FAQs

There are only two fixed forms required in the Tax City UK process; the ‘Personal Details’ form, and the ‘Service’ form. The ‘Service’ form can easily be completed in a matter of minutes. If your circumstances are slightly more complicated it may take a little longer to complete the form, however, the concept ensures that you will not be presented with any more information or requirements than your particular circumstances dictate. This is why we can honestly say that your own input can be limited to just a few minutes of your time.

Yes. If you want to add something that you may have forgotten or remove something that isn’t applicable, you can tell us about the changes. We will then send you a revised return for your approval. This involves no extra cost to you. However, if you require any further adjustments after we have completed a second draft, this will incur a fee increment of £25.00.

Yes we will. As soon as we have your approval in the form of an ‘electronic signature’ we will file your return. We will also send you the HMRC confirmation of submission which legally links to the tax return by way of the IR mark.

Tax Return Preparation - Payment is due upon completion of your first draft. Once complete, we will upload your draft return to your secure client portal for approval and will notify you of this by email so that you can pay our fee using the link provided. Once your fee payment is received you will be able to open the tax return document. All ‘Other’ Services - Our fee is payable in advance, before commencement of the service. The service will be initiated by Tax City upon successful receipt of the advance fee payment.

We will issue an invoice for our fee and you can either pay your invoice directly on your Client Portal or by clicking a link in the email received. Open the invoice and review it, then simply click the ‘Pay Invoice’ button and enter your card payment details. All payments are made through a secure payment processing service. We do not store your payment details.

This is a ten digit ‘Unique Tax Reference’ which is required in all cases in order to file a tax return online. This is required as an entry on our return form and therefore all other stages, including tax calculation and payment summary can proceed without this number if you are waiting for one.

If you don’t have a UTR number, we can advise you on how to apply yourself and provide the applicable link for you, or we can complete the application for you. Simply go to the UTR Registration service page and follow the instructions to get started. Please note that obtaining this number can take up to six weeks, so it should be applied for as soon as receiving our advice on the method applicable to your circumstances.

The common reasons for needing to fill in a tax return are listed below. Please note that the list is not exhaustive.

• You are self-employed (Including being a member of a partnership you always have to complete a return.)
• You are a higher-rate tax payer receiving taxable income besides your PAYE employment.
• You receive income from property as well as from employment or other sources.
• Your only income is above a certain level from savings, investment or property as set out below.
  • £10,000 or more income from savings and investments
  • £2,500 or more income from untaxed savings and investments
  • £10,000 or more income from property (before deducting allowable expenses)
  • £2,500 or more income from property (after deducting allowable expenses)
• You are a company director (unless you’re a director of a non-profit organisation, for example a charity, and don’t receive any payments or benefits)
• Your annual income is £150,000 or more. If you receive total income of £150,000 or more, you’ll need to complete a tax return. You may have higher or additional rate tax to pay that hasn’t been collected through your tax code.
• If you are employed and want to claim for expenses or professional subscriptions of £2,500 or more, you’ll need to complete a tax return. You can just write to HM Revenue & Customs (HMRC), with full details, if you want to claim expenses below this amount.
• You have Capital Gains Tax to pay

Completing your Tax Return correctly, particularly when non-resident, is not an easy task and also can be very time consuming. For only £119 we can complete and file your Tax Return for you and ensure you claim all the allowable expenses and reliefs you are entitled to, saving you tax. Simply provide us with the information we ask for, then leave the rest to us.

Allowable expenses are the costs that you pay out in the course of your business or property rental and, in some cases, PAYE employment. These expenses must be wholly and exclusively for business purposes, you can’t claim for non-business or personal items

Capital allowances are tax reliefs on expenditure in buying, creating or improving a business asset that you need in order to earn the profits of your business. So, for example, the cost of buying a van for your business is capital expenditure on which you may be able to claim a capital allowance. If the item is eligible and purchased within the tax year we may be able to claim the full cost of the item in one go using AIA (annual investment allowance). Other examples of capital expenditure include the cost of buying machinery, computers, fixtures and office furniture. If there is anything you don’t understand, we can advise you on this as we process your tax return.

If you are self-employed one of the most common expenses is running your vehicle, simply add up the miles travelled exclusively for business and compare this with the total miles travelled in the tax year. This will enable you to work out the business use percentage. For example, if the total cost of running your car is £10,000 a year and 50% of the use of the car is for business, you may claim £5,000 as an expense. Normally this method is used when there is a capital allowance claim on the vehicle in question.

Yes there is. There are two ways in which you can claim this expense against your income. The direct method as detailed above or by using HMRC’s fixed rate mileage method. The mileage method will involve keeping accurate records of your business journeys including from, and return to, your business base. You cannot claim the mileage method once you have claimed capital allowances on a particular vehicle and therefore this is a decision to be taken carefully, particularly if you have high business miles and a fuel efficient vehicle which can actually make the mileage method more tax efficient in the long term against a capital allowances plus expenses claim.

Yes. You can also claim interest on a loan for the purpose of buying the vehicle applied in the percentage that the vehicle is used for business. Also business parking and toll charges. You may also be able to claim a depreciation allowance (capital allowance, see previous item) for the cost of the vehicle. Normally the allowance (writing down allowance) will be 18% of the cost per annum on a reducing balance basis. Vans and defined business vehicles are eligible for AIA (annual investment allowance) whereupon the full cost may be able to be claimed in ‘one hit’ if purchased in the tax year of the tax return.

Capital Gains Tax is the tax payable on the gain or profit you make when you sell or transfer assets. It applies to assets that you own, such as shares or property, machinery, etc. There’s a tax-free allowance and some additional reliefs that may reduce your Capital Gains Tax bill. There are exclusions to gains made on certain assets and often there will be no tax to pay, particularly on gains made when you sell your principal private residence. Non-Residents also now have to report the disposal of UK land and property. This can be a fairly complex area, so if you think you have made a Capital Gain during the tax year in question, select this circumstance on the ‘Circumstances’ form and our support team will run over the details with you, directing you on the information to provide.