Tax Tip
If you are not asked to complete a tax return, it remains your responsibility to advise HM Revenue & Customs if there is a new source of untaxed income or a capital profit that could lead to a tax liability. Please contact us for further advice if this affects you.
Income tax is not the only means by which the government relieves us of our hard earned cash. You may own assets such as a precious antique, a second home or shares. If such an asset is sold, the chances are that a profit will arise and this may give rise to a liability to capital gains tax. Details of any capital gains may have to be included on the self assessment return.
Inheritance tax may be payable on the assets that you give to others in your lifetime or leave behind when you die. At one time very few individuals had to worry about this tax. Rises in house prices have changed this and many more estates have now become liable. The government has implemented some changes to try and address this issue but many people will still need careful planning to minimise this tax.
Many of those in business have to understand the principles of Value Added Tax because they will have to act as an unpaid collector of this duty. In addition, those who run their business through a limited company need to know about corporation tax which taxes a company’s profits.
Practical Tip
Remember to keep all tax related documents such as interest statements, dividend vouchers, pay certificate form P60 etc. Place everything in a folder through the year as it is received. Then you can simply hand this to us when we need to prepare your self assessment return.
This guide is designed to provide you with a simple guide to all of these taxes from five perspectives - that of the family; the working man or woman in employment; the person running their own business; the taxation of investments; and, finally, knowing that nothing is certain except death and taxes, the potential liability on your estate.
Please use the guide to help you identify planning opportunities, pitfalls to avoid and areas where you may need to take action and then contact us for further advice.
Self Assessment timetable
- Income tax and capital gains tax are both assessed for a tax year which runs from 6 April to the following 5 April.
- Shortly after 5 April - Self Assessment returns are issued by HM Revenue & Customs .
- 31 October following - non-electronic returns are to be submitted to HM Revenue & Customs by this date.
- 31 January following - final date for submission of return and all outstanding tax to be paid.
- There is an automatic penalty for late filing of the return of up to £100 and more serious penalties for on-going default.
Taxation Planning