Tax Allowances, Tax Reduction, Tax-Free Items

UK tax season is coming, are you ready? Many people have already received notices from HMRC reminding them of the start of self-assessment tax returns. This is the time when you report income and capital gains to HMRC and declare your expenses and allowances.

Self Assessment Tax Return

What is a self-assessment tax return? Self-assessment tax returns are the process by which taxpayers report their income and capital gains to HMRC. This is especially important for you if you are self-employed, a limited company director or an unincorporated landlord! The deadline for self-assessment tax returns for 2024 is January 31, 2025.

Have you claim eligible ttax exemptions/ reduction and allowances correctly ?

Not sure if you've claimed your exemptions and allowances correctly? You want to minimize your tax liability, but you don’t want to report errors on your return. Underpaying taxes can have consequences, and you don't want to break any tax rules. But you're actually not sure whether the tax rules apply to you. How does it apply to you? UK tax law is always difficult.

Personal Allowance - The personal allowance is the amount of tax-free income each taxpayer can earn in a tax year. Income above this amount is subject to tax.

Remittance Basis - Remittance Basis applies to non-UK residents and only income and capital gains remitted to the UK are taxable. This is to be abolish in coming years yet it is applicable currently and reduce payable tax if applied correctly.

Split Year - Split Year means that when a person moves or leaves the UK, their tax year can be treated separately based on their length of residence.

Capital Gains Allowance - Capital Gains Allowance is the amount of capital gains that are tax-free when selling an asset, and gains above this amount are subject to capital gains tax.

Personal Savings Allowance - The Savings Allowance allows taxpayers to exempt a portion of their savings interest income tax-free, depending on their tax bracket.

Dividend Allowance - Dividend allowance refers to a certain amount that taxpayers can deduct tax-free from dividend income each year. The excess amount is taxed at different rates.

Marriage Allowance - Marriage Allowance allows a portion of unused personal allowance to be transferred between spouses, thereby reducing the family's tax burden.

Trading Allowance - Trading Allowance is an allowance for small businesses and self-employed individuals that allows them to enjoy tax-free allowances without detailed records.

Mileage Allowance - Mileage Allowance is a tax-deductible vehicle expense that can be claimed based on mileage when self-employed or company employees drive on business journeys.

Allowed Costs - Allowed expenses are expenses incurred in the course of business that can be deducted from income to calculate taxable profits.

Filing your UK tax returns with ease

Prepare in advance and reduce stress, we will help you handle all your tax matters at a reasonable price. Take action today to make tax season less stressful!

If you're ready to submit your self-assessment for the 2023/24 tax year, we offer easy accounting and tax services to help you complete your return with ease. Reduce the tedious work by automatically filling in some content using data already in your account.

Those who are interested in updating tax information, please feel free to check this UK Tax Blog ! We explain and share insight of UK tax rules and information regularly. Let’s get through this tax season together!

Get tax information regularly Our website has more examples and regularly updated tax information. Follow us to make sure you don't miss any important information!

***Contact us to learn more.

#taxallowances #taxexmeptions #selfassessment #taxfiling #taxseason #taxpreparation #taxservices #accountingyearenddate #taxplanning #HMRC #SelfAssessment #TaxReturn #taxreturn2024 #taxreturnhelp #uktaxreturn #TaxSeason #TaxPreparation #TaxServices #TaxPlanning