portion of the income tax they have paid in the UK.

UK Tax Back for the year in which you leave

When you are normally employed under PAYE you will usually get a tax free personal allowance. The allowance means you can earn so much without having to pay any tax. If you leave the UK during a tax year you probably won’t use up all of your tax free allowance resulting in a tax rebate being owed to you.

Other reasons for being due UK tax back

When claiming your tax back for the year in which you leave it’s recommended you review the last four tax years at the same time. Depending on the type of employment you have had its possible to claim back expenses which can increase the amount of tax rebate you are owed.

Lots of expenses can be reclaimed including:

  • Uniform laundry
  • Tools bought for work use
  • Using your own vehicle or public transport to travel to different places of work
  • Professional or Union fees

These can all be reclaimed at the same time as making a P85 repayment claim for leaving the UK.

Tony Shanks

Tax Rebate Services
Are you due a tax rebate?
Apply online its fast and easy – Click Here

HMRC Tax Rebate Email Virus

HMRC Tax Rebate Email Virus

We are getting an increased number of enquiries from current and past clients, along with other members of the public about tax rebate emails claiming to be from HMRC.

What you need to know…

The Tax Rebate emails are being distributed claiming to be from HMRC. The emails are bogus and can contain a virus. If infected your computer can be remotely accessed from anywhere in the world. The scam allows cyber criminals to steal your personal information and use your computer to commit cyber-crimes.

There are different versions of the email often asking for the recipient to open an attachment – which contains a Trojan virus. It’s becoming normal for an increased volume of such emails to be sent at this time of year, when many people are thinking about tax and could be due a tax refund.

Be vigilant and be aware of any emails purporting to be from HMRC.

HMRC states:

“HMRC never contacts customers who are due a tax refund via email – we always send a letter through the post.

“If you receive an email claiming to be from HMRC which offers a tax rebate, please send it to phishing@hmrc.gsi.gov.uk and then delete it permanently. We can, and do, close these websites down, and do all we can to ensure taxpayers stay safe online by working with law enforcement agencies around the world to target the criminals behind these scams.”

Example fake email addresses are:

  • reve.alert@hmrc.gov.uk
  • services@hmrc.co.uk
  • noreply@hmrevenue.com
  • service@hmrc.gov.uk
  • service.refund@hmrc.gov
  • secure@hmrc.co.uk
  • hmrc@gov.uk
  • taxes@hmrc.co.uk
  • taxrefund-notice@hmrc.gov.uk
  • taxrefund@hmrc.gov.uk
  • refunds@hmrc.gov.uk
  • customs@hmrc.gov.uk
  • srvcs@hmrc.gov.uk
  • alertsonline@hmrc.co.uk
  • info@hmrc.gov.uk
  • rebate@hmrc.gov.uk

If you get a suspicious email report it to HMRC by forwarding it to phishing@hmrc.gsi.gov.uk, and then delete the email.

Safe emailing.

Tony Shanks

Childcare Subsidy For Tax Payers

Government Announces Increase in Childcare Subsidy for Working Parents

Government plans announced in March 2014 could see working families entitled to claim up to £2000 per child in subsidy against the cost of their childcare. This might be some consolation to the many tax paying parents who have been dragged into the 40% tax bracket recently, and those have lost out on child benefit due to changes last year.

The coalition Prime Minister and Deputy Prime Minister believe it will help many hard working families (the so-called squeezed middle). The online system is also expected to be a much simpler process than previous benefit systems.

The plans were announced ahead of the 2014-15 budget and Labour were quick to attack the plans as “too little, too late”; they are offering their own plan to ease the burden of childcare – both the government and the opposition noted that childcare costs had increased by 30% since 2010.

Charity Family Childcare Trust claims that a typical family pays £109.89 for 25 hours of childcare every week, though a tax-free voucher scheme available through participating employees can reduce the cost of childcare. It is estimated that only around 5% of employers in the UK have signed up to the scheme.

The new scheme will commence in September 2015 (after the next general election) and is expected to double the number of eligible parents, particularly the self-employed who are not included in the current scheme. When announced in 2013, the initial plan was for the support to be capped at £1,200 per child and open to families with two working parents who earn a combined income of under £150,000 per annum.

Paternity leave

The scheme is expected to be phased in over the course of the next seven years.

Ministers agreed, following an extensive public consultation, to increase the value to £2,000, extended it to all under 12s within the first year of the scheme, and speed up the process of implementing it.

Users will set up a simple online account; this will entitle them to 20% rebate per child against the annual cost of their childcare (up to £10,000). If a couple’s annual childcare bill was £6,000 for example then they would pay £4,800 into the account and the government would add the remaining £1,200 to make up the total bill.

It is expected to cover:

  • Part-time workers earning  more than £50 per week
  • Those receiving maternity / paternity pay or on adoption leave
  • The self-employed

Prime Minister David Cameron and Deputy Prime Minister Nick Clegg visited a London nursery to talk about the scheme. “This is about helping all families, but particularly those families that do feel their finances are squeezed.  I want to give families greater stability, greater peace of mind, greater security. And obviously being able to have £2,000 tax relief per child is going to be a huge help to millions of families across Britain,” said the Prime Minister.

“This is really simple,” added Mister Clegg. “For every 80p you pay, the government will pay 20p. It’s as simple as that.” He went on to say that introducing staggered cut-off points would have unnecessarily complicated the scheme.

Critics have pointed out that that homes where just one parent works, and the other stays at home, are ineligible.

Election battle

Mr Clegg reiterated that: “This scheme is aimed at parents who are both at work,” and added that raising the income tax threshold to £10,000 a year will help many households.

Labour counterclaimed: “What the government have announced today is £750m which they say will be shared between £1.9m families – I work that out to be around £400 a year for the average family. So they are making this sound a little bit more attractive than it actually is,” was the view of shadow Children’s Minister Lucy Powell.

Treasury minister Nicky Morgan spoke to World at One on Radio 4, and pointed out that there was no such thing as the “average family”, insisting that families would be entitled to up to £2,000 per child: “The point about the scheme is it is simple and flexible.”

The current Employer Supported Childcare Scheme as it presently stands will continue but will be closed to new members from August 2015. Those who wish to switch from it to the new scheme will be able to do so, but they may not be part of both schemes at the same time.

With an election in May 2015, all three main parties are seeking to appeal to working families. Earlier, the government increased early schooling entitlement for 3-4 year olds from 12.5 to 15 hours per week. The opposition promised that a Labour victory would double this to 25 hours.

Further warnings from Labour stated that as a result of government policies, parents were likely to see more of their disposable income going towards funding childcare by 2018. “Of course any childcare support is welcome but this government has done nothing in this Parliament to help parents experiencing a cost-of-living crisis,” said Labour’s Lucy Powell. “[Prime Minister] David Cameron has cut support for children and families by £15bn since he came to office, And today he confirms that no help will arrive until after the election. This is too little, too late.”

 Tony Shanks