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    TAXATION

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    Income Tax is a tax you pay on your income. You don’t have to pay tax on all types of income.

     

    You pay tax on things like:

    • Money you earn from employment.
    • Profits you make if you’re self-employed – including from services you sell through website or apps.
    • Some state benefit.
    • Most pensions, including state pensions, company and personal pensions and retirement annuities.
    • Rental income (unless you’re a live-in landlord and get less than the rent a room limit).
    • Benefits you get from your job.
    • Income from a trust.

     

    You don’t pay tax on things like:

    • Interest on serving under your savings allowance.
    • The first £1,000 of income from self employment- this is your ‘trading allowance’.
    • The first £1,000 of income from property you rent(unless you’re using the rent a room scheme).
    • Income from tax-exempt accounts, like individual saving account (ISA’s) and National Savings Certificates.
    • Dividends from company shares under your dividends allowance.
    • Some state benefit.
    • Premium bond or National Lottery wins.
    • Rent you get from a lodger in your house that’s below the rent a room limit.

     

    We can help complete your personal tax return completing and make best use of your allowances and reliefs.

     

    Most people in the UK get a personal allowance of tax-free income. This is the amount of income you can have before you pay tax. The amount of tax you pay can also be reduced by tax reliefs if you qualify for them.

     

    If you need any help with Self Assessment Return or Advice about your Income tax, then please feel free to call us on 0330 001 0975 or email us on contact@jrfa.co.uk

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    You must pay Corporation Tax on profits from doing business as:

     

    • A limited company.
    • Any foreign company with a UK branch or office
    • A club, co-operative or other unincorporated association, eg a community group  or sports club.

     

    Taxable profits for Corporation Tax include the money your company or association makes from:

    • Doing business (‘trading profits’).
    • Investments.
    • Selling assets for more than they cost (‘chargeable gains’).

    If your company is based in the UK, it pays Corporation Tax on all its profits from the UK and abroad.

    If your company isn’t based in the UK but has an office or branch here, it only pays Corporation Tax on profits from its UK activities.

     

    Stopping or restarting business

     

    Check what you have to do if:

    • You’re not doing business and qualify as ‘dormant’.
    • You restart your business.

     

    We can conduct a review of your business and determine the most efficient tax structure for you. Very often such reviews result in considerable tax savings, which show up as real improvements in your bottom line. As with any other areas of taxation, it is essential to be proactive and plan ahead when dealing with corporation tax. In this way you can:

     

    • Minimise your corporation tax liabilities.
    • Make the most of any available reliefs, tax losses and deferment opportunities.
    • Ensure you meet all your CTSA deadlines and file your returns correctly, thereby   avoiding any potential penalties.

     

    If you need any help with Corporation Tax Return or Advice about your Company Corporation Tax, then please feel free to contact us on 0330 001 0975 or email us on contact@jrfa.co.uk

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    You can only charge VAT to your customers, if your business is registered for VAT in HMRC.

     

    VAT is charged on things like:

    • Business sales – for example when you sell goods and services.
    • Hiring or loaning goods to someone.
    • Selling business assets.
    • Commission.
    • Items sold to staff – for example canteen meals.
    • Business goods used for personal reasons.
    • ‘Non-sales’ like bartering, part-exchange  and gifts.

    These are known as ‘taxable supplies’. There are different rules for charities.

     

    Responsibilities

    VAT-registered businesses:

    • Must charge VAT on their goods or services.
    • May reclaim any VAT they’ve paid on business-related goods or services.

     

    If you’re a VAT-registered business you must report to HM Revenue and Customs (HMRC) the amount of VAT you’ve charged and the amount of VAT you’ve paid. This is done through your VAT return which is usually due every 3 months.

     

    We help business owners understand the basics of VAT, advice on the most appropriate VAT scheme to select, advice on the appropriate time to register for VAT and not miss out the benefits of VAT registrations. More importantly we look to ensure opportunities are not missed particularly in areas such as land and property.

     

    If you need any help with your VAT Return or VAT Advice about your business, then please feel free to contact us on 0330 001 0975 or email us on contact@jrfa.co.uk

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    As an Employer, you normally have to operate PAYE as part of your payroll.

     

    PAYE is HM Revenue and Customs’ (HMRC) system to collect Income Tax and National Insurance from employment.

     

    You must collect and keep records of:

    • What you pay your employees and the deduction you make.
    • Reports and payments you make to HM Revenue and Customs (HMRC).
    • Employee leave and sickness absences.
    • Tax code notices.
    • Taxable expenses or benefits.
    • Payroll giving scheme documents, including the agency contract and employee authorisation forms.

     

    Your records must show you’ve reported accurately, and you need to keep them for 3 years from the end of the tax year they relate to. HMRC may check your records to make sure you’re paying the right amount of tax.

     

    If you don’t keep full records, HMRC may estimate what you have to pay and charge you a penalty of up to £3,000.

     

    We provide a specialist moneysoft payroll bureau facility covering all areas of Pay as You Earn (PAYE), national insurance (NI) CIS tax real time information (RTI). If you deal with subcontractors we also have the facility to run your CIS scheme. If you are a business owner we can review your salary package to ensure that you are optimising your tax liabilities.

     

    So why pay excess tax and NI contributions than you need to? Why spend time on payroll administration when you could be selling? We can help you in this area, while ensuring that you comply with your obligations. Just view our PAYE and NI guides to find out more.

     

    If you need any help with your Payroll and RTI return or Advice about your PAYE, then please feel free to contact us on 0330 001 0975 or email us on contact@jrfa.co.uk

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    Are you working under the CIS Scheme?

     

    Under the Construction Industry Scheme (CIS), contractors deduct money from a subcontractor’s payments and pass it to HM Revenue and Customs (HMRC).

     

    The deductions count as advance payments towards the subcontractor’s tax and National Insurance.

     

    Contractors must register for the scheme. Subcontractors don’t have to register, but deductions are taken from their payments at a higher rate if they’re not registered

     

    Work covered by CIS

     

    CIS covers most construction work to:

    • A permanent or temporary building or structure.
    • Civil engineering work like roads and bridges.

     

    For the purpose of CIS, construction work includes:

    • Preparing the site, eg laying foundations and providing access works.
    • Demolition and dismantling.
    • Building work.
    • Alterations, repairs and decorating.
    • Installing systems for heating, lighting, power, water and ventilation.
    • Cleaning the inside of buildings after construction work.

     

    Exceptions

     

    You don’t have to register if you only do certain jobs, including:

    • Architecture and surveying.
    • Scaffolding hire (with no labour).
    • Carpet fitting.
    • Making materials used in construction including plant and machinery.
    • Delivering materials.
    • Work on construction sites that’s clearly not construction, eg running a canteen or site facilities.

     

    If you are working under construction industry scheme (C.I.S) as a sub-contractor, we can help you to file your personal tax return. At the end of the tax year ( usually 5th April ), HM Revenue & Customs will send you a notice to file the tax return or if we are acting an accountant for you, we will send you a reminder to file your personal tax return.

     

    You will have to declare the income from all the resources in the tax returns.

    • The full amounts on your invoices as income.
    • Any deductions contractors have made in the ‘CIS deductions’ field.

     

    We will guide you on the relevant expenses that you can claim to minimise your tax liability. We will work out your tax and National Insurance bill and take off any deductions/expenses made by you.

     

    If you still owe tax after this, you’ll need to pay it by 31 January following the end of the tax year. If you’re due a tax refund, we will help you to get the refund from HM Revenue & Customs.

     

    If you are the main contractor who has to operate the CIS scheme, we can help you setting up the procedures, verify all your sub-contractors and report all the tax deductions you make on labour every month to HM Revenue and Customs. We will also produce a liability summary every month to advise you how much to pay.

     

    If you need any help with your CIS Tax Return and any Tax Refund or Advice about your CIS tax return, then please feel free to contact us on 0330 001 0975 or email us on contact@jrfa.co.uk

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    Capital Gains Tax is a tax on the profit when you sell (or ‘dispose of’) something (an ‘asset’) that’s increased in value.

     

    It’s the gain you make that’s taxed, not the amount of money you receive.

     

    You need to pay Capital Gains Tax when you sell an assts if your total taxable gains are above your annual capital gains tax allowance.

     

    You pay a different rate of tax on gains from residential property than you do on other assets.

     

    You do not usually pay tax when you sell your residence.

     

    If you’re a higher or additional rate taxpayer you’ll pay:

    • 28% on your gains from residential property.
    • 20% on your gains from other chargeable assets.

     

    If you pay basic rate Income Tax

     

    If you’re a basic rate taxpayer, the rate you pay depends on the size of your gain, your taxable income and whether your gain is from residential property or other assets.

     

    This can often involve complex calculations. We’ll do the calculations for you or tell you if the asset is exempt.

     

    If you need any help with your Capital Gains Tax or Advice, then please feel free to contact us on 0300 001 0975 or email us on contact@jrfa.co.uk

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    Need Specialist Tax Advice? Talk to Our Experts Today.

     

    UK tax systems are incredibly complex and how you manage your tax will have a significant impact on the growth of your business. With our experience of over more than ten years in the industry, we can help you implement a tax efficient system to fully comply with the government regulations and guidelines. Our team of accountants can work together with you to understand your financial position and provide you specific advices which suit your individual circumstances. Whether your situation is straight forward or more complex, you can rely on us for a targeted advice which can save you time and money.

     

    International Tax

    Whether doing business, planning to live outside the UK, coming to the UK to run a business or live here, we can help you optimise your UK and non UK tax.

     

    HMRC Investigations

    All enquiries by HMRC should be taken seriously. The involvement of a specialist at the right time can be crucial. Getting your taxation right has never been more important. Penalties are growing and HMRC is cracking down more and more. We’ll make sure your affairs are compliant and accurate, right down to the last detail.

     

    If you need any help for your Business or Personal Tax Advice and Planning, then please feel free to contact us on 0330 001 0975 or email us on contact@jrfa.co.uk

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