Personal Tax Services
We all have to do it, and although it may seem like a hassle at times, it is important as a society for us to pay taxes for a myriad of reasons. There are so many different types of taxes that it can often seem overwhelming, but with the right knowledge and advice, it does not have to be.
The main tax that most people have to deal with, and sometimes requires advanced tax planning for, is income tax; the tax that you must pay on your own earnings and income. The taxes that you are required to pay can include earnings from employment, any profit from self-employed earnings, pensions, any benefits you receive from your employer, the income you receive from a trust, and any rental income.
However complicated it may seem, you do not actually have to pay taxes on everything. Some state benefits do not require tax to be paid on them, as well as any interest earned from your own personal savings, national lottery earnings, and premium bonds. In addition, you do not pay tax on rent paid for lodging, earnings from tax-exempt accounts like IRAs or national savings certificates. It also exempts the first £5,000 of dividends from any company shares.
The tax collected in the UK goes to a minimum of three separate levels of government including local government, central government, and the developed national government. Income tax is the biggest source of revenue towards the government. Each citizen has an income tax personal allowance, and income amounts which fall below this threshold in each tax year are free of tax. With this in place, any income that is above the personal allowance is taxed using different types of bands.
We can help offer any tax advice you may need, or help to get you on the right track when it comes to filing your own personal taxes.