Tax questions, answered
The questions we are asked most often by clients across Bournemouth, Poole and Christchurch - on tax returns, CIS, property, companies, VAT and switching accountant. If yours is not here, call or send us a message and we will answer it properly.
Self Assessment and tax returns
Do I need to file a self assessment tax return?
Usually yes if you were self-employed and earned over £1,000, if you have rental income, if you are a company director taking dividends, or if HMRC has sent you a notice to file. Self assessment is also needed for some higher earners and anyone with untaxed income.
When is the deadline?
31 January following the end of the tax year on 5 April, for both filing online and paying what you owe. Missing it means an automatic £100 penalty even if your tax bill is nil.
What are payments on account?
If your tax bill is over £1,000, HMRC asks for advance payments towards the following year - half on 31 January and half on 31 July. It is the most common nasty surprise for first-time filers, so we tell you the full figure as soon as we have your numbers.
I have several years outstanding. Is that a problem?
It is very fixable. We file the missing years, deal with HMRC for you and help appeal penalties where there are grounds. The sooner you start, the smaller the total.
CIS and construction
How do I get a CIS tax refund?
Through your self assessment return: the tax the contractor deducted is credited against what you actually owe, and the difference comes back to you. See CIS tax refunds.
How long does a CIS refund take to arrive?
Usually two to four weeks after the return is filed. Delays generally mean HMRC is running a security check, which we deal with on your behalf.
Why is 30% being deducted instead of 20%?
That is the rate for subcontractors HMRC cannot verify - normally a registration problem. We fix the registration, you move to 20%, and the over-deducted tax comes back in your refund.
Landlords and property
What can I claim against rental income?
Letting agent fees, insurance, ground rent and service charges, repairs, safety certificates, advertising, accountancy and travel to the property. See landlord accounting for the detail.
How is mortgage interest treated now?
It is not a deductible expense any more. Instead you get a 20% basic-rate tax credit, which is why some higher-rate landlords now pay tax on more than their real profit.
Should I buy property through a limited company?
Sometimes, and sometimes definitely not. It depends on your tax rate, whether you need the income now, and mortgage costs. See Ltd SPV for buy-to-let.
Limited companies
When are company accounts due?
Nine months after your year end at Companies House, with Corporation Tax payable nine months and one day after it and the CT600 return due at twelve months. See limited company accounts.
Should I pay myself a salary or dividends?
Usually both: a modest salary that preserves your National Insurance record and is deductible for the company, topped up with dividends. The best balance changes with the thresholds each year.
Sole trader or limited company?
Below roughly £30,000 profit the tax difference is often small and a company adds cost and admin. Above that it usually starts to pay. See company formation.
What is an SPV?
A limited company set up purely to hold and let property. Buy-to-let lenders usually require one, and it needs specific SIC codes to satisfy them.
VAT, payroll and Making Tax Digital
When must I register for VAT?
Once VAT-taxable turnover passes £90,000 in any rolling twelve months, or if you expect to pass it in the next thirty days alone. See VAT returns.
When does Making Tax Digital start for me?
April 2026 above £50,000 of self-employment and property income, April 2027 above £30,000 and April 2028 above £20,000. See Making Tax Digital.
Do I need payroll for just myself as a director?
If you take a salary, yes - RTI submissions are still required. It is quick and inexpensive to run. See payroll and bookkeeping.
Switching accountant and working with us
How do I switch accountants?
You sign a short authority, we write to your current accountant for your records - which they are professionally obliged to pass on - and we register as your agent with HMRC. It usually takes a couple of weeks and you can move at any point in the year.
Do you work in Polish?
Yes. We work with Polish-speaking clients every week, in Polish, across Bournemouth, Poole and Christchurch - including HMRC letters, calls and meetings.
Do I have to visit the office?
No. Many clients send everything by email or post and never come in. You are welcome at the Bournemouth office if you prefer face to face. See areas we cover.
What does it cost?
We agree a fixed fee before any work starts, so you know the number up front and it does not change afterwards. The first consultation is free and carries no obligation.
How quickly can you start?
Usually within a few days of the first conversation. If you have an imminent deadline, say so when you call and we will tell you honestly whether we can meet it.