Income Tax Accountants
Income tax is part of the taxation system. It is for individuals or taxpayers, and it varies with respective income or profits. It’s a tax we all have to pay, and it is generally related to your taxable income.
HMRC requires that all of us, whether as an individual or a business, report their income, profits, all deduction, and even any losses that our business may make through the tax return file.
You also have to include your tax liability and tax refund in the file.
HMRC uses this self-assessment system as the correct way to gather all your information together and then to deduct relevant tax from your earnings automatically.
It is your responsibility to file these tax return documents at the end of each tax year.
It can be challenging filling in all the income tax forms when it comes to self-assessment – it can take endless time and energy, and this is where we can help.
We are income tax accountants based in Essex and we serve businesses throughout Essex and London. Your yearly self-assessment tax return is the regular route to inform HMRC of your income tax. Your self-assessment tax return should be submitted, and tax paid within ten months of the tax year-end. i.e., by 31st January for the previous year’s 5th April tax year-end.
We offer you our extensive experience and personal attention when it comes to filling in those tax returns, as well as giving you personal tax advice, which can take the pressure off you and help you save money in the long-run.
The UK Government provide a guide on income tax and self-assessment right here.
What is Income Tax?
This income tax is charged on all your Earned income above your personal allowance. For the tax year 2020-21 the personal allowance is £12,500 i.e. you can earn £12,500 and not have to pay any income tax. Anything you earn above this amount is taxable at varying rates. The types of income that are taxable – some state benefits, income from a job, profits made from self-employment, bank interest received, property rental income, benefits in kind from employment, dividend income above £2,000, income from a trust as well as income from most pension schemes.
There are some state benefits which are not taxable details can be found on the UK Government website.
Tax isn’t a popular subject! And lots of people try and avoid it as they find it a minefield – are they qualified to file for tax returns, or not?
If you fail to meet deadlines due to uncertainty when it comes to tax filing, then any help and support from us here at Finance Equation will probably be essential!
How Our Income Tax Accountants Can Help You?
We recognise that tax is a cost just like any other business cost. So we will pro-actively use every legal option to reduce your overall tax liability. HMRC have a ream of Extra Statutory Concessions that provide reliefs over and above that given by law.
We do a continual review of these ESC to see what new. We will even take a look at your overall tax position to see if you would save money by incorporating your business.
Call us to schedule a consultation, where we will go through the whole process with you.