Self assessment can be a daunting prospect. Business Accounting Ltd is here to help.
We support clients by helping them to: ● Understand their current tax position. ● Apply for a refund from HMRC. ● Declare investment income from the UK and foreign shares and dividends. ● Take measures to prevent future underpayment of tax. ● Inform clients of related tax efficient options.
Common issues that we can support you with: ● Tax code changes that HMRC do not clearly explain. ● Earning around £100,000 and tax code looks wrong. ● Multiple income sources, dividends and foreign income.
Example issue involving a tax code.
An employee receives a large bonus midway through the tax year. HMRC forecast an annual salary of over £100k per year and therefore remove the personal allowances. This will likely cause tax deductions to rocket and can be very frustrating for individuals as they struggle to understand the changes.
This is typically due to incorrect assumptions from HMRC’s automated system or changes to company benefits across the recent months/years. The solution?
1. A full breakdown of the current year and prior year tax position. 2. A simple breakdown for the client. 3. Liaise with HMRC to resolve the issue. 4. Future recommendation to avoid more surprises.