Taxation in the U.K.
Whether you need an integrated business strategy, access to corporate finance or specialist tax advice we are here to help you achieve your goals.
Taxation in the UK is complex. Partly as a result of this complexity, there are often different ways to achieve the same commercial objectives with very different consequences.
It is our role to understand the complexities so that:
• Where the law provides opportunities for tax mitigation, we can advise you on those opportunities.
• Where anomalies and idiosyncrasies in the tax code present potential advantages, we can explore and exploit those with you.
• Where unusual circumstances exist which enable you to access favourable reliefs and outcomes, we can design your tax plans to capture them.
It is, of course, our professional duty to present your affairs in an accurate and compliant way and to protect you from penalties for non-compliance. That is as important now as it has ever been.
Effective tax planning requires knowledge, instinct and experience in an arena with inexact parameters. We have these attributes in abundance and are well-placed to minimise the current and future tax burdens of our clients, legitimately and in accordance with their overall commercial and domestic plans.
Our tax consultancy includes know-how at every stage of your personal and business life:
Advice on choosing the right form of trading entity for your business; the optimum ownership structure; and maximising investment reliefs where possible.
Our advice includes maintaining advantageous structures; accessing reliefs and allowances eg for capital expenditure and research and development (R&D); avoiding ‘double’ taxation or excessive rates and levies. We also handle compliance issues and enquiries effectively as they arise.
All other events
Tax advice is relevant to almost every conceivable aspect of life, including emigration, divorce, domicile, investment, family and partner disputes, etc. We’ve dealt with them all and can help you.
Our tax planning work is predominantly involved in the following major areas:
• Income tax, including PAYE and NIC
• Corporation Tax
• Capital Gains Tax
• Inheritance Tax
• Value-Added tax
• Stamp Duty and Stamp Duty Land Tax
Always up to date with the latest developments and initiatives, we will analyse all major taxes, as well as ensuring you’re kept in the loop regarding your current tax position and helping to demystify the complex legislation.
Tax is a very broad area and changes are made frequently throughout the year so it is hard to answer every tax questions here but we are trying to find answers to some of the most asked questions and will also keep adding to it. If your question isn’t here, just email us at firstname.lastname@example.org and we’ll get back to you with an answer.
Question: What is personal allowance?
Answer: Every worker gets a personal allowance – an amount that is taken tax free. For the 2018-19 tax year, the personal allowance was £11,850. For the 2019-20 tax year, the personal allowance is £12,500.
Question: What is payment on account? Why I keep paying taxes in advance?
Answer: After your first full year of business, as well as paying tax for the tax year that’s just ended, you are also required to pay tax for the current year in two instalments. These are known as ‘payments on account.’‘Payments on account’ are advance payments towards your tax bill (including Class 4 National Insurance if you’re self-employed).
You have to make 2 payments on account every year unless:
- Your last Self Assessment tax bill was less than £1,000
- You’ve already paid more than 80% of all the tax you owe, for example through your tax code or because your bank has already deducted interest on your savings
Each payment is half your previous year’s tax bill. Payments are usually due by midnight on 31 January and 31 July.
Question: What are the important dates for Self Assessment?
Answer: Follow the link below to find out about the deadlines for sending back your tax return and paying your tax.
Question: Being self-employed, what costs can I claim as allowable expenses?
Answer: These include:
- Office costs, for example stationery or phone bills
- Travel costs, for example fuel, parking, train or bus fares
- Clothing expenses, for example uniforms
- Staff costs, for example salaries or subcontractor costs
- Things you buy to sell on, for example stock or raw materials
- Financial costs, for example insurance or bank charges
- Costs of your business premises, for example heating, lighting, business rates
- Advertising or marketing, for example website costs
- Training courses related to your business, for example refresher courses
You cannot claim expenses if you use your £1,000 tax-free ‘trading allowance’.
Question: What if I use something for both business and personal reasons?
Answer: You can only claim allowable expenses for the business costs. For example Your mobile phone bills for the year total £200. Of this, you spend £130 on personal calls and £70 on business.
You can claim for £70 of business expenses.
Question: What is NI (National Insurance)? And what are different classes of NI?
- Class 1: Employees earning more than £183 a week and under State Pension age – they’re automatically deducted by your employer
- Class 1A or 1B: Employers pay these directly on their employee’s expenses or benefits
- Class 2: Self-employed people earning more than £6,475 a year. If you’re earning less than this, you can choose to pay voluntary contributions to fill or avoid gaps in your National Insurance record
- Class 3: Voluntary contributions – you can pay them to fill or avoid gaps in your National Insurance record
- Class 4: Self-employed people earning profits of £9,501 or more a year
Question: What is SA302:
Answer: In simple words it is an evidence of your earnings. You might be asked for these documents as evidence of your income, for example if you’re applying for a mortgage and you’re self-employed.
Question: I lost my UTR, how can I get it?
Answer: Your UTR is on previous tax returns and other documents from HMRC, for example:
- Notices to file a return
- Payment reminders
You can also find your UTR in your Personal Tax Account if you’re registered for Self Assessment.
If you cannot find your UTR, Call the Self Assessment helpline to request your UTR if you cannot find any documents from HMRC.
If you have a limited company, you can request your Corporation Tax UTR online. HMRC will send it to the business address that’s registered with Companies House.
Question: How do I pay my tax bill?
Answer: The deadlines for paying your tax bill are usually:
- 31 January – for any tax you owe for the previous tax year (known as a balancing payment) and your first payment on account
- 31 July for your second payment on account
You’ll be charged interest and may have to pay a penalty if your payment is late.
Want to pay now? Simply click on this link