Personal Tax Accountant London UK
Individual Tax planning and Tax planning can help you save time, money, and effort. It can make a significant difference in your take-home earnings. It can also reduce errors in your tax returns. It will also make your finances more predictable in the long term.
There are many ways that you might have to pay taxes as an individual: income, investments growth, savings interest, and assets you inherit. It can be difficult mainly to determine how much tax you will have to pay and whether you need to pay it. You run the risk of just paying too much (and possibly getting in trouble with HMRC) or too little, which could result in you losing money that you could have saved.
What time do I have to pay my tax bill?
Any tax owed must be paid by midnight on 31 January following the tax year. If you’re paying tax for 2020/21, you have to pay it by midnight on 31.01.22.
What is personal tax planning?
HMRC says that it wants everyone to pay the right amount of taxes. This is something you should also want. Because they don’t know all the allowances available and the legal options to reduce their tax bill, many people end up paying more than they should.
Tax planning allows you to see exactly where your tax payments are and whether or not you are overpaying. You can see tax return how much you have paid at your tax account and whether or not you owe any tax.
What is the difference between tax planning & tax avoidance?
Tax planning refers to the organization of your finances to avoid paying more tax than you need. It involves keeping track of your allowances, tax-deductible expenses, and charitable donations. You should also be aware of potential tax savings such as pensions or ISAs.
Avoiding tax is, however, the act of reducing your tax bill through some investment plan. While many of these schemes appear legal from a technical standpoint, others may be considered illegal. HMRC may declare the scheme invalid if it concludes that its sole purpose is to avoid taxes. Many investors have tried tax avoidance strategies in good faith, only to discover that they owe years’ worth of unpaid taxes.
What advice do I need for personal tax planning?
A self-assessment tax returns are required for those who own a business, freelance work, or have multiple income sources. You can get personal tax planning advice to help you ensure you have completed your self-assessment correctly and avoid any penalties from HMRC.
Personal tax planning will inform you of all the allowances, exemptions, and expenses you are eligible for and help avoid losing money. You can also save a lot of time and effort.
How do I fill out a self-assessment return tax ?
Your tax will not be taken if you are on an employer’s payroll (PAYE). If you are have self-employed or any contractor and have other income sources (e.g., rental property), you must file a self-assessment tax form.
You must submit your tax return if you are notified to do so, even if you will not likely owe tax for the year. Late submission penalties are more severe than penalties for late payment. Even if you aren’t sure you can pay your tax bill on time, you must still submit your return.
It cannot be easy to self-assess your finances. It is easy to make mistakes, incur penalties, or err on the side of caution and pay too much tax. An Accountant who is skilled in tax preparation can save you time and money. They may even charge as low as PS150 to prepare your return. They will also ensure that it is never late.
Below is a list of all the tax types you might need to pay and how they are calculated.
There are three rates of income tax. They are the basic rate (20%), the higher rate (40%), and the additional rate (45%). Basic income tax is payable on any income above your allowance (PS12,500 for 2020/21 tax year). Higher rates apply to all income exceeding PS50,000. An additional rate is charged for income above PS150,000
You will be taxed on your profit if you are self-employed. This is your total income, less any business expenses. You can claim business expenses such as travel and accommodation, staff costs and heating, lighting, rent of business premises, business rates, and stock. When submitting your self-assessment, keep a detailed list of all expenses.
You can purchase equipment, machinery, or computers for your business as an ongoing asset. This is considered a capital asset and not an expense. Capital assets are eligible for capital allowances, a different type of tax relief. You can usually claim tax relief up to PS200,000 for capital assets. However, it is possible to claim lower amounts (‘writing down allowances) for spending beyond this amount.
National insurance (NI), a special type of tax, is used to help pay for state benefits such as the State pension. It is payable if you are employed or self-employed and between 16 and the State Pension age.
There are four types of NI contributions: Classes 1 through 4. If you are an employee, Class 1 NI is payable. If you work for another employer, Class 1 NI is payable via PAYE. You’ll be paying Class 2 if you are self-employed and your profits exceed the small profits threshold. However, these will be scrapped in April 2019. You can also pay Class 4 if your profits exceed the Class 4 profit limit.
All who pay class 2 contributions will be treated the same. Class 4 contributions equal 9% of your profits between PS8,164-PS45,000 and 2% of any profits higher than that. Your accountant can calculate them. Both class 2 and 4 contributions can be paid via your self-assessment tax returns.
For those who don’t have to pay Class 1 and 2 but still wish to retain certain benefits, Class 3 contributions can be made at no cost. These contributions can be made monthly or quarterly.
Capital gains tax
Capital gains tax (CGT) may be due if you dispose of assets that have appreciated. These assets could include stocks, shares, and antiques, as well as any other tangible possession. You will also be charged CGT when you sell property, though your main residence is exempt. However, the higher rate is applicable.
CGT is charged on the asset’s gain since the acquisition, not the sale price. You are only taxed for gains exceeding this amount.
If you are a deceased person and your assets pass to your beneficiaries, they might have to pay inheritance taxes (IHT). The tax must have been paid within six months after your death. This can cause complications if assets are not released in time. The beneficiaries may be required to pay IHT from their assets (‘probate”) before settling the estate. They can also take out a loan from a bank to pay the bill.
If you inherit assets from another person, you might have to pay IHT before you can receive the assets. There are, however, ways to prepare for these situations.
Inheritance does not count as income, so it isn’t necessary to include it in your self-assessment tax returns. Find out more about IHT planning.
What about the business tax?
In our article on Business Tax, learn how tax may affect your small business and how to manage tax affairs.
You must adhere to several deadlines if you are required to file a Self Assessment tax return. We ensure you meet these deadlines on time. Our accountants and tax experts will review your business to clearly understand any tax planning possibilities.
The Tax Return
Taxpayers are responsible for making sure that their tax liability and any tax owed are calculated according to the Self-Assessment rules. A penalty of PS100 and any surcharges will be assessed if a return is not sent to HMRC in time. A late tax return increases the chance of Revenue and Customs inquiry.
Our tax experts will help you find legitimate ways to save taxes and calculate your tax bill. There are no hidden fees.
What we need from you?
We need the following information: Your total income and what it costs to generate that income. Some rules and regulations may not allow you to include all expenses your business incurs. It is possible for one sector of a business to be allowed, but not for another. All of these subtleties will be addressed by us.
Smooth Accounting for Personal Tax
“Personal tax? This is not Monopoly, guys. Tax is not an option. If you receive PS200 for passing, you will have to pay tax to HMRC. Now that we understand the importance of tax let’s make it simple.
Personal tax will be charged on income earned, pensions, savings, and other benefits. Our tax accountants make sure that you are tax compliant and avoid surprises.
What does a Personal Tax Accountant do?
Personal tax accountants can help you manage your income, inheritance, capital gains, and trust taxes. Personal tax services include the preparation of tax returns and submission to HMRC. Personal tax accounting professionals can also help you understand your tax obligations so that you can make the most of any available claims.
How can I find a competent Personal Tax Accountant?
This is the right place. In all seriousness, you need an accountant who will keep everything legal, simple, on time, and budgeted. While we’ll handle all the details and try to prevent you from paying too much tax, we won’t break any rules.
A great tax accountant will help you save time and reduce the chance of errors. We’ve studied this stuff for years, so we’re very familiar with tax.
Are you a tax preparer?
You can do your taxes if you wish. DIY is great for some things, but it can also cause a shelf to fall on grandma’s head.
Although there are many tax return software options online, it can be difficult and overwhelming to do your taxes. We can help you with your taxes if you prefer to be safe.
How do I create a Personal Tax Account for myself?
HMRC’s website can help you set up your tax account. You will need your passport, National Insurance number, and a current P60 to start. Then head on over here: https://www.gov.uk/personal-tax-account.
When is personal tax due?
The personal tax deadline for you is midnight on 31 January in the year following your tax year. For example, if your calculated tax year ends on 5 April 2020, you must submit it before 31 January 2021.
What length of time do I need to keep my tax records?
HMRC states that you must retain your records for at most 5 years following the 31 January submission deadline for the relevant tax year. HM Revenue and Customs can inspect your records to ensure you are paying the correct amount of tax.
What is a personal tax summary?
Although a personal tax summary is not something you would like to be framed, it can be very helpful. HMRC issues personal tax summaries that show how much income tax and National Insurance was paid in a given tax year. You will also see how your tax was spent.
Important to remember that personal tax summaries do not include stamp duty, VAT, fuel, inheritance, capital gains tax, or other allowances. Your tax summary may not include all of your income sources. HMRC will know this and can adjust the details to reflect changes in your situation. HMRC and your employer don’t have to be contacted when you get your tax summary.
What is a personal tax allowance, and how can it help you?
The maximum amount you will be earning without paying tax. The personal tax allowance for 2020-2021 is PS12,500. This means that you won’t be taxed on any income earned above this amount. Anything earned over PS12,500 is subject to tax.
Other instances might be where you have a higher personal allowance, which could mean your tax allowance for the year is greater.
What tax allowances are available to me?
You must have one of these two things to take advantage of the UK’s tax-free income:
Be a citizen of a country in the European Economic Area (EEA).
Been employed by the UK government during that tax year
What is the cost of a personal tax accountant for you?
We are happy to give you a well quote by calling us. We are not trying to be awkward. It just depends on your tax services which will be unique to you. Our fees are generally starting at PS200 + VAT and going up from there.
Smooth Accounting can help you with your tax
Personal tax is personal. This is the one of the most important thing to remember. It doesn’t matter if Dave tells you one thing about tax.
Our London-based Personal Tax Advisors are experts in tax planning and can provide advice on tax savings strategies. We can review your itself personal tax affairs and a advise you on reducing tax while increasing your income. Our Tax Accountants will handle all of your tax requirements.
Although we are based in London, we serve clients all over the UK. We also offer services to UK residents who have an income tax source. We have many private clients, including landlords, HNW (Highly Net Worth Individuals), entrepreneurs, professionals, and professionals with prestigious memberships. You can find for more information on our Tax Services page if you’re looking for tax services related to companies.
Resident & Non-Resident Landlord Taxes
Personal Tax Returns for a Variety of Income Sources
Filings for Residency and Domicile
British Citizens who are living or working abroad can get tax advice and emigration assistance.
Planning for family business taxes
Support for personal tax investigations
Assistance with Loan Charges
Foreign Income & Resident remittance basis
Advanced Tax Services
Services for Corporation Tax
No matter if you are a sole proprietor, a business owner, or someone with a wide range of financial interests, you will likely need our services at one point. The role of a personal tax accountant is not limited to accounting. They also focus on taxation matters and are often more focused than corporate accountants. We provide tax accounting services to both individuals and businesses.
My Name is Nadeem Shaikh the founder of nadeemacademy.com. I am a Qualified Chartered Accountant, B. com and M.Com. having professional and specialize experience in field of Account, Finance, and Taxation. Total experience of 20 years in providing businesses solution in Taxation, Accounting, and Finance with all statutory compliance with timely business performance Financials reports. You can contact me on [email protected] or [email protected]