Tax Advice

Pay Less Tax

expattravler — Mon, 19 Oct 2009 07:39:01 +0000

Since the world at large is facing unprecedented economic challenges on a macro scale, the personal financial positions of most individuals are being tried during these uncertain times.

According to tax experts 1st Contact Accounting, individuals should maximise the tax benefits available to them to improve their cash flow.

1st Contact Accounting explain that a Limited Company is an excellent structure to reduce the amount of tax paid and will also allow individuals to become more involved in the management of their tax and personal finances.

Following the credit crunch and resulting recession, 1st Contact Accounting encourages individuals to become more financially and tax literate. A Limited Company structure is designed to keep individuals involved in their financial affairs and with 1st Contact Accounting the admin requirements are minimised.

1st Contact Accounting has developed an online platform aimed to manage the maintenance activities for Limited Companies with ease.

Individuals are able to choose between a service involving a face to face consultation with their accountant every quarter, or they can opt to deal with all of their affairs over the phone and email, depending on their preference.

Contact 1st Contact Accounting today for more information on how to set up and manage your Limited Company.

What is a tax refund?

expattravler — Thu, 18 Jun 2009 07:46:28 +0000

Most people have heard of folks getting tax refunds, otherwise known as a “tax rebate” or “claiming tax back” but what does it mean? A tax refund is a payment made by the HM Revenue & Customs (the new name for the Inland Revenue) to someone who has paid too much tax during a particular tax year. Tax years in the UK run from 6th April to the 5thApril, so the 2009/10 tax year started on the 6th April 2009 and will end on the 5th April 2010..
An individual is allowed to earn a certain amount each year before they are liable to pay tax. This amount increases each year and the figures for the last few years are shown below.

Tax year personal allowance:
2009/10: £6475
2008/09: £6035
2007/08: £5225
2006/07: £5035
2005/06: £4895
If you earned less than this amount (from all jobs) and have paid tax then you should be able to get your tax back in the form of a tax rebate. If you have earned over this then you could still be due a tax refund.

Why have I overpaid tax?
There are many reasons why this could have happened, perhaps your employer had you on the wrong tax code, and maybe you gave up work part way through a tax year and didn’t get your full year’s tax allowances? You may also have had a couple of jobs and never been taxed correctly in either.

Will HMRC just send my tax refund to me?
Unfortunately not! You need to ask them for your tax rebate. You’ve got up to six years and after that it’s gone and you will never be able to apply for your tax refunds after six years. Don’t panic though because authorised tax agents can guide you through the whole process for free and help you claim your tax refunds. Alternatively for a small administration fee they can take the headache away and prepare tax return on your behalf.

Claiming Back a UK Tax Refund. Is it a myth that you can claim back a tax rebate?

expattravler — Thu, 18 Jun 2009 07:33:56 +0000

In the UK you will pay 22% income tax on earnings above £2231 and 40% on any earnings over £34,600. If you’re a PAYE (Pay as You Earn) worker, such as a receptionist or a teacher, your employer will deduct these taxes from your earnings. If you’re self-employed, such as a construction subcontractor, you are responsible for your own tax return. Tax agents can help you file your tax return and get back a tax refund. The average tax refund is £963 for PAYE and £1453 for self-employed customers. Why not let a tax expert check on a tax refund calculator to ascertain if you are due a tax rebate. Every single application is processed for compliance and any deductions or credits owed before they go to the tax office will ensure your tax refund is returned to you in the quickest time possible.

Student tax refunds :

Just being a student doesn’t mean you’re exempt from paying tax. You are liable to pay tax the same as everybody else. What often happens though is that students get put on the wrong tax code and often end up paying too much. If this happens you’ll need to claim a student tax refund.

Visitors to the UK :

If you’re not usually resident in the UK and have come here to work then you are still eligible to pay tax this means if you pay too much you can also claim a tax refund from HMRC. The same rules apply to you as to everyone else it all depends how much you earned and how much tax you paid. When you come to make your claim you’ll also need to complete an extra form which will tell HMRC about your entry into the UK. Learn how to claim your tax refund.

New Powers For Tax Inspectors

expattravler — Thu, 11 Jun 2009 09:18:50 +0000

As of 1 April, Corporation Tax and Income Tax inspectors will have the same powers of entry as VAT officers. The move comes as part of ongoing changes being rolled out since the merger of Customs & Excise and the Inland Revenue. This means that HMRC inspectors will be able to enter business premises, including home offices, in order to inspect business premises, assets and records under one set of powers.

Demystifying Tax Forms

expattravler — Thu, 11 Jun 2009 08:29:47 +0000

P45 is issued to an employee when he/she ceased working for a certain employer. This document shows the employee’s pay record and the tax deductions made for the current tax year.

The P60 form can also be used as proof of income if one wishes to apply for a loan, for tax claims and application of tax credits.

P11D form contains the expenses and tax benefits return. This details all the benefits or expenses a specific employer has paid to every employee earning more than £8,500 for the last tax year.

Centralised PAYE System

expattravler — Thu, 11 Jun 2009 08:11:54 +0000

The group of MPs which oversees government spending reported this week that the volume of [PAYE] processing required had been underestimated quite significantly. The findings form part of the “Tax Credits and Income Tax Report” which was published by the Committee of Public Accounts on 24 March. The chairman of the committee, Edward Leigh, is quoted as saying that “A strategy to eliminate this backlog should be established and implemented with all speed”.

A new centralized system for PAYE assessment is due for launch around September 2009.

Tax Fraud Scam

expattravler — Fri, 05 Jun 2009 14:25:40 +0000

In a recent article released by the BBC (http://news.bbc.co.uk/2/hi/business/7816450.stm), the run up to the 31 January deadline for self assessed tax returns, has seen the most “sophisticated and prolific” tax fraud scam in the UK to date. Having flooded the UK media, numerous reports affirm that fraudsters are allegedly targeting consumers under the false pretence of being HM Revenue and Customs (HMRC) officials and thereby requesting banking details of victims to supposedly pay them their tax refunds. Individuals who have revealed these details may face the devastating threat of their bank accounts being cleaned up.

For more information or advice on how to go about claiming your tax refund safely, contact 1st Contact Tax Refunds or Accounting. www.1stcontact-taxrefunds.com