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.

No longer. Since the October 2024 Budget, CGT rates were aligned across all asset types.

For 2025/26 the rates are 18% (basic rate) and 24% (higher rate) for property, shares, crypto, and other assets.

Previously, gains on shares attracted lower rates of 10% and 20%. This change means the tax treatment is now the same regardless of what you're selling.

Your CGT rate depends on your total income for the year, including the gain itself.

First, work out your total taxable income (salary, self-employment, rental, dividends) and subtract your Personal Allowance (£12,570 for most people). What's left is your taxable income.

Any remaining space in your basic-rate band (up to £37,700 of taxable income) gets taxed at 18%. Any gain that pushes you above that threshold is taxed at 24%.

For example: if your taxable income is £20,000 and you make a gain of £30,000, the first £17,700 of the gain falls in the basic-rate band at 18%, and the rest is taxed at 24%.

We calculate this precisely for every client.

For 2025/26, the CGT rates are:

• 18% on gains that fall within your basic-rate income tax band
• 24% on gains above it

These rates apply to all asset types including property, shares, and crypto — the previously lower rates for shares (10% and 20%) were aligned with property rates in the October 2024 Budget.

To work out your rate: add your total taxable gain to your total income for the year. The portion of the gain that falls within your remaining basic-rate band (up to £37,700 for most people) is taxed at 18%. Anything above that is taxed at 24%.

For 2025/26, the Annual Exempt Amount is £3,000 per person.

You can make gains up to this amount across all your assets in the tax year without paying any CGT.

If you own assets jointly, each person gets their own £3,000 allowance — so a couple selling a property together effectively has a combined £6,000 exempt amount.

Gains above the threshold are taxed at 18% (basic rate) or 24% (higher rate).

The allowance has fallen significantly in recent years (it was £12,300 in 2022/23), so even modest gains can now result in a tax liability.