Personal Tax

“I don’t pay personal tax!” Umm!!! Really?, you want to go to prison for fraud?” Tax isn’t an option, so when you earn income, ie £100 for a day’s Labour, you’ve got to pay some tax to HMRC. So now we know that tax is compulsory, let’s try and make it easy to understand. You will pay personal tax on money earned from your income, pensions, savings and various other benefits. Personal tax accountants (like us) make sure you’re tax compliant and avoid any surprise letters through the door….. there not good!

What do personal tax accountants do?

A personal tax accountant can help you understand how to manage your taxes regarding income tax, inheritance tax, capital gains and trusts. Personal tax services also include the preparation of tax returns and submitting them to HMRC on your behalf. A good personal tax accountant will also discuss tax liabilities so that you can benefit from any claims available.

How do I find a good tax accountant?

You found one, congratulations. But in all seriousness, look for an accountant that will keep things legal, simple, and on time. We’ll do all the fiddly bits and will try to save you paying more tax than you need to, but we will never break the rules for you. Ever. You should not even think it, let alone mention it.

A good tax accountant will save you time, reduce the likelihood of any errors (we’ve been studying this stuff for decades so we know the ins and outs of tax) but also reassure you that by submitting all relevant taxes, you’re in HMRC’s good books.

Do you need an accountant to do your tax return?

If you’d like to do your personal taxes yourself then that’s absolutely fine. We all know that cutting corners works, until your breaks fail and your talking to farmer Jones sheep in his field.

There’s various tax return software available online but doing your own personal taxes can be complicated and daunting. If you’d rather play it safe, then as your personal tax accountants we will use our up to date knowledge and expertise to take care of your personal tax for you.

How do I set up a personal tax account?

Setting up your personal tax account can be done on HMRC’s website. Before you begin, you’ll need to have your National Insurance number, passport or a recent P60 handy. Then head on over here: https://www.gov.uk/personal-tax-account

When is personal tax due?

Your personal tax deadline is midnight on 31^st January the year after your tax year ends. For example, for the tax year ending 5^th April 2021, it will need to be submitted before 31^st January 2022.

How long do I have to keep personal tax records for?

Coming straight from the horse’s mouth, HMRC says that “you must keep your records for at least 5 years after the 31st January submission deadline of the relevant tax year. HM Revenue and Customs may check your records to make sure you’re paying the right amount of tax.”

What is a personal tax summary?

A personal tax summary might not be something you want to get framed, but it’s definitely helpful to have. HMRC issue personal tax summaries to confirm how much income tax and National Insurance you paid during a tax year. The tax summary will also show how the government spent your tax.

It’s important to note that your personal tax summary does not include information such as VAT, stamp duty, fuel, inheritance tax, capital gains tax or other allowances. Sometimes the details on your tax summary might be different, but a tax summary is for information purposes and HMRC know that your circumstances change and not all sources of income are included. You don’t need to contact HMRC or your employer when you receive your personal tax summary (as always, if in doubt just give us a call).

What is a personal tax allowance?

This is the amount of money you can earn free from tax. For example, for the year 2021-2022, the personal tax allowance is £12,570, meaning you don’t get taxed on that income. Anything earnt over £12,570 will be subject to tax.

There are other instances where you might have a bigger personal allowance which means your personal tax allowance is higher, such as Blind Person’s Allowance or Marriage Allowance.

Am I eligible for a personal tax allowance?

To take advantage of juicy tax-free income in the UK, you must either:

• hold a British passport
• be a citizen of a European Economic Area(EEA) country
• have worked for the UK government at any time during that tax year

What is the personal income tax rate?

For the tax year 6^th April 2021 to the 5^th April 2022, these are the following income tax rates and bands:

How much is a personal tax accountant?

Give us a call and we’ll give you a quote. We’re not being awkward; it just depends on the personal tax services involved which is obviously unique to you. But our fixed  fees start from £180 and go up from there.