How much can I earn before paying income tax?

Every person who is resident in the UK is given a personal allowance each tax year. It operates as follows: The personal allowance is the amount of income you can receive before paying tax – and it generally increases each tax year.  For the 2019/20 tax year, it is...

Do you need to submit a Tax Return?

You need to submit an Income Tax return if HMRC send you a Tax Return to complete or, if you know that you have income tax or capital gains tax to pay. However, HMRC have a list of further circumstances where a Tax Return should be prepared, including: Your income...

Tax avoidance? Tax evasion? What to say? What to think?

The ongoing controversy about avoidance and evasion continues to create a lot of heat but nothing constructive seems come out of the debate. Since the 1920’s the law has stated that we all have the right to order our affairs in a tax efficient way. We have the right...

Overdrawn Director’s Loan account s.455 tax explained

This tax is the result of an overdrawn Director’s Loan Account (DLA).  Here is a brief explanation of how this happens; the implications, and what to do. An overdrawn Director’s Loan Account (DLA) can often arise accidentally when a Director/shareholder takes money...

Annual investment allowance

When a business buys fixed assets, plant equipment, commercial vehicles, IT equipment, fixtures and fittings, it can claim the total cost against its trading profits (effectively reducing your profit for tax purposes). It is done using something called the Annual...