If you’re a sole trader, you run your own business as an individual and are self-employed. In UK Sole traders must register with HM Revenue and Customs (HMRC) and follow certain rules on running and naming their business. If you run your business as a sole trader, no distinction is made between your personal and business finances. It is therefore crucially important you realise that should anything go wrong with your venture, you will be personally liable for any business debts. You’re responsible for:
- Keeping records of your business’s sales and expenses
- Sending a Self Assessment tax return every year
- paying Income Tax on your profits and National Insurance contribution
- Registering for VAT / Tax if your turnover reaches the VAT / Tax threshold
- Registering with the Construction Industry Scheme (CIS) if you’re a contractor or sub-contractor in the construction industry
TOO MUCH TAX TAKEN FROM YOUR PAY?
A refund may be due because the PAYE system will usually spread an individual’s personal allowance over the full 12 months of the tax year. This can also apply if you have been on a temporary or ‘emergency’ tax
If you stop working before the end of the tax year, you may have some unused personal allowance.
If you leave the UK during the tax year you may also be due a refund.
Some people may have paid too much tax because their income has not been taxed on the correct PAYE tax code. This is particularly likely for people with multiple part-time jobs.
SELF ASSESSMENT TAX RETURN
Personal tax can be complex and baffling which leads to lots of people paying too much tax. As well as overpaying tax if submission dates are missed fines and interest can be incurred.who needs to complete a Self Assessment tax return It is imperative to submit a tax return if:
- You work for yourself
- You are a company director
- You are a minister of religion
- You receive untaxed income that cannot be collected through a PAYE tax code
- You are a trustee
- You have taxable foreign income
- You need to claim annual business expenses of over £2,500
- Complete your tax return
- Calculate your tax position
- Submit your return to HMRC
- Liaise with HMRC on your behalf
- Be available for any questions or assistance required
Our team would like to help, ensuring that your return has been submitted to HMRC on time leaving you free of late filling penalties.
Do you have to wear uniform or protective clothing for work? Do you meet the cost of washing it yourself, without any assistance from your employer? Do you pay income tax on your earnings? If you answer YES to all of these questions you may be eligible for tax relief.Who can claim a Uniform Tax Rebate?
If your uniform contains your company logo or is protective clothing, you can apply for a tax rebate from HMRC.
- Retail staff
- Hospitality & Catering
- Nurses, doctors, dentists and other healthcare workers
- Police officers
- Airline staff / cabin crew / pilots
- Public transport (London Underground staff, train conductors, bus drivers)
- Engineers & Mechanics
- Builders / plumbers / carpenters
- Anyone else that wears a uniform to work
The amount you can claim depends on your job.The standard rebate for most employees is £60 per year . However for certain professions, HMRC has agreed higher allowances.An employee can claim tax rebate for last 4 years.
CONSTRUCTION INDUSTRY SCHEME (CIS) TAX REFUNDS
The Construction Industry Scheme (CIS) covers most construction work to buildings, including site preparation, decorating and refurbishment.When a contractor pays subcontractors, they make deductions from their payments and pay the money to HMRC as advance payments towards the subcontractor’s tax and National Insurance bill. Hence there’s high possibility you will be owed tax refund.How easy will it be to claim?
Just one phone call can assess your eligibility. We’ll send a registration pack to you for completion and return in the freepost envelope. Majority of our CIS clients enjoy a tax refund. We know exactly what you can and can’t claim for so avoiding the errors and maximising the amount of your rebate. It may be possible to claim back up to four years.If you work under the Construction Industry Scheme (CIS) you are legally obliged to complete a tax return.
Some Qualifying Expenses for Those Under the CIS
- New machinery & repairs
- Vehicle expenses (tax, insurance, petrol, servicing and repairs)
- Travel expenses ( taxis, tubes, trains and B&B costs)
- General administration (telephones, post and printing)
- Protective clothing and Cleaning protective clothing
- Plus many more