Tax Return Due Date 31st January 2018
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Basics- Income Tax

Harish Verma

Today is the start of a new Tax Year for income tax. Good time to look at the basics. If you are new to the UK then a good place to start.

Who is liable to pay income tax ?

Individuals (Husband and Wife are separate for income tax)

Trustees

Representatives of deceased individuals

What income is liable to income tax ?

World wide income for a UK Resident. Non UK Residents have different rules.

Some income is exempt.

How do I declare my income ?

After the end of Tax Year you have till 31 October following the Tax year to file a Tax Return to HMRC on paper and 31 January following the end of Tax Year need to file the Tax Return in electronic form. you need to apply for a Unique Tax Reference (UTR) in order to file your Tax Return. There are penalties payable, if you file the Tax Return late.

How is Tax charged ?

Tax is charged on the Taxable income.

The Tax rates are progressive.

Payment of Tax deadlines

Tax is payable by 31 January following the end of Tax Year.

Self employed may have to make Payments on account.

Collection of Tax

Most Tax is collected at source. through PAYE (Employees pay tax at source). Tax is collected by the Banks and Building societies.

Student loan repayment can be paid through PAYE

Record Keeping

All persons have a legal obligation to keep records relating to their Tax liabilities.

We can provide a free record keeping system and check list to help you, keep your records.

www.takingaccount.co.uk

 

 

 

 

 



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