LOG IN
BOOK A CALL

Your Residency Status

UK Residents

Making Tax digital:

HMRC is planning on introducing making tax digital (MTD) in the near future, meaning you’ll need to submit a summary of your rental income and expenses on a quarterly basis. MTD is all about making sure you keep your records up to date with the latest income and expenses and helping you be more informed about what your tax liability is for the year. You will need to use software to record and submit quarterly returns of all your rental income and expenses to HMRC.

This can be a daunting task and will most certainly add to the admin burden of self-employed individuals and buy-to-let landlords.

The creators of TaxDash have already built and developed software (Beanbalance) that can file VAT returns under the current MTD scheme, equipping us with the expertise to help you comply with MTD.

For buy-to-let landlords, rental income and expenses can fluctuate significantly during the year, which means it will also affect your tax payable. There is therefore a bigger need to do tax planning during the tax year.

 

Our Services:

  • Recording your rental income and expenses.
  • Getting ready to file your MTD (making tax digital) returns with HMRC.
  • Keeping an audit trail of what has been submitted for personal tax returns and MTD returns.
  • Keeping track of all adjustments that need to be made.
  • Making sure you are MTD ready and compliant.

Foreign Income – Worldwide Disclosure:

If you are a UK tax resident then you need to declare your worldwide income in the UK, regardless of whether you have transferred money back to the UK or not. 

All income earned (income and capital gains) must be declared in the UK together with all your UK income.

 

Our Services

  • Convert all foreign income into GBP using HMRC’s average exchange rates.
  • Accurately calculate the amount of foreign tax credit you can claim in the UK.
  • Convert and apply UK tax rules to foreign rental income earned to ensure correct treatment according to UK tax rules.
  • Ensure income earned from a trust is correctly declared in your personal tax returns. Earning income from a trust fund can be a particular complex area. We work with trust fund specialists to give you the best guidance.

UK Employment Share Options: 

Employee share options may seem straightforward, but there is a lot to consider in order to determine the correct disclosure in your personal tax return.

Schemes like Save As you Earn (SAYE), Share Incentive Plans (SIP), Company Share Options Plans (CSOP), and Enterprise Management Incentives (EMI) are more straightforward.

 

Our Services

  • TaxDash will make sure your s431 is in place.
  • We help with your capital gains calculations.
  • TaxDash assists with share pooling if you have different restrictions on the different share options.
  • We provide help calculating the weighted average cost of each share pool to calculate the tax payable if and when shares have been sold.
  • We help you determine whether the sale of shares should be taxed as income or capital gains tax.
  • We can speak directly with your scheme administrator to ensure shares are correctly declared on your tax return.

UK Tax-Resident Rental Income

If you are a UK tax resident and letting a property in the UK, then you need to submit a tax return in the UK every year.

 

Custom solutions

With our team of experts and the smart use of TaxDash, we can help you with the following:

Ensuring that you file your tax return accurately and on time – every time. Ensuring that you claim all expenses and capital allowances that you are entitled to so that you don’t pay a penny more in taxes than you ought to. Understanding your tax calculation and getting answers to questions you might have. Accessing our detailed list of guidelines to help you with claiming expenses – a host of examples will make it easier for you to understand what expenses you can and cannot claim.

Capturing UK rental income and expenses throughout the year using our property module within TaxDash. Real-time, proactive tax planning using the Tax Dashboard. Advice about what you potentially can do to structure your tax affairs more efficiently, offering you the support of qualified accountants who will provide you with further tax advice. Storing all your current and historic rental income safely and securely in one place. Recording all your current-year rental income in real-time, ensuring that you are ready for when Making Tax Digital goes live.

Calculating capital gains for when a property is sold and ensuring that you claim any allowances or capital expenses that you are entitled to.

 

Our Services

  • TaxDash will make sure your s431 is in place.
  • We help with your capital gains calculations.
  • TaxDash assists with share pooling if you have different restrictions on the different share options.
  • We provide help calculating the weighted average cost of each share pool to calculate the tax payable if and when shares have been sold.
  • We help you determine whether the sale of shares should be taxed as income or capital gains tax.
  • We can speak directly with your scheme administrator to ensure shares are correctly declared on your tax return.

Capital Gains Tax: What it Is, How it Works, and How We Can Help

Capital Gains Tax (CGT) is a type of tax that is incurred due to the profit you make when selling or ‘disposing of’ an asset that has increased in market value, since the market value upon initial purchase.

Tax is paid on the gain that you make, for example, on selling a property in the UK. In other words, CGT is not paid on the full value of the sale.

Capital Gains Tax is separate from income tax, but you still need to consider all your other income to calculate the correct amount of Capital Gains Tax. Calculating Capital Gains Tax can be quite a complex process but using Tax Dashboard and with the help of our qualified accountants, we can assure you that you will not need to pay a penny more in tax than you ought to.

We have saved clients thousands in Capital Gains Tax, due to our level of expertise in taxation (knowing what can and cannot be claimed and the reliefs you’re entitled to) as well as the frequency and volume in which we prepare and compile such calculations.

How TaxDash can help you with Capital Gains Tax

We add an enormous amount of value to you in the following manner:

  • Analyse property expenditures to distinguish between capital and revenue expenses accurately.
  • Provide a comprehensive list of eligible expenses considered as capital improvements.
  • Maintain detailed records of property occupancy for precise Capital Gains Tax calculations.
  • Incorporate the previous year’s capital losses into the current year’s gains calculation.
  • Aid in currency conversion for non-UK property sales using spot rates.
  • Advise on optimising Tax-Free Allowances in the most tax-efficient manner.
  • Consider all income sources to accurately calculate Capital Gains Tax liabilities.
  • Calculate tax for multiple property owners individually, if applicable.
  • Schedule consultations to discuss strategies for minimising Capital Gains Tax.
  • Assist in online declarations and provide thorough documentation.
  • Minimise HMRC inquiry risks by providing comprehensive tax calculations.
  • Ensure timely tax return submissions within the 60-day timeframe.

The process and information required for your CGT Calculation

  1. Log in to TaxDash and navigate to the income section on the left-hand side and click on the Property Dashboard.
  2. Click on the word “edit” next to the street name.
  3. Importantly, please change and update the purchase information of the property by entering the crucial costs like legal fees, stamp duty etc.
  4. Scroll to the bottom and ensure that you go into each of the sections to enter all the relevant information. Such as periods you have lived in the property, improvements done etc.

Other information required for the CGT on disposal of UK property return

  • Have you sent a self-assessment tax return for the tax year the property was disposed of (6Apr – 5Apr)?
  • Do you want to include any other Capital Gains Tax losses made in the relevant tax year?
  • Do you want to include any other Capital Gains Tax losses made in previous tax years?
  • How much of your Capital Gains Tax Annual exempt amount do you want to use? The total amount, or only a portion, or none (you would choose the latter two if you’re using your allowance on other capital gains during the tax year)
  • What do you expect your total gross income will be for this tax year?
  • What is your Personal Allowance for the tax year?
  • The property value on 31 March 1982 (known as ‘rebasing’) if you were a UK resident at the time of the disposal and owned the property on or before 31 March 1982

Information required for the CGT on disposal of UK property return – further info required for UK non-residents

  • Non-residents only: The residential property value on 5 April 2015 (known as ‘rebasing’) if you were a non-resident at the time of the disposal and owned the residential property on or before 5 April 2015 (a figure is required to be completed in the CGT account, even if not used in the calculation – if we don’t have this, then we need to estimate a figure. It will not affect the calculation)
  • Country of residency at the time of exchanging contracts (it’s usually the day you and the new owner swapped contracts and you paid a deposit)

Our fees are charged on an individual basis. We would therefore ask that you log as much information as possible onto TaxDash in order for us to accurately review and deliver a formal proposal with a fixed fee and an engagement letter for you to sign in order for us to proceed with the calculation.

UK Furnished Holiday Lets

Furnished holiday lets (or FHLs) have grown in popularity, especially since the outbreak of Covid 19. More and more people are looking for local holidays and less are travelling abroad. FHLs have also been encouraged by platforms like Airbnb, which allows people to rent out their homes. Unlike a residential let, a furnished holiday let is a tenancy that entitles the tenant to occupy a fully furnished, self-catering property for a limited period. Qualifying FHLs are to be considered a business rather than an investment property (when renting out residential property), and this also means the tax rules for FHLs are very different compared to renting out a residential property.

In order to provide you with efficient and cost-effective tax planning assistance, we require accurate and updated information about your income sources.

 

Our Services

  • TaxDash will help you keep track of all your FHL rental income and expenses.
  • We will ensure that you understand the number of days you need to rent out your FHL for it to qualify as a holiday let.
  • TaxDash will keep all your FHL income and expenses updated, helping you with your personal tax planning.
  • Our team will record all the capital improvements on your FHLs and calculate the relevant capital allowances.
  • We will minimise your capital gains tax when you sell your FHL by calculating your capital expenses.

Domiciled and Non-Domiciled

Every person has a domicile. You can only have one domicile at a time, and your domicile is not necessarily the same as your nationality, citizenship, or residence status. Determining your domicile can be complex. There are three types of domiciles: origin, choice, and dependence.

 

Being Deemed Domicile in the UK

You have a deemed domicile, regardless of your actual domicile – you will be deemed domicile in the UK if either of the following conditions are met:

A) – You were born in the UK and have the UK as your domicile of origin*, and you are a resident in the UK (17/18 or later years).

B) – You were a UK resident for at least 15 out of the 20 tax years immediately before the relevant tax year.

If you are deemed domicile in the UK, then the same UK tax rules as for UK domiciled individuals will apply to you. You are therefore not seen as non-domiciled for tax purposes.

Why is your domicile important?

Your domicile plays an important role in determining your liabilities for income tax, capital gains tax and inheritance tax.

With the help of our experts, we can help and assist with determining your domicile status and we can also help to calculate if you will be better off paying tax on the remittance or the arising basis.

Residency Appraisals

If you are a UK-tax resident, you will be held liable for tax assessment on your worldwide income. This could have far-reaching consequences for how your worldwide income is taxed in the UK. Therefore, great consideration should be taken when you are working or living full-time in the UK and when you only leave the UK for holidays. If you are physically living and working in more than one country, it’s important to consider whether you are regarded as a UK tax resident. If you spend considerable time in two countries and you qualify as a tax resident in both countries according to their respective domestic tax rules, then you will need to consider tie-breaker rules to determine the country in which you are considered a tax resident and in which you are therefore obligated to pay your main source of tax.

 

Our Services 

  • With input from a specialist in residency appraisals, we can help you with:
  • Understanding what it means to be a tax resident of a particular country.
  • Your tax obligations as a tax resident in more than one country.
  • Qualifying for split-year treatment in the year that you moved or left the UK.
  • Tiebreaker rules (if you are considered to be a tax resident in more than one country).
  • Understanding your tax obligations if you are considered a non-UK tax resident.
  • Understanding all the tax considerations if and when you want to leave or move to the UK.

UK Higher Earners

One of our main goals with TaxDash is to help you identify ways to minimise your payable taxes. Tax is unfortunately a very complicated and intricate subject, with multiple tax laws that require consideration, for instance, higher tax rates, child benefit, dividend tax, rental income tax implications and pension contributions – just to name a few.

In order to provide you with efficient and cost-effective tax planning assistance, we require accurate and updated information about your income sources.

 

 

Our Services

  • TaxDash records your salary income details. Upload and securely store all supporting documents (P60, P45, P11d) in one place.
  • TaxDash records all your external sources of income: rental income, foreign income etc.
  • You get a qualified accountant to submit your personal tax return.
  • We make it easy for your TaxDash accountant to calculate your capital gains tax due, or to assist with tax planning on how to reduce future capital gains tax and inheritance tax.
  • TaxDash captures your income in foreign currencies and automatically converts all amounts into GBP using HMRC’s monthly exchange rates.
  • TaxDash offers education on which expenses you can deduct when you are employed full-time.
  • TaxDash ensures you understand how higher tax on dividends works.
  • We keep track of all your employment share option schemes and give expert advice about the tax implications of receiving, vesting, and selling these shares.

Crypto

With Cryptocurrency on the rise there exists the common misconception that one does not need to pay taxes on profits made from trading in cryptocurrencies. Unfortunately, this is not the case.

Most people will have to pay capital gains tax on the profits made through the trading of cryptocurrencies.

The biggest challenge when dealing with crypto is keeping track of all your trades – especially if you have exchanged your crypto.

A big challenge when dealing with crypto is making sure that you have an audit trail with all your trades because sales are not only recognised when you sell crypto for fiat but also when you exchange one cryptocurrency for another.

It is important to remember that you shouldn’t only record the gains that you have made, but also ensure that you keep a record of your losses, so that you are able to offset your losses against capital gains made within the year and for losses to be carried forward and to be offset against capital gains made in the future years.

 

Our Services

  • Calculating your capital gains (and capital losses) correctly on your personal tax returns.
  • Keeping track of all HMRC updates for the latest guidance and tax treatment of crypto-related.
  • Keeping track of all losses brought forward and ensuring that you are making use of your capital gains tax allowances in the most tax-efficient ways.
C

Non-UK Residents

Domiciled and Non-Domiciled

Every person has a domicile. You can only have one domicile at a time, and your domicile is not necessarily the same as your nationality, citizenship, or residence status. Determining your domicile can be complex. There are three types of domiciles: origin, choice, and dependence.

 

Being Deemed Domicile in the UK

You have a deemed domicile, regardless of your actual domicile – you will be deemed domicile in the UK if either of the following conditions are met:

A – You were born in the UK and have the UK as your domicile of origin*, and you are a resident in the UK (17/18 or later years).

B – You were a UK resident for at least 15 out of the 20 tax years immediately before the relevant tax year.

If you are deemed domicile in the UK, then the same UK tax rules as for UK domiciled individuals will apply to you. You are therefore not seen as non-domiciled for tax purposes.

Why is your domicile important?

Your domicile plays an important role in determining your liabilities for income tax, capital gains tax and inheritance tax.

With the help of our experts, we can help and assist with determining your domicile status and we can also help to calculate if you will be better off paying tax on the remittance or the arising basis.

Residency Appraisals

If you are a UK-tax resident, you will be held liable for tax assessment on your worldwide income. This could have far-reaching consequences for how your worldwide income is taxed in the UK. Therefore, great consideration should be taken when you are working or living full-time in the UK and when you only leave the UK for holidays. If you are physically living and working in more than one country, it’s important to consider whether you are regarded as a UK tax resident. If you spend considerable time in two countries and you qualify as a tax resident in both countries according to their respective domestic tax rules, then you will need to consider tie-breaker rules to determine the country in which you are considered a tax resident and in which you are therefore obligated to pay your main source of tax.

 

Our Services

  • With input from a specialist in residency appraisals, we can help you with:
  • Understanding what it means to be a tax resident of a particular country.
  • Your tax obligations as a tax resident in more than one country.
  • Qualifying for split-year treatment in the year that you moved or left the UK.
  • Tiebreaker rules (if you are considered to be a tax resident in more than one country).
  • Understanding your tax obligations if you are considered a non-UK tax resident.
  • Understanding all the tax considerations if and when you want to leave or move to the UK.

Non-UK Residents property CGT

Non-residents have over the years benefited from favourable tax breaks, with the most significant being the treatment of capital gains tax through the disposal of UK-based assets. While most types of disposals made by non-residents remain exempt from capital gains tax, this has changed significantly with respect to UK residential property sold after the 5th of April 2015.

 

Our Services

  • Calculating your UK capital gain and UK capital gains tax payable.
  • Understanding how your capital gains tax calculations are affected by the 2015 change in legislation for non-residents.
  • Being aware of all capital expenses and allowances that you can deduct to calculate your capital gains tax due.
  • Considering all periods of accountancy and qualifying periods during which you were outside the UK to reduce the amount of capital gains tax due.