HMRC countdown: file your tax return

The deadline for submitting 2017/18 self assessment tax returns online is 31 January 2019, HMRC is urging tax payers to complete their tax returns early, in order to avoid the last minute rush. An automatic penalty of £100 applies if the return is late.

HMRC advise that last year, more than 11 million tax payers completed a 2016/17 Self Assessment tax return, with 10.7 million completing on time. There were 4,852,744 taxpayers who filed in January 2018 (44.8% of the total), and 758,707 on 31 January, the deadline day.

You may be required to file a tax return if: 

  • You are self employed or a partner in a partnership
  • You are a company director
  • You have large amounts of savings or investment income
  • You have untaxed savings or investment income
  • You own land or property that is being let
  • Your household receives Child Benefit and you have income in excess of £50,000
  • You have income from overseas
  • You have sold or given an asset away (such as a holiday home or some shares)
  • You’ve lived or worked abroad or aren’t domiciled in the UK

If you want to make sure you are paying the right amount of tax, you should contact one of our tax professionals.

Wellden Turnbull will take the worry away when it comes to self assessment tax returns, we can:

  • Complete your tax return
  • Calculate your tax liability
  • File your return online
  • Liaise with you on the amounts to be paid and when they are due

Our tax team will also analyse your tax return to see if any tax savings can be made and review the calculations to see if there are any anomalies that need to be looked into before the return is submitted.

Angela MacDonald, HMRC’s Director General for Customer Services, said:

“The deadline for completing Self Assessment tax returns may be less than 100 days away, yet many of us wait until January to start the process. Time flies once the festive period is underway, yet the “niggle” to file your return remains.”

Let us take the stress of filing your tax return away, contact our tax professionals today.

Capital allowances change

A number of changes to capital allowances were announced at the Budget, including an increase in the Annual Investment Allowance (AIA), for two years to £1 million, in relation to qualifying expenditure incurred from 1 January 2019. The AIA is currently £200,000 per annum. Complex calculations may apply to accounting periods which straddle 1 January 2019.

Other changes to the rules include:

  • a reduction in the rate of writing down allowance on the special rate pool of plant and machinery, including long-life assets, thermal insulation, integral features and expenditure on cars with CO2 emissions of more that 110g/km, from 8% to 6% from April 2019. Complex calculations may apply to accounting periods which straddle this date.
  • clarification as to precisely which costs of altering land for the purposes of installing qualifying plant or machinery qualify for capital allowances , for claims on or after 29 October 2018
  • the end of the 100% first year allowance and first year tax credits for products on the Energy Technology List and Water Technology List from April 2020.
  • an extension of the current 100% first year allowance for expenditure incurred on electric charge-point equipment until 2023.

In addition, a new capital allowances regime will be introduced for structures and buildings. It will be known as the Structures and Buildings Allowance and will apply to new non-residential structures and buildings. Relief will be provided on eligible construction costs incurred on or after 29 October 2018, at an annual rate of 2% on a straight-line basis.

 

Wellden Turnbull Budget Seminar

Another successful budget seminar presented by Robin John, tax partner at Wellden Turnbull.  The seminar was held at the Cobham Curve on Friday 2nd November.

Robin spoke about the budget including sources of revenue and where the money goes! Did you know the VAT threshold is frozen until 2022.

Delegates received responses to a wide variety of questions ranging from Chancellor Philip Hammond’s speech to reinforce that “Britain is open for business”,  Making Tax Digital and Power’s of attorney.

If you would like to watch Robin’s presentation please click here