Taxation


Income Tax


Income Tax is charged on all income arising in the UK, including salary, employment benefits, business profits, investment income and rents received from property. Residents of the UK may also be liable to Income Tax on their income from overseas.Income Tax file


Every individual is entitled to claim a personal allowance which represents the amount of income they can receive without paying tax. Other allowances may also be available, for example married couples where one spouse is aged 65 or over can claim a special allowance. The Child Tax Credit system can also provide families with additional financial help although the amount of support paid depends on the overall financial circumstances of the family and the number of children involved.


Employed individuals pay tax through the Pay As You Earn system (PAYE). This relies on HM Revenue and Customs issuing an accurate code number to ensure that the correct amount is paid over on a weekly or monthly basis. Higher Rate taxpayers in particular need to check coding notices to avoid paying too much and indeed to claim refunds of tax where they are due.


For the self-employed, Income Tax can be a more complex affair. There is the automatic requirement to register your business with HMRC within 3 months of startup, prepare Self Assessment Tax Returns and accounts on an annual basis, and perhaps run a payroll scheme for employees. On the plus side, there is greater scope to claim tax relief on expenditure incurred in running the business and to claim relief for trading losses. We have extensive experience in dealing with all types of business, from sole traders to multi-national concerns. Contact us to see how we can help you get the most from your business.








 

 


In the News

Budget 2012

The Chancellor has confirmed that this year's Budget statement will be made on Wednesday 21 March.

VAT Online Filing

This becomes compulsory from 1 April 2012 and payment of VAT must be made by electronic means. Cheques will no longer be accepted.

Compulsory Pensions

In 2012 automatic enrolment into a pension scheme is due to come into force. On average, it will cost small businesses an extra £2,550 per year.

Budget 2011

You can still access our in-house 2011 Budget guide and commentary by clicking the link here. We welcome any feedback or questions you may have to enable us to improve our services.

Features

Deadline Diary

The next important diary date is 31 January when 2011 Tax Returns have to be submitted to HMRC to avoid an automatic £100 late filing penalty. Payments of tax are also required by this date. Do get in touch if you need any help.

Rates & Allowances

Click here to download a PDF file with the latest figures.