Income Tax is exactly as it sounds: a ‘tax on your income’. However, not all income is taxable, and even then you are only taxed when you earn above certain levels.
Income Tax applies to the following:
• Earnings from employment
• Earnings from self-employment
• Receipts from most pension schemes (including state, company and personal)
• Interest generated on most savings accounts
• Income from shares, rental income and income paid to you from a trust
Essentially, you can and will be taxed on almost everything you earn that is above your personal allowance.
At Quove Accounting, we can help you to reduce the amount of Income Tax that is payable to the Government and keep your earnings where they belong – with you!
We are much more than your average accountancy firm. Through our commitment to providing you with the latest tax advice, support and industry knowledge, our tax experts can ensure that you pay ONLY what you are liable for.
Contrary to the belief of some, Inheritance Tax (IHT) not only affects the very rich, but other people may be liable without realising.
Capital Gains Tax
Along with Inheritance Tax, Capital Gains Tax (CGT) is often referred to as a voluntary tax. With careful CGT advice, it is often possible for individuals and/or trusts to reduce, totally avoid and/or delay payment of CGT.
Inheritance Tax is no longer confined to the super-rich. If, like many people in the UK, your assets exceed £325,000, being hit with a 40% bill upon inheritance can exacerbate an already stressful time for your loved ones.
Creating and maintaining a trust is no easy feat – it’s a roller-coaster ride of legislation changes and tax complications.