Income Tax & National Insurance
Income Tax is by far the largest source of tax revenue for the UK government, it accounts for 27% of the total of all tax collected. National Insurance is the government’s second largest tax take at 19%. That makes 46% of total tax revenues between them, whilst Corporation Tax (which multi-nationals and private ltd companies alike all pay) makes up just 6%.
A ‘Basic rate’ taxpayer will generally contribute 32% of their earnings once they earn more than £11000 per annum (in 2016/17).
Most ‘Higher rate’ taxpayers can expect to contribute 42% of their earnings, and ‘Additional rate’ payers contribute a generous 45%.
Income tax therefore concerns almost everyone, but fortunately, there are ways to reduce the amount of Income Tax and NI you pay and we have the expertise and knowledge to advise you on how to do so.
We do not advocate tax evasion (illegal) or provocative forms of tax avoidance (legal, but …..); however, we will explain to you how legitimate tax planning measures can be implemented.
If you are interested in discussing your options please give us a call so that we can arrange a meeting to discuss.
The following are examples of just some of the ways in which Income Tax can be saved, but only if you get the right advice and at the appropriate time:
- Date changes for ‘Making Tax Digital’
- What now for ISA savings?
- The state shovels in your coffers
- VAT on property – The Capital Goods Scheme
- Property developers – Extracting profits as capital
- Buy to let investors – don’t pay too much stamp duty land tax!
- Tax free reimbursement of directors and employees expense claims
- Should I save for retirement using an ISA or a pension fund?
- The impact of VAT and Income Tax on a Landlord’s profits
- Should you incorporate your Residential Property Letting Business?