Income Tax

Income tax is the tax liability levied on the income above a specific personal Allowance threshold. The income that comes under the income tax scope is employment income, profits made if you are self-employed, certain government grants and support payments, personal pensions and State pension, income from a trust, extra benefits from a job, etc. There are also numerous allowances, reliefs and tax-exempted income that must be considered.

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Corporate Tax

Corporation tax is levied on limited companies, clubs, cooperative associations like community groups, and sports clubs. The current corporation tax rate is 19% which is applied to the taxable profit. Taxable profit is computed after deducting all the tax-allowable expenses, but some expenses do not tax allowable, so they need to be added back to the profit figure.

In short corporate tax are a mixture of earnings, expenses (out of which some are tax allowable, some are not), several claims and certain allowances. Such a wide variety of items require that there should be a professional to handle the complexity of the matter.

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Disclaimer

Capital Gains Tax

Capital gains tax applies to the disposal of capital assets that have been appreciated. CGT does not apply to unsold assets, stocks or any other investment; it is only payable when sold, and the profit is realised. Before the sale of assets, no CGT applies no matter how much they have increased in value or how long they have been held. CGT does contain a lot of complexities, with many inclusions and exemptions.

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Inheritance Tax

The inherited estate does not come without its tax implications. The distribution of estates among the heirs and applying inheritance tax rules is seriously complicated and requires specialist knowledge and expertise. Inheritance tax, in general, cannot be calculated using a default format because of the different types of assets involved and complex family structures.

Computing Inheritance tax bill and claiming necessary allowances and reliefs is an art, not a science, such as making charity donations, leaving the estate to the spouse, putting assets into a trust, giving gifts, paying into pension funds so on.

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R&D Tax Credits

An R&D tax credit is an initiative by the UK government to encourage investments in the research and development department. It can benefit businesses in the following ways:

1. Increased productivity and efficiency of the business processes and bring innovations to its products
2. Incremental tax relief for investing in R&D

Improved quality services and products also enhance customers’ welfare. We can help you determine if your business can qualify for R&D tax credits and effectively reduce the taxable profit.

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Tax Return

Working out the tax liability and filing the return to the HMRC can be difficult and time-consuming. Every source of income needs to be incorporated, and all allowances and reliefs should be considered. Seeking professional assistance to file a tax return, though not required by law, provides you with a sense of satisfaction with minimal errors and reduces the chances of HMRC investigations being started. Care accountancy provides top-notch service in this regard in almost every type of tax, and our expert team members try hard to reduce your tax liability by claiming all available reliefs and allowances as possible.

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