Frequently Asked Questions

On average, UK workers can claim back between £300-£3,000 in PAYE tax refunds. The exact amount depends on your employment history, work-related expenses, and tax codes. Common refundable expenses include uniform costs, professional fees, travel expenses, and tools. We'll review your last 4 tax years to maximize your refund.

The Self Assessment tax return deadline is January 31st each year for online submissions (covering the previous tax year ending April 5th). Paper returns must be submitted by October 31st. If you miss the deadline, HMRC charges penalties starting at £100, increasing for longer delays. We recommend filing early to avoid stress and penalties.

The Construction Industry Scheme (CIS) is a tax deduction system for construction workers. If you're a subcontractor, your contractor deducts tax from your payments at 20% (or 30% if not registered). You can reclaim overpaid CIS tax through annual tax returns. We help construction workers maximize their CIS refunds by claiming all eligible expenses.

As a landlord, you can claim tax relief on mortgage interest (restricted to 20% basic rate), property repairs, letting agent fees, insurance, and maintenance costs. You must report rental income on your Self Assessment tax return, even if it's below the tax-free allowance. We help landlords structure their property portfolio tax-efficiently, potentially saving thousands annually.

Self-employed individuals can claim expenses 'wholly and exclusively' for business purposes. Common claims include office costs, equipment, software, professional fees, marketing, travel, phone bills, and home office expenses. Keep detailed records and receipts. We'll identify all eligible expenses to reduce your tax bill legally.

You must register for VAT if your turnover exceeds £90,000 in a 12-month period (2024/25 threshold). Voluntary registration is possible below this threshold if it benefits your business. VAT registration allows you to reclaim VAT on purchases but requires quarterly VAT returns. We'll advise whether VAT registration suits your business model.

UK tax residency depends on the Statutory Residence Test (SRT), considering days spent in the UK, work location, and family ties. Non-UK residents may only pay tax on UK-sourced income, while residents typically pay tax on worldwide income. Double Taxation Agreements (DTAs) prevent paying tax twice. We specialize in migrant tax planning, ensuring compliance and minimizing liabilities.

Making Tax Digital (MTD) is HMRC's initiative requiring digital record-keeping and quarterly updates. MTD for VAT is already mandatory for VAT-registered businesses. MTD for Income Tax Self Assessment applies to sole traders and landlords with income over £50,000 from April 2026. We provide MTD-compatible software and support to ensure compliance.

Yes, you can reclaim overpaid tax for the last 4 tax years. Common reasons for overpayment include emergency tax codes, incorrect PAYE deductions, unclaimed expenses, or pension contributions. HMRC typically refunds within 5-6 weeks. We'll review your tax history, identify overpayments, and handle the refund claim process for you.

Late Self Assessment returns incur an immediate £100 fine, plus £10 per day after 3 months (capped at £900), and additional penalties after 6 and 12 months. Late tax payments incur 5% interest charges at 30 days, 6 months, and 12 months. Corporation Tax late filing penalties start at £100. We help clients avoid penalties through timely submissions and proactive reminders.

Limited companies pay Corporation Tax at 19-25% (depending on profits), which can be lower than Income Tax rates for higher earners. Directors can take a small salary (£9,100-£12,570) plus dividends, optimizing tax and National Insurance. We'll advise on company structure, dividend planning, and pension contributions to maximize tax efficiency legally.

IR35 determines if a contractor should be taxed as an employee or self-employed. If caught by IR35 ('inside IR35'), you'll pay Income Tax and National Insurance as if employed. Factors include control, substitution rights, and mutuality of obligation. For private sector contracts, clients assess IR35 status. We provide IR35 assessments and help contractors structure contracts correctly.

HMRC requires you to keep tax records for at least 5 years from the January 31st submission deadline. For example, 2023/24 tax records must be kept until January 31, 2030. Records include invoices, receipts, bank statements, and mileage logs. Limited companies must keep records for 6 years from the end of the accounting period. We recommend digital backups for security.

Yes, pension contributions receive tax relief at your highest marginal tax rate (20%, 40%, or 45%). Employer contributions are paid gross without National Insurance. The annual pension allowance is £60,000 (2024/25), with carry-forward from previous 3 years if unused. High earners face a tapered allowance. We'll optimize your pension strategy for maximum tax efficiency and retirement savings.

Income Tax applies to earnings (salary, business profits, rental income) with rates of 20%, 40%, or 45%. Capital Gains Tax (CGT) applies to profits from selling assets like property or shares. CGT rates are 10% or 20% for most assets (18% or 24% for residential property). The CGT annual exemption is £3,000 (2024/25). We'll structure transactions to minimize both taxes legally.