Current details of rates and allowances set for various types of tax, (e.g. Income tax, capital gains or inheritance tax), as well as national insurance contribution thresholds can be viewed on the HMRC website (click on the link below).

Tax Tips

Tax free saving is available through Individual Savings Accounts (ISAs) for 2010 to 11 tax year the limit has been raised to £10,200 up to £5,100 of which can be saved in cash.

Remember that children are also entitled to the same personal allowance as an adult so they can receive a certain amount of income tax free, as well as being entitled to annual capital gains tax exemption.

Tax relief can be claimed on trading losses of an unincorporated business (sole trader or partnership) against other income in the year, or preceding tax years.  (conditions have to be met)

Be on time!  There is a £100 fine for late filing of self assessment tax returns - on-line submissions must be made before 31 January deadline and for paper returns these must be filed by 31 October currently.

Incorporating your business and becoming a Limited Company may mean a reduced tax liability.  If you are currently running an unincorporated business and pay income tax at the higher 40% rate it may be beneficial to switch to corporation tax currently set at 20% on the first £300,000 of company profit.  Tax planning is an important area, understanding the taxes and looking at ways to minimise them could reduce your overall liability exposure.

Links

Government Agencies & Departments

• HM Revenue and Customs (HMRC)
• Companies House
• Department for Business Innovation & Skills
• Central Office of Information
• National Insurance Contributions Agency
• Health and Safety Executive

Accounting & Taxation Sites

• AAT
• Chartered Institute of Taxation