Did you know that £322million is overpaid in tax every year?
Did you also know that the average tax bill has doubled since 1990? Are you sure you’re claiming the maximum expenses? Do you know if you’re on the best VAT scheme?
What you should know:
Income Tax (Also known as pay as you earn)
This is tax deducted from salary paid by an employer.
Tax is due monthly on 21st of the following month. If you pay staff on the 30th April, the tax is due to the revenue by the 21st of May
Tax is due quarterly on the 19th of January, April, July and October of each year if the Contributions are less than £1500 per month.
Income Tax rates for 2011/12 are as follows:-
Personal Allowance (free of tax) £ 7,475 then
Basic Rate on the next £35,000 at 20% then
Higher Rate on taxable income over £35,001 - £150,000 at 40% then
Additonal Rate for Taxable Income Over £150,000 AT 50%
National Insurance is due by both employee and employer
National Insurance is paid at the same time as PAYE.
The employee pays at the rate of
12% on salary between £5,305 to £43,875 and
2% above £43,875.
The employer pays a rate of 13.8% on all salary over £7,072.
VAT (Value Added Tax)
VAT is charged at 20% on your services; this is paid over on a quarterly basis. Less any VAT that you are claiming for goods and services purchased
Limited Companies pay Corporation Tax on its profits. The current rate for small companies is 20% from April 2011.
The rate for the prevoius year was 21%. This tax is paid nine months after the company’s year-end.