Frequently Asked Questions

The most important thing is to file your return on time even if you can't pay.

Missing the filing deadline adds penalties on top of the tax debt — so filing and paying late is much better than not filing at all.

Once filed, contact HMRC about a Time to Pay arrangement, which lets you spread payments over an agreed period. HMRC is generally willing to set these up for people who engage proactively.

If your situation is complicated or you're worried about dealing with HMRC directly, message us on live chat and we can point you in the right direction.

Yes, in certain circumstances.

HMRC accepts appeals based on a 'reasonable excuse' — things like serious illness, bereavement, or a technical failure on HMRC's own systems. You normally need to appeal within 30 days of receiving the penalty notice.

HMRC doesn't usually accept forgetting about the deadline, finding the form too difficult, or relying on an accountant who didn't file on time as reasonable excuses.

If you think you have valid grounds, you can appeal online through your HMRC account or by writing to HMRC.

Not sure if your situation qualifies? Message us on live chat.

HMRC charges penalties that stack up the longer you leave it:

• Day after the deadline: automatic £100 penalty, regardless of whether you owe any tax
• After 3 months: £10 per day for up to 90 days (up to £900)
• After 6 months: 5% of the tax due or £300, whichever is higher
• After 12 months: a further 5% or £300

Interest is also charged on any unpaid tax.

The key thing: filing as soon as possible stops the daily charges. If you can't pay the bill, file anyway — that limits penalties to the late payment side only. You can then contact HMRC about a Time to Pay arrangement to spread the cost.

We can help you file even if you're already late — just message us on live chat.

A payment on account is an advance payment towards your next year's tax bill.

If your Self Assessment tax bill is over £1,000, HMRC automatically splits your next year's estimated bill into two instalments and asks you to pay them in advance: the first on 31 January (alongside your current year's bill) and the second on 31 July. Each payment is half of your previous year's bill.

This catches a lot of first-year filers by surprise — in January you could end up paying your 2024/25 bill plus the first instalment towards 2025/26 all at once.

If your income is likely to be lower in the current year, you can apply to reduce your payments on account.

If you're unsure how this affects you, message us on live chat.

When you inherit a property, you don't pay Capital Gains Tax at the point of inheritance — that's when Inheritance Tax may apply instead.

CGT only comes into play if you later sell the inherited property and it has increased in value since you inherited it.

The gain is calculated from the probate value — the market value of the property at the date of death — not from what the original owner paid for it. So if the property was valued at £300,000 on probate and you sell it for £340,000, your gain is £40,000, not the full increase from the original purchase price.

A few things worth knowing:

If the property was the deceased's main home and you sell it within a certain period, some Private Residence Relief may be available.

If you rent the property out before selling, CGT applies in the normal way from the date of inheritance.

If there are multiple beneficiaries, each person is taxed on their own share of the gain. Our Joint (£449) or Trio (£598) filing options cover all owners in one service.

You must report and pay any CGT within 60 days of completion.

Message us on live chat and we'll talk through what applies to your situation, or book a call with us if you'd prefer.

Yes. Selling a rental property that was never your main home will trigger Capital Gains Tax on any gain you make.

The gain is calculated as: sale price, minus estate agent and solicitor fees, minus the original purchase price and buying costs, minus any capital improvements made during your ownership.

The first £3,000 of your gain is tax-free (the 2025/26 annual exempt amount). The rest is taxed at 18% if you're a basic-rate taxpayer, or 24% if you're a higher-rate taxpayer.

If the property was at some point your main home before you rented it out, part of the gain may be covered by Private Residence Relief, which could reduce your bill. This is one of the most commonly missed reliefs on rental property sales.

You must report the sale and pay the tax within 60 days of completion. This is a legal requirement and missing the deadline results in automatic HMRC penalties.

We handle rental property CGT returns regularly. Fill in our CGT form to get started, or message us on live chat.

Yes, but only genuine capital improvements — not general maintenance or repairs.

Capital improvements are works that added value to the property or adapted it for a new use. These include: extensions and loft conversions; a new kitchen or bathroom (if it's an upgrade, not a like-for-like replacement); structural alterations; and building a garage or outbuilding.

What doesn't count: repainting, replacing a broken boiler with the same type, routine repairs, or general upkeep. These are maintenance costs and HMRC doesn't allow them as deductions.

To claim improvements, you need receipts or invoices for the work. If you no longer have all the paperwork, we can work with what's available — but the more evidence you have, the better.

The cost of improvements is deducted from your gain, which can reduce your CGT bill significantly on a property you've invested in over the years.

Include any improvement costs when you fill in our CGT form and we'll apply them in the calculation.

If you own a property jointly, each owner is taxed on their share of the gain individually.

Each owner gets their own annual CGT exempt amount (£3,000 for 2025/26), so between two owners you effectively have £6,000 of gains that are tax-free before any CGT is due.

Each owner's gain is also taxed at a rate based on their own income — so if one owner is a basic-rate taxpayer and the other is a higher-rate taxpayer, they'll each pay a different rate on their share. This can work in your favour if the owners are in different income bands.

Ownership is usually split equally (50/50 for married couples), but if you own the property in unequal shares these should be formally documented to ensure HMRC taxes each person on the correct proportion.

For jointly owned property sales, we offer our Joint filing at £449 (two owners) or Trio at £598 (three owners), which covers the full gain calculation and filing for all owners in one service.

If you're unsure how your ownership is split or how the gain should be divided, message us on live chat or book a call with us.