Personal accounting can be very daunting as there is so much to consider from Tax returns, Capital Gains Tax, Inheritance Tax and if you are self employed it appears to become more complicated. However, this is why we are here to help. We take away the headache of taxation, national insurance, residence & domicile and so much more.
So if you finding yourself worrying about your taxation pick up the phone and give us a call. We are here to help and work with you to make sure you get the best solution for your individual circumstances.
Inheritance Tax (IHT) is a tax charged on transfers of capital made by individuals either;
- During their lifetime
- On the value of their estate on death
- Or sometimes on the transfers made by close companies
The tax is also charged on some trust occurrences. Currently if your estate is worth more than £325,000 or if you’re a married couple £650,000 then it is worth talking to us, because with some simple planning a tax burden of 40% on amounts above these figures can be avoided.
Understanding whether you are resident, or domiciled or both in the UK can have a significant affect on your tax liabilities. If you are uncertain call to see if you need further advice.
Significant savings can be made by getting things right in the first place for example:
- Should I be a limited company or not?
- What year-end should I have?
- Whose name should a property be owned in?
- When should I dispose of my shares?
- And many more…
If you need help with your tax planning, give Keith or Ojoe a call.
If you have to complete a tax return or need to notify HMRC of an additional tax liability then legally it’s your responsibility to notify HMRC of a need to complete a tax return by the 5th October following the tax year from which the additional liability arose.
Please note – If you are self employed you need to tell HMRC you have started to trade within 3 months.
Capital gains tax is a tax on chargeable gains made by individuals and trustees as a result of disposal or assets. For example on the disposal of the following assets:
- The disposal of a business or shares
- The disposal of antique vases and paintings
- A gift of property to family and many more…
Please note – the above are only provided as examples, not a list of what is taxable or not. If in doubt please ask! There are also many exemptions, reliefs and ways of deferring the gain.
As you might expect this is a tax on income at rates of 0%, 10% ,20%, 32.5%, 40%, 42.5% and 45% on income such as,
- Profits from self-employment or partnerships.
- Income from letting property
- Salary and benefits.
- Some but not all state benefits
- Trust income
- Various other income
By speaking to us we can reduce this burden. We also ensure that you have declared your income correctly, paid the right amount of tax and avoided penalties for getting it wrong or being late.
The HMRC penalties for a late return can soon mount up to £1,300, Not Funny!
There are broadly 5 types of National Insurance.
- Class 1 paid by employees (primary) and employers (secondary) on salary on earnings between certain limits. Currently Employees 12% Employers 13.8%
- Class 1A paid by employers on employees benefits reportable on form P11D at 13.8%
- Class 2 paid by the self employed a weekly charge currently at £2.75 per week
- Class 3 Voluntary contributions paid when other contributions are not sufficient to qualify for state benefits currently at the rate of £13.90 per week.
- Class 4 NIC paid by the self employed on profits between certain limits at 9% and 2% after upper limit is reached
These are significant amounts that do not hit the headlines as Tax does. Again a bit of planning at the start can avoid potential pitfalls and unexpected liabilities.