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.
National Insurance
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
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.
Corporation Tax
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
Disclaimers
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.
The guidance and/or information contained within the website is subject to the UK regulatory regime and is primarily targeted at UK residents.
Tax advice which contains no investment element is not regulated by the Financial Conduct Authority.
The Financial Conduct Authority does not regulate Will writing or taxation and trust advice.
The content of the articles on this website is for your general information and use only and is not intended to address your particular requirements. Articles should not be relied upon in their entirety and shall not be deemed to be, or constitute, advice. Although endeavours have been made to provide accurate and timely information, there can be guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future
No individual or company should act upon such information without receiving appropriate professional advice after a thorough examination of their particular situation. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of any articles. Thresholds, percentage rates and tax legislation may change in subsequent Financial Acts. Levels and bases of, and reliefs from, taxation are subject to change and their value depends on the individual circumstances of the investor.
The value of your investments can go down as well as up and you may get back less than you invested.
Past performance is not a reliable indicator of future results.
MRA Financial is a trading name of Absolute Financial Management Limited which is authorised and regulated by the Financial Conduct Authority, Firm Reference Number 401135.
Absolute Financial Management Limited is registered in England and Wales. Company Number 05027747.
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This site is designed for use by UK residents over the age of 18. Absolute Financial Management Ltd are not responsible for the content of external websites.
MRA Financial offers financial advice in East Sussex, Battle, Hastings, Bexhill and Eastbourne and across the UK.
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