Struggling to file taxes? Get Self Assessment tax return help.

The Self Assessment tax return filing deadline, i.e., January 31, is coming up, and businesses, individuals, and accountants across the UK are rushing to stay prepared for the tax season and end the year on a productive note. With Christmas also around the corner, it makes sense to start as soon as possible and get Self Assessment tax return help, if required.

How to prepare for Self Assessment tax returns

The truth is filing tax returns can be overwhelming, even for seasoned accountants. We do not blame you if you are feeling a little lost and/or frustrated already with the looming paperwork. To ease your pain, we have put together a handy guide on some topical tax issues that will be relevant for January 2023 and help you with the Self Assessment tax return preparation:

1. Cryptoassets and HMRC

As more and more people trade on digital exchanges and include cryptocurrency in their asset portfolios, HMRC is issuing guidelines on how to treat decentralised finance assets, especially with regard to staking and lending where there would have been a tax due on the gain amount if it were a regular asset. If you are trading in cryptocurrency, you may need to find a specialist accountant who can provide Self Assessment tax return help and explain how this works and develop a budget with you for any extra amounts you may owe.

2. Jointly held investments

For those who are married or civil partners, and are holding property jointly together, the default position of the law is that both are equally entitled to the income that ensues from it. Exceptions include:

  • Income from a partnership
  • Income from shares in a close company
  • Income that neither party holds claim to
  • Income from letting furnished holiday residences
  • Income that is treated as the property of a third party for tax purposes

This 50-50 split will continue to run except in the case of death, separation, divorce or a change in beneficiary interest (such as a spouse transferring some share of their income to a third party). In any of these cases, you will need to make a declaration.

3. Time To Pay arrangements

HMRC has launched a self-serve Time To Pay arrangement for those who cannot afford to pay their entire tax bill in one go, if they meet the following conditions:

  • Their tax liability is under £30,000
  • They have filed their 2021/22 returns
  • They are within 60 days of the tax deadline
  • They plan to finish payment within the next 12 months

The online service will set up a personalised payment plan for the individual based on the amount owed and the time needed.

Thinking of going digital for filing a Self Assessment tax return? Connect Dext with any accounting software, such as Xero or QuickBooks, with one click.

4. New MTD for VAT penalty regime

Everyone submitting VAT returns will be subjected to a new penalty system for accounting periods that start on or after January 1, 2023. This will involve point penalties for late submissions and a fine of £200 whenever a late submission threshold is reached.

The threshold number of points is ‘4’ for monthly returns, ‘5’ for quarterly returns and ‘2’ for annual returns. HMRC will not charge penalties during the calendar year of 2023 if payment is made within 30 days of the due date to help people get more used to the new system.

5. Reasonable excuse for penalties

There is no clear definition by the law of what constitutes a ‘reasonable excuse’ – it is considered on a case-by-case basis. What is important to remember is that once the reasonable excuse ceases, tax penalties will start to kick in unless remedies are made within two weeks after the excuse stops. This means that you have to get your taxes filed within 14 days or submit a request for an extension on legitimate grounds. Need Self Assessment tax return help? Contact us.

6. New tax residence indicator tool

The HMRC has set up a Statutory Residence Test to help taxpayers determine their residence status for tax purposes. This includes the automatic overseas test, the automatic UK test and the sufficient ties test. The slight drawback, however, is that you can not view or download a copy of the answers to the questionnaire for reference.

7. Timely Capital Gains Tax (CGT) reporting

All UK residents are required to report and pay CGT on any property sale via the online UK Property Reporting Service. While the deadline for this used to be 30 days after the sale, it has now been pushed to 60 days.

For non-UK residents, this includes reporting even property/land disposals where they did not realise any gain. Either the individual or an authorised agent can do the reporting.

And if the taxpayer pays more capital gains tax than they owe, they need to contact HMRC and request a refund. Call Golding accountants on 01268 330600 if you need help with CGT reporting.

8. Working from home tax relief for 2021/22

When lockdowns were first imposed during 2020/21, the HMRC relaxed its rules around collecting tax relief for the costs of working from home. This would cover any costs related to carrying out the duties of one’s employment, such as additional heating or water bills incurred directly as a result of working from home.

All such costs would require evidence if they are to be claimed as actuals – or the employee has the option of claiming a flat rate of £6 per week. Recently, HMRC confirmed that the relief could also be claimed by those working from home during 2021/22. The claim can be made through the dedicated HMRC portal or via Self-Assessment.

Over to you

With things changing rapidly in the UK accountancy ecosystem, staying up to date with the latest trends and legislation is vital. Besides, preparing for and filing Self Assessment tax returns is a massive task, regardless of who you are or what you do.

We at Golding pride ourselves on having the knowledge and expertise to offer various taxation services, including Self Assessment tax return help. In fact, companies of all types and sizes come to us for their taxation queries so they can concentrate on running their business and saving money – without any hassle!

Whether you want help filing Self Assessment tax returns or want to learn different techniques to ace your taxes this winter, get in touch with us by filling out a contact form. Let us talk!