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Taxes are set by the government as a way of funding the country's many public services; including the National Health Service, public transport services and the State Pension scheme, as well as the government itself. Tax administration is managed in the UK by Her Majesty's Revenue and Customs (HMRC).
Whether you work for yourself or for another company, you are required by law to pay taxes as an employed UK resident. Taxes are also payable on the interest you earn on most savings, on buying, selling and passing on property, on work bonuses and on some State Benefits. It's important to understand what taxes you are required to pay, because you can be charged a fine if you fail to meet your tax obligations. Here we explain the main taxes that most UK residents are required to pay, how to pay them and how they work.
Top Answered Tax Questions
Offshore Company Directors / HMRS Declarations ? Hmmnnn - an interesting conundrum ! At base levels, you do not state if you are a UK national [ Domiciled, resident, or otherwise ] for tax liability purposes just for starters. I would say that the main issue here seems to be a question of whether there is any legal requirement to declare a ' Director ' status of an Offshore Corporate entity to any IRD/IRS office ? Simply, the best advice is to seek qualified legal opinion from a UK professional consultancy on this sole issue at outset. It may or may not be the case that: If you do not receive any form of income / director benefits,then possibly there is no requirement to file a declaration ? Naturally, I would hazard a guess that if you state a beneficial interest in a Offshore Corporation, then you will most probably be asked to declare any gains & losses etc etc on respective tax declarations annually, or perhaps, apply for exemption under any rulings applicable. In parallel, it begs the question WHY you wish to be an offshore dircetor in the first place, if as you state, there is no financial gain or tax mitigation reasons for doing so ? At a cost of some $ 5,000 USD for full O/S Company & Trust or Private Foundation structure protections, there are compelling reasons to initiate such procedures legitimately. However, they are only worth considering if the CGT, WHT, and IHT savings far outweigh potential liabilities by way of comparison. Therefore, seek professional legal advice in resolving the filing notifications issue first, and then consult with suitably qualified offshore specialists in how prudently wise to set-up Offshore Corportions for optimum tax mitigation and confidentiality later !
Hello Ashford you need to register with HMRC within 3 months of commencing self-employment. This is in order that your national insurance contributions can be set up and to create a self assessment record. There are fines for late notification. it only takes a few moments on the phone and you will need your normal personal details and NI number. you can find a lot of info on the direct.gov.uk website
In short, you shouldnt have a liability upon sale of the properties as long as you are divorced. a married couple can only have one principle primary residence (PPR) for CGT purposes whereas once divorced you can each nominate your own PPR. you will need to let your insurer know you have moved in as it should reduce your home insurance moving from BTL to an owner occupied deal.
Hello Shahidk There are many things your wife can do to reduce her tax liability and assuming she has some private as well as NHS dental income I would look to pension contributions as this could be done on a company and individual level and thus reduce corporation tax as well as income tax. It will also serve as an efficient method of extracting profit from the company whilst also making provision for the future. There are other avenues you can take as well but to be honest, without knowing much more about your circumstances (which i wouldn't want you to publish on an open forum) it will be unwise to make any kind of formal recommendation to you. But if you want to get in touch, feel free. www.darrenasmith.2plan.com
Hello, no i am afraid you are not entitled to gross interest. even with the highest age allowance which starts at age 75 your earnings are almost double the personal allowance. in determining your tax rate HMRC look at all sources of income, state pension, private pensions, rental and investment income (dividends and interest payments.)