Personal Tax is, as the name suggests, tax paid by individuals. The technically correct title is ‘Income Tax’, as it is tax paid on income received, though not all of your income will be liable to tax.
If all of your income comes through employments, your income tax will be paid through the PAYE system, and there will be no need for you to submit a Tax Return.
If you receive income that isn’t subject to PAYE, you will probably need to pay Income Tax and National Insurance by submitting an annual Self Assessment Tax Return. This should include worldwide income received within a twelve month period that currently runs from 6th April one year to the 5th April the following year. This Return has to be submitted by the 31st January after the period end.
If you earned more than £1,000 from self employment or received untaxed income of £2,500 or more in the year, you must prepare and submit a Tax Return.
The ‘Self Assessment’ element of the title recognises that responsibility for the declaration of all income remains with the taxpayer. That said, HMRC have a number of ways to double check the validity of any submissions!
As with any UK tax, there are various allowances and reliefs available to take account of when preparing your Return.
This section will attempt to highlight the key areas to be aware of around Income Tax and Self Assessment Tax returns, though as the subject is so broad, it will only cover the basic theory and latest news.
If you’d like to know more, please get in touch to have a conversation around your particular circumstances, as this is one area where specifics can make a huge difference!
Your Personal Tax Return – what do we need?
If we prepare yours for you, NOW is the time to get ahead and send us your information as it hits your door mat or inbox.
What do we need? It’s all in here for you.
How to pay your tax bill
There are two dates in the year when personal tax payments fall due, being the 31st January and the 31st July. Whilst we remind all of our clients of the amounts they are due to pay, its worthwhile outlining how to make those payments!
Reduce your Tax Bill!
The evenings are brighter and the temperatures are (hopefully!) warming, which means we’re drawing closer to Spring but also to the end of another financial year!
Why not take a look at these sections too, as there is some overlap between our categories and we’d hate you to miss out!
Capital Gains Tax
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Can I just say we are so pleased that we have moved to Baranov Associates. As we discussed when you visited, we had to find a way to take the stress out of all of the financials and you’re doing that for us! We can see how to use Xero more efficiently and so with us being as on top of it as we can be and with you and Liz we feel a lot more confident about our business being in good shape.
Mrs S James, Sandbanks Capital Partners Limited
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