Overview

You

can

apply

to

the

First

tier

Tribunal

Mental

Health

if

you

’re

admitted

detained

as

a

patient

in

a

psychiatric

hospital

sectioned

and

want

to

be

discharged

You

can

apply

on

a

patient

’s

behalf

if

you

’re

their

legal

representative

nearest

relative

The

tribunal

is

independent

of

government

and

will

listen

to

both

sides

of

the

argument

before

making

a

decision

You

can

also

apply

to

the

tribunal

if

you

want

to

change

a

community

treatment

order

the

conditions

placed

on

your

conditional

discharge

from

hospital

The

tribunal

deals

with

cases

in

England

There

are

different

rules

in

Wales

and

rules

in

Scotland

When

to

apply

When

you

apply

depends

on

how

you

were

admitted

ask

your

doctor

or

lawyer

if

you

have

one

if

you

’re

unsure

There

are

deadlines

for

the

first

time

you

apply

you

must

apply

within

days

if

you

’ve

been

admitted

for

assessment

section

months

if

you

’ve

been

admitted

for

treatment

section

Get

legal

advice

if

you

’re

a

restricted

patient

for

example

you

’ve

received

an

order

from

the

Crown

Court

or

been

transferred

from

prison-

the

deadlines

depend

on

your

situation

If

you

miss

the

deadline

You

can

not

apply

to

be

discharged

if

you

miss

the

deadline

but

you

may

be

able

to

apply

again

later

for

example

after

a

year

if

you

’ve

been

admitted

for

treatment

section

The

tribunal

will

automatically

look

at

your

case

again

after

a

certain

period

of

time

This

is

sometimes

known

as

a

referral

The

period

of

time

depends

on

your

case

for

example

if

it

’s

been

years

since

the

tribunal

gave

you

a

hearing

you

’ve

not

had

a

hearing

in

the

first

months

of

your

detention

Help

you

can

get

You

can

get

free

legal

help

if

you

’re

a

patient

It

does

not

cost

you

anything

as

it

’s

paid

for

by

legal

aid

Find

a

legal

advisor

near

you

or

ask

the

tribunal

to

find

one

for

you

when

you

apply

You

can

also

get

advice

from

Carers

Direct

the

charity

Mind

the

charity

Rethink

Apply

to

the

tribunal

Download

and

fill

in

an

application

to

the

First

tier

Tribunal

Mental

Health

You

must

include

what

you

’re

applying

for

for

example

discharge

if

you

’ve

been

admitted

for

assessment

or

treatment

the

patient

’s

first

name

surname

and

date

of

birth

full

details

of

the

care

coordinator

and

hospital

the

date

of

the

section

or

order

contact

details

for

the

nearest

relative

if

there

is

one

your

lawyer

’s

details

if

you

have

one

whether

you

need

an

interpreter

Send

the

form

Post

or

email

the

form

to

HM

Courts

and

Tribunals

Service

The

contact

details

are

on

the

form

Contact

the

tribunal

by

phone

or

email

if

you

have

any

questions

about

completing

the

form

The

helpline

and

email

address

can

not

give

you

legal

advice

After

you

apply

You

’ll

be

told

when

the

tribunal

has

received

your

application

You

’ll

get

information

on

your

rights

to

legal

representation

if

you

did

not

include

a

lawyer

’s

details

in

your

application

Your

nearest

relative

will

usually

be

told

the

date

of

the

hearing

they

can

attend

unless

you

object

Nearer

the

time

of

the

hearing

you

’ll

be

given

copies

of

reports

so

that

you

can

check

that

the

information

’s

correct

and

work

out

any

questions

you

want

to

ask

The

date

of

the

hearing

depends

on

your

situation

You

’ll

usually

get

a

hearing

within

days

of

applying

if

you

’ve

been

admitted

for

assessment

months

if

you

’ve

been

admitted

for

treatment

months

if

you

’ve

received

an

order

from

the

Crown

Court

or

been

transferred

from

prison

known

as

a

restricted

patient

Evidence

from

the

tribunal

doctor

You

can

ask

for

a

pre

hearing

examination

with

the

tribunal

doctor

if

you

want

one

If

you

’ve

been

admitted

for

assessment

do

this

in

writing

when

you

send

your

application

to

the

tribunal

If

you

’ve

been

admitted

for

treatment

or

you

’re

a

restricted

patient

you

must

do

this

at

least

weeks

before

the

hearing

Write

to

Because

of

coronavirus

your

pre

hearing

examination

may

take

place

by

video

The

tribunal

will

also

ask

the

hospital

for

reports

from

your

doctor

the

social

work

and

nursing

teams

responsible

for

your

care

the

Secretary

of

State

for

Justice

if

you

’re

a

restricted

patient

and

your

social

supervisor

if

you

’re

living

in

the

community

on

conditional

discharge

If

you

do

not

want

to

continue

with

your

application

Write

to

the

tribunal

as

soon

as

possible

if

you

do

not

want

to

continue

with

your

application

The

tribunal

will

decide

whether

to

accept

your

withdrawal

You

can

not

withdraw

your

case

if

it

was

automatically

referred

to

the

tribunal

but

you

do

not

have

to

go

to

the

hearing

if

you

do

not

want

to

What

happens

at

the

hearing

Because

of

coronavirus

your

hearing

may

take

place

by

phone

by

video

or

in

person

The

tribunal

will

contact

you

and

tell

you

how

the

hearing

will

take

place

You

do

not

have

to

attend

the

hearing

if

you

do

not

want

to

You

can

bring

a

legal

representative

and

a

relative

to

the

hearing

if

you

do

go

your

representative

can

arrange

for

witnesses

or

experts

to

attend

Hearings

are

usually

held

in

private

and

attended

by

a

judicial

panel

made

up

of

a

judge

a

doctor

and

a

specialist

lay

member

for

example

a

mental

health

social

worker

the

patient

their

hospital

doctor

ward

nurse

and

social

worker

your

legal

representative

if

you

have

one

The

doctor

nurse

and

social

worker

will

give

evidence

You

can

also

give

evidence

and

ask

questions

The

tribunal

will

also

look

at

your

pre

hearing

examination

from

the

tribunal

doctor

if

you

had

one

an

independent

psychiatric

report

if

your

legal

representative

asked

for

one

If

you

’re

a

restricted

patient

and

have

committed

a

serious

offence

against

a

person

they

or

their

family

can

ask

or

make

representations

for

certain

conditions

if

the

tribunal

thinks

you

’re

ready

for

discharge

Claim

expenses

You

may

be

able

to

claim

expenses

for

going

to

the

hearing

This

includes

money

for

travel

costs

loss

of

earnings

food

and

drink

if

you

’re

away

for

more

than

hours

Read

the

guidance

on

claiming

expenses

The

tribunal

's

decision

The

tribunal

usually

decides

at

the

end

of

the

hearing

on

whether

you

should

be

discharged

you

’ll

get

the

decision

on

the

day

and

you

’ll

usually

get

full

written

reasons

with

days

of

the

hearing

The

tribunal

can

order

your

release

on

the

same

day

or

at

a

future

date

recommend

that

you

’re

transferred

to

a

different

hospital

recommend

that

your

doctor

considers

you

for

treatment

in

the

community

recommend

that

you

’re

allowed

to

leave

the

hospital

for

periods

of

time

to

see

if

you

’re

ready

for

life

in

the

community

The

tribunal

can

not

change

your

treatment

for

example

medication

Appeal

If

you

lose

your

case

you

can

ask

the

tribunal

to

cancel

the

decision

you

must

do

this

within

days

of

getting

the

written

decision

for

permission

to

appeal

to

a

higher

tribunal

the

Upper

Tribunal

Ask

the

tribunal

to

cancel

the

decision

You

’ll

be

told

how

to

get

a

decision

set

aside

cancelled

if

you

think

there

’s

been

a

mistake

in

the

process

for

example

you

were

not

told

about

the

hearing

so

did

not

go

If

the

tribunal

cancels

the

decision

you

may

be

able

to

get

a

new

hearing

Contact

Citizens

Advice

if

you

need

help

Appeal

to

the

Upper

Tribunal

You

can

ask

for

permission

to

appeal

to

the

Upper

Tribunal

if

you

think

there

was

a

legal

mistake

for

example

if

they

did

not

apply

the

correct

law

or

wrongly

interpreted

the

law

did

not

follow

the

correct

procedures

had

no

evidence

or

not

enough

evidence

to

support

its

decision

Fill

in

the

application

for

permission

to

appeal

the

address

is

on

the

form

Another

judge

will

look

to

see

if

there

’s

a

legal

problem

with

your

case

and

if

it

needs

to

be

heard

again

Complain

You

can

not

complain

about

the

decision

you

can

only

complain

about

the

tribunal

staff

and

the

way

the

hearing

took

place

Legislation

The

tribunal

will

make

a

decision

based

on

Mental

Health

Act

as

amended

by

the

Mental

Health

Act

Mental

Health

Act

Human

Rights

Act

if

the

case

is

about

human

rights

The

tribunal

must

follow

the

Tribunal

Procedure

First

Tier

Tribunal

Health

Education

And

Social

Care

Chamber

Rules

Doctors

statements

and

reports

must

be

written

in

line

with

the

practice

directions


Overview

You

may

need

to

manage

a

Court

Funds

Office

account

for

someone

if

you

’re

their

property

and

affairs

deputy

and

you

’re

authorised

by

the

Court

of

Protection

to

look

after

money

on

their

behalf

Check

the

court

order

that

appointed

you

as

deputy

it

tells

you

what

you

’re

authorised

to

do

You

’ll

need

to

apply

on

behalf

of

the

person

you

’re

deputy

for

to

manage

an

account

that

was

opened

for

them

by

court

order

for

example

for

money

they

received

from

a

court

case

open

an

account

for

them

They

’ll

get

a

special

account

with

the

Court

Funds

Office

Your

responsibilities

The

account

belongs

to

the

person

you

’re

deputy

for

You

’re

the

only

person

who

can

manage

it

on

their

behalf

You

must

keep

to

your

responsibilities

as

a

deputy

when

you

’re

managing

the

account

Check

the

court

order

that

appointed

you

as

deputy

it

tells

you

the

limits

on

what

you

can

and

can

not

do

with

the

account

Apply

You

need

to

apply

to

open

an

account

for

someone

manage

an

account

for

someone

You

must

be

appointed

by

the

Court

of

Protection

as

the

person

’s

property

and

affairs

deputy

If

your

application

is

successful

you

’ll

be

able

to

make

withdrawals

from

the

bank

account

that

you

run

on

behalf

of

the

person

whose

affairs

you

manage

Check

the

details

on

the

court

order

that

appointed

you

as

deputy

you

’ll

need

the

date

of

the

order

and

the

case

number

Fill

in

form

CFO

A

to

apply

for

authority

to

make

withdrawals

give

your

bank

account

details

and

tick

the

New

details

box

Attach

a

copy

of

your

bank

statement

less

than

months

old

or

a

letter

from

your

bank

to

confirm

your

bank

account

details

Fill

in

form

CFO

L

to

pay

money

in

to

the

account

at

the

same

time

as

applying

attach

a

cheque

made

payable

to

the

Accountant

General

of

the

Senior

Courts

Send

forms

and

attachments

together

with

a

copy

of

the

original

court

order

that

appointed

you

as

deputy

it

must

have

a

seal

The

address

is

on

the

forms

You

’ll

get

a

letter

from

the

Court

Funds

Office

within

working

days

to

confirm

that

you

’re

set

up

to

manage

the

account

Your

form

will

be

returned

if

your

application

can

not

be

processed

you

’ll

be

told

what

you

can

do

to

fix

this

Manage

an

account

A

Court

Funds

Office

account

is

called

a

special

account

if

the

account

holder

has

a

deputy

Statements

As

the

deputy

you

’ll

get

statements

in

April

or

May

and

in

October

or

November

each

year

You

can

also

ask

for

a

statement

at

any

time

by

contacting

the

Court

Funds

Office

Interest

and

tax

Special

accounts

currently

pay

interest

The

rate

is

not

fixed

it

is

set

by

the

Lord

Chancellor

Tax

is

not

deducted

from

special

accounts

The

person

you

’re

deputy

for

must

pay

income

tax

if

the

interest

is

more

than

their

tax

allowance

You

’ll

also

get

tax

vouchers

for

tax

returns

with

your

April

statement

Change

of

address

Write

a

letter

to

the

Court

Funds

Office

to

tell

them

if

your

address

changes

so

you

can

keep

getting

statements

and

tax

vouchers

Investments

You

can

invest

in

the

stock

market

using

money

from

the

Court

Funds

Office

account

you

manage

if

it

holds

or

more

for

the

person

you

’re

deputy

for

is

likely

to

hold

the

money

for

or

more

years

The

Court

Funds

Office

makes

stock

market

investments

in

companies

using

the

Equity

Tracker

Index

Fund

ETIF

Write

to

the

Court

Funds

Office

asking

them

to

invest

the

sum

you

require

in

the

ETIF

Check

the

value

of

the

ETIF

on

the

Financial

Times

website

Tax

Tax

is

deducted

from

dividends

on

investments

However

if

the

person

you

’re

deputy

for

has

a

high

income

they

may

need

to

pay

more

income

tax

on

interest

or

dividends

from

the

investments

They

must

also

pay

Capital

Gains

Tax

if

their

investments

are

sold

for

a

difference

in

value

that

’s

more

than

their

allowance

Deposits

You

can

pay

money

in

to

an

account

after

you

apply

to

manage

the

account

Check

the

details

on

the

court

order

that

appointed

you

as

deputy

you

’ll

need

the

date

of

the

order

and

the

case

number

Fill

in

form

CFO

L.

You

must

physically

sign

the

form

this

is

also

known

as

a

wet

signature

Electronic

signatures

will

not

be

accepted

Write

a

cheque

for

the

amount

you

’re

paying

in

payable

to

the

Accountant

General

of

the

Senior

Courts

Attach

a

copy

of

the

original

court

order

that

appointed

you

as

deputy

it

must

have

a

seal

and

send

it

with

the

form

and

cheque

to

the

address

on

the

form

You

’ll

get

a

letter

from

the

Court

Funds

Office

within

working

days

to

confirm

that

it

’s

processed

your

deposit

Your

form

will

be

returned

if

your

deposit

can

not

be

processed

you

’ll

be

told

what

you

can

do

to

fix

this

Withdrawals

You

can

set

up

one

off

withdrawals

or

regular

withdrawals

into

the

bank

account

that

you

run

on

behalf

of

the

person

whose

affairs

you

manage

after

you

apply

to

manage

the

account

You

can

only

make

a

payment

to

another

bank

account

for

example

to

a

solicitor

’s

account

to

pay

fees

if

you

have

a

court

order

from

the

Court

of

Protection

saying

you

can

do

this

You

can

only

make

withdrawals

within

limits

set

by

the

Court

of

Protection

check

the

court

order

that

appointed

you

as

deputy

Set

up

payments

Check

the

court

order

that

appointed

you

as

deputy

you

’ll

need

the

date

of

the

order

and

the

case

number

to

fill

in

payment

forms

Fill

in

form

CFO

P

to

make

a

one

off

payment

to

your

bank

account

form

CFO

R

to

set

up

or

change

a

regular

payment

to

your

bank

account

form

CFO

to

make

a

one

off

payment

to

another

bank

account

You

must

also

fill

in

form

CFO

A

if

your

bank

account

details

have

changed

tick

the

amending

details

box

and

attach

either

a

copy

of

a

bank

statement

less

than

months

old

letter

from

your

bank

confirming

your

new

bank

account

details

Send

forms

by

post

The

address

is

on

the

forms

You

’ll

get

a

confirmation

letter

from

the

Court

Funds

Office

within

working

days

One

off

payment

to

your

bank

account

A

cheque

will

be

paid

into

your

bank

account

within

days

The

money

will

take

working

days

to

clear

If

you

’re

withdrawing

money

for

a

gift

or

charitable

donation

fill

in

form

CFO

PG

and

send

it

with

form

CFO

P.

Regular

payment

to

your

bank

account

Use

form

CFO

R

to

set

up

amend

renew

or

stop

a

regular

payment

tick

the

box

on

the

form

that

applies

Specify

the

number

of

months

you

want

a

regular

payment

to

continue

up

to

months

The

Court

Funds

Office

automatically

renews

regular

payments

that

are

set

up

to

continue

for

months

you

’ll

get

a

letter

to

remind

you

month

before

renewal

Payment

to

another

bank

account

Ask

the

person

or

company

the

payment

is

for

to

sign

form

CFO

You

must

get

a

copy

of

a

a

bank

statement

less

than

months

old

if

you

’re

paying

a

person

rather

than

a

company

Send

it

with

an

original

copy

of

the

court

order

authorising

the

payment

it

must

have

a

seal

Stop

managing

or

close

an

account

A

new

deputy

can

take

over

management

of

the

account

if

you

stop

being

a

deputy

or

die

You

can

not

hand

over

management

of

the

account

only

the

Court

of

Protection

can

appoint

a

new

deputy

The

new

deputy

will

then

need

to

apply

to

manage

the

account

You

stop

being

a

deputy

Tell

the

Court

Funds

Office

in

writing

if

you

stop

being

a

deputy

send

a

copy

of

the

letter

to

the

Office

of

the

Public

Guardian

and

Court

of

Protection

Close

an

account

You

can

not

close

a

Court

Funds

Office

yourself

for

example

by

moving

all

the

money

into

another

account

unless

you

have

a

court

order

that

authorises

you

to

do

this

If

the

person

you

’re

deputy

for

dies

the

person

dealing

with

the

estate

can

apply

for

the

money

in

the

account

to

be

paid

out

The

account

will

be

closed

The

person

you

're

deputy

for

dies

Write

to

the

Court

Funds

Office

to

tell

them

if

the

person

you

’re

deputy

for

has

died

Send

a

certified

copy

of

the

death

certificate

if

you

can

get

one

You

’ll

need

to

include

certain

information

depending

on

who

’s

dealing

with

the

estate

whether

there

’s

a

will

If

you

’re

dealing

with

the

estate

Ask

for

a

Certificate

of

Funds

when

you

write

to

the

Court

Funds

Office

about

the

death

This

shows

how

much

money

is

in

the

account

and

investments

You

’ll

need

this

information

to

deal

with

the

person

’s

tax

and

estate

their

money

property

and

possessions

If

you

’re

not

dealing

with

the

estate

Tell

the

Court

Funds

Office

who

is

dealing

with

the

estate

the

personal

representative

and

provide

their

contact

details

The

Court

Funds

Office

will

provide

the

personal

representative

with

information

and

the

forms

required

to

close

the

account

If

the

person

did

not

leave

a

will

If

the

person

died

without

making

a

will

and

has

no

living

relatives

the

Court

Funds

Office

will

contact

the

Treasury

Solicitor

or

Solicitor

for

the

Duchy

of

Cornwall

or

Lancaster

They

will

deal

with

the

person

’s

money

property

and

possessions

as

an

unclaimed

estate

Payments

for

funeral

expenses

The

personal

representative

or

the

person

who

arranged

the

funeral

can

apply

for

funeral

expenses

to

be

paid

to

the

funeral

provider

out

of

the

account

Fill

in

form

CFO

Send

it

to

the

address

on

the

form

with

the

funeral

provider

’s

invoice

and

a

certified

copy

of

the

death

certificate

Funeral

expenses

must

be

in

keeping

with

the

value

of

the

person

’s

estate

they

can

not

include

payments

for

headstones

refreshments

at

the

funeral

service

Payments

for

inheritance

tax

The

personal

representative

can

apply

for

inheritance

tax

to

be

paid

to

HM

Revenue

Customs

HMRC

out

of

the

account

Fill

in

form

CFO

Send

it

to

the

address

on

the

form

with

the

completed

form

and

certified

copies

of

the

death

certificate

and

any

will


Overview

A

lasting

power

of

attorney

LPA

is

a

legal

document

that

lets

you

the

donor

appoint

one

or

more

people

known

as

attorneys

to

help

you

make

decisions

or

to

make

decisions

on

your

behalf

This

gives

you

more

control

over

what

happens

to

you

if

you

have

an

accident

or

an

illness

and

can

not

make

your

own

decisions

you

lack

mental

capacity

You

must

be

or

over

and

have

mental

capacity

the

ability

to

make

your

own

decisions

when

you

make

your

LPA

You

do

not

need

to

live

in

the

UK

or

be

a

British

citizen

This

guide

is

also

available

in

Welsh

Cymraeg

There

are

types

of

LPA

health

and

welfare

property

and

financial

affairs

You

can

choose

to

make

one

type

or

both

There

’s

a

different

process

in

Scotland

and

Northern

Ireland

How

to

make

a

lasting

power

of

attorney

Choose

your

attorney

you

can

have

more

than

one

Fill

in

the

forms

to

appoint

them

as

an

attorney

Register

your

LPA

with

the

Office

of

the

Public

Guardian

this

can

take

up

to

weeks

It

costs

to

register

an

LPA

unless

you

get

a

reduction

or

exemption

You

can

cancel

your

LPA

if

you

no

longer

need

it

or

want

to

make

a

new

one

Health

and

welfare

lasting

power

of

attorney

Use

this

LPA

to

give

an

attorney

the

power

to

make

decisions

about

things

like

your

daily

routine

for

example

washing

dressing

eating

medical

care

moving

into

a

care

home

life

sustaining

treatment

It

can

only

be

used

when

you

’re

unable

to

make

your

own

decisions

Property

and

financial

affairs

lasting

power

of

attorney

Use

this

LPA

to

give

an

attorney

the

power

to

make

decisions

about

money

and

property

for

you

for

example

managing

a

bank

or

building

society

account

paying

bills

collecting

benefits

or

a

pension

selling

your

home

It

can

be

used

as

soon

as

it

’s

registered

with

your

permission

Help

deciding

if

you

should

make

a

lasting

power

of

attorney

Contact

the

Office

of

the

Public

Guardian

if

you

need

help

Choose

your

attorney

You

can

choose

one

or

more

people

to

be

your

attorney

If

you

appoint

more

than

one

you

must

decide

whether

they

’ll

make

decisions

separately

or

together

Who

can

be

your

attorney

Your

attorney

needs

to

be

or

over

They

could

be

a

relative

a

friend

a

professional

for

example

a

solicitor

your

husband

wife

or

partner

You

must

appoint

someone

who

has

the

mental

capacity

to

make

their

own

decisions

Your

attorney

does

not

need

to

live

in

the

UK

or

be

a

British

citizen

When

choosing

an

attorney

think

about

how

well

they

look

after

their

own

affairs

for

example

their

finances

how

well

you

know

them

if

you

trust

them

to

make

decisions

in

your

best

interests

how

happy

they

will

be

to

make

decisions

for

you

Read

about

an

attorney

’s

responsibilities

to

help

you

with

your

decision

You

can

not

choose

someone

who

is

subject

to

a

Debt

Relief

Order

or

is

bankrupt

if

you

’re

making

a

lasting

power

of

attorney

LPA

for

property

and

financial

affairs

If

there

’s

more

than

one

attorney

If

you

’re

appointing

more

than

one

person

you

must

decide

if

they

’ll

make

decisions

separately

or

together

sometimes

called

jointly

and

severally

which

means

attorneys

can

make

decisions

on

their

own

or

with

other

attorneys

together

sometimes

called

jointly

which

means

all

the

attorneys

have

to

agree

on

the

decision

You

can

also

choose

to

let

them

make

some

decisions

jointly

and

others

jointly

and

severally

Attorneys

who

are

appointed

jointly

must

all

agree

or

they

can

not

make

the

decision

Replacement

attorneys

When

you

make

your

LPA

you

can

nominate

other

people

to

replace

your

attorney

or

attorneys

if

at

some

point

they

can

not

act

on

your

behalf

anymore

Make

a

lasting

power

of

attorney

You

can

make

a

lasting

power

of

attorney

LPA

online

or

using

paper

forms

Either

way

you

need

to

get

other

people

to

sign

the

forms

including

the

attorneys

and

witnesses

You

can

get

someone

else

to

use

the

online

service

or

fill

in

the

paper

forms

for

you

for

example

a

family

member

friend

or

solicitor

You

must

register

your

LPA

or

your

attorney

will

not

be

able

to

make

decisions

for

you

It

might

take

longer

to

make

and

register

an

LPA

because

of

coronavirus

It

will

be

quicker

if

you

make

it

and

pay

online

Make

an

LPA

online

Create

an

account

to

start

your

LPA

You

can

get

help

and

guidance

at

each

step

save

your

forms

and

complete

them

later

review

your

answers

and

fix

any

mistakes

You

need

to

print

out

the

forms

and

sign

them

when

you

’ve

finished

Sign

in

to

your

account

Sign

in

to

continue

making

your

LPA

Use

the

paper

forms

Download

the

forms

and

print

them

out

Signing

the

forms

You

need

to

sign

the

forms

before

you

send

them

off

They

also

need

to

be

signed

by

the

attorneys

witnesses

a

certificate

provider

who

confirms

you

’re

making

the

LPA

by

choice

and

you

understand

what

you

’re

doing

Everyone

must

sign

the

same

original

document

They

can

not

sign

copies

or

use

digital

signatures

Who

can

be

a

witness

or

certificate

provider

Witnesses

and

certificate

providers

must

be

or

over

Attorneys

can

witness

each

other

sign

but

they

can

not

witness

you

sign

sign

as

the

certificate

provider

You

can

not

be

a

witness

if

you

’re

the

person

appointing

an

attorney

Get

help

Ask

the

Office

of

the

Public

Guardian

about

help

you

can

get

if

you

do

not

have

a

computer

or

printer

want

to

use

the

online

service

but

need

some

help

Register

a

lasting

power

of

attorney

When

you

’ve

made

your

lasting

power

of

attorney

LPA

you

need

to

register

it

with

the

Office

of

the

Public

Guardian

OPG

It

takes

up

to

weeks

to

register

an

LPA

if

there

are

no

mistakes

in

the

application

You

can

apply

to

register

your

LPA

yourself

if

you

’re

able

to

make

your

own

decisions

Your

attorney

can

also

register

it

for

you

You

’ll

be

told

if

they

do

and

you

can

object

to

the

registration

Notify

people

Before

you

register

send

a

form

to

notify

people

to

all

the

people

to

notify

also

called

people

to

be

told

you

listed

in

the

LPA

They

’ll

have

weeks

to

raise

any

concerns

with

OPG

If

you

’re

using

the

online

service

to

make

an

LPA

it

will

create

and

fill

in

the

forms

for

you

How

to

register

Apply

to

register

as

soon

as

you

’ve

sent

forms

to

notify

people

To

register

you

need

to

sign

your

completed

LPA

form

and

send

it

to

OPG

If

you

create

your

LPA

form

using

the

online

service

you

will

need

to

print

it

out

to

do

this

The

address

is

also

on

the

form

Make

sure

you

include

the

original

LPA

form

and

the

fee

You

can

send

a

certified

copy

if

you

do

not

have

the

original

form

Write

a

covering

letter

to

explain

why

you

do

not

have

the

original

If

you

made

your

LPA

with

an

older

paper

form

You

can

register

by

filling

in

form

if

you

made

your

LPA

on

forms

or

before

January

on

forms

LP

PA

or

LP

PW

before

April

Otherwise

you

’ll

need

to

make

a

new

LPA

How

much

it

costs

It

costs

to

register

each

LPA

unless

you

get

a

reduction

or

exemption

This

means

it

costs

to

register

both

a

property

and

financial

affairs

LPA

and

a

health

and

welfare

LPA

You

can

pay

by

credit

or

debit

card

cheque

Make

your

cheque

payable

to

Office

of

the

Public

Guardian

and

write

your

name

on

the

back

Send

it

to

OPG

with

your

forms

If

you

make

a

mistake

on

your

form

Depending

on

the

type

of

mistake

OPG

may

let

you

correct

it

and

apply

again

within

months

for

Get

a

reduction

or

exemption

You

can

apply

for

a

reduction

if

you

earn

less

than

You

might

also

be

able

to

apply

for

an

exemption

if

you

’re

on

certain

benefits

such

as

Income

Support

Download

and

fill

in

the

application

form

The

form

has

more

information

about

eligibility

Certify

a

copy

of

a

lasting

power

of

attorney

You

can

confirm

that

a

copy

of

your

lasting

power

of

attorney

LPA

is

genuine

by

certifying

it

if

you

’re

still

able

to

make

your

own

decisions

You

or

your

attorney

can

use

a

certified

copy

to

register

your

LPA

if

you

do

not

have

the

original

form

Your

attorney

can

also

use

the

certified

copy

to

prove

they

have

permission

to

make

decisions

on

your

behalf

for

example

to

manage

your

bank

account

How

to

certify

a

copy

Write

the

following

text

on

the

bottom

of

every

page

of

the

copy

I

certify

this

is

a

true

and

complete

copy

of

the

corresponding

page

of

the

original

lasting

power

of

attorney

On

the

final

page

of

the

copy

you

must

also

write

I

certify

this

is

a

true

and

complete

copy

of

the

lasting

power

of

attorney

You

need

to

sign

and

date

every

page

Other

ways

to

certify

a

copy

Copies

of

your

LPA

can

also

be

certified

by

a

solicitor

a

person

authorised

to

carry

out

notarial

activities

Change

your

lasting

power

of

attorney

You

can

ask

the

Office

of

the

Public

Guardian

OPG

to

change

your

lasting

power

of

attorney

LPA

if

it

’s

been

registered

and

you

still

have

mental

capacity

to

make

decisions

If

you

want

to

remove

one

of

your

attorneys

You

will

need

to

send

OPG

a

written

statement

called

a

partial

deed

of

revocation

If

you

want

to

add

another

attorney

you

need

to

end

your

LPA

and

make

a

new

one

Use

the

following

wording

Replace

the

words

in

the

square

brackets

with

the

relevant

details

Partial

deed

of

revocation

This

partial

deed

of

revocation

is

made

by

donor

’s

name

of

donor

’s

address

I

granted

a

lasting

power

of

attorney

for

property

and

financial

affairs

health

and

welfare

delete

as

appropriate

on

date

donor

signed

the

lasting

power

of

attorney

appointing

name

of

first

attorney

of

address

of

first

attorney

and

name

of

second

attorney

of

address

of

second

attorney

to

act

as

my

attorney(s

I

hereby

revoke

attorney

’s

name

that

you

are

revoking

ONLY

from

the

lasting

power

of

attorney

and

the

authority

granted

to

him

her

Signed

and

delivered

as

a

deed

donor

’s

signature

Date

signed

date

Witnessed

by

signature

of

witness

Full

name

of

witness

name

of

witness

Address

of

witness

address

of

witness

Where

to

send

a

partial

deed

of

revocation

Send

the

partial

deed

of

revocation

to

the

Office

of

the

Public

Guardian

OPG

with

the

original

LPA

document

You

must

also

tell

your

attorney

or

attorneys

that

you

’re

ending

your

LPA

If

your

attorney

’s

details

change

You

must

write

to

OPG

if

one

of

your

attorneys

has

changed

their

name

by

marriage

or

deed

poll

address

You

need

to

provide

supporting

documents

such

as

the

original

marriage

certificate

with

their

new

name

and

address

Do

not

make

changes

to

your

LPA

document

itself

as

it

might

become

invalid

You

must

contact

OPG

to

make

changes

to

your

LPA

If

one

of

your

attorneys

dies

You

must

tell

OPG

and

send

them

a

copy

of

their

death

certificate

the

original

LPA

all

certified

copies

of

the

LPA

a

return

address

where

your

documents

can

be

sent

back

to

End

your

lasting

power

of

attorney

You

can

end

your

lasting

power

of

attorney

LPA

yourself

if

you

have

mental

capacity

to

make

that

decision

You

need

to

send

the

Office

of

the

Public

Guardian

OPG

both

the

original

LPA

a

written

statement

called

a

deed

of

revocation

Use

the

following

wording

for

the

deed

of

revocation

Replace

the

words

in

the

square

brackets

with

the

relevant

details

Deed

of

revocation

This

deed

of

revocation

is

made

by

your

name

of

your

address

I

granted

a

lasting

power

of

attorney

for

property

and

financial

affairs

health

and

welfare

delete

as

appropriate

on

date

you

signed

the

lasting

power

of

attorney

appointing

name

of

first

attorney

of

address

of

first

attorney

and

name

of

second

attorney

of

address

of

second

attorney

to

act

as

my

attorney(s

I

revoke

the

lasting

power

of

attorney

and

the

authority

granted

by

it

Signed

and

delivered

as

a

deed

your

signature

Date

signed

date

Witnessed

by

signature

of

witness

Full

name

of

witness

name

of

witness

Address

of

witness

address

of

witness

You

must

be

able

to

make

your

own

decisions

when

you

end

your

LPA

You

can

also

complain

if

you

have

concerns

about

your

attorney

for

example

if

they

’re

not

carrying

out

their

responsibilities

properly

Other

ways

a

lasting

power

of

attorney

can

end

Your

LPA

may

end

if

your

attorney

loses

the

ability

to

make

decisions

loses

mental

capacity

divorces

you

or

ends

your

civil

partnership

if

they

’re

your

husband

wife

or

partner

becomes

bankrupt

or

they

’re

subject

to

a

Debt

Relief

Order

DRO

if

they

’re

a

property

and

financial

affairs

attorney

is

removed

by

the

Court

of

Protection

dies

If

your

only

attorney

dies

Your

LPA

will

end

if

your

attorney

dies

and

you

have

no

replacement

attorneys

You

must

tell

OPG

and

send

them

a

copy

of

their

death

certificate

the

original

LPA

all

certified

copies

of

the

LPA

a

return

address

where

your

documents

can

be

sent

back

to

Your

LPA

can

continue

if

there

are

other

attorneys

who

can

act

jointly

and

severally

but

not

if

they

are

only

allowed

to

act

jointly

there

are

replacement

attorneys

If

you

die

Your

LPA

will

end

automatically

when

you

die

Your

affairs

will

be

looked

after

by

your

executors

or

personal

representatives

from

that

point

not

your

attorney


Check

you

can

get

a

divorce

You

can

get

divorced

in

England

or

Wales

if

all

of

the

following

are

true

you

’ve

been

married

for

over

a

year

your

relationship

has

permanently

broken

down

your

marriage

is

legally

recognised

in

the

UK

including

same

sex

marriage

the

UK

is

your

permanent

home

or

the

permanent

home

of

your

husband

or

wife

If

you

do

not

want

a

divorce

you

can

get

a

legal

separation

so

you

can

live

apart

without

ending

the

marriage

You

might

also

be

able

to

annul

the

marriage

You

can

apply

for

separation

or

annulment

during

your

first

year

of

marriage

This

guide

is

also

available

in

Welsh

Cymraeg

Getting

a

divorce

is

different

in

Scotland

and

Northern

Ireland

Grounds

for

divorce

When

you

apply

for

a

divorce

you

’ll

need

to

prove

that

your

marriage

has

broken

down

and

can

not

be

saved

You

’ll

need

to

give

one

or

more

of

the

following

reasons

also

known

as

facts

Adultery

Your

husband

or

wife

had

sexual

intercourse

with

someone

else

of

the

opposite

sex

committed

adultery

You

can

not

give

adultery

as

a

reason

if

you

lived

together

as

a

couple

for

more

than

months

after

you

found

out

about

it

Unreasonable

behaviour

Your

husband

or

wife

has

behaved

in

such

a

way

that

you

can

not

reasonably

be

expected

to

live

with

them

This

could

include

physical

violence

verbal

abuse

such

as

insults

or

threats

drunkenness

or

drug

taking

refusing

to

pay

towards

shared

living

expenses

Desertion

Your

husband

or

wife

has

left

you

for

at

least

years

before

you

apply

for

divorce

You

can

still

claim

desertion

if

you

have

lived

together

for

up

to

a

total

of

months

in

this

period

but

that

will

not

count

towards

the

years

You

’ve

been

separated

for

at

least

years

You

can

apply

for

a

divorce

if

you

’ve

been

separated

for

at

least

years

before

applying

for

divorce

and

you

both

agree

to

it

Your

husband

or

wife

must

agree

in

writing

It

may

be

possible

for

you

to

show

that

you

’ve

been

separated

while

living

in

the

same

home

as

your

wife

or

husband

as

long

as

you

’re

not

living

together

as

a

couple

for

example

you

sleep

and

eat

apart

You

’ve

been

separated

for

at

least

years

You

can

apply

for

a

divorce

if

you

’ve

been

separated

for

at

least

years

before

applying

even

if

your

husband

or

wife

disagrees

Before

you

apply

Before

you

send

in

your

application

you

and

your

husband

or

wife

can

choose

to

work

out

arrangements

for

looking

after

any

children

child

maintenance

payments

for

any

children

You

can

also

divide

your

money

and

property

There

’s

a

deadline

if

you

want

to

make

this

legally

binding

You

can

usually

avoid

going

to

court

hearings

if

you

agree

about

children

money

and

property

and

the

reasons

for

ending

your

marriage

Get

help

agreeing

on

issues

You

can

use

a

mediator

Check

if

you

can

get

legal

aid

to

help

pay

for

mediation

You

can

also

get

advice

on

making

agreements

from

organisations

near

you

Citizens

Advice

If

you

’re

married

to

more

than

one

person

Contact

your

regional

divorce

centre

if

you

’re

married

to

more

than

one

person

polygamy

How

to

apply

To

apply

for

a

divorce

you

’ll

need

your

husband

or

wife

’s

full

name

and

address

your

original

marriage

certificate

or

a

certified

copy

and

a

certified

translation

if

it

’s

not

in

English

proof

of

your

name

change

if

you

’ve

changed

it

since

you

got

married

for

example

your

marriage

certificate

or

a

deed

poll

You

must

try

to

find

your

husband

or

wife

’s

current

address

if

you

do

not

know

it

The

court

will

need

it

to

send

them

a

copy

of

the

divorce

petition

If

you

name

the

person

your

husband

or

wife

committed

adultery

with

they

’ll

get

copies

of

the

paperwork

Fee

You

must

pay

a

fee

to

apply

for

a

divorce

The

way

you

pay

depends

on

how

you

apply

Your

fee

will

not

be

refunded

after

you

are

sent

the

notice

that

your

application

has

been

issued

You

may

be

able

to

get

help

with

fees

if

you

get

benefits

or

are

on

a

low

income

Apply

online

You

can

apply

for

a

divorce

online

You

’ll

need

a

debit

or

credit

card

to

apply

online

Apply

by

post

or

in

Welsh

Fill

in

a

divorce

application

form

divorce

petition

to

start

a

divorce

You

can

get

help

filling

in

the

form

at

a

Citizens

Advice

office

Send

copies

of

the

form

to

your

nearest

divorce

centre

They

’ll

send

one

copy

to

your

husband

or

wife

You

need

to

send

copies

if

you

named

someone

your

husband

or

wife

committed

adultery

with

Keep

your

own

copy

of

the

forms

How

to

pay

You

can

either

pay

by

debit

or

credit

card

the

divorce

centre

will

call

you

to

take

payment

cheque

made

payable

to

HM

Courts

and

Tribunals

Service

What

happens

after

you

apply

Your

application

will

be

checked

If

it

’s

correct

you

’ll

be

sent

a

notice

that

your

application

has

been

issued

sent

out

a

copy

of

your

application

stamped

by

the

divorce

centre

a

case

number

This

may

take

up

to

days

if

you

applied

online

or

month

if

you

applied

by

post

The

court

will

send

your

husband

or

wife

the

divorce

application

and

an

acknowledgement

of

service

form

Your

husband

or

wife

will

need

to

respond

to

your

divorce

application

If

you

named

someone

your

husband

or

wife

committed

adultery

with

they

’ll

also

be

sent

a

copy

of

the

application

and

be

asked

to

respond

Your

husband

or

wife

responds

The

acknowledgement

of

service

form

asks

your

husband

or

wife

if

they

agree

with

the

divorce

intend

to

try

to

prevent

the

divorce

defend

it

object

to

paying

the

costs

if

you

’ve

claimed

them

Your

husband

or

wife

must

respond

within

days

If

they

agree

with

the

divorce

You

can

continue

with

the

divorce

by

applying

for

a

decree

nisi

If

they

defend

the

divorce

Your

husband

or

wife

will

have

to

complete

an

answer

to

divorce

form

to

say

why

they

disagree

with

the

divorce

They

must

do

this

within

days

of

getting

the

divorce

application

If

they

do

not

submit

an

answer

to

divorce

form

you

can

continue

the

divorce

by

applying

for

a

decree

nisi

If

they

do

submit

an

answer

to

divorce

in

time

you

may

have

to

go

to

court

to

discuss

the

case

Apply

for

decree

nisi

You

can

apply

for

a

decree

nisi

if

your

husband

or

wife

does

not

defend

your

divorce

petition

A

decree

nisi

is

a

document

that

says

that

the

court

does

not

see

any

reason

why

you

can

not

divorce

If

your

husband

or

wife

does

not

agree

to

the

divorce

you

can

still

apply

for

a

decree

nisi

However

you

’ll

have

to

go

to

a

court

hearing

to

discuss

the

case

where

a

judge

will

decide

whether

to

grant

you

a

decree

nisi

If

you

already

have

a

hearing

date

the

court

will

contact

you

and

tell

you

how

the

hearing

will

take

place

How

to

apply

To

get

a

decree

nisi

read

the

guidance

and

then

fill

in

the

application

for

a

decree

nisi

You

must

also

fill

in

a

statement

confirming

that

what

you

said

in

your

divorce

petition

is

true

There

are

statement

forms

use

the

one

that

covers

the

reason

you

’ve

given

for

your

divorce

adultery

statement

unreasonable

behaviour

statement

desertion

statement

years

separation

statement

years

separation

statement

Attach

a

copy

of

your

husband

’s

or

wife

’s

response

to

the

divorce

petition

Getting

a

decree

nisi

If

the

judge

agrees

the

court

will

send

you

and

your

husband

or

wife

a

certificate

This

may

take

several

weeks

The

certificate

will

tell

you

the

time

and

date

you

’ll

be

granted

a

decree

nisi

You

’ll

still

be

married

after

the

decree

nisi

has

been

granted

You

’ll

have

to

wait

days

weeks

and

day

before

you

can

apply

for

a

decree

absolute

to

actually

end

the

marriage

Your

application

is

rejected

You

may

be

sent

a

notice

of

refusal

of

judge

’s

certificate

form

saying

why

you

can

not

divorce

The

form

will

tell

you

what

to

do

next

The

judge

may

want

more

information

in

writing

or

you

may

have

to

go

to

a

court

hearing

You

can

get

legal

advice

if

there

’s

going

to

be

a

court

hearing

Apply

for

a

decree

absolute

The

decree

absolute

is

the

legal

document

that

ends

your

marriage

You

need

to

wait

at

least

days

weeks

and

day

after

the

date

of

the

decree

nisi

before

you

can

apply

for

a

decree

absolute

Apply

within

months

of

getting

the

decree

nisi

otherwise

you

will

have

to

explain

the

delay

to

the

court

How

to

apply

To

apply

for

a

decree

absolute

fill

in

the

notice

of

application

for

decree

nisi

to

be

made

absolute

form

If

you

want

a

legally

binding

arrangement

for

dividing

money

and

property

you

must

apply

to

the

court

for

this

before

you

apply

for

a

decree

absolute

Getting

the

decree

absolute

The

court

will

check

that

time

limits

have

been

met

there

are

no

other

reasons

not

to

grant

the

divorce

The

court

will

then

send

you

both

a

decree

absolute

You

’ll

get

your

decree

absolute

within

hours

Monday

to

Friday

if

you

applied

online

days

if

you

applied

by

post

If

a

solicitor

is

acting

for

you

the

decree

absolute

will

be

sent

to

them

You

’ll

need

to

ask

them

for

a

copy

Once

you

get

the

decree

absolute

you

are

divorced

no

longer

married

and

free

to

marry

again

if

you

wish

Keep

the

decree

absolute

safe

you

will

need

to

show

it

if

you

remarry

or

to

prove

your

marital

status

If

you

lose

your

decree

absolute

you

can

apply

to

the

court

for

a

copy

If

you

do

not

apply

for

the

decree

absolute

Your

husband

or

wife

can

apply

for

the

decree

absolute

if

you

do

not

They

’ll

have

to

wait

an

extra

months

to

do

this

on

top

of

the

standard

days

If

your

husband

or

wife

lacks

mental

capacity

You

can

apply

for

a

divorce

if

your

husband

or

wife

lacks

mental

capacity

and

can

not

agree

to

a

divorce

or

take

part

in

the

divorce

case

Your

husband

or

wife

will

need

someone

to

make

decisions

for

them

during

the

divorce

The

person

who

acts

on

their

behalf

is

called

a

litigation

friend

It

can

be

a

family

member

close

friend

or

someone

else

who

can

represent

them

Your

husband

or

wife

does

not

have

a

litigation

friend

If

there

’s

no

one

suitable

and

willing

to

be

their

litigation

friend

you

can

apply

to

the

court

to

appoint

a

litigation

friend

The

Official

Solicitor

may

agree

to

act

as

your

husband

or

wife

’s

litigation

friend

when

there

’s

no

one

else

to

do

this

litigation

friend

of

last

resort

How

to

apply

Check

there

’s

nobody

else

suitable

or

willing

to

act

as

your

husband

or

wife

’s

litigation

friend

Check

that

there

’s

money

available

for

any

costs

the

Official

Solicitor

has

to

pay

Your

husband

or

wife

may

be

able

to

get

legal

aid

Give

the

details

of

your

husband

or

wife

’s

doctor

or

other

medical

professional

to

the

court

so

it

can

ask

for

a

certificate

of

capacity

If

the

Official

Solicitor

agrees

to

act

as

litigation

friend

for

your

husband

or

wife

you

’ll

be

able

to

file

for

divorce

Contact

the

Official

Solicitor

’s

staff

Email

or

call

the

private

family

law

team

if

you

have

an

enquiry

about

divorcing

someone

who

lacks

mental

capacity

They

can

not

answer

general

questions

about

divorce


Overview

After

the

end

of

its

financial

year

your

private

limited

company

must

prepare

full

statutory

annual

accounts

a

Company

Tax

Return

You

need

your

accounts

and

tax

return

to

meet

deadlines

for

filing

with

Companies

House

and

HM

Revenue

and

Customs

HMRC

You

can

also

use

them

to

work

out

how

much

Corporation

Tax

to

pay

Action

Deadline

File

first

accounts

with

Companies

House

months

after

the

date

you

registered

with

Companies

House

File

annual

accounts

with

Companies

House

months

after

your

company

’s

financial

year

ends

Pay

Corporation

Tax

or

tell

HMRC

that

your

limited

company

does

not

owe

any

months

and

day

after

your

accounting

period

for

Corporation

Tax

ends

File

a

Company

Tax

Return

months

after

your

accounting

period

for

Corporation

Tax

ends

Your

accounting

period

for

Corporation

Tax

is

the

time

covered

by

your

Company

Tax

Return

It

’s

normally

the

same

months

as

the

company

financial

year

covered

by

your

annual

accounts

Filing

your

accounts

and

tax

return

You

can

file

with

Companies

House

and

HMRC

together

or

separately

You

must

take

additional

steps

at

the

end

of

your

company

’s

first

year

if

you

restart

a

dormant

company

There

are

penalties

for

filing

late

with

Companies

House

and

HMRC

Filing

accounts

and

tax

returns

You

file

your

accounts

with

Companies

House

and

your

Company

Tax

Return

with

HM

Revenue

and

Customs

HMRC

You

may

be

able

to

file

them

together

if

you

have

a

private

limited

company

that

does

not

need

an

auditor

What

you

want

to

do

How

you

can

do

it

File

accounts

and

tax

return

together

Use

HMRC

’s

online

service

or

accounting

software

File

accounts

with

Companies

House

separately

Send

your

accounts

to

Companies

House

online

File

tax

return

with

HMRC

separately

Use

HMRC

’s

online

service

or

accounting

software

You

’ll

need

your

HMRC

online

account

details

company

registration

number

Companies

House

online

account

details

Corrections

and

amendments

Check

what

you

must

do

to

correct

or

amend

your

accounts

tax

return

Using

accountants

or

tax

advisers

to

file

for

you

You

can

give

your

accountant

or

tax

adviser

your

Companies

House

authentication

code

so

they

can

file

your

accounts

appoint

an

agent

to

file

your

Company

Tax

Return

Apply

to

extend

your

accounts

filing

deadline

You

can

apply

to

extend

your

accounts

filing

deadline

with

Companies

House

if

you

can

not

send

your

accounts

because

of

an

event

outside

your

control

for

example

if

a

fire

destroyed

company

records

before

your

filing

deadline

You

must

apply

for

the

extension

before

your

filing

deadline

Apply

for

an

extension

due

to

coronavirus

You

can

apply

for

an

immediate

month

extension

if

your

company

is

affected

by

coronavirus

You

must

apply

before

your

filing

deadline

You

may

not

be

eligible

if

you

’ve

already

extended

your

filing

deadline

or

shortened

your

accounting

period

How

to

apply

You

can

apply

online

or

by

post

Apply

online

To

apply

online

you

’ll

need

your

company

number

information

about

why

you

need

more

time

any

documents

you

have

that

support

your

application

Apply

by

post

You

can

write

to

Companies

House

to

apply

for

an

extension

It

is

taking

longer

than

usual

to

process

applications

because

of

coronavirus

You

should

explain

what

’s

happened

and

how

much

more

time

you

’ll

need

to

file

your

accounts

You

must

apply

to

the

correct

office

where

your

company

is

registered


Overview

Cash

basis

is

a

way

to

work

out

your

income

and

expenses

for

your

Self

Assessment

tax

return

if

you

’re

a

sole

trader

or

partner

Why

use

cash

basis

If

you

run

a

small

business

cash

basis

accounting

may

suit

you

better

than

traditional

accounting

This

is

because

you

only

need

to

declare

money

when

it

comes

in

and

out

of

your

business

At

the

end

of

the

tax

year

you

wo

n’t

have

to

pay

Income

Tax

on

money

you

did

n’t

receive

in

your

accounting

period

When

cash

basis

might

not

suit

your

business

Cash

basis

probably

wo

n’t

suit

you

if

you

want

to

claim

interest

or

bank

charges

of

more

than

as

an

expense

run

a

business

that

’s

more

complex

for

example

you

have

high

levels

of

stock

need

to

get

finance

for

your

business

a

bank

could

ask

to

see

accounts

drawn

up

using

traditional

accounting

to

see

what

you

owe

and

are

due

before

agreeing

a

loan

have

losses

that

you

want

to

offset

against

other

taxable

income

sideways

loss

relief

Talk

to

a

tax

professional

such

as

an

accountant

or

legal

adviser

if

you

need

help

Find

out

if

you

’re

eligible

to

use

cash

basis

Who

can

use

cash

basis

You

can

use

cash

basis

if

you

run

a

small

self

employed

business

for

example

sole

trader

or

partnership

have

a

turnover

of

or

less

a

year

If

you

have

more

than

one

business

you

must

use

cash

basis

for

all

your

businesses

The

combined

turnover

from

your

businesses

must

be

less

than

If

you

use

cash

basis

and

your

business

grows

during

the

tax

year

You

can

stay

in

the

scheme

up

to

a

total

business

turnover

of

per

year

Above

that

you

’ll

need

to

use

traditional

accounting

for

your

next

tax

return

Who

ca

n’t

use

the

scheme

Limited

companies

and

limited

liability

partnerships

ca

n’t

use

cash

basis

There

are

also

some

specific

types

of

businesses

that

ca

n’t

use

the

scheme

Lloyd

’s

underwriters

farming

businesses

with

a

current

herd

basis

election

farming

and

creative

businesses

with

a

section

ITTOIA

profit

averaging

election

businesses

that

have

claimed

business

premises

renovation

allowance

businesses

that

carry

on

a

mineral

extraction

trade

businesses

that

have

claimed

research

and

development

allowance

dealers

in

securities

relief

for

mineral

royalties

lease

premiums

ministers

of

religion

pool

betting

duty

intermediaries

treated

as

making

employment

payments

managed

service

companies

waste

disposal

cemeteries

and

crematoria

If

you

ca

n’t

use

cash

basis

you

’ll

need

to

use

traditional

accounting

to

work

out

your

taxable

profits

Getting

started

At

the

end

of

the

tax

year

work

out

your

taxable

profit

from

your

cash

basis

income

and

expenses

records

Tick

the

cash

basis

box

on

the

form

when

you

send

your

return

You

can

use

cash

basis

for

the

to

tax

year

onwards

If

you

’re

sending

a

late

tax

return

for

tax

years

before

this

you

’ll

need

to

use

traditional

accounting

when

working

out

your

accounts

Changing

from

traditional

accounting

to

cash

basis

Existing

businesses

using

traditional

accounting

might

have

to

make

some

adjustments

when

they

switch

to

cash

basis

Talk

to

a

tax

professional

such

as

an

accountant

or

legal

adviser

if

you

need

help

How

to

record

income

and

expenses

You

must

keep

records

of

all

business

income

and

expenses

to

work

out

your

profit

for

your

tax

return

Income

With

cash

basis

only

record

income

you

actually

received

in

a

tax

year

Do

n’t

count

any

money

you

’re

owed

but

have

n’t

yet

received

You

can

choose

how

you

record

when

money

is

received

or

paid

for

example

the

date

the

money

enters

your

account

or

the

date

a

cheque

is

written

but

you

must

use

the

same

method

each

tax

year

All

payments

count

cash

card

cheque

payment

in

kind

or

any

other

method

Expenses

Expenses

are

business

costs

you

can

deduct

from

your

income

to

calculate

your

taxable

profit

In

practice

this

means

your

allowable

expenses

reduce

your

Income

Tax

Only

count

the

expenses

you

’ve

actually

paid

Money

you

owe

is

n’t

counted

until

you

pay

it

Examples

of

allowable

business

expenses

if

you

’re

using

cash

basis

are

day

to

day

running

costs

such

as

electricity

fuel

admin

costs

for

example

stationery

things

you

use

in

your

business

such

as

machinery

computers

vans

interest

and

charges

up

to

for

example

interest

on

bank

overdrafts

buying

goods

for

resale

You

can

check

what

else

counts

as

an

allowable

expense

For

the

to

tax

year

onwards

you

can

also

choose

to

use

the

simplified

expenses

scheme

instead

of

calculating

expenses

for

running

a

vehicle

working

from

home

making

adjustments

for

living

on

your

business

premises

Cars

and

other

equipment

If

you

buy

a

car

for

your

business

you

can

claim

the

purchase

as

a

capital

allowance

but

only

if

you

’re

not

using

simplified

expenses

to

work

out

your

business

expenses

for

that

vehicle

Unlike

traditional

accounting

you

claim

other

equipment

you

buy

to

keep

and

use

in

your

business

as

a

normal

allowable

business

expense

rather

than

as

a

capital

allowance

If

you

’re

currently

claiming

capital

allowances

and

want

to

switch

to

cash

basis

HM

Revenue

and

Customs

HMRC

have

guidance

on

the

changes

you

need

to

make

Keep

your

records

You

do

n’t

need

to

send

your

records

to

HM

Revenue

and

Customs

HMRC

when

you

send

in

your

tax

return

but

you

need

to

keep

them

in

case

they

ask

to

check

them

VAT

registered

businesses

You

can

start

to

use

cash

basis

if

you

’re

VAT

registered

as

long

as

your

income

is

or

less

during

the

tax

year

You

can

record

your

business

income

and

expenses

either

excluding

or

including

VAT

However

you

must

treat

income

and

expenses

the

same

way

If

you

choose

to

include

VAT

you

have

to

record

VAT

payments

you

make

to

HM

Revenue

and

Customs

HMRC

as

expenses

VAT

repayments

you

receive

from

HMRC

as

income


Overview

Your

limited

company

usually

pays

Corporation

Tax

on

the

profit

chargeable

gain

from

selling

or

disposing

of

an

asset

Company

assets

Assets

are

things

your

company

owns

such

as

land

and

property

equipment

and

machinery

shares

Who

pays

Corporation

Tax

Corporation

Tax

on

chargeable

gains

is

paid

by

limited

companies

most

unincorporated

associations

for

example

clubs

and

co

operatives

foreign

companies

with

a

UK

branch

or

office

You

pay

Capital

Gains

Tax

instead

if

you

’re

a

self

employed

sole

trader

or

business

partner

Work

out

and

report

your

gain

You

’ll

need

to

work

out

your

gain

to

find

out

whether

you

need

to

pay

tax

Report

your

gains

to

HM

Revenue

and

Customs

HMRC

when

you

file

your

Company

Tax

Return

How

much

tax

you

pay

depends

on

any

allowances

and

reliefs

you

claim

There

are

different

rules

for

intangible

assets

for

example

intellectual

property

and

business

reputation

goodwill

Work

out

a

chargeable

gain

The

gain

is

usually

the

difference

between

what

you

paid

for

the

asset

and

what

you

sold

it

for

You

’ll

need

to

use

the

asset

’s

market

value

if

your

business

gave

it

away

or

sold

it

for

less

than

it

was

worth

to

help

the

buyer

You

can

deduct

any

costs

for

example

solicitors

fees

or

Stamp

Duty

If

you

had

the

asset

before

December

Before

you

work

out

your

gain

you

need

to

work

out

how

much

you

would

have

paid

for

the

asset

in

today

’s

money

using

the

HM

Revenue

and

Customs

HMRC

Indexation

Allowance

This

will

make

your

gain

smaller

and

mean

you

pay

less

tax

How

to

work

out

the

gain

Work

out

the

asset

’s

value

when

it

was

sold

this

is

usually

the

amount

your

company

received

Deduct

the

amount

your

company

paid

for

the

asset

If

it

was

not

acquired

in

a

normal

commercial

transaction

you

need

to

use

the

market

value

at

the

time

Deduct

any

money

your

company

spent

buying

selling

or

improving

the

asset

for

example

solicitors

fees

and

Stamp

Duty

You

can

not

deduct

maintenance

costs

If

you

had

the

asset

before

December

use

HMRC

’s

Indexation

Allowance

December

guide

for

the

month

when

your

company

sold

the

asset

Then

find

the

figure

inflation

factor

for

the

year

and

month

when

your

company

bought

the

asset

Multiply

this

by

the

amount

you

paid

for

the

asset

Deduct

the

total

from

your

profit

If

you

made

improvements

to

the

asset

work

out

the

effects

of

inflation

in

the

same

way

Deduct

the

total

from

your

profit

You

now

have

your

chargeable

gain

You

can

ask

HMRC

to

check

your

valuation

by

filling

in

a

post

transaction

valuation

check

form

Return

it

to

the

address

on

the

form

and

allow

at

least

months

for

HMRC

’s

response

If

you

make

a

loss

when

you

sell

an

asset

You

can

reduce

your

total

chargeable

gains

by

deducting

any

capital

losses

You

can

only

deduct

capital

losses

from

your

chargeable

gains

not

from

trading

income

or

other

profits

The

loss

you

can

claim

is

reduced

by

any

amount

you

’ve

claimed

as

capital

allowances

Intangible

assets

Intangible

assets

include

intellectual

property

and

business

reputation

goodwill

How

you

’re

taxed

on

gains

from

intangible

assets

depends

on

when

your

limited

company

first

owned

them

After

March

Include

gains

on

intangible

assets

in

your

company

’s

business

income

trading

profits

if

your

company

acquired

or

created

them

after

March

You

pay

Corporation

Tax

on

trading

profits

Before

April

Use

the

detailed

guidance

to

work

out

gains

on

intangible

assets

or

get

help

from

a

professional

like

an

accountant

If

your

company

’s

intangible

assets

came

from

a

change

in

business

structure

for

example

from

a

business

partnership

or

self

employed

sole

trader

use

the

date

the

assets

were

acquired

or

created

before

the

structure

change


Overview

You

must

file

your

Machine

Games

Duty

MGD

return

and

make

your

payment

within

days

of

the

end

of

your

accounting

period

An

accounting

period

is

months

unless

you

’ve

arranged

with

HM

Revenue

and

Customs

HMRC

to

use

a

different

accounting

period

This

guide

is

also

available

in

Welsh

Cymraeg

If

the

deadline

falls

on

a

weekend

or

bank

holiday

make

sure

you

file

your

return

and

your

payment

reaches

HMRC

on

the

last

working

day

before

it

unless

you

’re

paying

by

Faster

Payments

debit

card

or

credit

card

Pay

now

Ways

to

pay

Make

sure

you

pay

HMRC

by

the

deadline

You

may

have

to

pay

a

penalty

and

interest

if

you

pay

late

The

time

you

need

to

allow

depends

on

how

you

pay

You

can

no

longer

pay

at

the

Post

Office

Same

day

or

next

day

online

or

telephone

banking

Faster

Payments

By

debit

or

corporate

credit

card

online

CHAPS

At

your

bank

or

building

society

working

days

Bacs

By

cheque

through

the

post

Direct

Debit

if

you

’re

making

a

single

payment

and

you

’ve

set

up

one

for

HMRC

before

working

days

Direct

Debit

if

you

’re

making

a

single

payment

and

you

have

not

set

up

one

for

HMRC

before

working

days

before

you

file

your

first

return

Direct

Debit

if

you

’re

setting

up

an

automatic

payment

known

as

a

variable

payment

plan

Penalties

for

late

returns

You

’ll

get

a

penalty

if

you

miss

the

deadline

for

filing

returns

When

the

penalty

is

applied

Penalty

day

after

deadline

Between

and

depending

on

how

many

late

returns

you

’ve

previously

filed

months

after

deadline

or

of

the

MGD

due

whichever

is

higher

months

after

deadline

or

of

the

MGD

due

whichever

is

higher

If

you

disagree

with

a

penalty

If

you

’ve

been

given

a

penalty

and

you

think

it

’s

wrong

you

can

appeal

to

HMRC

Bank

details

for

online

or

telephone

banking

CHAPS

Bacs

Make

your

payment

to

HM

Revenue

and

Customs

account

Account

name

Sort

code

Account

number

HMRC

Shipley

Use

your

reference

number

Your

payment

reference

is

your

character

Machine

Games

Duty

MGD

registration

number

You

’ll

find

it

on

your

HM

Revenue

and

Customs

HMRC

online

account

the

MGD

Registration

Certificate

HMRC

sent

you

How

long

it

takes

Payments

made

by

Faster

Payments

online

or

telephone

banking

will

usually

reach

HMRC

on

the

same

or

next

day

including

weekends

and

bank

holidays

CHAPS

payments

usually

reach

HMRC

the

same

working

day

if

you

pay

within

your

bank

’s

processing

times

Bacs

payments

usually

take

working

days

Check

your

bank

’s

transaction

limits

and

processing

times

before

making

a

payment

Overseas

payments

Use

these

details

to

pay

from

an

overseas

account

Account

number

IBAN

Bank

identifier

code

BIC

Account

name

HMRC

Shipley

HMRC

’s

banking

address

is

Direct

Debit

You

can

only

pay

by

Direct

Debit

if

you

’ve

registered

for

Machine

Games

Duty

MGD

online

Use

your

HM

Revenue

and

Customs

HMRC

online

account

to

set

up

a

Direct

Debit

You

can

set

up

a

single

payment

each

time

you

file

your

return

automatic

payment

of

the

duty

shown

on

your

return

known

as

a

variable

payment

plan

Single

payment

You

can

make

a

single

one

off

payment

by

Direct

Debit

online

It

takes

working

days

to

process

a

Direct

Debit

payment

the

first

time

you

set

one

up

It

should

take

working

days

next

time

if

you

’re

using

the

same

bank

details

Variable

payment

plan

You

can

set

up

regular

automatic

Direct

Debit

payments

online

only

Choose

a

variable

payment

plan

when

setting

up

your

Direct

Debit

It

takes

at

least

working

days

to

process

a

payment

when

you

first

set

it

up

Make

sure

your

payment

will

reach

HMRC

before

the

deadline

Your

payment

will

then

be

taken

automatically

every

time

it

’s

due

You

’ll

need

to

cancel

your

Direct

Debit

if

you

want

to

change

to

a

different

payment

method

By

debit

or

corporate

credit

card

online

You

can

pay

online

There

’s

a

fee

if

you

pay

by

corporate

credit

card

or

corporate

debit

card

The

fee

is

not

refundable

There

’s

no

fee

if

you

pay

by

personal

debit

card

You

can

not

pay

by

personal

credit

card

Use

your

character

Machine

Games

Duty

MGD

registration

number

as

your

charge

reference

You

’ll

find

it

on

your

HM

Revenue

and

Customs

HMRC

online

account

the

MGD

Registration

Certificate

HMRC

sent

you

HMRC

will

accept

your

payment

on

the

date

you

make

it

even

on

bank

holidays

and

weekends

not

the

date

it

reaches

HMRC

’s

account

If

you

’re

unable

to

pay

your

Machine

Games

Duty

bill

in

full

by

card

you

should

use

another

payment

method

like

a

bank

transfer

At

your

bank

or

building

society

You

can

only

pay

Machine

Games

Duty

MGD

at

your

bank

or

building

society

if

you

file

a

paper

MGD

return

Use

the

payslip

HM

Revenue

and

Customs

HMRC

sent

you

Make

your

cheque

payable

to

HM

Revenue

and

Customs

only

Write

your

MGD

reference

number

on

the

back

of

your

cheque

You

’ll

find

the

reference

number

on

the

payslip

HMRC

will

accept

your

payment

on

the

date

you

make

it

if

you

pay

it

from

Monday

to

Friday

and

not

the

date

it

reaches

HMRC

’s

account

Pay

online

if

you

want

to

pay

by

debit

or

credit

card

By

cheque

through

the

post

You

can

send

a

cheque

by

post

to

HM

Revenue

and

Customs

HMRC

You

do

not

need

to

include

a

street

name

city

name

or

PO

box

with

this

address

Allow

working

days

for

your

payment

to

reach

HMRC

What

to

include

Make

your

cheque

payable

to

HM

Revenue

and

Customs

only

Write

your

Machine

Games

Duty

MGD

reference

number

on

the

back

of

the

cheque

You

’ll

find

your

MGD

reference

number

on

either

the

payslip

HMRC

sent

you

if

you

file

a

paper

return

your

HMRC

online

account

if

you

file

your

return

online

Your

payment

may

be

delayed

if

you

do

not

fill

in

your

cheque

properly

If

you

file

a

paper

return

send

your

payslip

with

your

cheque

If

you

file

online

send

a

letter

including

your

name

address

and

telephone

number

your

MGD

registration

number

the

amount

you

’re

paying

Do

not

fold

or

staple

your

cheque

Check

your

payment

has

been

received

View

your

HMRC

online

account

to

see

if

your

payment

has

been

received

it

should

update

within

working

days

Tell

HMRC

no

duty

is

due

You

must

still

file

your

return

even

if

you

calculate

that

you

do

not

owe

any

Machine

Games

Duty

MGD

You

may

have

to

pay

a

penalty

if

you

do

not

If

you

owe

a

negative

amount

you

’ve

paid

out

more

in

winnings

than

you

’ve

taken

in

playing

charges

it

’ll

be

carried

over

to

your

next

return

and

subtracted

from

the

amount

of

MGD

due


What

you

can

and

can

not

reclaim

You

can

usually

reclaim

the

VAT

paid

on

goods

and

services

purchased

for

use

in

your

business

If

a

purchase

is

also

for

personal

or

private

use

you

can

only

reclaim

the

business

proportion

of

the

VAT

You

must

keep

records

to

support

your

claim

and

show

how

you

arrived

at

the

business

proportion

for

a

purchase

You

must

also

have

valid

VAT

invoices

From

April

most

businesses

will

need

to

keep

digital

VAT

records

and

use

software

to

submit

VAT

Returns

What

you

can

not

reclaim

You

can

not

reclaim

VAT

for

anything

that

’s

only

for

private

use

goods

and

services

your

business

uses

to

make

VAT

exempt

supplies

business

entertainment

costs

goods

sold

to

you

under

one

of

the

VAT

second

hand

margin

schemes

business

assets

that

are

transferred

to

you

as

a

going

concern

Purchases

before

registration

You

may

be

able

to

reclaim

VAT

paid

on

goods

or

services

bought

before

you

registered

for

VAT

if

the

purchases

were

made

within

certain

time

limits

Partly

exempt

businesses

You

need

to

make

separate

calculations

for

purchases

that

relate

to

both

VAT

exempt

and

taxable

supplies

such

as

phone

bills

or

accountancy

fees

Business

assets

of

and

more

There

are

special

rules

for

reclaiming

VAT

for

individual

computers

and

single

pieces

of

computer

equipment

costing

or

more

before

VAT

aircraft

ships

and

boats

costing

or

more

before

VAT

land

and

buildings

costing

or

more

before

VAT

You

may

need

to

adjust

the

amount

of

VAT

you

reclaim

over

several

years

using

the

Capital

Goods

Scheme

How

your

VAT

refund

is

repaid

Claim

your

refund

by

submitting

a

VAT

Return

You

need

to

give

your

account

details

to

HM

Revenue

and

Customs

HMRC

even

if

you

’ve

already

set

up

a

Direct

Debit

for

VAT

Returns

Add

or

change

them

by

going

to

the

registration

details

in

your

VAT

online

account

You

can

also

use

your

online

account

to

view

any

refund

you

’re

owed

unless

you

’ve

signed

up

for

Making

Tax

Digital

for

VAT

You

will

usually

get

your

refund

within

days

of

HMRC

receiving

your

return

but

it

may

take

longer

Only

contact

HMRC

if

you

have

not

heard

anything

after

days

Vehicles

and

fuel

costs

Buying

a

new

car

You

may

be

able

to

reclaim

all

the

VAT

on

a

new

car

if

you

use

it

only

for

business

The

car

must

not

be

available

for

private

use

and

you

must

be

able

to

show

that

it

is

not

for

example

it

’s

specified

in

your

employee

’s

contract

Private

use

includes

travelling

between

home

and

work

unless

it

’s

a

temporary

place

of

work

You

may

also

be

able

to

claim

all

the

VAT

on

a

new

car

if

it

’s

mainly

used

as

a

taxi

for

driving

instruction

for

self

drive

hire

Leasing

a

car

If

you

lease

a

car

you

can

usually

claim

of

the

VAT

You

may

be

able

to

reclaim

all

the

VAT

if

the

car

is

used

only

for

business

and

is

not

available

for

private

use

or

is

mainly

used

as

a

taxi

for

driving

instruction

Self

drive

hire

cars

If

you

hire

a

car

to

replace

a

company

car

that

’s

off

the

road

you

can

usually

claim

of

the

VAT

on

the

hire

charge

If

you

hire

a

car

for

another

reason

for

example

you

do

not

have

a

company

car

you

can

reclaim

all

the

VAT

if

all

the

following

apply

you

hire

it

for

no

more

than

days

it

’s

used

only

for

business

it

’s

not

available

for

private

use

Commercial

vehicles

You

can

usually

reclaim

the

VAT

for

buying

a

commercial

vehicle

like

a

van

lorry

or

tractor

if

you

only

use

it

for

business

If

they

’re

used

only

for

business

you

can

also

reclaim

VAT

on

motorcycles

motorhomes

and

motor

caravans

vans

with

rear

seats

combi

vans

car

derived

vans

Fuel

costs

There

are

different

ways

of

reclaiming

VAT

on

fuel

if

you

do

not

pay

a

fixed

rate

under

the

Flat

Rate

Scheme

You

can

reclaim

all

the

VAT

on

fuel

if

your

vehicle

is

used

only

for

business

There

are

ways

of

handling

VAT

if

you

use

the

vehicle

for

both

business

and

private

purposes

You

can

reclaim

all

the

VAT

and

pay

the

right

fuel

scale

charge

for

your

vehicle

only

reclaim

the

VAT

on

fuel

you

use

for

business

trips

you

’ll

have

to

keep

detailed

mileage

records

choose

not

to

reclaim

any

VAT

eg

if

your

business

mileage

is

so

low

that

the

fuel

scale

charge

would

be

higher

than

the

VAT

you

can

reclaim

If

you

choose

not

to

reclaim

VAT

on

fuel

for

one

vehicle

you

can

not

reclaim

VAT

on

any

fuel

for

vehicles

used

by

your

business

Additional

costs

You

can

usually

reclaim

the

VAT

for

all

business

related

running

and

maintenance

costs

such

as

repairs

or

off

street

parking

any

accessories

you

’ve

fitted

for

business

use

You

can

do

this

even

if

you

can

not

reclaim

VAT

on

the

vehicle

itself

Used

vehicles

The

sales

invoice

for

your

used

vehicle

must

show

the

VAT

You

can

not

reclaim

if

it

does

not

for

example

if

the

seller

uses

the

VAT

margin

scheme

Staff

travel

You

can

reclaim

VAT

on

employee

travel

expenses

for

business

trips

including

meals

and

accommodation

that

you

pay

for

You

can

not

reclaim

VAT

if

you

pay

your

employees

a

flat

rate

for

expenses

There

are

special

rules

for

motoring

expenses

You

can

not

reclaim

VAT

on

entertainment

costs

Who

counts

as

an

employee

The

following

people

count

as

employees

for

VAT

reclaims

someone

directly

employed

by

you

not

through

an

agency

directors

partners

any

other

managers

self

employed

people

who

are

treated

as

employees

you

can

not

reclaim

on

travel

expenses

for

this

group

helpers

or

stewards

who

help

run

events

The

following

people

do

not

count

as

employees

for

VAT

reclaims

shareholders

who

are

not

employed

by

the

business

pensioners

and

former

employees

someone

applying

for

a

job

for

example

interviewees


Overview

You

usually

submit

a

VAT

Return

to

HM

Revenue

and

Customs

HMRC

every

months

This

period

of

time

is

known

as

your

accounting

period

This

guide

is

also

available

in

Welsh

Cymraeg

The

VAT

Return

records

things

for

the

accounting

period

like

your

total

sales

and

purchases

the

amount

of

VAT

you

owe

the

amount

of

VAT

you

can

reclaim

what

your

VAT

refund

from

HMRC

is

You

must

submit

a

VAT

Return

even

if

you

have

no

VAT

to

pay

or

reclaim

Final

VAT

Returns

You

have

to

submit

a

final

VAT

Return

when

you

cancel

your

VAT

registration

HMRC

will

send

you

a

paper

version

to

complete

if

your

registration

is

cancelled

because

you

’re

insolvent

Fill

in

your

return

Complete

and

send

your

VAT

Return

online

You

can

not

use

your

online

account

to

send

your

VAT

Return

if

you

’ve

signed

up

for

Making

Tax

Digital

for

VAT

Use

compatible

accounting

software

instead

If

you

need

help

there

’s

guidance

on

what

to

put

in

each

box

filling

in

your

return

if

you

’re

on

the

Flat

Rate

Scheme

If

you

are

registered

for

VAT

in

Northern

Ireland

you

must

include

EU

sales

on

your

VAT

Return

and

complete

an

EC

Sales

List

Working

out

what

you

can

claim

If

your

business

is

a

charity

you

pay

VAT

at

a

reduced

rate

on

some

goods

and

services

VAT

registered

businesses

can

usually

reclaim

the

VAT

they

’ve

paid

on

business

purchases

and

expenses

The

claim

must

be

for

a

business

activity

you

have

to

work

out

the

business

element

if

it

also

had

a

personal

use

You

must

keep

records

to

support

your

claim

and

show

the

VAT

was

paid

Exceptions

You

can

not

reclaim

the

VAT

on

entertainment

expenses

purchases

if

you

use

the

VAT

Flat

Rate

Scheme

except

some

capital

assets

worth

more

than

There

are

special

rules

for

working

out

how

to

reclaim

VAT

for

cars

for

example

buying

repairing

fuel

costs

staff

travel

expenses

for

example

accommodation

and

transport

expenses

businesses

that

are

partly

exempt

from

VAT

Estimated

figures

Ask

HM

Revenue

and

Customs

HMRC

for

permission

to

use

estimated

figures

You

’ll

need

a

good

reason

why

you

can

not

give

accurate

figures

on

your

VAT

Return

If

you

’re

allowed

you

will

not

be

charged

a

penalty

unless

you

miss

the

deadline

or

make

a

careless

or

deliberate

error

You

’ll

normally

have

to

give

the

correct

figures

in

your

next

VAT

Return

Bad

debts

You

can

reclaim

the

VAT

you

’ve

paid

HMRC

but

not

received

from

a

customer

if

it

’s

a

bad

debt

one

you

’ve

written

off

To

qualify

for

the

relief

the

debt

must

be

between

months

old

and

years

and

months

old

you

must

not

have

sold

the

debt

on

you

must

not

have

charged

more

than

the

normal

price

for

the

item

You

should

reclaim

them

via

your

VAT

Return

add

them

to

your

Box

figure

and

keep

records

about

the

debt

If

the

debt

is

paid

you

must

pay

the

relief

back

via

your

VAT

Return

by

adding

the

amount

to

your

Box

figure

How

to

submit

your

return

You

must

submit

your

return

online

unless

your

business

is

subject

to

an

insolvency

procedure

if

you

have

a

Company

Voluntary

Arrangement

or

an

Individual

Voluntary

Arrangement

you

can

submit

your

return

online

if

you

want

to

you

object

to

using

computers

on

religious

grounds

you

can

not

because

of

your

age

a

disability

or

because

of

where

you

live

for

example

you

do

not

have

internet

access

Contact

HM

Revenue

and

Customs

HMRC

to

find

out

how

to

submit

your

return

for

example

paper

filing

if

you

can

not

submit

online

Submit

your

VAT

Return

online

You

need

a

VAT

number

and

a

VAT

online

account

You

can

then

submit

your

VAT

Return

using

HMRC

’s

free

online

service

or

commercial

accounting

software

You

can

not

use

your

online

account

to

send

your

VAT

Return

if

you

’ve

signed

up

for

Making

Tax

Digital

for

VAT

Use

compatible

accounting

software

instead

Getting

online

If

you

need

a

VAT

number

and

online

account

register

for

VAT

an

online

account

sign

up

for

an

online

account

and

select

VAT

submit

returns

a

VAT

number

log

in

to

your

online

account

and

apply

for

a

VAT

number

HMRC

’s

free

online

service

Sign

in

to

your

VAT

online

account

and

complete

your

VAT

Return

Using

accounting

software

Most

accounting

software

lets

you

submit

your

VAT

Return

to

HMRC

directly

This

means

you

will

not

have

to

enter

your

figures

separately

in

HMRC

’s

online

service

HMRC

has

a

list

of

software

you

can

use

to

submit

your

VAT

Return

Keep

any

reference

number

you

receive

as

proof

you

’ve

sent

your

return

Using

accountants

or

agents

You

’ll

need

to

authorise

them

before

they

can

submit

your

VAT

Return

You

can

do

this

through

your

VAT

online

account

Find

an

accountant

or

a

solicitor

to

help

you

with

your

VAT

return

or

tax

Get

help

You

can

get

help

with

your

VAT

return

or

if

you

do

not

understand

something

about

your

tax

Help

with

online

services

Contact

the

VAT

Online

Services

Helpdesk

if

you

need

any

help

using

VAT

online

services

Deadlines

Check

your

VAT

Return

and

payment

deadlines

in

your

VAT

online

account

Your

VAT

online

account

tells

you

when

your

VAT

Returns

are

due

when

the

payment

must

clear

HM

Revenue

and

Customs

HMRC

account

The

deadline

for

submitting

the

return

online

and

paying

HMRC

are

usually

the

same

calendar

month

and

days

after

the

end

of

an

accounting

period

You

need

to

allow

time

for

the

payment

to

reach

HMRC

’s

account

Exceptions

The

deadlines

are

different

if

for

example

you

use

the

VAT

Annual

Accounting

Scheme

Pay

your

VAT

bill

You

must

pay

VAT

to

HMRC

electronically

for

example

through

direct

debit

or

internet

banking

Most

businesses

are

not

allowed

to

pay

by

cheque

Contact

HMRC

if

you

can

not

pay

your

VAT

bill

Surcharges

and

penalties

HM

Revenue

and

Customs

HMRC

record

a

default

if

they

do

not

receive

your

VAT

return

by

the

deadline

full

payment

for

the

VAT

due

on

your

return

has

not

reached

their

account

by

the

deadline

Surcharges

You

may

enter

a

month

surcharge

period

if

you

default

If

you

default

again

during

this

time

the

surcharge

period

is

extended

for

a

further

months

you

may

have

to

pay

an

extra

amount

a

surcharge

on

top

of

the

VAT

you

owe

If

you

submit

a

late

return

you

will

not

have

to

pay

a

surcharge

if

you

pay

your

VAT

in

full

by

the

deadline

have

no

tax

to

pay

are

due

a

VAT

repayment

HMRC

will

write

to

you

explaining

any

surcharges

you

owe

and

what

happens

if

you

default

again

How

much

you

pay

Your

surcharge

is

a

percentage

of

the

VAT

outstanding

on

the

due

date

for

the

accounting

period

that

is

in

default

The

surcharge

rate

increases

every

time

you

default

again

in

a

surcharge

period

This

table

shows

how

much

you

’ll

be

charged

if

you

default

within

a

surcharge

period

You

do

not

pay

a

surcharge

for

your

first

default

Defaults

within

months

Surcharge

if

annual

turnover

is

less

than

Surcharge

if

annual

turnover

is

or

more

No

surcharge

no

surcharge

if

this

is

less

than

no

surcharge

if

this

is

less

than

no

surcharge

if

this

is

less

than

no

surcharge

if

this

is

less

than

or

whichever

is

more

or

whichever

is

more

or

whichever

is

more

or

more

or

whichever

is

more

or

whichever

is

more

Penalties

HMRC

can

charge

you

a

penalty

of

up

to

of

any

tax

under

stated

or

over

claimed

if

you

send

a

return

that

contains

a

careless

or

deliberate

inaccuracy

of

an

assessment

if

HMRC

sends

you

one

that

’s

too

low

and

you

do

not

tell

them

it

’s

wrong

within

days

if

you

submit

a

paper

VAT

return

unless

HMRC

has

told

you

you

’re

exempt

from

submitting

your

return

using

your

VAT

online

account

or

Making

Tax

Digital

compatible

software

Assessments

If

you

do

not

send

your

VAT

Return

and

pay

any

VAT

due

on

time

you

will

get

a

VAT

notice

of

assessment

of

tax

from

HM

Revenue

and

Customs

HMRC

telling

you

how

much

VAT

they

think

you

owe

What

you

need

to

do

Send

your

VAT

Return

and

any

payment

due

immediately

If

the

assessed

amount

of

VAT

is

too

low

you

must

tell

HMRC

within

days

Do

this

by

sending

a

correct

VAT

Return

and

VAT

payment

or

contacting

them

You

may

be

charged

a

penalty

if

you

do

not

If

the

assessment

is

too

high

you

can

not

appeal

it

You

must

send

a

correct

VAT

Return

and

VAT

payment

Contact

HMRC

if

you

can

not

pay

your

tax

bill

and

contact

the

VAT

helpline

if

you

can

not

send

the

return

Interest

on

underpaid

or

overpaid

VAT

HM

Revenue

and

Customs

HMRC

may

charge

you

interest

if

you

do

not

report

and

pay

the

right

amount

of

VAT

If

you

pay

too

much

VAT

because

HMRC

make

a

mistake

you

can

claim

interest

When

interest

is

charged

Interest

may

be

charged

if

you

report

less

VAT

than

you

charge

or

reclaim

more

than

you

pay

pay

an

assessment

that

HMRC

later

find

was

too

low

let

HMRC

know

you

owe

them

VAT

because

of

a

mistake

on

your

VAT

Return

How

much

interest

is

charged

You

’ll

be

charged

interest

There

’s

a

different

interest

rate

for

tax

that

was

underpaid

before

November

Use

your

VAT

online

account

to

check

the

amount

you

owe

HMRC

will

also

send

you

a

notice

telling

you

how

much

you

owe

and

how

it

’s

worked

out

If

you

do

not

pay

within

days

further

interest

is

charged

on

the

VAT

due

from

the

date

of

the

notice

You

’ll

be

charged

interest

for

as

long

as

you

do

not

pay

up

to

a

maximum

of

years

You

can

not

deduct

the

interest

HMRC

charges

you

when

working

out

your

taxable

profits

Claiming

interest

You

may

be

able

to

claim

interest

if

HMRC

’s

mistake

means

you

pay

too

much

VAT

you

reclaim

too

little

VAT

a

payment

to

you

from

HMRC

was

delayed

Normally

HMRC

will

not

repay

interest

if

you

’ve

paid

too

much

VAT

because

of

a

mistake

you

made

How

much

interest

can

you

claim

You

can

claim

interest

This

is

normally

paid

for

the

whole

period

from

when

the

VAT

was

overpaid

or

reclaimed

until

the

date

repayment

is

authorised

There

’s

a

different

interest

rate

for

tax

that

was

overpaid

before

September

If

you

caused

a

delay

to

any

payments

for

example

by

not

claiming

straight

away

HMRC

might

leave

this

time

out

You

have

to

claim

the

interest

separately

from

the

repayment

itself

Write

to

HMRC

with

details

of

the

repayment

explaining

why

you

’re

owed

interest

You

must

do

this

within

years

of

the

repayment

’s

authorisation

date

Use

the

postal

address

on

the

VAT

correspondence

you

have

from

HMRC

Any

interest

you

get

from

HMRC

counts

as

taxable

income

Paying

interest

to

your

customers

You

must

pay

any

of

the

interest

you

get

as

well

as

the

VAT

to

your

customers

if

HMRC

’s

mistake

means

they

paid

too

much

VAT

Contact

the

person

at

HMRC

who

dealt

with

your

claim

if

you

need

to

find

out

how

the

interest

was

calculated

This

can

help

you

work

out

how

much

you

need

to

repay

each

customer

You

must

give

the

money

back

to

HMRC

within

days

if

you

can

not

get

in

touch

with

a

customer

to

repay

them

Interest

rates

HMRC

only

charge

or

pay

simple

interest

interest

on

the

original

amount

not

interest

on

interest

Challenging

an

HMRC

decision

You

can

not

appeal

the

decision

to

charge

you

interest

but

you

can

challenge

the

actual

amount


Writing

down

allowances

When

you

buy

business

assets

you

can

usually

deduct

the

full

value

from

your

profits

before

tax

using

annual

investment

allowance

AIA

Use

writing

down

allowances

instead

if

you

’ve

already

claimed

AIA

on

items

worth

a

total

of

more

than

the

AIA

amount

the

item

does

n’t

qualify

for

AIA

for

example

cars

gifts

or

things

you

owned

before

you

used

them

in

your

business

Writing

down

allowances

is

when

you

deduct

a

percentage

of

the

value

of

an

item

from

your

profits

each

year

The

percentage

you

deduct

depends

on

the

item

For

business

cars

the

rate

depends

on

their

emissions

Work

out

the

value

of

your

item

In

most

cases

the

value

is

what

you

paid

for

the

item

Use

the

market

value

the

amount

you

’d

expect

to

sell

it

for

instead

if

you

owned

it

before

you

started

using

it

in

your

business

it

was

a

gift

How

to

claim

Group

the

things

you

’ve

bought

into

pools

based

on

the

percentage

rate

they

qualify

for

When

you

know

the

rate

for

your

items

work

out

how

much

you

can

claim

and

deduct

it

from

your

profits

before

tax

on

your

tax

return

The

amount

left

in

each

pool

becomes

the

starting

balance

for

the

next

accounting

period

Rates

and

pools

If

you

’re

claiming

writing

down

allowances

group

items

into

pools

depending

on

which

rate

they

qualify

for

The

types

of

pool

are

the

main

pool

with

a

rate

of

special

rate

pool

with

a

rate

of

single

asset

pools

with

a

rate

of

or

depending

on

the

item

Main

rate

pool

Add

the

value

of

all

plant

and

machinery

you

’ve

bought

to

the

main

rate

pool

unless

they

’re

in

the

special

rate

pool

a

single

asset

pool

for

example

because

you

have

chosen

to

treat

them

as

short

life

assets

or

you

’ve

used

them

outside

your

business

Special

rate

pool

You

have

to

claim

a

lower

rate

of

on

parts

of

a

building

considered

integral

known

as

integral

features

items

with

a

long

life

thermal

insulation

of

buildings

cars

with

emissions

over

a

certain

threshold

check

the

threshold

for

your

car

which

depends

on

the

car

and

when

you

bought

it

You

can

claim

AIA

on

these

items

apart

from

cars

Only

claim

writing

down

allowances

at

if

you

’ve

already

claimed

AIA

on

items

worth

a

total

of

more

than

the

AIA

amount

Integral

features

Integral

features

are

lifts

escalators

and

moving

walkways

space

and

water

heating

systems

air

conditioning

and

air

cooling

systems

hot

and

cold

water

systems

but

not

toilet

and

kitchen

facilities

electrical

systems

including

lighting

systems

external

solar

shading

Buildings

themselves

do

n’t

qualify

for

capital

allowances

Items

with

a

long

life

These

are

items

with

a

useful

life

of

at

least

years

from

when

they

were

new

Put

them

in

the

special

rate

pool

if

the

value

of

all

the

long

life

items

you

buy

in

a

single

accounting

period

the

tax

year

if

you

’re

a

sole

trader

or

partner

adds

up

to

Put

them

in

the

main

rate

pool

if

their

total

value

is

less

than

This

limit

is

adjusted

if

your

accounting

period

is

more

or

less

than

months

Single

asset

pools

You

might

need

to

create

one

or

more

separate

pools

for

single

assets

that

have

a

short

life

for

assets

you

are

n’t

going

to

keep

for

a

long

time

you

use

outside

your

business

if

you

’re

a

sole

trader

or

a

partner

Short

life

assets

It

’s

up

to

you

to

decide

whether

you

want

to

treat

something

as

a

short

life

asset

You

ca

n’t

include

cars

items

you

also

use

outside

your

business

special

rate

items

Large

numbers

of

very

similar

items

can

be

pooled

together

for

example

crockery

in

a

restaurant

The

pool

ends

when

you

sell

the

asset

This

means

you

can

claim

the

capital

allowances

over

a

shorter

period

Move

the

balance

into

your

main

pool

in

your

next

accounting

period

or

tax

year

if

you

’re

still

using

the

item

after

years

Let

HMRC

know

Let

HM

Revenue

and

Customs

HMRC

know

on

your

tax

return

if

you

’re

a

limited

company

and

you

decide

to

create

a

short

life

asset

pool

You

must

do

this

within

years

of

the

end

of

the

tax

year

when

you

bought

the

item

Let

HMRC

know

in

writing

if

you

’re

a

sole

trader

or

partner

include

how

much

the

item

cost

and

when

you

acquired

it

The

deadline

is

the

online

filing

deadline

January

for

the

tax

year

after

the

one

you

bought

the

item

in

Things

you

also

use

outside

your

business

If

you

use

an

item

outside

your

business

and

you

’re

a

sole

trader

or

partner

put

it

in

a

separate

pool

Work

out

your

capital

allowances

at

the

main

rate

or

the

special

rate

depending

on

what

the

item

is

Reduce

the

amount

of

capital

allowances

you

can

claim

by

the

amount

you

use

the

asset

outside

your

business

If

your

accounting

period

is

more

or

less

than

months

You

need

to

adjust

the

amount

of

writing

down

allowances

you

can

claim

if

your

accounting

period

is

more

or

less

than

months

Items

you

’ve

claimed

AIA

or

first

year

allowances

on

Record

any

items

you

’ve

claimed

annual

investment

allowance

AIA

or

first

year

allowances

on

in

the

pool

they

qualify

for

If

you

claim

the

full

cost

of

an

item

you

’ll

need

to

write

down

their

value

as

zero

This

will

help

you

to

work

out

whether

you

owe

tax

if

you

sell

them

Items

not

claimed

Add

costs

you

have

n’t

claimed

first

year

allowances

or

annual

investment

allowance

AIA

on

to

the

pool

in

the

following

year

What

to

do

next

When

you

know

the

rate

for

your

items

work

out

how

much

you

can

claim

Work

out

what

you

can

claim

You

can

claim

the

full

cost

of

the

item

if

you

’re

claiming

annual

investment

allowance

AIA

first

year

allowances

You

claim

based

on

the

rate

for

items

that

do

n’t

qualify

for

AIA

or

first

year

allowances

Work

out

your

allowance

Work

out

what

you

can

claim

separately

for

each

pool

Take

your

closing

balance

from

your

last

accounting

period

Add

the

value

of

anything

you

’ve

bought

or

been

given

in

the

current

period

that

qualifies

for

this

pool

Only

include

VAT

if

you

’re

not

VAT

registered

Deduct

the

value

of

anything

you

sold

or

disposed

of

that

originally

qualified

for

this

pool

Work

out

how

much

you

can

claim

using

the

correct

rate

Deduct

the

amount

you

can

claim

from

the

pool

to

get

the

closing

balance

This

is

known

as

the

tax

written

down

value

Items

you

use

outside

your

business

For

items

that

are

in

a

single

asset

pool

because

you

’ve

used

them

outside

your

business

reduce

the

amount

you

can

claim

by

the

amount

you

use

them

privately

You

still

deduct

the

full

amount

from

your

pool

to

get

the

closing

balance

Items

you

use

privately

that

are

n’t

in

a

single

asset

pool

If

you

start

using

something

outside

your

business

that

you

’ve

already

claimed

capital

allowances

on

add

the

market

value

of

the

item

the

amount

you

’d

expect

to

sell

it

for

to

a

single

asset

pool

deduct

the

same

amount

from

the

pool

it

was

in

If

the

amount

you

deduct

is

more

than

the

balance

in

the

pool

the

difference

is

a

balancing

charge

you

must

put

it

on

your

tax

return

Claiming

less

than

you

’re

entitled

to

You

do

n’t

have

to

claim

the

full

amount

you

’re

entitled

to

If

you

only

claim

part

the

rest

stays

in

your

closing

balance

If

you

have

or

less

in

your

pool

You

can

claim

the

full

amount

if

the

balance

in

your

main

or

special

rate

pool

is

or

less

before

you

work

out

your

allowance

This

is

called

a

small

pools

allowance

It

does

n’t

apply

to

single

asset

pools

You

can

either

claim

a

small

pools

allowance

or

writing

down

allowances

you

ca

n’t

claim

both

This

amount

is

adjusted

if

your

accounting

period

is

more

or

less

than

months

How

to

claim

Claim

on

your

tax

return