Tax,keep,low,but,legal.,you,ar finance, share, loan Tax – keep it low but legal.


If your financial problems have reached the point where you do not see a way out and you feel as though you are drowning in debt, your best way out is through declaring bankruptcy. Filing may well allow you to get your finances back on track Thankfully, there are now several web sites that are there to help people like you with bad credit to find the fast personal loans that you need. When you have bad credit, the first thing that you should be looking for is a loan company that


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

Tax,keep,low,but,legal.,you,ar

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