Dealing with your own personal taxes can be a daunting task. With so many sources of income covered in a personal tax return, using a firm of personal tax accountants can ensure that your tax affairs are kept up to date and that tax planning opportunities are taken advantage of.
At Spotlight Accounting we specialise in all aspect of your personal tax affairs.
What is personal tax?
Personal tax is the UK tax that is paid on all personal income sources, which is reported annually through a self assessment tax return.
Most UK residents are not required to complete a personal tax return, due to being employed and paying their tax through PAYE.
What is included in personal tax?
Personal tax covers a wide range of income streams including:
- Income tax - relating to the trading income of a sole trader or a partners share of profits in a partnership
- Investment income - including dividends and interest
- Property income - including profits on personally owned properties that are let on both a long term and short term holiday let
- Capital gains tax - this is on the profits made on the sale of a 'chargeable asset' such as a second property or shares
How is personal income tax calculated?
Personal tax is calculated on the total income an individual receives in a tax year. The tax year runs to 5th April each year.
Tax is applied to each income source in a specific order, with ‘earned income’ such as employment and sole trade income applied first, and investment income such as property income and dividends taxed last.
There are also reliefs that can be claimed for expenditure for donations, pension contributions and employment expenses, where tax relief is given elsewhere.
What personal tax services do Spotlight Accounting provide?
Spotlight Accounting offer a range of services to deal with all your personal tax affairs. From tax compliance, where we complete your tax returns annually, through to tax planning services, where we look at your personal circumstances and ensure that you are operating in the most tax efficient manner.
Our bespoke service ensures that each client gets the solutions that they need to make sure that their UK tax implications are taken care of.
A good personal tax accountant will discuss tax liabilities with you and help you understand your tax obligations. Like all other accountants, we will calculate your tax bill, but built into our processes prompts in order to look for tax planning opportunities and areas where we can offer personal tax advice.
From tax compliance – where we prepare annual accounts for the business and calculate the profit their income tax liability is calculated on – to preparing individual personal tax returns and filing with HMRC on your behalf, we provide an array of tax services for self-employed individuals.
Our tax advice services ensure that tax planning opportunities are taken advantage of, including business planning and looking at whether the business is trading in the most tax efficient manner.
Included in our capital gains tax service, is capital gains tax planning. This is important as the correct timing of the disposal of investments and assets can be fundamental in ensuring you are maximising all available allowances.
We can also report gains on UK property to HMRC within 60 days of sale.
We offer personal tax services to both UK and non-resident landlords, as well as tax planning services to ensure that landlords are operating in the most tax efficient manner.
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Frequently Asked Personal Tax Accountant Questions
Does HMRC check your bank account?
What can I claim for tax relief?
There are numerous reliefs and expenses that an individual can claim depending on the income source.
Sole traders can claim costs that are 'wholly exclusively and necessary for the purpose of their trade', including telephone, computer, motor and use of home expenses. If the expenditure is less than £1,000, then they can claim the trading allowance.
Examples of expenditure that landlords can claim for, include repairs, insurance, management and professional fees. They can also claim a tax credit on finance costs.
Relief can also be claimed for pension contributions, donations, employment expenses and marriage allowance where tax relief is not given elsewhere.
Due to tax legislation constantly changing, the number of reliefs that can be claimed and the complexity of personal tax, we recommend using a firm of chartered accountants such as Spotlight Accounting, to deal with individual tax affairs.
Is inheritance tax included in a personal tax return?
What happens when you lose your Personal Allowance?
Why choose personal tax services from spotlight accounting?
As a firm of chartered accountants, Spotlight Accounting are fully qualified to deal with all aspects of personal tax. From making sure you are paying the right amount of tax and staying compliant with HMRC, through to financial planning and ensuring that you are operating in the most tax efficient manner.
As experienced tax accountants, we can help navigate you through the complexities of the UK personal tax system, and help you understand the taxes that you need to pay.
Each client is given a dedicated personal tax accountant so that they have a point of contact. Relationship building is important to us so that we can do our job effectively and help clients save money.
We are not a tax return factory, and in order to deliver the best value to our clients we need to understand their business, and what they want to achieve from it.
We like to make the process as pain free as possible, so existing clients are asked for their tax information well in advance of the filing date, so that their self assessment tax returns are filed with HMRC in plenty of time.
If working with Spotlight looks like something that would benefit you please get in touch for an initial call.
Can make better business decisions
Can control costs more effectively
Have greater understanding of their cash flow - including payments that are due and need to be made
Can grow the business much more quickly due to spotting trends
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To learn more about the Management Accounting service we offer, why not get in touch with us today?
