Income tax is arguably the most understood of all of the taxes, as most of the population pay it in a very visible way. Since the introduction of self assessment, all taxpayers should understand these rules, to minimise their overall income tax exposure, to ensure that they do not receive penalties and to protect against becoming subject to a tax enquiry.
If you are selected by HMRC to fill in a self assessment tax return, because you are self employed, a higher rate income taxpayer, a director, a property investor, or another reason, you need to make sure than this return correctly discloses all taxable income sources. You will also wish to make sure that it claims all valid tax deductions.
Specific areas which we are typically asked to advise on include:
- Taxation on buy-to-let residential properties,
- Disclosure and taxation of benefits in kind,
- Income tax on pension and investment income,
- Utilising both spouses’ basic rate income tax bands,
- Claiming maximum relief for contributions into pensions.
Disclosing and then agreeing your income tax liability with HM Revenue & Customs is principally achieved by the completing and filing of a self assessment tax return. Clients who are fearful that these disclosures may be investigated by HM Revenue & Customs may wish to consider taking out our tax investigation insurance.
Understanding this complicated tax system and paying the correct (minimum) amount of income tax, at the correct time, through the correct mechanism, is what most clients seek. Speak to our tax technicians and put your mind at ease. We may even be able to suggest ways to restructure your affairs to save further tax.