Q: Do I have to use your online forms to enter my income and expenses or can I use my own records?
- A: We have easy forms for you to enter detailed financial information or you have the option, on the forms, to enter expense totals from your own records. This is very useful, especially if you are self employed or if you receive rental income from property. If you wish, on entering a single total, you can upload your own records in the form of Word document, .pdf or spreadsheet in support of the forms for us to check over. We can analyse these to your maximum benefit and utilise them in the preparation of your tax return. The uploading of documentation is entirely at your choice and not compulsory.
Q: How can I know for certain, before I enter all my information, that my fee will not be more than £99.00?
- A: When you fill out the ‘My Details’ form and click the ‘Ready’ button we will contact you and confirm our fee which, in nearly all cases, will be the standard £99.00 inclusive. The only time this will vary is if there is a complex matter concerning your tax return, such as a Capital Gain (see following FAQs) or Foreign Income entry and even then, in most cases, it only adds a small amount to the fee (normally £25.00). We will also give you directions on which forms you need to complete and note any applicable surcharge to you. You do not have to proceed if you do not wish to do so and there is absolutely no cost to you up to this point.
- A: There are only two fixed forms required in the Taxeezy process; the ‘My Details’ form required at the start of process and the ‘Essentials’ form, which is required at the end of the process. Both of these forms can easily be completed in a matter of minutes, the majority of combined entries being tick boxes. In between are the financial forms of which, in most cases, only one is required. If your circumstances are slightly more complicated there may be more forms, however, the Taxeezy concept ensures that you will not be presented with any more information or requirements than your particular circumstance dictate. This is why we can honestly say that your own input can be limited to just a few minutes of your time.
Q: What is a UTR Number?
- A: This is a ‘Unique Tax Reference’ which is required in all cases in order to submit a tax return. This is required as an entry on our ‘Essentials’ form at the end of the process and therefore all other stages, including tax calculation and payment summary can proceed without this number. If you don’t have one, we can advise you on how to apply and provide the applicable form for you. We do this entirely free of charge. Please note that obtaining this number can take up to six weeks and therefore this should be borne in mind with a view to the 31st January deadline to submit the tax return without £100 penalty.
Q: Can you prepare and submit a late or previous year tax return?
- A: Yes, within the scope of our £99 service we can go back five years before the current due tax return, although very early tax returns cannot be submitted online and have to be produced for manual signing and posting to HMRC. The ‘My Details’ form has a drop down menu which you use to select the required tax year. If you have multiple tax returns to submit, please select the earliest tax year.
Q: If I need any help filling in the forms or providing you with the correct information, or indeed if I have any query at all, can I contact you for assistance?
- A: Yes. You can contact us using our internal messaging system or secure authenticated email. Our experienced support team is on hand to assist throughout the process and guarantee to answer any query promptly.
Q: Can I change my return after it has been sent for my approval?
- A: Yes. If you want to add something that you may have forgotten or remove something that isn’t applicable, you can tell us about the changes. We will then send you a revised return for your approval. This involves no extra cost to you.
Q: Will you submit my return to HMRC for me?
- A: Yes we will. As soon as we have your emailed approval we will electronically file your return. We will also send you the HMRC confirmation of submission which legally links to the tax return by way of the IR mark.
Q: When do I have to pay your fee?
- A: When your completed and approved return is submitted to HMRC with confirmation receipt sent to you, we will ask you to pay our fee, which is due immediately following submission. If we prepare draft for you and you don’t instruct us to file the return within 28 days, we will also ask you pay our fee at that point, however, there is no additional fee when you do instruct us to file in these circumstances.
Q: How do I pay your fee?
- A: After your tax return has been submitted, or in other circumstances where the fee is required, a ‘Pay Now’ button will appear in your ‘Status area within the login. You can use a standard credit or debit card. No card details are retained by us and these are only required by the third party operator (Paypal).
Q: What are ‘allowable’ expenses?
- A: Allowable expenses are the costs that you pay out in the course of your business or property rental and in some cases, PAYE employment. You can’t claim for non-business or personal items. Buying or improving capital items, such as machinery, which last for several years, is not a business expense for tax purposes but you may still be able to claim for them as long as they are related to your business. Capital items need to be shown separately on your tax return and the associated reliefs are referred to as ‘Capital Allowances’.
Q: What are Capital Allowances?
- A: Capital allowances are tax reliefs on expenditure in buying, creating or improving a business asset that you need in order to earn the profits of your business. So, for example, the cost of buying a van for your business is capital expenditure on which you may be able to claim a capital allowance. If the item is eligible and purchased within the tax year we may be able to claim the full cost of the item in one go using AIA (annual investment allowance). Other examples of capital expenditure include the cost of buying machinery, computers, fixtures and office furniture. You won’t be able to get tax relief for all types of capital expenditure and, if you can, there are special rules for how you can claim it. We can advise you on this as we process your tax return.
Q: If I use my car for business, as well as private use, what expenses can I claim?
- A: If you are self employed one of the most common expenses is running your vehicle, simply add up the miles travelled exclusively for business and compare this with the total miles travelled in the tax year. This will enable you to work out the business use percentage. For example, if the total cost of running your car is £10,000 a year and 50% of the use of the car is for business, you may claim £5,000 as an expense. Normally this method is used when there is a capital allowance claim on the vehicle in question.
Q: Is there an alternative way of claiming my business motor expenses?
- A: Yes there is. There are two ways in which you can claim this expense against your income. The direct method as detailed above or by using HMRC’s fixed rate mileage method. The mileage method will involve keeping accurate records of your business journeys including from, and return to, your business base. You cannot claim the mileage method once you have claimed capital allowances on the vehicle and therefore this is a decision to be taken carefully, particularly if you have high business miles and a fuel efficient vehicle which can actually make the mileage method more tax efficient in the long term against a capital allowances plus expenses claim.
Q: Are there any other allowable expenses that I can claim for a vehicle?
- A: Yes. You can also claim interest on a loan for the purpose of buying the vehicle applied in the percentage that the vehicle is used for business. Also business parking and toll charges. You may also be able to claim a depreciation allowance (capital allowance, see previous item) for the cost of the the vehicle. Normally the allowance (writing down allowance) will be 18% of the cost per annum on a reducing balance basis. Vans and defined business vehicles are eligible for AIA (annual investment allowance) whereupon the full cost may be able to be claimed in ‘one hit’ if purchased in the tax year of the tax return.
Q: What is Capital Gains Tax?
- A: Capital Gains Tax is the tax payable on the gain or profit you make when you sell or transfer assets. It applies to assets that you own, such as shares or property, machinery etc. There’s a tax-free allowance and some additional reliefs that may reduce your Capital Gains Tax bill. There are exclusions to gains made on certain assets and often there will be no tax to pay, particularly on gains made when you sell your principal private residence. This can be a fairly complex area, so if you think you have made a Capital Gain during the tax year in question answer ‘Yes’ to the question on the ‘My Details’ form and our support team will run over the details with you, directing you on the information to provide.
For more specific information regarding a certain occupation or circumstance, please consult one of our many articles in the ‘Taxeezy News and Tips’, found on the ‘News’ main menu item.