On average it takes that long to pay for your taxes. Tax Freedom Day marks when you begin working for yourself.
Shocked? Well, compared to last year, this year you've had to work 3 days more for the government, the longest since 1988!
For more detailed information on Tax Freedom Day click here

Save Tax Now!

You can take steps now to reduce your tax burden.
To estimate how much tax you could be wasting click here

The four main areas of taxation you can consider for possible tax savings are:
• Inheritance Tax
• Capital Gains Tax
• Income Tax
• Corporation Tax

Inheritance Tax

10 FACTS you should know about Inheritance Tax:
• Inheritance Tax is payable at 40% of the value of an estate that exceeds the current nil rate band threshold of £285,000.
• Inheritance tax could cost your beneficiaries up to £114,000
• Any Inheritance Tax due has to be paid before your estate is distributed.
• 2.1 million households in the UK exceed the current Inheritance Tax threshold.1
• Over the next 4 years, assuming the Inheritance Tax threshold rises in line with inflation, the projected number of people who will fall into the Inheritance Tax net will rise to 3.6 million.1
• In the tax year 2004/2005 the Treasury took £3.4 billion in revenue from Inheritance Tax, up from £1.36 billion in 1997.1
• £1.6 billion was wasted in tax in 2004/2005 through lack of, or poor Inheritance Tax planning.1
• The Inheritance Tax threshold, currently £285,000, has risen by only 21.8% over the last five tax years.3
• Average house prices in the UK have risen by 93% over the last 5 years.2
• The average house price in the UK stands at £163,573.2
(Sources: 1Grant Thornton 2005; 2Nationwide House Price Index April 2006; 3HM Revenue & Customs)
Are you already ensnared, or in danger of being caught in the Inheritance Tax net?

Good news - we can help!

Despite the changes in the last Budget it is still possible to reduce or even avoid the worry and financial effects of being caught in the Inheritance Tax net through effective estate and tax planning.
Don’t leave it until it's too late. Contact us now for a free initial consultation on reducing or avoiding Inheritance Tax. Click here.
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Capital Gains Tax

Capital Gains Tax (CGT) is payable on the sale of a capital asset that has increased in value. For individuals, investments that are most likely to attract CGT will be direct share holdings, unit trusts or OEICs, investment trusts and second homes, including buy-to-let properties. Proceeds from PEPs, ISAs and investment bonds through insurance companies do not attract CGT for the individual.
Everyone, including children, has an annual CGT exemption. For the tax year 2006/2007 this is £8,800. If an asset is in joint names then you have two exemptions available. If you have made a loss on an investment, including ones made in past years, these can be carried forward and used to ‘reduce’ the gain you may make from other investments or in other years.
You can then apply taper relief to any gain you have made. Basically you get extra relief from CGT the longer you have owned an asset. This taper relief applies only after any losses have already been deducted and your annual exemption of £8,800 will be deducted from any gains after taper relief is applied.
CGT can be a complicated area of financial planning, where the timing of cashing in an asset, depending on whether you are making a gain or a loss, is crucial.. Always take advice before cashing in your assets.

Contact us now to find out how we may be able to help you. Click here.
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Income Tax

The main focus here is making sure you claim all your allowances and take advantage of other tax breaks. Here are the main allowances and tax credits for the tax year 2006/2007.

Child Tax Credit 

This provides tax credits for children and for 16-18 year olds in education. The amount you get is based on your income. You can claim whether or not you are in work. All families with children, with an income up to £58,000 a year (or up to £66,000 a year if there is a child under one year old), can claim in the same way.

Working Tax Credit 

This is a payment to top up the earnings of low paid working people (whether employed or self-employed), including those who do not have children.

Other tax breaks you should consider taking advantage of include:
• Using your annual ISA investment allowance of £7,000
• Making use of the tax benefits of investing in a pension plan
• Making charitable donations via Gift Aid
• Claiming tax refunds on savings account investments held by none taxpayers using form R85
• If you are home owner with a spare room, you may be able to benefit from the 'Rent a Room Scheme', whereby homeowners can charge rent up to £4,250 tax free within the tax year.

Finally, make sure you complete and return your self-assessment tax return on time to avoid a potential fine, and make your tax payments, both on account and balancing, when required.
Important dates for tax self-assessment:

 Dates for Income Tax Payments (including Class 4 NIC) 

Contact us now to find out how we may be able to help you.  Click here 
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Corporation Tax

Corporation Tax is a tax on a company's taxable income or profits. The current rates are shown below. The word 'company' is also used to include:
• members' clubs, societies and associations
• trade associations
• housing associations
• groups of individuals carrying on a business but not as a partnership, (for example, co-operatives.)

What you have to do

For Corporation Tax, companies:
• have to work out their own tax liability
• have to pay their tax without prior assessment by the Inland Revenue
and
• are liable to penalties if they do not deliver a return by the statutory filing date, normally 12 months after the end of the accounting period.

Corporation Tax is due for 'Accounting Periods' which are normally 12 months long. Accounting periods can, in some circumstances be shorter than 12 months, but never longer.
For most companies, the payment of Corporation Tax is due nine calendar months and one day after the end of the accounting period. This is known as the 'Normal Due Date'. If the accounting period ends on the last day of a month, the normal due date will be the first day of the tenth following month. For example, an accounting period ending on 31 May 2002 will have a due date of 1st March 2003.

Large companies must pay their tax earlier than this date, by Quarterly Instalments.
• If the right amount of tax is not paid by the normal due date, the company may be liable to pay interest on the tax underpaid.
• It too much tax was paid before the normal due date, the company may be entitled to interest on any repayment due.
• If tax due is paid before the normal due date, the company may be entitled to interest on the payment because they paid early.

Rates and Allowances - Corporation Tax on profits

*The 2005 Pre- Budget Report announced that the starting rate and non-corporate distribution rate would be replaced with a single banding for small companies set at the existing small companies' rate.
Contact us now to find out how we may be able to help you. Click here. Further details on all aspects of taxation are available on www.hmrc.gov.uk
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