Were you one of the 10.7 million?

From the Institute of Chartered Accountants in England and Wales (ICAEW) – Tax News (my highlights) :

The number of self assessment (SA) tax returns filed by the 31 January 2018 deadline for 2017 returns has once again reached a new high. 10.7 million taxpayers submitted their return on time and 9.9 million of these were filed online. For those interested in statistics, this means that more than 92.5% of total returns were completed online. And of course it does also mean that over half a million tax returns remain unfiled.

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£1,000 tax-free trading allowance

Question: You do a little bit of buying and selling on ebay (or other sundry sales/income earned) and make a few hundred pounds per year profit on this. Do I need to declare this on my tax return?
I’m often asked this question by clients – although most of them hope dearly to make more than a few hundred pounds with their writing! – but in some cases it doesn’t go that way. HMRC recently brought in a new allowance to cover these sundry sales. There’s more detail on the HMRC website, and I’ve also excerpted a good summary below from JF Financial, an online accountancy practice. One important thing I’d ask you to bear in mind – this allowance applies to your PROCEEDS, not the profit you make.

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HMRC hiccups

Spare a thought for accountants and their clients this weekend, and anyone who’s wrapping up personal tax returns in the final month before the deadline of 31 January – the HMRC online access has been “down” since at least Thursday, and submissions are waiting in a draft limbo. Here’s hoping it’ll be up and running again soon, HMRC are diligently working on it. Maybe we’ve broken  the system, leaving too many submissions to the last minute! 🙂

*makes note to chase clients for details even earlier next year*

Paying your Income Tax Bill

HMRC will no longer accept payments by personal credit card after 12 January 2018.

The reason of the change is that from 13 January, the EU Payment Services Directive 2 prohibits merchants (including HMRC) from recharging associated fees back to customers. HMRC will not absorb the cost of credit card fees as this would be a cost to the public purse.

Payments by debit card or corporate credit card will continue to be accepted.

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Budget Nov 2017 summary

Autumn Budget 2017: What measures did the chancellor announce?

Philip Hammond promised “a balanced Budget”, one that would maintain fiscal responsibility but help families cope with the cost of living. What measures did he announce to achieve his Budget aim?

Philip Hammond promised “a balanced Budget”, one that would maintain fiscal responsibility but help families cope with the cost of living. What measures did he announce to achieve his Budget aim?

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Government Gateway – why you need one and how to get it

Hello taxpayers!

This is the face of your future communication with HMRC on any kind of tax. They would like us all to communicate online, via a GOVERNMENT GATEWAY NUMBER.

From there you can set up an online account called a Personal Tax Account, so you can access at any time your tax position.

You can also use it to register for self-employment, including the range of taxes that may then be applicable. You can monitor these taxes through your Business Tax Account, including making your regular payments.

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Self Employed National Insurance – info for 2019/2020

NEWS on the application of National Insurance rates from Accounting Web:

Classes 2 and 4 NIC were to be merged from 6 April 2018, with class 2 NIC abolished from that date. This merger will now take place from 6 April 2019.

Delay

In a written statement to the House of Commons released late yesterday, it was announced that the abolition of class 2 national insurance contributions (NIC) would be delayed by one year to 6 April 2019. This delay was justified by a need to consult more fully with interested parties in respect of the effect of the abolition of class 2 NIC on lower earners.

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