Personal Tax Advice
We understand that Personal Tax, along with other taxes, can be one of the most difficult for contractors to get to grips with whilst they are working hard in their own chosen field of expertise. When an individual moves into contracting from employment, this constitutes a big change in their circumstances which presents them with new challenges but also new opportunities.
Here at SPi Accountancy we can explain your responsibilities and we will take the time to ensure you are aware of how your liabilities are calculated and ensure you are aware of the possible planning opportunities available to you to structure your affairs in the optimum way.
We will explain to you how your remuneration and expenses from your Limited company are dealt with, for example;
- Income Tax on the salary that you pay yourself from your company
- National Insurance that you incur on the salary you pay yourself
- Taxation of dividends and the interaction with your company and your personal positions
- How expenses are applied and what benefits are reportable/taxable
We will also explain to you some of the potential planning opportunities as follows:
- Income strategy within each tax year
- Dividend strategy ahead of the end of the tax year or forecasting for current and future tax years
- The benefits of pension provision and the unique opportunities that exist to contractors
- Splitting income within the rules and avoiding any pitfalls
- Extraction of accumulated reserves during or at the end of a company’s useful life. This can include:
- The possibility of claiming Entrepreneurs relief at a rate of 10% after making use of the annual Capital Gains Tax allowance (e.g. first £11,000 is tax free for 2014/15) rather than being taxed on the whole amount at prevalent dividend taxation rates of 32.5% to 37.5%
- Deferring the extraction of accumulated reserves to future years if income is expected to be substantially lower in subsequent years or you plan to move abroad
We can prepare your self-assessment return if you have a single source of income for £100 (plus VAT). If you have more complex returns then we will assess the work required and let you have a fixed quote to carry out the work.
If you have performed some work abroad in the tax year, but remain UK resident for tax purposes, we can ensure you have properly reported your worldwide income and taken credit for any tax suffered overseas by applying double taxation agreements that are in place.
Call your Account Manager or Fiona Chandler on 0151 443 6838 for a friendly discussion about your Personal Tax requirements.