| If you are really well-to-do you could employ an | | | | account at intervals (sometimes as frequently as |
| account to look after your tax affairs, but for | | | | every month), or rolling up into a lump sum at the |
| most of us this is not a realistic proposition. The | | | | end of the investment period. These investments |
| resultant charge for the accountant's services | | | | are tax free to the point that it is not even |
| could well exceed any saving achieved, so we | | | | necessary to mention them to the taxman; |
| have to deal with the problem ourselves. This is | | | | money laundering regulations however will |
| not too bad if it is dealt with in a logical order | | | | necessitate you providing proof of identity i.e. a |
| rather than the system which is employed by | | | | passport or similar. |
| many - last minute blind panic! | | | | Many tax affairs can be difficult and there are |
| It is fairly certain that most of us have been in | | | | some strange sounding clauses in relation to |
| that position at some time, and it certainly does | | | | coding, so if you are still in doubt then telephone |
| not produce the best results. So you are going to | | | | your tax office and ask for help - they are |
| be your own accountant. You start with a big | | | | always ready to provide explanations to solve the |
| advantage - a good knowledge of your financial | | | | very many problems which can arise. Taxation is |
| situation and records. Well you do, don't you? Of | | | | a complex subject and few people can get by |
| course you do, because during the last tax year | | | | without assistance. The tax authorities recognise |
| you have not destroyed one piece of paper | | | | this fact, and they provide a very helpful website |
| which could have a bearing on the tax due. | | | | at where many queries can be resolved. |
| You will have kept clear records if you are self | | | | Other items worthy of attention are working |
| employed, but even if you are on PAYE you | | | | family credit if your income from employment is |
| must retain anything which may be relevant. This | | | | low enough to qualify, or child tax credit if you |
| will not be a massive heap of paper, but must | | | | are the main person responsible for the child or |
| include the obvious essentials such as bank | | | | children on a day to day basis. Check the |
| statements, building society books, dividend | | | | information on On the other hand your job centre |
| vouchers and any documents from the tax office. | | | | will advise you whether you are likely to qualify |
| One item which you will almost certainly have | | | | for unemployment benefit as a result of recent |
| received from the taxman is your 'notice of | | | | loss of work. |
| coding'. Put simply, this tells you how much you | | | | After age 60 (and increased for the over 65s) |
| can earn before tax becomes payable. If in doubt | | | | you can call 0800 169 0133 to find out if you can |
| about what it means read the leaflet which | | | | get a guaranteed minimum income by qualifying |
| accompanies the notice; it explains the significance | | | | for pension credit' |
| of your code number in a very straightforward | | | | An important point which applies to any and all |
| way. | | | | attempts to reduce your tax burden is to stay on |
| It is very important to check that the figures | | | | the right side of the law. Never deliberately falsify |
| used are correct. The current tax free earning | | | | the figures which you submit to the Inland |
| limit is £5035 per year although there are | | | | Revenue unless you fancy an uncomfortable time |
| variations for older persons. If you do pay tax, | | | | in a cell, and make no mistake - the authorities |
| check out your spouse, not to see if they will pay | | | | are ready to pounce on anyone suspected of tax |
| some for you but to ensure that they use all | | | | evasion. However, tax avoidance i.e. the ordering |
| their tax free allowance. If they don't, look at the | | | | of your affairs in such a way as to attract the |
| possibility of moving some of your investments | | | | absolute minimum tax liability within the regulations |
| to them to use the surplus allowance. | | | | applying at the time, is not only legal but eminently |
| Alternatively you should consider moving | | | | sensible. |
| investments into tax free ISAs. You can invest in | | | | No one will thank you for paying too much tax, |
| various types of ISA but there is an annual limit | | | | and you will not be happy if you find that you are |
| on the amount which you can invest. Your return | | | | 'guilty' of such carelessness, so do not help to put |
| on these can be in the form of variable sums of | | | | a smile on the face of the Chancellor of the |
| money paid into your bank or building society | | | | Exchequer. |