How UKPA Helped Save £2,000 on Self Assessment Tax Return

Do you worry about understanding the UK’s tax complexities and staying compliant with its regulations? Are you intimidated by the jargons and procedures as you are not from an accounting background?  Well, you do not need to worry because we are here to help.

Background

With UKPA, even those with minimal accounting knowledge can navigate the intricate HMRC regulations and uncover potential savings on tax returns. Take, for instance, the story of one of our clients who, with our guidance, saved a significant amount on tax returns. Plus, we ensured they had the accounting insights they needed every step of the way. Here's how we turned their financial concerns into a success story.

In August 2022, a client contacted UKPA regarding their Self Assessment Tax Return. The client was running a serviced accommodation business as a limited company. He was also sole shareholder and director, deriving salary and dividend income from the business. Although the client was in the service accommodation business, he did not have much knowledge of accounts and taxation.

The UK has a very complex taxation system. Although HM Revenue and Customs (HMRC) provides support and guidance to help individuals with their accounts and tax returns, it is hard to access, with many people waiting for a long time to receive advice.

How We Helped

UKPA helped with the client’s Self Assessment Tax Return for the Tax Year 2021/22. However, the main benefit the client received from choosing UKPA was getting all their queries answered and the consultation they received. Our assigned accountant was always ready to help them, of course during office hours, which they also happily acknowledged.

Furthermore, after studying and analysing the client’s profile, UKPA found out that the client had registered for VAT and had never submitted any VAT returns. Due to this, HMRC has imposed penalties on clients' Self Assessment Tax Returns. Additionally, the VAT registration threshold was £85,000 at the time of the client’s accounts (Tax Year 2021/22), meaning that he had to register for VAT if his total annual taxable turnover exceeded £85,000. However, the client had registered for VAT even though the taxable turnover did not exceed the threshold. So, the client would have to pay the penalty amount imposed by HMRC if it wasn’t for UKPA. UKPA helped the client deregister for VAT and appeal against the client’s Self Assessment penalty.

Due to UKPA’s services, the client successfully won the Self Assessment penalty appeal, which saved the client a good amount. Also, the client deregistered for VAT, preventing any added VAT return submission penalty from being imposed. The client’s Self Assessment Tax Returns were submitted in a timely manner, and above all, the client received valuable information about the accounts, tax returns and VAT return policies of the country. Receiving this information can prove to be very valuable in the client's serviced accommodation business. In total, UKPA helped the client save approximately £2,000.

Conclusion

UKPA’s expert team and quality service provided the client with a consultation that impressed the client. That is why he is continuing to work with us, and we are also happy to have this relationship with him.

So, do not let a lack of accounting knowledge hold you back. The team at UKPA can help you in more ways than one. UKPA has a team of professional accountants and legal experts that can help you with your Self Assessment Tax Returns, Annual Accounts, and more. You can gain a basic understanding of the UK’s tax policies and regulations through our services.