> Income Tax & Self Assessment

Income Tax & Self Assessment

Income tax is payable in respect of taxable income arising in a tax year, the year ending 5th April. Self-assessment is exactly that, the individual should assess their income, deductions, allowances and determine if they consider it necessary to submit a tax return and pay any relevant income tax.

banner-income-tax-self-assessment

Income tax

An individual’s taxable income is calculated as his total income less any deductions or allowances available.

Income tax covers the following sources of income:

  • Trading income
  • Income from UK Land & Property
  • Savings and Investments
  • Employment income
  • State benefits and pensions
  • Sundry income
  • Overseas income and issues

Self-assessment

Problems arise because most individuals do not know what is taxable income and what is not, what deductions and allowances are available and when submissions should be made to Her Majesty’s Revenue & Customs.

That’s where Nathan’s can help, we can determine your income and assess whether or not you need to submit a tax return. It is surprising how many people are ignorant of their need to self-assess. It’s even more surprising how many people think having a second home or holiday home and renting it out does not need declaring!

The legislation around personal tax is large – personal allowances, abatement of allowances, basic rate band, higher rate, additional rate, rental income and losses, trading income and losses, savings income, bonds, charges on income, pension contributions.

Don’t get caught out, don’t fall foul of the interest and penalties levied by HMRC, speak to Nathans to ensure you are compliant.

Contact us