What is this and why do I need it?
Tax planning can be a very complicated subject for many with the rules and regulations always changing.
There are many forms of tax with the main ones being:
Income Tax is a tax you pay on your income. You do not have to pay tax on all types of income.
You pay tax on things like:
- money you earn from employment
- profits you make if you’re self-employed – including from services you sell through websites or apps
- some state benefits
- most pensions, including state pensions, company and personal pensions and retirement annuities
- rental income
- benefits you get from your job
- income from a trust
- Interest on savings over your savings allowance
You do not pay tax on things like:
- the first £1,000 of income from self-employment – this is your ‘trading allowance’
- the first £1,000 of income from property you rent
- income from tax-exempt accounts, like individual savings accounts (ISA’s) and National Savings Certificates
- dividends from company shares under your dividend allowance
- some state benefits
- premium bond or National Lottery wins
Income Tax allowances and reliefs
Most people in the UK get a personal allowance of tax-free income. This is the amount of income you can have before you pay tax.
The amount of tax you pay can also be reduced by tax reliefs if you qualify for them.
Capital Gains Tax
Capital Gains Tax is a tax on the profit when you sell something (an ‘asset’) that’s increased in value.
It’s the gain you make that’s taxed, not the amount of money you receive.
Example: You bought a house for £50,000 and sold it later for £100,000. This means you made a gain of £50,000 (£100,000 minus £50000).
Some assets are tax-free. You also do not have to pay Capital Gains Tax if all your gains in a year are under your tax-free allowance.
Inheritance Tax is a tax on the estate (the property, money and possessions) of someone who’s died.
There’s normally no Inheritance Tax to pay if either:
- The value of your estate is below the £325,000 threshold
- you leave everything above the £325,000 threshold to your spouse, civil partner, a charity or a community amateur sports club
If the estate’s value is below the threshold you’ll still need to report it to HMRC.
If you give away your home to your children (including adopted, foster or stepchildren) or grandchildren your threshold can increase to £500,000.
If you’re married or in a civil partnership and your estate is worth less than your threshold, any unused threshold can be added to your partner’s threshold when you die. This means their threshold can be as much as £1 million.
You must pay Corporation Tax on profits from doing business as:
- a limited company
- any foreign company with a UK branch or office
- a club, co-operative or other unincorporated association, e.g. a community group or sports club
This is a very brief overview of each form of taxation and can be discussed in more detail with one of our advisers.
What can Beesure provide?
Understanding taxation and its rules can be very complicated as the rules and regulations are often changing. Beesure can help you to understand how these work and can apply to you, allowing you to manage your finances more efficiently and help to save money over time.
We will help you to plan your taxes, making use of your tax allowances to minimize the amount of tax you are paying.
Why is Beesure the right choice?
Beesure will help to plan in advance using strategies and your tax allowances to minimise the amount of tax you are paying.
Frequently Asked Questions
Can you advise how to efficiently do my taxes?
Beesure has a team of qualified advisers that can help you take advantage of tax allowances.
Speak to one our team for a free no obligation initial consultation.
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Registered office address: Ground Floor, Rowan House, Hazell Drive, Newport, NP10 8FY.