Our personal tax service takes care of declaring your income and claiming your allowances, as well as reliefs that you are entitled to. Help is also available to determine whether you should register for Self Assessment. You normally only need to register once by 5 October following the end of the tax year in which the income or gains first arose. For example, you must register on or before 5 October 2023 if you have income or gains to report in relation to the 2022/23 tax year (6 April 2022 to 5 April 2023).
WHAT IS INCOME TAX?
Income Tax is the principal form of direct personal taxation in the UK. It takes the form of a proportion of a person's earnings, which is collected by HMRC and passed to the Treasury.
England, Wales and Northern Ireland
Taxpayer’s income is assessed for tax according to the following order: the income from employment, minus personal allowance is being taxed first, followed by interest income (savings income) and then dividends.
If you live in Scotland or if you move to Scotland and live there for a longer period than anywhere else in the UK during a tax year, you pay Scottish Income Tax, which could be ±3% different from the rest of the UK. If you live in more than one home, your main home is usually where you live and spend most of your time, regardless you own it, rent it or live in it for free. If you are not sure where is your main home, HMRC has detailed information about working it out.
Put simply, you do not pay UK tax on your foreign income or gains if you are non-domiciled. Typically, an individual is domiciled in the UK if they were born in the UK or if the UK is their permanent home. If you were born outside of the UK or you do not intend to remain permanently in the UK, you are classified as not UK domiciled. You can learn more about working out your domicile status here.
THE TAX YEAR
A tax year is the 12-month period, which is used by governments as a basis for calculating taxes. The British tax year or the “financial year” runs from 6 April to 5 April in the following year.
WHO MUST SEND A TAX RETURN?
You will normally need to send a Self Assessment tax return if one or more of the following apply to you:
- You are self-employed (sole trader) and earn more than the trading allowance;
- A partner in a business partnership;
- A minister of religion;
- A trustee or the executor of an estate;
- A company director and you have income that is not taxed under PAYE.
Or you have any other untaxed income, such as:
- Money from renting out a property;
- Tips and commission;
- Income from savings, investments, and dividends;
- Foreign income, regardless of whether you are resident in the UK.
You will normally not need to send a personal tax return if your only income is from wages or pension. However, you will need to complete one if you receive other untaxed income where the tax due cannot be collected via your PAYE coding notice. In the meantime, you can choose to fill in a tax return:
- To claim some Income Tax reliefs; and/or
- To prove you are self-employed.
PAYING YOUR TAX BILL
You will usually need to make two payments (twice a year) on account each year:
- 31 January (balancing payment) for any tax you owe for the previous tax year and your first payment on account; and
- 31 July for your second payment on account.
Make sure you make your payment to HMRC by the deadline. If you need to send a tax return and you miss the deadline for submission, you will get a penalty. If you owe Self Assessment tax and you do not pay your bill on time, you will be charged interest from the date your payment is due.
PERSONAL TAX SERVICE & SELF ASSESSMENT
If you are already registered and you need to send a tax return, we can prepare and file it for you. Be aware the deadline for 2021/22 tax returns (online) is 31 January 2023. Alternatively, you can send a paper tax return by 31 October 2022 and pay the tax you owe by 31 January 2023.
GET HELP WITH TAX
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Disclaimer: The information and opinions provided on this website are for general information purposes only and are not intended to constitute professional advice. XCOUNTANT COMPANY LTD is a company registered in England and Wales.
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