In one way or another we all do. Whether it be putting petrol in the car, purchases from the shop, council tax, income tax, corporation tax or inheritance tax.
Tax planning can help you to save money using legitimate strategies with help and guidance. The amount of tax you could potentially save differs depending on your individual circumstances. Could one of our advisers help you with your tax planning?
Working with you to help achieve the life and financial goals that will enable you to enjoy a brighter financial future.
Workers and employers pay National Insurance (NI) to fund state benefits. UK citizens pay National Insurance contributions so that they can be eligible for benefits such as state pension, maternity leave, statutory sick pay or entitlement for additional unemployment benefits.
All employees, employers and self-employed individuals pay National Insurance until they reach state pension age. In some circumstances, you may qualify for National Insurance credits, i.e. if you earn an uncertain wage or are acting as a carer.
You will need to pay NI for a set number of years before you will be entitled to receive the state pension. Click here for this years National Insurance rates
Income tax is a tax based directly on your income. Put simply income tax is a tax on your earnings, once they go above your personal allowance, you need to pay tax on different sources of income. Such as:
You do not need to pay tax on:
The level of personal allowance changes each year. Check with the HMRC website to find out what they are for this year.
All limited companies are required to pay Corporation Tax and is payable against company profits. Profits are seen to be any money after deductible costs and expenses, or any amount after overheads, salaries and expenses incurred during the operation of the business – for example marketing costs or raw materials.
Corporation Tax is aligned with the financial year of the business. However, there are some exclusions to this, such as a new business changing its year-end date.
As well as being payable on company profits for its financial year, Corporation Tax will also be due on any amount the business makes from investments, and from selling assets for more than the original cost – known as chargeable gains. Click here for this years Corporation Tax rates
The Financial Conduct Authority does not regulate tax planning.
Tax treatment varies according to individual circumstances and is subject to change.
Investors do not pay any personal tax on income or gains, but ISAs do pay unrecoverable tax on income from stocks and shares received by the ISA managers.