There are some key taxes in the UK which may create opportunities for refunds, we plan to extend this section with more pages and links of advice, if you have ideas and information please contact us

VAT (Value Added Tax)  - charged by VAT registered business users and companies and reclaimed under certain conditions only by VAT registered firms. This guide does not set out to explain VAT in detail which most firms will already understand or be able to find by reference to HM Customs and Excise area offices or their web site www.hmce.gov.uk/

Visitors from the EEC or Non EEC countries to the UK should see the VAT refund page http://www.hmce.gov.uk/public/vatrefunds/vatrefunds.htm

 

PERSONAL INCOME TAX - paid by everyone in work, or living of investments, or in business with personal allowances to offset tax due based on circumstances of the taxpayer, scope to overpay tax during periods of unemployment or working for several employers on a part time basis. Each tax payer has a NI (National Insurance) Number and a Tax Office allocated to them, this may not be the nearest office but relate to their employers tax office. Enquires can be directed to a local or own tax office see www.inlandrevenue.gov.uk/

High earners are advised to use an accountant to deal with their tax affairs to ensure maximum use of benefits and allowances.

People in business may well be able to legally claim expenses onto the business, subject to any requirements for declaration under business accounts and/or annual tax returns to the IR. This can have a direct bearing on the amount of personal taxation paid.

The more complex ones income and expenses becomes the greater the chance for errors and missed opportunities for reducing tax, in both the short and long term.

Other taxes can be levied against individuals in particular Capital Gains Tax (CGT) incurred when an asset is disposed of at a profit, examples include shares and property. Since CGT is at a high rate any incorrect allocation can be expensive so maximum utilization of tax rules should be studied by using a qualified accountant.

COMPANY / BUSINESS TAX - ideally accounts should be prepared by qualified accountants who are abreast of the latest tax rules and thus ensure maximum benefit from relief on trading expenses and investments in new plant and machinery. Overpaying of tax unlikely and in the main aim is to reduce taxation levels by claiming as much against the business as possible.

General

• Maintaining accurate records is essential, as the controlling bodies of taxation require proof of all income and expenses for up to 6 years (or more). Whilst the records themselves are not always required to be submitted to the authorities they do (or should) form the basis of periodic returns and can be called on at any time to be supplied.

• Mistakes do occur on both sides, so official estimates or demands for tax should be checked for accuracy to ensure tax is not overpaid. You have a legal duty to report any error on your part which may result in an over or under payment of tax due.

• Tax authorities are more "customer friendly" in modern times and have help and advice telephone lines readily available, they cannot however discuss your individual situation but will lead and advise on requirements to unsure you understand what and how to undertake certain tasks required. There are many downloads available from their web sites.

• Local accountants are readily available to assist you ranging from small one person practices (which can be inexpensive) to major chartered accountancy practices for large companies. It is essential your accountant is well informed as to your personal situation and seen as a friend rather than as a necessary enemy.

• Taxation is a way of life, however by proper and efficient control and knowledge of tax rules and laws you can ensure you pay as little as possible. Tax evasion is illegal and this site does not and will not promote any illegal ways of avoiding tax. Tax avoidance, using the power of tax law to work in your favour is legal and an opportunity open to everyone to explore to their best advantage.

The following links may prove useful - tell us about more by contacting us

 

Inland Revenue - responsible for the efficient administration of national insurance contributions, stamp duties, and income, corporation, capital gains, petroleum revenue, and inheritance taxes. www.inlandrevenue.gov.uk/

 

Her Majesty's Customs & Excise - Click here for information about the VAT Flat Rate Scheme, Quick links. ... Electronic VAT Return. VAT Registration. www.hmce.gov.uk/

 

VAT calculator - Calculate the VAT contained within a total amount, or the VAT charged on a net amount.

 

Institute of Chartered Accountants in England and Wales (ICAEW) - providing information about the Institute, its services, and its members' services. www.icaew.co.uk/

 

Institute of Chartered Accountants of Scotland (ICAS) - provides a variety of services for both its members and their clients. www.icas.org.uk/