Tax Returns

Online Accountant Tax Return in Abingdon, Oxfordshire, UK

Tax returns are issued people with complex tax affairs, but also to individuals who receive:

Income from self-employment or from a partnership business
Rent or other income from land or property
Income from overseas
Other income which is received gross, i.e. without tax deducted.

There are two main types of tax return. If the Revenue thinks that you have simple tax affairs, they will issue a ‘short return’, which must be submitted by the 31st October, as it is only available in paper format. Only certain taxpayers are eligible to submit a short return and the Revenue expect the taxpayer to know whether or not they are eligible.

If your affairs are more complicated, or if you are a director of a limited company, you need to complete and file a full tax return. The form is more complex with a number of different supplementary sections that may need to be completed, depending on your circumstances. At Oxon Accountancy we use HM Revenue & Customs approved software to:

Complete your tax return
Calculate your final tax liability
File the return online
Liaise with you on the amounts to be paid and when they are due

In addition to this we can analyse your self-assessment tax return to see if any tax savings can be made and we can also review the form to see if there are any anomalies that need to be addressed before the latest tax calculation is submitted. This process helps to minimise your risk of a Revenue enquiry into your tax affairs.

By giving you a fixed, competitive price and providing that you supply the relevant information within a reasonable time scale, we can take the worry away when it comes to self- assessment tax returns, allowing you to concentrate on running your business.

How to use this tax guide

The last few months of the tax year are the ideal time to pause and reflect, and to make sure you’ve organised your finances as efficiently as possible before the new tax year begins on 6 April 2020.

It’s important to consider this from every angle: have you maximised all of your tax-free allowances? Have you claimed any reliefs available? And have you made plans for future changes?

This guide will help you to answer those questions and more, with detailed summaries of the tax rates, allowances and reliefs that apply to businesses and individuals for the remainder of 2019/20.

Each section comes with a set of planning points, too, which you can use as a checklist to ensure you’ve covered all the key areas to consider.

And, of course, you can contact us if you have any questions or want to discuss your tax planning further.

Important information

The way in which tax charges (or tax relief, as appropriate) are applied depends on individual circumstances and may be subject to future change. ISA and pension eligibility depend on individual circumstances.

FCA regulation applies to certain regulated activities, products and services, but does not necessarily apply to all tax-planning activities and services.

This document is solely for information purposes and nothing in it is intended to constitute advice or a recommendation.

While considerable care has been taken to ensure the information contained in this document is accurate and up-to-date, no warranty is given as to the accuracy or completeness of any information.

Personal allowances & reliefs

The personal allowance is £12,500. Non-savings and non-dividend income above this threshold is taxed at rates from 20% to 45% (or 19% to 46% in Scotland).

A higher marginal tax rate may be payable between £100,000 and £125,000 when the personal allowance reduces by £1 for every £2 above £100,000 to give a marginal rate of 60% (61.5% in Scotland) in this band for non-savings and savings income.

You can transfer £1,250 of your unutilised personal allowance to your spouse or civil partner if you do not pay income tax, and neither of you is a higher-rate taxpayer. This is known as the marriage allowance.

Tax on savings

The personal savings allowance allows a basic-rate taxpayer to receive up to £1,000 of savings income tax-free, while a higher-rate taxpayer can get up to £500 of savings income without any tax being due.

There is no relief for additional-rate (45%) taxpayers.

The first £2,000 of income from dividends in 2019/20 is tax-free, while income from dividends that exceeds this amount is taxed at rates of 7.5%, 32.5% or 38.1%.

Key considerations

Are you and your spouse or civil partner using all of your personal allowance? If not, consider using the marriage allowance.
Are there opportunities to utilise any yet unused allowances in 2019/20?
Can you reduce exposure to high marginal tax rates by retaining your full personal allowance?
Is it worth considering tax-free alternatives instead of a bonus or a salary increase?
Is your dividend strategy fully tax-efficient?
Can you utilise rent-a-room relief which, for individuals, is £7,500 or £3,750 for co-owners? More..

Phone: 01235 250011
Fax: 01235 250022
28 The Quadrant, The Science Park Barton Lane, Abingdon, OX14 3YS

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