Every person employed or receiving PAYE income has a tax code that is assigned by the government’s tax collection agency (HMRC). You should know your tax codes assigned by HMRC since it tells your employer how much income tax to deduct from your pay.
Self Assessment is a way of collecting income tax used by HM Revenue and Customs (HMRC). Wages, pensions, and savings are typically taxed automatically. Individuals and businesses must report other income on a tax return. You must send a tax return before the self-assessment deadline to avoid incurring any penalties.
If you’re an investor or a business owner who receives dividends from UK companies or funds, it’s important to be aware of the dividend tax rates for the 2022/23 tax year. Dividend tax rates determine how much tax you’ll need to pay on the dividends you receive, and understanding these rates can help you to plan your investments and manage your tax liabilities. In this article, we’ll provide an overview of the dividend tax rates for the 2022/23 tax year, and explain how they work in practice. Whether you’re a seasoned investor or just getting started, understanding dividend tax rates is an essential part of managing your investment portfolio and your personal finance.
If you come to the UK, become a tax resident here, and have foreign income or gains (that is, income and gains from outside the UK) during your stay, you must follow more complicated tax rules. This is due to the UK tax system’s attempt to tax UK residents on their worldwide income and gains.
The UTR (Unique Taxpayer Reference Number) is a ten-digit number. It is unique to each user and serves as a reference to HMRC. Therefore, it is critical, especially when dealing with taxes. The UTR number is used for a variety of purposes, including claiming a tax refund and submitting a self-assessment, to name a few. In order to better understand, let’s go over how to register for your UTR number and take a closer look.
If you get a job or a pension and pay taxes via the Pay As You Earn (PAYE) system, you may end yourself paying too much in taxes. This is for a number of reasons. However, you can request a tax refund claim with the HMRC, and if they find you have paid more tax, you’ll be issued a tax refund.
It might take some time to get back to a normal state and millions will continue to work from home. Due to the pandemic, people are continuing to work from home and last year the work from home tax relief was introduced by the HMRC. The HMRC has recently confirmed that the work from home tax relief scheme is applicable for the 2021/2022 tax year. Let us take a look at how you can claim tax relief.
Taxes cannot be avoided by anyone, but it’s something which everyone would like to reduce. Often we hear news across the world where we see a lot of the global companies avoiding tax. However, it is a tricky concept, and there is a difference between tax evasion vs tax avoidance. In simple words, tax evasion is considered illegal, whereas tax avoidance is considered to be legal. Even though tax avoidance is considered legal, it needs to be done with care and ensure nothing is crossing the line. Both actions have brought significant losses to the HMRC in taxes. However, the HMRC are taking the necessary action to reduce such losses.
The pandemic has struck the world and has had a massive impact on the economy. Therefore the government had announced that the VAT payments can be deferred. This is part of the government package of support worth more than £280bn. A business that had deferred VAT between 20 March 2020 and 30 June 2020 can now make the payment in installments. Let’s take a look at how to join the new vat deferral payment scheme of HMRC in detail.
There are various tax allowances in the U.K to save tax. The UK government’s marriage allowance is one such saving option for married couples or for those in a civil partnership. We will take a look at who can apply and how to apply for a marriage allowance.