Whether you are a business calculating income tax for your employees or your profession allows you to contribute taxes yourself, you must get it spot on. If you are struggling to calculate personal income tax correctly, you may require the assistance of an accountant.
If you are unsure about whether to hire an accountant or file your own personal income tax, Coleman & Co can always provide advice for your business and provide leading software. We will help every business and person when it comes to your tax returns.
What Is Personal Income Tax?
Personal income tax is based on the amount of income you receive over your personal allowance and how much of your income falls within each tax band. Some of your income will be tax free, whereas the more money you earn, the more will be taxed. Income tax is what the government impose upon your financial income to be used for public services.
Whether you are a business or individual, you must file your personal income tax returns every year. This will always be dependent on whether you have acquired enough money over the previous year to pay taxes. This will confirm whether you owe any taxes once tax returns are paid or if you are eligible for a tax refund.
Standard personal allowance for this tax year is £11,500, meaning you don’t have to pay tax if you earn equal to or under this amount. After this, up to £45,000 is 20% tax, up to £150,000 is 40% and anything over this has a 45% tax rate.
Additionally, if you earn over £123,000, you no longer have a personal allowance, meaning all your income is taxed.
Accuracy & Time
When submitting your tax returns, it can be a very time-consuming process and may have to be completely redone if not accurate. keeping track of the previous financial year is essential to filing an accurate tax return. Whilst running a business or as an individual, you do not want to be caught up in the financial aspects and tax payments within your salary.
With the assistance of an accountant, you have the complete guarantee that taxes will be correctly submitted. If you do not keep track of your income and expenses over a business year, you should always consider the option of accountants. Using computerised accounting systems, taxes will always be calculated correctly using the figures we have stored in the system. This will then be submitted on time to the HMRC, avoiding any chance of fines and penalties.
Our tax accountants at Coleman & Co have a great understanding of all tax laws. This ensures we know exactly how much money should be paid with our bookkeeping service and dealing with the HMRC will never be an issue.
Errors are simple to make and if you are completing tax returns all on your own, there is a high risk you will make a mistake. Without the correct software or the advice from professionals, you may not stay updated with tax laws and find it difficult to submit complete accurate returns. With accountants, errors will always be recognised and financial figures double checked to spot any errors.
This will then be put in the correct software, giving tan accurate calculation to ensure tax deductions are correct. When calculating personal income tax, you do not want to pay less than the correct amount and you also do not want to take too much money away from earnings. With our expertise, we ensure you earn the correct amount and save you money during the process.
If you require assistance with your personal income tax, Coleman & Co are always happy to help. We can provide advice on all taxes and ensure you make the correct tax payments every tax year. Contact our team today for advice in Lisburn on 028 9266 3599.