Complete your tax return in Junehttps://steppingstonesaccountancy.co.uk/wp-content/themes/blade/images/empty/thumbnail.jpg150150Stepping Stones AccountancyStepping Stones Accountancy//steppingstonesaccountancy.co.uk/wp-content/uploads/2017/01/stepping-stones-acountancy-icon.png
In our latest animated video we explain why you should completed your tax return in June.
Gain control of your self assessmenthttps://steppingstonesaccountancy.co.uk/wp-content/uploads/2021/02/gain-control-of-self-assessment.jpg758513Stepping Stones AccountancyStepping Stones Accountancy//steppingstonesaccountancy.co.uk/wp-content/uploads/2017/01/stepping-stones-acountancy-icon.png
It is surprising how a to-do list can achieve so much. The art of writing down a list of actions and then following them through to completion is nothing new but it still remains an incredibly powerful tool for efficient people. So how can this method help you get control of your self assessment?
Quite simply, if you follow some specific instructions to a set timeframe every year then you will have complete control of your self assessment. For example, if we look at the period of 2021 to 2022, it really is a very simple process based on 5 key steps:
Monthly – keep track of all your monthly business transactions, logging a record of invoices, receipts and expenses.
Register for self assessment by 5th October 2021 (if you have never done this before)
When filing online submit your return by midnight on 31st January 2022
Ensure relevant tax payments are made by midnight on 31st January 2022
In order to complete the self assessment you will need the following:
Your 10-digit unique taxpayer reference (UTR)
Your national insurance number
All details of your untaxed income for the period 2021/22 (this will include income from self-employment, dividends and interest on any shares
All records of expenses in relation to self-employment
Charity or pension contributions that should be eligible for tax relief
A P60 or any other records to demonstrate how much income you have received which has been paid on
Keeping in control of your self assessment can be a very simple exercise just follow your to-do list. Otherwise simply delegate and get your accountant to look after it for you.
For many years, investors have seen their buy-to-let properties as an excellent source of income. However, the Government has acknowledged the need to discourage savvy investors from procuring properties that would otherwise have been sorely welcomed by first time buyers.
As of 6th April 2017, a phased implementation began of new rules, designed to restrict the relief available for higher rate taxpayers. When calculating taxable profits, landlords will no longer be allowed to deduct the interest costs of their mortgage. In its place, tax relief on mortgage interest payments will be reduced incrementally until 2020, with tax calculated on the total rental income instead.
Despite the changes taking place gradually until 6th April 2020, the changes could have huge implications for individuals that are near the higher tax rate threshold. For those with high interest costs, the new rules could push them over the tax threshold without them being aware.
For detailed information on how these changes will impact investors go to the GOV.UK website where there are some clear examples on what this means in practice. Essentially though, the changes certainly mean larger tax bills for property investors and in turn lower profits.