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VAT Margin Scheme: What It Is and How It Helps Ecommerce Sellers

Thu, 09 Apr 2026 08:24:24 GMT

VAT Margin Scheme: What It Is and How It Helps Ecommerce Sellers

If you sell used, second-hand, or refurbished goods, the VAT margin scheme could save your business money — but it’s often misunderstood.

For many ecommerce sellers, especially those flipping items on platforms like eBay or running vintage stores, this scheme can make a huge difference to profit margins.

Let’s break it down simply

What Is the VAT Margin Scheme?

The VAT margin scheme allows you to pay VAT only on the profit (margin) you make when selling second-hand goods — rather than on the full selling price.

In other words, you’re taxed on what you earn , not what you sell .

A Simple Example

You buy a second-hand item for £100
You sell it for £150

Your margin = £50

Under the VAT margin scheme, you only pay VAT on the £50 profit, not the full £150 sale price.

Without the scheme, VAT would apply to the full amount — which can significantly reduce your profit.

Why This Matters for Ecommerce Sellers

If you’re buying and reselling goods online, your margins can already be tight. The VAT margin scheme helps by:

Reducing the amount of VAT you pay
Improving your profit margins
Making it fairer when selling second-hand goods

This is especially useful for sellers who:

Source items from car boot sales, auctions, or marketplaces
Flip products on eBay, Depop, Vinted, or similar platforms
Run vintage or refurbished goods stores

Who Can Use the VAT Margin Scheme?

You can usually use the scheme if:

The goods are second-hand
You purchased them without VAT being charged (e.g. from private individuals)
You’re VAT registered

You can’t use the scheme if you reclaimed VAT on the purchase — so it’s important to understand how your stock is sourced.

What Businesses Benefit Most?

While ecommerce sellers are a big fit, the scheme is useful for a range of businesses, including:

Online resellers

eBay, Depop, Etsy and vintage sellers flipping second-hand goods

Car dealers

Selling used vehicles is one of the most common uses of the margin scheme

Antique and vintage shops

Furniture, collectibles, and one-off items

Refurbished tech sellers

Phones, laptops, and electronics bought and resold

Fashion resellers

Pre-loved clothing businesses and sustainable fashion brands

Important Rules to Be Aware Of

The VAT margin scheme is helpful — but it comes with strict rules:

❗ You must keep detailed purchase and sales records
❗ VAT is calculated differently (it’s included in the margin, not added on top)
❗ You cannot show VAT separately on customer invoices
❗ You must meet specific eligibility criteria

Getting this wrong can lead to incorrect VAT filings and potential penalties, so it’s important to get it right.

Common Mistakes to Avoid

❌ Applying the scheme to goods that don’t qualify
❌ Reclaiming VAT on purchases and still using the scheme
❌ Poor record keeping
❌ Miscalculating the VAT due on the margin

Need Help with VAT or Ecommerce Accounting?

At File Tax Go, we help ecommerce sellers and online resellers navigate VAT rules, including the margin scheme.

Whether you need one-off VAT advice, year-end accounts, or tax return support, we keep things simple — with no long-term commitment required.

Get in touch to learn more.

How to Close Your Company Down the Right Way

Sat, 28 Mar 2026 21:19:19 GMT

How to Close Your Company Down the Right Way

Thinking about closing your company? You’re not alone.

Whether your ecommerce venture didn’t go as planned, you’re moving on to a new idea, or you simply no longer need the company — it’s important to close it properly.

Leaving a company open might seem harmless, but it can lead to ongoing costs, admin, and potential penalties.

Here’s how to shut things down the right way.

Why You Shouldn’t Just Leave a Company Open

A common mistake is assuming you can just “leave it” if you’re no longer trading.

Even if your company is inactive, you may still need to:

File annual accounts
Submit a confirmation statement (CS01)
Deal with HMRC correspondence

This means:

�� Ongoing accountancy costs

⏳ Admin you don’t want

⚠️ Risk of late filing penalties

Option 1: Strike Off (Voluntary Dissolution)

For most small businesses, freelancers, and ecommerce sellers, the simplest route is voluntary strike off .

This removes your company from the register at Companies House.

You can apply for strike off if:

The company hasn’t traded in the last 3 months
It has no outstanding debts
It’s not involved in legal proceedings

The process:

Stop trading
Close down operations and ensure no further business activity
Settle all liabilities
Pay any outstanding debts, taxes, and supplier balances
Close bank accounts
Withdraw remaining funds and distribute appropriately
Submit final accounts and tax returns
Make sure everything is up to date with HMRC
Apply for strike off (DS01 form)
Submit your application to Companies House
Wait for approval
If no objections are raised, your company will be dissolved

Option 2: Members’ Voluntary Liquidation (MVL)

If your company has significant retained profits , you may want to consider a Members’ Voluntary Liquidation instead.

This is a more formal process handled by an insolvency practitioner, and can be more tax-efficient in some cases.

This is usually only relevant for companies with larger balances, so it’s worth getting advice before going down this route.

Risks of Leaving a Company Dormant

If you don’t close your company properly, it can cause issues down the line:

❌ Late filing penalties from Companies House or HMRC
❌ Unexpected accountancy costs year after year
❌ Director responsibilities still apply
❌ Potential complications if you want to start a new business

In some cases, Companies House may strike the company off themselves — but this is not something to rely on, and can still cause complications.

Ecommerce & Small Business Example

Let’s say you launched an Etsy or Shopify store but decided to stop selling after a year.

If you leave the company open, you’ll still need to:

File accounts annually
Submit confirmation statements
Keep records and respond to HMRC

Instead, applying for strike off means you can cleanly close the chapter and avoid ongoing admin and costs.

Need Help Closing Your Company?

At File Tax Go, we support ecommerce sellers, small businesses, and content creators with one-off company closures.

We can handle:

Final accounts and tax returns
Strike off applications
Guidance throughout the process

So you can close your company quickly, correctly, and without stress.

Get in touch to learn more.

How Content Creators Can Sell Merchandise Without Headaches

Tue, 24 Mar 2026 12:16:25 GMT

How Content Creators Can Sell Merchandise Without Headaches

Selling merch is one of the most exciting ways to turn your audience into a real business. Hoodies, mugs, digital downloads, exclusive drops — it’s all part of building your brand.

But behind the scenes? There’s payments, fees, taxes, and admin… and that’s where things can get messy.

The good news: it doesn’t have to be complicated. Here’s how to sell merchandise without the headaches.

1. Keep Your Income Streams Organised

As a content creator, your income probably isn’t just from merch. You might also have:

Ad revenue (YouTube, TikTok, etc.)
Sponsorships and brand deals
Affiliate income
Digital products or courses

Add merch into the mix, and things can quickly get confusing.

The key is to track each income stream clearly, so you know what’s coming from where — and what needs to be reported.

2. Know Your Real Profit (Not Just Sales)

It’s easy to get excited seeing sales roll in… but revenue isn’t profit.

Make sure you factor in:

Production costs (printing, manufacturing)
Platform fees (Shopify, Etsy, etc.)
Payment processing fees
Shipping and packaging
Marketing and ad spend

Once you subtract all of that, you’ll see your true profit — which is what really matters.

3. Separate Business and Personal Finances

We know — it’s tempting to just run everything through your personal account.

But trust us, this gets messy fast .

A separate business account helps you:

Track income and expenses easily
Avoid confusion at tax time
Look more professional as your brand grows

4. Stay on Top of Tax (Before It Sneaks Up on You)

Taxes are one of the biggest “uh oh” moments for creators.

Depending on your setup, you may need to:

File a self-assessment tax return
Pay income tax on profits
Register for VAT (especially if you scale or sell internationally)

The earlier you understand your obligations, the easier it is to stay compliant — and avoid surprises.

5. Selling Across Platforms? Keep It Simple

Many creators sell merch across multiple platforms, like:

Shopify
Etsy
TikTok Shop
Amazon

This is great for sales… but tricky for tracking.

Try to centralise your data (or at least keep consistent records), so you’re not piecing everything together at year-end.

6. Keep Everything Digital

Receipts. Invoices. Shipping costs. Supplier bills.

Keep them all saved digitally — whether that’s in cloud storage or accounting software.

It’ll save you hours when it comes to:

Preparing accounts
Filing your tax return
Answering any HMRC queries

7. Don’t Be Afraid to Get Help

You don’t need a full-time accountant to stay on top of things.

Many content creators prefer one-off support, like:

Year-end accounts
Personal tax returns
VAT advice when scaling

It’s a simple way to stay compliant without committing to monthly fees — and without the stress.

Ready to Take the Stress Out of Merch Sales?

At File Tax Go, we help content creators and ecommerce sellers handle the numbers — whether that’s a one-off tax return or year-end accounts.

Simple, flexible, and no long-term commitment.

Get in touch to learn more.

Top Tax and Accounting Tips for Ecommerce Sellers

Fri, 06 Mar 2026 21:36:04 GMT

Top Tax and Accounting Tips for Ecommerce Sellers

Running an online store on eBay, Amazon, Etsy, or Shopify can be super exciting — but let’s be real: the numbers side of things? Not so fun.

Don’t worry — we’ve got your back. Here’s a guide to staying on top of your taxes, accounts, and profits, so you can spend less time stressing and more time selling.

1. Keep Track of Everything

One of the biggest mistakes new sellers make? Wing it and hope for the best.

Keep records of:

Sales revenue
Platform fees (Amazon, eBay, Etsy…)
Shipping & fulfilment costs
Ads & marketing spend
Product costs & inventory
Any other business expenses

Your future self (and HMRC!) will thank you when it’s time to do your accounts.

2. Business vs Personal – Keep Them Separate

Mixing personal and business finances is a recipe for headaches.

Open a separate bank account for your ecommerce biz. This way you can:

Track income and expenses clearly
See your actual profits
Make tax filing way simpler

3. Watch Those Marketplace Fees

Selling on a marketplace? Those little fees add up fast:

Listing fees
Transaction fees
Payment processing fees
Fulfilment/shipping costs

Tracking them properly means you know your real profit, not just your “gross sales.” Many sellers are shocked at how much these fees nibble away at their margins!

4. Don’t Forget VAT

VAT is sneaky — it can creep up on your business sooner than you expect.

You may need to register for VAT if:

You go over the UK VAT threshold
You store goods in other countries
You sell internationally through marketplaces

5. Inventory is More Than Just Stuff on a Shelf

Tracking your stock isn’t just for logistics — it affects your profits and tax returns.

Keep track of:

Stock purchased
Stock sold
Remaining inventory at year-end

6. Digitise Your Receipts

Paper receipts are so last century. Keep digital copies of everything:

Supplier invoices
Shipping costs
Marketing spend
Software subscriptions

7. Ask for Help (Seriously, It’s Fine)

Not everyone needs a full-time accountant — but a little help can save a LOT of stress.

One-off services like:

Year-end accounts
Personal or business tax returns

…make life way easier for ecommerce sellers, and keep you compliant without a monthly fee.

Ready to Make Tax Less Stressful?

At File Tax Go, we help ecommerce sellers and content creators get their accounts done properly — even if it’s just one-off support.

Advance Assurance: How It Can Help Your Business

Fri, 06 Mar 2026 21:16:54 GMT

Advance Assurance: How It Can Help Your Business

If you’re an ecommerce seller, content creator, or early-stage entrepreneur looking to raise investment, Advance Assurance can be a powerful tool. It gives potential investors confidence and can make securing funding far easier.

What is Advance Assurance?

Advance Assurance is a formal confirmation from HMRC that your business qualifies for SEIS (Seed Enterprise Investment Scheme) or EIS (Enterprise Investment Scheme). These schemes provide tax reliefs for investors who buy shares in your company, helping you attract investment more easily.

Why it matters: investors are more likely to commit money if they know they’ll receive tax relief, and Advance Assurance provides that reassurance before they invest.

How Advance Assurance Benefits Your Business

Builds investor confidence
Investors are more willing to invest in your company if they know HMRC has confirmed it qualifies for SEIS or EIS. This can be the difference between securing funding or missing out.
Speeds up fundraising
Without Advance Assurance, investors may hesitate until after the investment is made. Getting assurance first can shorten fundraising cycles.
Reduces risk of compliance issues
HMRC’s confirmation ensures that your structure, share classes, and business activities align with SEIS/EIS rules, reducing potential complications later.

Ecommerce businesses

Example 1: A small Shopify store selling eco-friendly home products wants to raise £50,000 to expand its product line. By obtaining Advance Assurance, the founder reassures investors that their SEIS tax relief is secure, helping them reach their target faster.
Example 2: An Amazon seller planning to launch a new brand of health supplements can use Advance Assurance to show early investors that SEIS/EIS relief is confirmed, making it easier to secure investment for stock and marketing.

Content Creators

Example 1: A YouTuber selling branded merchandise wants to raise funds to expand into a full merchandise line with Shopify and Etsy. Advance Assurance can help attract investors by confirming eligibility for SEIS/EIS relief, making investment more appealing.
Example 2: A Twitch streamer looking to invest in a limited edition merch drop can reassure backers that they’ll benefit from tax relief, making fundraising faster and simpler.

How to Apply for Advance Assurance

Check your eligibility
Your company must be a UK-registered company carrying out a qualifying trade and not have raised over SEIS/EIS limits in the past.
Prepare your business case
Include details of your business activities, plans, and projected funding requirements.
Submit to HMRC
Once approved, you’ll receive a letter confirming your eligibility. This can be shared with potential investors.

Tip: Even if your investors are not yet ready, obtaining Advance Assurance early signals professionalism and preparation.

One-Off Support from File Tax Go

At File Tax Go, we help ecommerce sellers and content creators prepare and submit their Advance Assurance applications. Our services include:

Checking eligibility for SEIS/EIS
Preparing and submitting the application to HMRC
Explaining requirements and helping structure your company to qualify
Guidance for both one-off applications or ongoing fundraising

We make the process simple, so you can focus on growing your business or engaging your audience.

Ready to secure Advance Assurance for your business?

Get in touch with File Tax Go today and let us handle the process, so you can focus on scaling your ecommerce store or merch business.

What Is a PSC (and Why Getting It Wrong Can Cause Problems)

Wed, 28 Jan 2026 19:37:09 GMT

What Is a PSC (and Why Getting It Wrong Can Cause Problems)

If you run a limited company, there’s a good chance you’ve come across the term PSC and thought something along the lines of: “Yes yes, I’ll deal with that later.”

Totally understandable — but PSCs are one of those Companies House requirements that are easy to overlook and surprisingly easy to get wrong.

Let’s break it down in plain English.

What Does PSC Actually Mean?

PSC stands for Person with Significant Control.

In simple terms, a PSC is someone who has real influence or control over a company — even if they’re not involved in day‑to‑day operations.

Companies House requires every UK limited company to:

Identify who its PSCs are
Keep a PSC register
Report PSC details accurately and keep them up to date

No guessing, no “we’ll sort it next year” — this is a legal requirement.

Who Counts as a PSC?

A person is usually classed as a PSC if they meet any of the following conditions:

They own more than 25% of the company’s shares
They hold more than 25% of the voting rights
They can appoint or remove the majority of directors
They otherwise have significant influence or control over the company

PSCs can be:

Individuals
Other companies
Trusts or partnerships

And yes — it’s possible to have more than one PSC.

What Information Needs to Be Reported?

For each PSC, Companies House needs details such as:

Name and date of birth
Nationality and country of residence
Service address
Nature and extent of control
Date they became a PSC

This information is reported publicly (with some personal details protected), so accuracy really matters.

Why Getting PSC Details Wrong Is a Big Deal

This is where people often get caught out.

If PSC information is missing, incorrect, or out of date, Companies House can:

Reject filings
Issue financial penalties
Take enforcement action against the company and its officers

In more serious cases, failure to comply can even be treated as a criminal offence.

It can also cause practical headaches, including:

Delays with confirmation statements
Problems opening business bank accounts
Issues during due diligence if you’re selling or raising investment

In short: it’s not just a tick‑box exercise.

Common PSC Mistakes We See

Some of the most common issues include:

Assuming shareholders and PSCs are always the same (they’re not)
Forgetting to update PSC details after share transfers or restructures
Not realising indirect control still counts
Leaving old PSCs on the register long after they’ve left

These mistakes are easy to make — but they can be costly to fix later.

What About ID Verification?

With recent Companies House reforms, PSCs will also need to complete ID verification.

That means PSC information must be:

Correct
Up to date
Linked to a verified individual or entity

Yet another reason to make sure everything is in order sooner rather than later.

How FileTaxGo Can Help

At FileTaxGo, we help companies stay compliant without the stress by:

Identifying who your PSCs actually are
Reviewing and correcting PSC registers
Keeping Companies House filings accurate and on time

A quick review now can save a lot of hassle (and awkward letters) later.

If you’re not 100% confident that your PSC details are correct, it’s worth checking. Companies House is paying closer attention than ever —

and this is one area where “close enough” really isn’t enough.

If in doubt, get advice early and keep things clean from the start.

Making Tax Digital (MTD) for Income Tax Self-Assessment

Wed, 14 Jan 2026 08:11:27 GMT

Making Tax Digital (MTD) for Income Tax Self-Assessment — 6-Month Update (Jan 2026)

We previously said MTD for Income Tax Self Assessment will be a big change…” — and six months on, it really is! With April 2026 fast approaching, now’s a great time to check how things have progressed and what self-employed folks and landlords actually need to know right now.

The Roll-Out Is Still Phased — But It’s Happening

The phased timetable that HMRC set out remains in place:

From 6 April 2026 — anyone with qualifying self-employment or property income over £50,000 must use MTD for ITSA.
From 6 April 2027 — the threshold drops to £30,000.
From 6 April 2028 — it’s planned to drop further to £20,000.

So the rollout hasn’t changed — but people are starting to wake up to it as the first deadline gets closer.

Awareness Is Still Surprisingly Low

Recent expert commentary suggests that a lot of self-employed taxpayers and landlords still don’t realise this applies to them — even with less than 3 months to go.

That means there’s still time — but not much — to take action and avoid last-minute scrambling or penalties.

Quarterly Digital Updates Are the New Normal

When MTD for ITSA kicks in for you:

You’ll keep digital records of income & expenses.
You’ll send quarterly updates to HMRC through compatible software.
You’ll finish with a final declaration after the tax year ends.

This replaces the old single yearly Self Assessment return for income that qualifies.

(Yes — five submissions a year instead of one… trust us, several people have already called this the “tax marathon!”)

HMRC Is Starting to Write to Affected Taxpayers

From late 2025 onwards, HMRC has been sending letters to customers whose income last year suggests they’ll be mandated to join MTD from April 2026.

If you’ve had one of those letters and haven’t done anything yet — now really is the time.

Software and Testing Are Live

Compatible software for MTD for ITSA already exists, and:

HMRC’s public testing programmes are underway.
Some service providers offer free or low-cost MTD tools.
HMRC has updated APIs and guidance for developers and agents.

This means there’s no excuse to wait until April to explore software — you can test it now and build confidence with your systems.

Penalties Still Apply — But HMRC Is Being Realistic

Experts have pointed out that HMRC has said it will be lenient on penalties in the first year of quarterly filings (2026-27), recognising that the transition may be bumpy for many.

Still — better to be ready on time than rely on leniency.

So What Should You Do in 2026?

Here’s your quick checklist:

✔️ Check Your Income Threshold

Look at your last tax return — if your combined self-employment and property income is above £50k, MTD is mandatory from 6 April 2026 .

✔️ Choose Digital Software Now

Don’t wait until April! Pick an HMRC-approved program and familiarise yourself with it.

✔️ Sign Up Early

Even though HMRC sends reminders, it’s best to register ahead of time so you aren’t rushed in March/April.

✔️ Get Organised

Start recording income and expenses digitally now if you’re not already — that will make quarterly filings much smoother.

Need Support? Get in touch with us and our experts will help you act early — not only to stay compliant but to make the new system work for you rather than against you.

Companies House ID Verification: What Directors and PSCs Need to Know

Mon, 05 Jan 2026 19:46:37 GMT

Companies House ID Verification: What Directors and PSCs Need to Know (Without the Headache)

If you run a limited company, you’ve probably noticed that Companies House has been flexing its muscles a bit lately. New rules, new checks, and yes… more admin.

One of the biggest changes you need to be aware of is mandatory ID verification for directors and People with Significant Control (PSCs). It sounds scary but it’s manageable once you know what’s involved.

What Is Companies House ID Verification?

In short, Companies House now wants proof that the people behind UK companies are real humans and not made-up characters with suspiciously perfect names.

Under the Economic Crime and Corporate Transparency Act, certain individuals must verify their identity before they can:

Act as a company director
Be listed as a PSC
Submit filings to Companies House

The goal is to reduce fraud and improve trust in the UK company register (and make life harder for dodgy operators).

Who Needs to Verify Their Identity?

You’ll need to complete ID verification if you are:

A company director (new or existing)
A PSC (anyone with more than 25% ownership or control)
Someone who files information on behalf of a company (including agents and company secretaries)

Yes — even long-standing directors will need to do this. Nobody gets a free pass.

How Does ID Verification Work?

Thankfully, this part is fairly straightforward. There are two routes:

Verify directly with Companies House
This is done online using approved ID (such as a passport or driving licence).
Verify via an authorised agent
Accountants and company service providers can verify identities for you, saving you time and effort.

Once verified, you’ll receive a unique ID that will be used for future Companies House filings — think of it as your Companies House passport.

When Do You Need to Act?

New directors and PSCs must verify before they’re officially appointed.
Existing directors and PSCs will need to verify within a transition period

If you ignore it, Companies House won’t ignore you. Late or missing verification can lead to rejected filings, fines, and in serious cases, criminal penalties.

How FileTaxGo Can Help

Between Companies House changes, HMRC deadlines, and actually running your business, it’s easy for things to slip.

At FileTaxGo , we help you:

Work out who needs verifying
Stay ahead of Companies House rule changes
Avoid rejected filings and unnecessary stress

A quick check now is far easier than a panic later.

What is the VAT Threshold – How to Prepare and What to Do if You Need to Register

Wed, 30 Jul 2025 12:35:10 GMT

What is the VAT Threshold – How to Prepare and What to Do if You Need to Register

If you’re running a small business in the UK, one of the key financial thresholds you need to be aware of is the VAT registration threshold . Reaching or exceeding this threshold means you’ll need to register for VAT with HMRC — and doing so brings with it both responsibilities and opportunities.

In this article, we’ll break down what the VAT threshold is, how to monitor your income, what to do if you go over it, and how to stay compliant moving forward.What Is the VAT Threshold?

As of the 2024/25 tax year, the VAT registration threshold is £90,000 . This means that if your taxable turnover (not profit) over the last 12 months hits or exceeds this amount, you must register for VAT.

Taxable turnover includes the total value of everything you sell that isn’t exempt from VAT. It’s important to note that this isn’t based on a calendar year or tax year – it’s a rolling 12-month period.What Happens If You Go Over the Threshold?

If your turnover exceeds £90,000, you’ll need to register for VAT with HMRC within 30 days of the end of the month in which you exceeded the threshold.

Failing to register on time can result in penalties, interest on any VAT owed, and additional compliance headaches down the line.

How to Monitor and Prepare
Staying on top of your turnover is essential, especially as your business grows. Here are a few ways to prepare:

1. Track Your Turnover Monthly
Set a regular reminder to review your turnover for the past 12 months. This will help you identify if you're approaching the threshold and avoid any surprises.

2. Use Accounting Software
Cloud-based tools like Xero or QuickBooks can automatically track your turnover and alert you when you're nearing the threshold. This is a smart way to keep your finances in check and reduce manual admin.

3. Get Professional Help

An accountant or tax adviser can help you assess your position, plan ahead, and understand whether your sales are taxable or exempt.Voluntary VAT Registration
Even if your turnover is under the threshold, you may choose to register voluntarily. This can be beneficial if:

You sell to other VAT-registered businesses (as they can reclaim the VAT you charge)
You incur a lot of VAT on your purchases and want to reclaim it
It enhances your business’s credibility

However, voluntary registration does bring added admin and record-keeping, so it’s not for everyone.Once You’re Registered
Once VAT registered, you’ll need to:

Charge VAT on your taxable sales
Submit VAT returns (usually quarterly)
Pay any VAT due to HMRC
Keep digital records in line with Making Tax Digital (MTD) requirements

You’ll also be able to reclaim VAT on qualifying business expenses.

Need Support?
Navigating VAT registration and compliance can feel overwhelming, especially if you’re running your business solo or alongside a small team. That’s where FileTaxGo can help.

We offer tailored support for small businesses and self-employed individuals – whether you're approaching the threshold, need to register, or want help managing your returns.

Get in touch with us today to speak to one of our friendly experts and make VAT compliance simple. Ready to register for VAT or need help keeping track of your turnover?

What To Do If You Receive a Late Filing Penalty from Companies House – And How FTG Can Help

Sun, 13 Jul 2025 20:57:05 GMT

What To Do If You Receive a Late Filing Penalty from Companies House – And How FTG Can Help

It’s never a welcome surprise – that letter from Companies House notifying you of a late filing penalty because your company’s year-end accounts weren’t submitted on time. Whether it slipped through the cracks or there were delays getting the right information together, the result is the same: a financial penalty, stress, and often confusion over what to do next.

At File Tax Go , we regularly help business owners who’ve found themselves in this situation. Here’s a quick guide on what to do if you’ve received a late filing penalty – and how we can support you every step of the way. What Is a Late Filing Penalty?
Companies House requires all limited companies to file their annual accounts by a specific deadline – typically nine months after the company’s year-end. If you miss that deadline, you’ll receive an automatic penalty starting at £150 and increasing the longer you delay:

These penalties apply even if your company is dormant or not trading – the filing obligation still stands.

Step 1: Don’t Panic – But Act

Quickly
It can be tempting to ignore the letter and hope it resolves itself. Unfortunately, that will only make matters worse. In addition to increasing penalties, persistent non-compliance can result in your company being struck off the Companies House register or directors facing prosecution in serious cases.

Take the notice seriously and respond quickly.

Step 2: Submit Your Accounts ASAP

The first priority is to get your accounts submitted to stop further penalties from accumulating. If you’re unsure what’s missing, or you don’t have an accountant in place, FTG can step in immediately to help prepare and file your accounts.
We offer fast-track filing services to get your company back on track – often within 48–72 hours depending on the complexity.

Step 3: Consider Appealing (If You Have a Valid Reason)

Companies House only accepts appeals for exceptional circumstances, such as:

Serious illness
Bereavement
Fire, theft or flood
Software or filing issues (with evidence)

If you think you have a legitimate reason for missing the deadline, we can help you draft and submit an appeal, giving you the best chance of success. But bear in mind: most appeals are rejected, so it’s important to manage expectations.

Step 4: Prevent It From Happening Again
Once you’ve dealt with the immediate issue, we’ll help you put systems in place to avoid future penalties. This might include:

Automated deadline reminders
Monthly or quarterly bookkeeping
Annual accounts planning
Cloud accounting software setup

We aim to make compliance easy, affordable, and stress-free – especially for small businesses and sole directors.

How FTG Can Help You Today
At File Tax Go, we specialise in helping limited company owners stay compliant without the fuss. Whether you’re already facing a penalty or just want to avoid one, our services are built around simplicity, speed and support.

Here’s how we can assist:
Prepare and file late accounts quickly
Communicate with Companies House on your behalf
Draft a penalty appeal (if applicable)
Offer ongoing support to prevent future issues
Transparent pricing and no hidden fees

Don’t Wait – Let’s Get You Back on Track

If you've received a late filing penalty or are at risk of missing your filing deadline, get in touch with us today. The sooner you act, the more options we have to help – and the less costly it could be.

Visit us at www.filetaxngo.co.uk

Or contact us d irectly to speak with one of our expert advisors

FTG – Fast, Friendly Filing for Limited Companies

Big Changes Incoming: UK Accounts Filing from April 2027

Mon, 30 Jun 2025 22:21:33 GMT

Big Changes Incoming: UK Accounts Filing from April 2027

From 1 April 2027, all UK companies will be required to file their annual accounts exclusively via commercial software—even dormant ones. Web and paper submission routes will be discontinued.

For small and micro‑entity companies, the changes are more extensive:

Micro‑entities must file both a balance sheet and a profit & loss account.
Small companies will also need to include a directors' report and, if applicable, an auditor’s report.
The option to file abbreviated (abridged) accounts will be removed.

Additional steps:

Companies claiming an audit exemption must include a director's statement confirming eligibility.
Requests to shorten accounting reference periods will require a business rationale, with limitations applied.

These reforms aim to enhance financial transparency, support the fight against economic crime, and align UK company reporting with international best practices.

What This Means for Small Businesses

Software transition : Businesses not already using filing software will need to adopt one by April 2027.
Extra reporting : Previously optional documents like profit & loss statements and directors’ reports become mandatory.
Potential cost & admin pressure : Businesses face setup time and potential licensing fees for software.
Data visibility : Financial information becomes publicly accessible—transparency, yes, but higher sensitivity too.

With two full years’ notice, Companies House is encouraging firms to switch now and avoid last-minute rush!

How FileTax N Go Can Help
FTG streamlines compliance, designed with small and micro‑businesses in mind:

Speedy filing : Get your accounts submitted in as little as 48 hours
Single-service simplicity : No subscription—just pay per filing (from £300 all‑in).
Expert handling : Experienced accountants manage both Companies House and HMRC filings, ensuring all new requirements are met.
Peace of mind : Balance sheets, profit & loss, directors’ reports, and audit exemption statements all handled accurately.

Why Act Now

Get Ahead of Deadlines
Starting now means smoother transition and early familiarity with software-based filing.
Avoid Compliance Missteps
Stay ahead of new requirements and filing rules, reducing the risk of rejection or penalties.
Professional Assurance
Let FTG handle technicalities, so you can focus on running your business—not juggling forms.
All-in-One Tax & Accounts Support
FTG also assists with your Company Tax Return (CT600), aligning with HMRC’s shift to software filing from April 2026

The upcoming changes aim to modernise filing and improve transparency, but they bring new demands for small businesses. By planning ahead—and partnering with FileTax N Go—you can simplify the process, stay compliant, and keep your focus where it belongs: on growing your business.

P11Ds – What You Need to Report and Key Deadlines

Mon, 16 Jun 2025 18:31:35 GMT

P11Ds – What You Need to Report and Key Deadlines

As an employer, it’s essential to stay on top of your reporting duties when it comes to employee benefits. One of the most common forms you’ll need to be aware of is the P11D . This form is used to report benefits and expenses provided to employees that aren’t processed through payroll , and there are strict rules and deadlines to follow.
Here's a quick guide to help you understand what needs to be reported on a P11D and when.

What is a P11D?
The P11D form is used to tell HMRC about benefits in kind (BIKs) you’ve given to directors or employees – essentially, non-cash perks that could be considered part of someone’s taxable income.

Common examples include:

Company cars
Private medical insurance
Interest-free or low-interest loans
Living accommodation
Gym memberships
Non-business travel or entertainment expenses

If your business pays for something that benefits an employee personally and doesn’t go through payroll, there’s a good chance it needs to go on a P11D.

What Else Do I Need to Know?

You’ll need to complete a separate P11D for each employee who has received reportable benefits during the tax year (6 April to 5 April).
Alongside the P11Ds, employers must submit a P11D(b) – this declares the total Class 1A National Insurance due on the taxable benefits.

Key Deadlines
The deadlines for the 2024/25 tax year (which ended on 5 April 2025) are:

6 July 2025 : Deadline to file P11Ds and the P11D(b) with HMRC and provide employees with their copy of the P11D.
22 July 2025 (or 19 July if paying by post): Deadline to pay any Class 1A National Insurance due.

What If I Don’t Have Any Benefits to Report?
If you submitted P11Ds in the previous year but don’t have any benefits to report for this year, you still need to take action – you must submit a nil P11D(b) to let HMRC know.

 Can I Avoid Filing P11Ds in Future?
Yes – many businesses now opt to payroll benefits , which means they process the tax on benefits through employees’ regular PAYE instead of submitting P11Ds. If this is something you’d like to set up, you must register with HMRC before the start of the tax year (i.e., before 6 April).

Need Help With Your P11Ds?
At FileTaxNGo , we make the process quick and stress-free. Whether you need us to handle a one-off submission or manage your year-end compliance every year, our team is here to help.
Get in touch today and let us handle the paperwork while you focus on running your business.

What UK Landlords Should Know for the 2025–26 Tax Year

Mon, 09 Jun 2025 16:18:14 GMT

What UK Landlords Should Know for the 2025–26 Tax Year

As the 2025–26 tax year kicks in, FileTax N Go is here to guide landlords through significant changes affecting buy‑to‑let and holiday-let properties:

1. Stamp Duty Land Tax (SDLT) 

For second homes and buy-to-let: from 1 April 2025, you’ll pay…
• 5% on the first £125,000, 7% on the next £125,001–£250,000, 10% up to £925,000, 15% up to £1.5 m, and 17% above
Fees are also rising in Wales and Scotland, affecting additional properties

2. Renters’ Rights Bill 
Expected in summer 2025, it introduces:

A ban on ‘no-fault’ Section 21 evictions in the first year,
Restrictions on rent increases,
Tenant rights to keep pets,
Standardised deposit and fee rules

3. Furnished Holiday Lettings (FHL) Changes
From April 2025, the FHL regime is ending:

You’ll lose benefits like full mortgage interest relief, though landlord losses can now offset other property income

4. Energy Performance Certificate (EPC)
By 2030, rental properties must reach at least EPC C – essential to consider now in your property planning

5. MTD for Income Tax
From 6 April 2026, landlords with >£50,000 income must use digital record-keeping and quarterly reporting.
Thresholds drop to £30k (Apr 2027) and £20k (Apr 2028)

 6. Penalties & Tax Brackets

Income tax and NI thresholds are frozen until 2028, meaning more landlords will enter higher tax bands due to inflation
Late-filing penalties for MTD users increase from April 2025: late returns = 3–10% charges

How File Tax  N  Go Can Support You

At FileTax nGo , we help landlords confidently navigate these changes:

Timing and tax strategy
We help optimise your purchase schedule to potentially reduce SDLT costs and assess whether incorporation (e.g. limited company) is beneficial for reliefs.
Compliance with Renters’ Rights
We’ll review your tenancy agreements and practices to ensure they meet incoming legal standards before new rules take effect.
FHL regime transition
We assist with updating tax treatment, using loss relief efficiently, and reclassifying properties as needed.
Energy efficiency planning
Our guidance helps you meet EPC ‘C’ targets by 2030, factoring this into renovation and investment planning.
MTD set-up and ongoing support
From software setup and digital bookkeeping, to quarterly updates and final declarations, we’ll manage it all — plus timely reminders and penalty safeguards.
Penalty prevention and tax planning
With thresholds frozen, we’ll proactively plan in-year tax liabilities and ensure timely filing to avoid increased fines.

Ready for the Year Ahead?
We’ll tailor our service to your portfolio — whether you're a small-scale landlord or own multiple properties:

Comprehensive tax planning
Digital compliance
Ongoing financial best advice

Reach out today to discuss how we can proactively protect your investment and maximise returns in 2025–26. Let FileTax N Go manage the complexity — so you can focus on your tenants and your business.

Making Tax Digital (MTD) for Income Tax Self-Assessment

Mon, 09 Jun 2025 16:13:38 GMT

MTD for ITSA

As of 15 May 2025, HMRC has officially extended Making Tax Digital (MTD) for Income Tax Self-Assessment (ITSA) to apply to sole traders and landlords who earn above certain income thresholds. This is part of HMRC’s plan to modernise and streamline tax reporting – replacing the annual “big return” with ongoing, accurate digital updates throughout the year. Here’s what you need to know to stay compliant:

Who needs to use MTD for ITSA?

You must use MTD if all of the following apply:

You’re a sole trader or landlord registered for Self Assessment.
You have income from self-employment or property.
Your qualifying income for a tax year exceeds:

£50,000 → MTD mandatory from 6 April 2026.
£30,000 → MTD mandatory from 6 April 2027.
Note HMRC plans to lower the threshold even further in the future

What exactly is “qualifying income”?
Qualifying income includes total self‑employment and property income, before deducting any expenses. HMRC determines your requirement based on the latest filed tax return.

So, for example:

If your total income for 6 Apr 2024 – 5 Apr 2025 exceeds £50k, then MTD becomes compulsory from 6 Apr 2026.
For income above £30k in the 2025–2026 tax year, MTD begins 6 Apr 2027.

What’s the filing timeline?

31 Jan 2026 – File your Self Assessment for 2024/25 (as usual).
HMRC checks your qualifying income — if >£50k, you’ll receive a notification requiring MTD from 6 Apr 2026
MTD official timeline:

From 6 Apr 2026: Keep digital records and submit quarterly updates.
Final declaration for that year due by 31 Jan following the tax year-end.

What You Need to Do

1. Check your 2024/25 qualifying income
Review your Self Assessment return due 31 Jan 2026:

If income > £50k → MTD starts 6 Apr 2026.
If income > £30k → MTD starts 6 Apr 2027.

2. Choose MTD-compatible software
From the required date, you’ll need:

Digital tools to capture income and expense records.
Ability to submit quarterly updates.
Capacity to file final declarations.
HMRC provides a list of approved software and FileTax N Go can provide you with recommendations

3. Sign up in time
Though HMRC will send reminders, it's your responsibility to register and prepare before the mandatory date .

4. Keep records digitally
From your start date, make sure:

Income and expenses are recorded digitally.
You can correct and adjust records in the software.
Quarterly submissions include true totals.
Final declaration aligns with your annual Self Assessment.

5. Don’t miss deadlines
Penalties apply if you:

Don’t submit quarterly updates.
Miss the final year-end declaration.
You’ll be notified when you become liable for these

Need Help Getting Set Up for MTD? We’ve Got You Covered
At FileTaxnGo , we know that Making Tax Digital can feel like a big change — but you don’t have to go it alone.
We offer a full support package to help sole traders and landlords prepare for MTD with confidence, including:

MTD-Ready Software Set-Up
We’ll recommend the best HMRC-approved software for your needs — whether you’re a landlord with one property or a sole trader juggling multiple income streams. We’ll get everything set up and show you how to use it.

Quarterly Submission Support
Not keen on handling quarterly submissions yourself? No problem. We can manage the entire process for you — including checking records, submitting updates, and keeping you on track.

Digital Record-Keeping Guidance
We’ll show you how to keep your records digitally, what to include, and how to avoid common pitfalls. Prefer to snap receipts and go? We’ll tailor a solution around that.

Registration with HMRC
When the time comes, we’ll handle the MTD registration process for you, so you’re fully enrolled and ready to go before the deadline.

Peace of Mind
From your first quarterly update through to your final end-of-year declaration, we’ll make sure you stay compliant — and avoid any MTD-related penalties.

Ready to get started or want to chat it through?
Drop us a message or give us a call — we’re happy to talk through your situation and build an MTD support plan that works for you.

Let FileTax N Go take the stress out of Making Tax Digital.

Companies House Identity Verification – What You Need to Know

Mon, 09 Jun 2025 16:09:52 GMT

Companies House Identity Verification – What You Need to Know

You may have received a recent email from Companies House regarding new identity verification requirements under the Economic Crime and Corporate Transparency Act 2023 . This is part of a broader government initiative to make UK companies more transparent and reduce economic crime.
Here’s what you need to know – and what you should do next.

What is changing?
From autumn 2025 , it will become a legal requirement for the following individuals to verify their identity with Companies House:

Company directors
People with significant control (PSCs)
Anyone delivering documents to Companies House on behalf of a company

This means that simply setting up a company or being appointed as a director will no longer be enough – Companies House will need proof of who you are.

What is identity verification?
Identity verification will involve proving who you are using approved methods, likely to include:

Uploading ID documents (e.g. passport, driving licence)
A photo or video check to confirm your identity

More details and the official process will be rolled out ahead of the 2025 deadline.

Why is this happening?
The aim is to:

Make it harder for fraudulent or fake companies to be created
Increase transparency over who is really behind UK companies
Improve the overall reliability of the information held on the Companies House register

What do I need to do right now?

Forward the Companies House email to all company directors and PSCs, especially if you’re an agent who received it on the company’s behalf.
Stay informed – Companies House will release further guidance and tools in due course.
Complete your verification – link here

How we can help
We’ll be keeping a close eye on developments and will support our clients with:

Guidance on the identity verification process
Help setting up any necessary Companies House accounts
Ensuring your company records are up to date and compliant

If you have any questions about the upcoming changes or need help reviewing your company structure, don’t hesitate to get in touch.

What is a P60, and Why Do You Need It?

Tue, 18 Mar 2025 22:20:36 GMT

What is a P60, and Why Do You Need It?

If you're an employee in the UK, you’ve probably heard of a P60. But what exactly is it, and why is it important? In this blog, we'll explain everything you need to know about a P60, including what it is, when you might need it, and how to access it.

What is a P60?

A P60 is an end-of-year tax certificate issued by employers to their employees. It summarises the total pay and deductions for the tax year (which runs from 6th April to 5th April the following year). It includes:

Total salary earned within the tax year
Total Income Tax paid
National Insurance contributions made
Any student loan deductions (if applicable)
Other deductions or adjustments relevant to tax calculations

Why Might You Need a P60?

Your P60 serves as proof of income and tax payments for the year. You might need it for several reasons, including:

Filing a self-assessment tax return – If you have additional income outside of employment, your P60 helps in reporting earnings accurately.
Applying for a mortgage or loan – Lenders often request a P60 as proof of income when assessing affordability.
Checking tax paid – Ensuring that you've paid the correct amount of tax and claiming a tax refund if applicable.
Applying for tax credits or benefits – Government agencies may request a P60 to verify income levels.

Where Can You Get Your P60?

If you’re using payroll software like FreeAgent or Paycircle , you can access your P60 directly through these platforms. If have employees, they will be able to access these via your payroll software but as an employer you are responsible for making sure P60’s have been issued at the end of the tax year (by 31st May) so it’s best to double check that everyone in your team has access.

Getting Your P60 on FreeAgent:

Log in to your FreeAgent account.
Navigate to the Payroll section.
Locate and download your P60 for the relevant tax year.

Getting Your P60 on Paycircle:

Log in to your Paycircle account.
Go to the ‘Documents’ or ‘Payroll’ section.
Download your P60 from the available payroll documents.

Final Thoughts

Your P60 is an essential document for tax, financial, and administrative purposes. Make sure to keep a copy safe, as you may need it for tax returns, loan applications, or income verification. If you haven’t received your P60 or need help accessing it, reach out to your employer or payroll provider.

For more guidance on payroll and accounting, get in touch with FileTaxNGo —we’re here to help!

Section 455 Tax: Can You Avoid It?

Thu, 20 Feb 2025 21:20:55 GMT

Section 455 Tax: Can You Avoid It?

Section 455 applies to unpaid loans directors take from their companies. It’s designed to stop directors from avoiding taxes like those on salaries or dividends.

The Rule: Repay any director’s loan within 9 months and 1 day after your company’s financial year-end to avoid S455 tax.

Example: If your year-end is the 31 ^st December and you borrow money in December, make sure you repay it by the 1 ^st October next year to skip the tax charge.

What’s the Tax Charge?

The S455 tax rate is 33.75% for loans taken after April 6, 2022. For example, an unpaid £20,000 loan means a £6,750 tax charge.

Loans under £10,000 are usually exempt, but borrowing more will trigger the tax. Stay on top of what you owe to avoid surprises!

How to Reclaim S455 Tax

Good news: S455 tax isn’t permanent. You can reclaim it once the loan is repaid or converted into a salary or dividend.

Repay the Loan: Record the repayment in your company accounts to show it’s resolved.
Use Dividends: If you’re a shareholder, you can offset the loan by declaring it as a dividend. Just watch out for personal tax liabilities.
Filing for a Refund: Use the CT600A form (if repaid within two years) or the L2P form (after two years). HMRC may take a while, so keep detailed records to avoid delays.

Tips to Avoid S455 Tax

Keep Track of Loans: Monitor how much you borrow and avoid going over £10,000 unless necessary.
Avoid Quick Repay-and-Borrow Moves: HMRC frowns on “bed and breakfasting”—repaying a loan only to take it out again within 30 days.
Get Professional Advice: An accountant can help you choose tax-efficient options like dividends or bonuses.
Plan for Insolvency Risks: If your company stops trading, unpaid loans could become your personal tax liability.

| If Loans Go Unpaid

Unpaid loans may be treated as personal income, leading to income tax and National Insurance charges. HMRC could also pursue you personally if the company can’t repay.

Got questions about director’s loans or S455 tax? Reach out to us for expert advice—let’s sort it together!

Funding Your Startup: A Roadmap To Growth

Wed, 12 Jun 2024 06:50:29 GMT

Funding Your Startup: A Roadmap To Growth

The startup journey is an exhilarating rollercoaster ride. You've poured your heart and soul into your innovative idea, but to turn it into a reality, you'll likely need funding. Fear not, there's a wealth of funding options available, each with its own advantages and considerations. Let's navigate the exciting, yet sometimes bewildering, landscape of startup funding.

Bootstrapping: Building on Your Own Foundation

Bootstrapping is a classic startup strategy. It involves financing your venture with your own savings and maybe even some early sales revenue. Bootstrapping allows you to retain complete control of your company, but it limits your growth potential. It's a great option for startups with a clear vision and a budget-conscious approach.

Angel Investors: Not-So-Secret Weapons

Angel investors are high-net-worth individuals who take a chance on promising startups. They often provide valuable mentorship alongside their financial backing. However, angel investors typically expect a significant stake in your company in exchange for their investment. So, be prepared to potentially relinquish some control.

Venture Capital (VC) Firms: Geared for High-Growth

VC firms are like funding powerhouses. They pool funds from investors and invest in startups with the potential for explosive growth and substantial returns. While VC firms offer significant funding, they have stricter investment criteria and typically require significant equity stakes in return. So, be sure your startup is ready to scale fast if you pursue this route.

Small Business Loans: A Traditional Stepping Stone

Traditional banks and government agencies offer loans specifically designed for small businesses. These loans provide flexible repayment options but often come with higher interest rates. This can be a good option if you need a predictable funding source to bridge a short-term gap or finance specific equipment or inventory.

Crowdfunding Platforms: Unleashing the Power of the Many

Crowdfunding platforms allow you to raise capital from a large pool of individual investors. This approach is democratic and can generate significant buzz for your startup. However, it requires a compelling campaign and may not raise the substantial sums that VC firms or angel investors can provide.

Choosing the Right Funding Path

The ideal funding option for your startup depends on several factors:

Stage of Development: Are you in the early stages of brainstorming, or do you have a minimum viable product (MVP) ready to test the market? Different funding options cater to various stages of growth.
Funding Needs: How much capital do you require to achieve your initial or next-level growth objectives?
Company Goals: Do you prioritise maintaining control or are you open to giving up some equity for a larger investment?
Risk Tolerance: Each funding option has an associated risk profile. Consider your risk tolerance and comfort level with potential debt or equity dilution.

Taking the Next Step

Funding is the fuel that propels your startup's growth engine. By understanding the available options, carefully considering your needs and goals, and potentially seeking guidance from financial experts, you can make informed funding decisions that pave the way for a successful future. Remember, research is key! Explore the different options, compare terms, and don't be afraid to negotiate to secure the best fit for your startup's trajectory. Good luck on your funding journey!

Coronavirus Government Grants

Tue, 24 Mar 2020 23:35:52 GMT

An update from OnTheGo Accountants on COVID-19

From everyone at OnTheGo we hope you are well and keeping safe.

This is a difficult time for everyone at the moment so whilst we are still waiting for the finer details from HMRC surrounding their plans to help UK businesses and employees, we wanted to keep you up to date with what we know so far:

Coronavirus Job Retention Scheme

Under the Coronavirus Job Retention Scheme, all UK employers will be able to access support to continue paying part of their employee’s salary as opposed to them being laid off.

The salary subsidy will be paid through a new HMRC system (HMRC will set out further details on the information required) and will reimburse 80% of furloughed workers wage cost, up to a cap of £2,500 per month.

It is not clear whether directors / shareholders of owner managed companies can put themselves ‘on furlough’, we are still waiting on further details.

VAT payments

For VAT returns submitted between 20th March 2020 and 30th June 2020, the VAT payments can be deferred. Businesses will then have until the end of the 2020-21 tax year to settle any liabilities that have accumulated during the deferral period.

All UK businesses are eligible for the deferral and do not need to apply for it. VAT refunds and reclaims will be paid by the government as normal.

Please be advised that if you would like to defer your next VAT payment and have a direct debit setup, you will need to cancel this.

Income Tax payments

Individuals assessed under the Self-Assessment system liable to make a payment on account on the 31st July 2020 can defer their payments to 31st January 2021.

This offer is automatic with no application required. No penalties or interest for late payment will be charged in the deferral period.

Universal credit

Self-employed people can now access full universal credit at a rate equivalent to statutory sick pay.

HMRC Time to Pay

HMRC’s Time to Pay scheme can enable firms and individuals in temporary financial distress as a result of Covid-19 to delay payment of outstanding tax liabilities. HMRC’s dedicated Covid-19 helpline provides practical help and advice on 0800 0159 559.

Business Rates holidays and cash grants

For businesses currently paying little or no business rates due to small business rates relief, they will receive a cash grant of £10,000 (increase from £3,000 announced in the March 20 budget). You do not need to do anything, your local authority will write to you if you are eligible for the grant.

Any businesses in the retail, hospitality and leisure sector in England will pay no business rates in the 2020/21 tax year. Furthermore, businesses in these sectors with a rateable value between £15k and £51K will also receive a cash grant of £25,000 per property. There will be no actioned required by you, your local authority will be in touch with a revised business rates bill and confirm your eligibility for the cash grant.

Support through the Coronavirus Business Interruption Loan Scheme

A new coronavirus business interruption loan scheme has been setup to provide support for small and medium-sized businesses. This scheme will give businesses access to a wide range of funding including: overdrafts, loans, asset finance and invoice finance of up to £5 million in value for up to 6 years.

The government will provide lenders with a guarantee of 80% on each loan and will pay to cover the first 12 months of interest payments along with any lender-levied fees.

This scheme is being delivered through commercial lenders, you can find more on the key features, along with the eligibility criteria on the British Business Bank website. We partner with a credit broker, Capitalise, who partner with all major commercial lenders including those offering CBILS, so do let your dedicated Accountant know if this is of interest.

We hope to be able to send out something more concrete as soon as HMRC have made the information available but in the meantime we will be monitoring this on a daily basis and please be assured we are here if you need any help anything.

March 2020 Budget

Thu, 12 Mar 2020 23:41:21 GMT

March 2020 Budget: OnTheGo Accountant’s Summary

OnTheGo Accountants has put together the following summary of Rishi Sunak's March 2020 Budget to keep you updated on the latest changes:

Personal Allowance and Higher Rate Band: Unchanged

The Personal Allowance and the Higher Rate Band threshold will remain unchanged at £12,500 and £50,000 respectively.

Entrepreneur’s Relief: Lifetime limit

From 11th March 2020, the lifetime limit for Entrepreneurs relief will be reduced from £10 million to £1 million.

National Living Wage: Increased

The National Living wage will see a 6.2% increase from £8.21 to £8.72 an hour from April 2020.

Dividend Allowance

The Dividend allowance is unchanged at £2,000.

Corporation Tax

The Corporation Tax rate will stay the same at 19%.

Capital Gains Tax: Residential Property

From April 2020, if you sell a residential property in the UK you’ll have 30 days to report any gains to HMRC and pay any Capital Gains Tax due.

Off-payroll Working in the Private Sector

As expected, IR35 reforms will continue to be extended to the Private Sector as of April 2020.

Annual investment allowance

Companies will be able to claim £1m as AIA for expenditure incurred from 1 January 2019 to 31 December 2020. No announcement was made on extending the date and if unchanged, it will fall to £200,000.

Temporary return of Statutory Sick Pay (SSP) claims

Small and medium-sized businesses and employers to cope with the extra costs of paying COVID-19 related SSP will be refunded for eligible SSP costs. This refund will be limited to two weeks per employee

Employment allowance reform

The allowance was increased to £4,000 but is no longer universal with several conditions applying. Including that from April 2020, this will be limited to employers with an employer NICs bill below £100,000 in the previous tax year.

Increasing the flat rate tax deduction for home working

From April 2020 the maximum flat rate Income Tax deduction available to employees to cover additional household expenses has been increased from £4 to £6 per week where they work at home under homeworking arrangements.

Pension changes

From 6 April 2020, the adjusted income limit will rise to £240,000 (increased from £150,000) and the threshold income limit will rise to £200,000 (increased from £110,000). For higher earners the government also reduced the minimum reduced annual allowance that you can have under the tapering rules from £10,000 to £4,000.

R&D

Research & Development Expenditure Credit (RDEC) rate increases from 12% to 13% from 1 April 2020. The changes to the PAYE cap on the payable tax credit in the SME R&D schemes has been delayed until April 2021.

Digital services tax

From 1 April 2020, there will be a new 2% digital services tax on the revenues of search engines, social media services and online marketplaces which derive value from UK users, when the group’s worldwide revenues from these digital activities are more than £500m and more than £25m of these revenues are derived from UK users.

If you have any queries with any of the points above, please contact your dedicated accountant.

Changes to Capital Gains Tax

Wed, 11 Mar 2020 23:12:28 GMT

Don’t get caught out: Changes to Capital Gains Tax – UK Residential Property

From 6th April 2020, if you’re UK resident and sell a residential property in the UK, you’ll have 30 days to report any gains to HMRC and pay any Capital Gains Tax due.

Capital Gains Tax is calculated on the profit made when you sell your residential property, this will be chargeable at the higher rates of 18% and 28% depending on whether you are a basic or higher / additional rate tax payer.

What needs reporting?

You will need to report your disposal to HMRC if you dispose of:

A property that you’ve not used as your main home
A holiday home
A property which has been let out
A property you have inherited and not used as your main home

What doesn’t need reporting?

You won’t be required to report the following disposals:

A sale made before the 6th April 2020 (This will be due by the normal Self-Assessment deadline)
A property that has been your main home for the duration of ownership and qualifies for Private Residence Relief
A gain that falls within your Annual Exemption Allowance (£12,000 – 2019/20)
A property that was sold at a loss
A property that is outside the UK

How will my gain be reported?

HMRC will be launching a new online service which will allow tax payers / agents to report and pay any Capital Gains Tax due.

It’s important that your gains are reported within the 30 day window as HMRC may send you a penalty as well as charge interest on the tax due.

If you need any assistance calculating and reporting your gain to HMRC, please get in touch .

IR35 - Considering your options

Sun, 12 Jan 2020 12:27:50 GMT

What we know so far…

As April 2020 approaches, we know many of you will be looking to secure a new contract outside of IR35 and we have found it very encouraging that some of you have already been able to do so which takes you well into the new tax year. From this, we are very hopeful that outside IR35 contracts will still be available, if potentially harder to source initially.

It does certainly appear that some of the larger companies, and particularly banks who do tend draw more attention from HMRC during times of policy change, will be taking a blanketing approach. Whilst this isn’t what we had hoped for, there is reassurance to be found in the Public Sector who, having suffered the same blanketing enforcement back in 2017, have now come full circle and are offering outside IR35 contracts. This is possibly how the Private sector market will progress also.

Ultimately our opinion is the requirement for a highly skilled temporary workforce will always exist, and the logistics of offering permanent PAYE positions for short term projects or paying more for temporary Umbrella or Inside IR35 roles is surely not sustainable.

However, during this time of uncertainty it’s vital that you are able to find security in your work and confidence in when your income will be coming in so whilst we certainly don’t view contracting as a thing of the past, its important to understand what you can do with your Limited company in the meantime.

Understanding your options…

If you find yourself struggling to achieve a new position outside of IR35 in the coming months, our initial advice would be see what else may be available to you as a temporary alternative.

There are several options to consider:

Permanent employment
Accepting an Inside IR35 role
Contracting under an Umbrella company

During this time, your company can remain open and simply tick along as normal. You Accountant would continue to do complete your Accounts, VAT returns etc but, as there would be no sales, there would be no tax accrued.

To help you with this we will be able to offer a reduced accountancy fee.

This can then give you more time to assess your situation and your potential of returning to an outside IR35 contract in the future in which case you can simply resume operating through your Ltd company.

What can you do…

As the responsibility of assessment moves from you to your client or agency, you may feel like you’re losing control over your contracts. Be proactive and make sure you have already assessed your position as a genuine business owner and not an employee ahead of any determinations by your client or even HMRC, and compile the evidence to support it.

Consider gathering records that demonstrate this such as:

business insurance certificates
company branded stationery
proof of office address

In addition to this, you can go even further by:

getting your current contract reviewed (we can arrange this for you)
completing HMRC’s online IR35 tool
considering additional IR35 insurance cover

Should you need to convince anyone of your status, having everything at hand will put you in a great position.

A word of caution…

We have been advised recently that there have been a large number of faux Umbrella companies being set up to target the contractor market offering alternative solutions to Umbrella and PAYE models.

Always remember the golden rule - if it sounds too good to be true then it probably is!

If you have any questions about how IR35 may impact you, get in touch with your Accountant who will be happy to talk this through with you.

Investing for the Future

Wed, 27 Nov 2019 20:01:53 GMT

As I watch my one year old playing with the box her new toy came in; so carefree, her whole life ahead of her.

I think… ‘what on Earth have you managed to get all over your face now?!’.

Three baby wipes and several tears later, that thought is followed by ‘what am I actually doing to provide for your future?’.

The business is going well and we have some savings, but I’m not sure that 57pence I made in interest last year is going to fund you through university, or pay for your first deposit on a house, or allow you and your boyfriend to make countless trips to Amsterdam because you’ve suddenly discovered an interest in Dutch architecture – I’m not falling for that one baby!

So, let’s consider the options:

Stocks and Shares

Investing cash surplus in the stock market is the high risk, full throttle option but can yield some good returns.
You have the option here of investing directly through your company or drawing a loan from your company to invest personally. This would allow you to take advantage of the Capital Gains allowance. This is afforded to individuals but not businesses – but make sure you are aware of any interest/tax implications with your loan.
Take care also when trading through your business that you do not run the risk of being considered an ‘investment company’ as opposed to a ‘trading company’. This could pose a threat to your claim for Entrepreneur’s Relief in the future.

Property

Whether through your current Ltd company or financed by the same through a separate entity, rental property investment has become increasingly popular in recent years and rightly so. This route allows you to inject your cash into an asset that will hopefully increase in value over time whilst making you a return on monthly rentals. That income can then be extracted tax efficiently or reinvested in additional properties.
By doing this through your company, you can also benefit by expensing the full amount of your finance costs incurred i.e. mortgage interest which is no longer available to landlords on an individual basis.
Be aware that it can be harder for companies to obtain a mortgage initially so this may only be viable if you have been trading for a certain period of time.

High Interest Accounts

A lower yield than the above options however there is no work involved with this one and far lower risk involved.
Typically with higher interest accounts or bonds, you will agree to tie your money up for a minimum period ranging from a few months to a few years with the reward providing you with a higher interest rate than regular current accounts.
Note there may be penalties if you decide to withdraw your cash sooner than the agreed timeframe.

What do you think then baby? Oh! Now you sleep – why does this always happen when I talk accountancy with you??

Year End Accounts Deadline

Wed, 27 Nov 2019 19:50:59 GMT

Year End Accounts: Don't get caught out by the deadlines!

Every year all Limited Companies, even dormant ones, are required to submit Annual Accounts.

Late submission of these Accounts will result in an automatic fine, and a substantial one too! So when do you need to file your Accounts?

The main company deadlines are as follows:

Company Accounts : To be filed 9 months following the Company's Year End date to Companies House.

Corporation Tax : Payable 9 months and 1 day following the Company's Year End to HMRC. Note in this is your first Year End you may have two amounts payable with different due dates.

Corporation Tax Return : To be filed 12 months following the Company's Year End.

If you fail to meet your Accounts deadline with Companies House, the fines are as follows:

There are then separate deadlines for your Corporation Tax Return:

It’s not all bad though folks – if you’re able to submit your return and payment early, HMRC should pay you a little bit of interest so it’s definitely worth getting ahead of your deadlines.

Get in touch to see how we can help you get on top of your company Accounts.

Personal Allowance

Mon, 21 Oct 2019 19:56:44 GMT

As standard, every individual receives a Personal Allowance – this year the Personal Allowance is £12,500 and is the amount of income you do not have to pay tax on.

You may receive more if you claim certain allowances but you may actually receive less if your income exceeds £100k. In this case your Personal Allowance will be reduced by £1 for every £2 you receive over £100,000.

Income Tax

Dividend Tax

This tax year each individual receives a Dividend Allowance of £2,000 so you will only pay tax on dividends you receive over this amount.

Please be aware, if you receive in excess of £10,000 in dividends you will need to submit a Self Assessment Personal Tax return.

If you’re unsure if you need to complete a return, click here to see our blog on whether this may apply to you:

For more rates and tax bands click here to visit HMRC’s income tax webpage.

How to get my UTR number?

Sat, 28 Sep 2019 13:37:11 GMT

Everyone submitting a Self-Assessment has their own Unique Taxpayer Reference (UTR Number).

A UTR is a ten-digit reference issued by HMRC when you first register for Self-Assessment.

Need to register?

You have a couple of options;

Register directly with HMRC
Appoint FileTax ‘N’ Go to register you for a fixed fee of £30.

Lost your UTR number?

If you have previously registered for a UTR number but think you have lost it, there are few places to look before you contact HMRC:

On any HMRC post relating to Self-Assessment (usually detailed in the top right)
Completed a return last year? Your UTR will be detailed on the front page
If you are registered for Self-Assessment HMRC online services, your UTR will be detailed on the homepage.

No luck? You will need to contact HMRC to request your reference to be resent in the post. You can do this by calling 0300 200 3310, alternatively, why not try their new webcha t service!

Do I need to register?

Not sure if you need to file a Self-Assessment, check out our recent blog .

How to recover your HMRC login User ID

Sat, 28 Sep 2019 13:15:23 GMT

Struggling to find your user ID?

Have you checked your emails? HMRC would have emailed your user ID to you upon registration.

No luck? You can no longer recover your user ID online; you will therefore need to contact HMRC on 0300 200 3600. Please make sure you have your national insurance number or Self-Assessment UTR to hand!

Forgot your password?

You can reset your password on HMRC ’s website. To do this, you will need:

Unique Taxpayer Reference
National Insurance number or postcode linked with the account
User ID

A guide to Payments on Account

Thu, 12 Sep 2019 19:24:16 GMT

Ahh the 31st of January…What better way to follow up a relaxing break over the holidays than with the dreaded Self Assessment deadline!!

For those of you who take dividends from your company, in previous years a 10% non-repayable tax credit meant that any dividends falling within the Basic Rate were effectively tax free. However, as of April 2016 all individuals are instead granted a tax free dividend allowance. For the current tax year (2019-20) this allowance has remained at £2,000.

Any dividends over this amount are then taxable in the Basic Rate at 7.5% and 32.5% in the Higher Rate.

Therefore, if you typically try to stick to a tax efficient structure of low salary, high dividends up to the Basic Rate maximum threshold you will be looking at a liability of just over £2.6k for the 2019-20 tax year.

But… sorry folks but this might not be all you need to pay by 31 Jan…

So, what are Payments on Account?

Payments on Account are essentially payments in advance of the next year however they are only enforced if you have a balancing liability at year end in excess of £1,000. As such this is likely to apply for many now that Basic Rate dividends are taxable.

But you don’t pay PAYE at source I hear you say! Well yes and no – whilst you still don’t need to make contributions each time you withdraw dividends in the year, like you would on a PAYE salary, through Payments on Account you will need to make two additional payments; one by 31 January along with your current year’s liability and another by 31 July.

These payments will be exactly half of your current year’s liability each – here HMRC make the assumption that you will draw the same again in the following year – and will be used to reduce your overall liability due by the next 31 January.

So unfortunately this January might cost a pretty penny!

Our Top Tips

Plan ahead – this might sound obvious but can be difficult in practice, particularly if your monthly income fluctuates. If you already have an accountant they should be able to give you a good estimate of what you should be putting aside based on what you hope to take home.

If you don’t have one there are lots of free calculators online that should be put you on the right track, but use with caution of course.

Put aside more than you need – now this is definitely easier said than done but if you are able to, and certainly don’t if it will mean you go short, then putting aside a flat amount each month over and above your anticipated liability can combat any nagging doubts you might have throughout the year.

Once you have then submitted your tax return and confirmed your actual liability for the year, you can pocket the surplus and have a night on the town!!! Or, I mean, invest everything sensibly…cough cough.

Open up a bank account just for tax payments – Even if you have a good idea of what your tax liability will be, it can be difficult to have this at your fingertips if you are keeping the funds in your main account.

Why not transfer this out each month or quarter to a separate account solely designated for future tax bills. There are some good incentives out there at the moment for people with a bit of time and patience willing to switch and set up new accounts so you could even bagsy yourself a little starter to your tax savings!

Feel free to get in touch if you would like any advice on your personal tax situation. Roll on the 1st February!!

What is entrepreneur’s relief?

Mon, 02 Sep 2019 20:38:36 GMT

If you’re a business owner planning to sell up or wind up your company, Entrepreneurs’ Relief can save you a small fortune on your tax bill.

Here are some facts and figures...

Entrepreneur’s relief is a reduced income tax rate for Shareholders who want to close their company and extract the cash in the most tax efficient way. Income tax is then paid on the self-assessment tax return for the tax year is which the company is closed. Each shareholder is entitled to the relevant shareholding proportion of their capital gains distribution.

The regular rate of Capital Gains Tax (CGT) is 20% for people paying more than the basic rate of income tax, however applying for Entrepreneurs’ Relief allows sellers to only pay a reduced rate of 10% on the disposal of shares.

Entrepreneurs’ Relief is subject to a lifetime allowance of £10 million for disposals on or after 6th April 2011.

Everyone is entitled to have £12,000 tax free Capital gains distribution (annual exemption allowance), but please note this rate is for 19/20 tax year and may vary from tax year to tax year.

Who can claim entrepreneur’s relief?

Your company has to have traded for at least one full year.
You hold at least 5% of the shares and voting rights for at least 12 months.
You are a director, office holder or paid employee for at least 12 months.

Illustration

In our example, both individuals are closing through voluntary member’s liquidation but Laura is entitled to entrepreneur’s relief and Ben is not.

Please be aware there are restrictions of claiming Entrepreneurs relief more than once, please contact OnTheGo Accountants for a free consultation.

Do I need to complete a Self-Assessment Tax Return?

Fri, 30 Aug 2019 17:25:33 GMT

A Self-Assessment Tax Return is a summary of your personal income which HMRC use to access your tax liability.

Most individuals pay tax at source and are not required to file a return, however, you will need to complete a return if one or more of the following apply:

You are Self Employed and earn more than £1,000
You are a partner in a Partnership business
You receive more than £1,000 in gross rental income
You are a company director and earn income that is not taxed under PAYE
You have annual income of £100,000 or more
You or your partner receive child benefit and one of you has a total income in excess of £50,000
You receive untaxed income such as:

Savings
Investments
Dividends
You receive foreign income

In the UK the tax year runs from 6th April to the following 5th April. Should you be required to complete a return, you will have:

until 31 October to do so, if you choose to submit a paper tax return;
or until the following 31 January if you file online.

If you need assistance filing your tax return, get in touch with the Tax File ‘n’ Go team today!

High Income Child Benefit Charge

Wed, 21 Aug 2019 17:52:32 GMT

Do you or your partner receive child benefit?

Did you know that you may incur a high income child benefit charge if either you or your partner earn above £50,000?

Child Benefit is available to parents who are responsible for bringing up a child. A higher amount of £20.70 a week is paid for the first child and £13.70 for other children.

However, you may incur an income tax charge if you or your partner's adjusted net income exceeds £50,000:

• If your income is between £50,000 and £60,000, the income tax charge will be 1% of your Child Benefit for every £100 of income between £50,000 and £60,000.

For example, if your adjusted net income is £55,000, you will be charged 50% of the child benefit received.

• If your income is over £60,000 the charge will be equal to the full amount of your Child Benefit.

The charge payable is calculated through your Self-Assessment and it is your responsibility to inform HMRC.

Our Self-Assessment completion starts from £75 + VAT, get an instant quote today!

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As I watch my one year old playing with the box her new toy came in; so carefree, her whole life ahead of her.

Year End Accounts Deadline

Year End Accounts: Don't get caught out by the deadlines!

Personal Allowance

As standard, every individual receives a Personal Allowance – this year the Personal Allowance is £12,500 and is the amount of income you do not have to pay tax on.

How to get my UTR number?

Everyone submitting a Self-Assessment has their own Unique Taxpayer Reference (UTR Number).

How to recover your HMRC login User ID

Struggling to find your user ID?

A guide to Payments on Account

Ahh the 31st of January…What better way to follow up a relaxing break over the holidays than with the dreaded Self Assessment deadline!!

What is entrepreneur’s relief?

If you’re a business owner planning to sell up or wind up your company, Entrepreneurs’ Relief can save you a small fortune on your tax bill.

Do I need to complete a Self-Assessment Tax Return?

A Self-Assessment Tax Return is a summary of your personal income which HMRC use to access your tax liability.

High Income Child Benefit Charge

Do you or your partner receive child benefit?

How Content Creators Can Sell Merchandise Without Headaches