Our Income Tax Advice will save you money, time and unnecessary inconvenience, as well as help you understand key questions, such as
· How does income tax affect me?
· What do I have to pay income tax on?
Areas we can advise you on include:
Domicile and Residence
Both can greatly impact the level of UKIncome Tax you are required to pay or if you need to pay UK tax at all.
Domicile in particular is relevant forInheritance Tax.
If you have recently moved to the UK or planning on emigrating, and you are unsure of your residence or domicile status, let us know, we can advise on both your residence and domicile status and how this will impact you and your tax position.
Tax on Savings Income
As with other types of income, tax can be due on savings income. Savings income includes bank and building society interest, which is paid gross (no tax being deducted at source), NS & I accounts and government stocks or gilts.
Depending on each individual’s taxable income level, savings income can be taxed at 0%, 20%, 40% or 45%. A savings nil rate applies of £1,000 if you are basic rate tax payer. This savings allowance decreases to £500 for higher rate tax payers and zero savings allowance if you are an additional tax payer.
Dividend Income
This is taxed after non-savings income and interest income as a top slice of income.
Each individual has a dividend allowance of £2,000, where any dividend income within this is taxed at 0%.
Dividend rates vary from 0%, 8.75%,33.75% & 39.35%.
If you own your own business and would like to know the most beneficial way to take out income, we can compare how different employment income and dividend income levels would impact you.
ISAs
ISAs are tax-free investment vehicles, where all your income and gains from investments are free from income tax and capital gains tax. They are available to anyone aged 18 or over.
There are lifetime ISAs, Junior ISAs, cash ISAs & Stocks and shares ISA.
