TAX ACCOUNTANCY

There is no doubt that the Inland Revenue are looking at us with greater severity than ever before, whether if be Income Tax, Capital Gains Tax or Inheritance Tax.

There is no doubt that more and more individuals are seeking ways of non disclosure or tax evasion as it is referred to. Our advice is – don’t do it – it is not worth the risk. The fines, penalties and interest that will be incurred will make getting caught the worst days of your life financially.

Despite the crackdown on tax avoidance schemes over the last decade, there are still plenty of means of reducing and legitimately avoiding Income Tax, Capital Gains Tax and Inheritance Tax.

Although the Income Tax short form is far more simple for many and one that most can manage, it is the normal long form and supplemental forms where most mistakes are made. This is particularly the case with Form CGI, the reporting of Capital Gains. Like many elements of the UK tax system, Capital Gains Tax is unnecessarily complicated even though as of April 2008 it has had a massive simplification. However, as a result of this simplification for many there will be an increase in the rate of tax payable due to the abolition of indexation and taper relief. Special rules will apply for business assets 

Please contact us for further details.

Furthermore, since June 22nd 2010 there are now two tax rates for Capital Gains Tax - 18% and 28% - and the amount the taxpayer will pay will depend on other income in the tax year in which the gain has been made.  This will catch many investors unaware.

The Inland Revenue’s view is quite simple, it is up to you the taxpayer to ensure your tax forms are completed correctly – if you can’t do them I would recommend you find someone who can. Reasonable excuses such as being in hospital for some months will still incur a penalty of possibly 20% of the tax due and interest, maybe more.

Tax accountancy is also important from a probate administration point of view as there are several calculations that need to be done, some of which can result in a repayment of tax, rather than extra tax.

Make sure you don’t inadvertently pay too much tax. If you are not sure it is always wise to employ the services of a professional; it is possible that they can reduce your tax liability by more than the fees incurred.