PERSONAL TAX

Personal Tax or Income Tax for sole traders and partnerships are done as part of filling in a tax return which follows the tax year of April to April due to be submitted the following year by 31st Jan.

Morgan Wells will do a set of accounts which includes a profit & loss account, we then use our tax software to input and send you a tax summary for you to agree before we submit your figures to HMRC.

• Your personal Allowance for Income Tax is £12,500 for the tax year 19-20 which means you don’t pay any tax for the first £12,500 profit but you do pay National Insurance.
• Self-employed people have to pay Class 2 NI £3.00 per week over £6,365 profit but you can opt in to pay anyway even if your profits are less and then you are paying towards your government pension. Class 4 NI @ 9% when your profits are over £8632 - £50,000 plus 2% on profits over £50,000

You also need to do a tax return when you rent out a property in the UK or abroad

Or you have any other income that you need to declare over and above your wages if you are employed.

If you are not sure we can help you work out what you need to do.

If you have been requested to fill out a tax return and you miss the deadline you will automatically receive a £100 penalty which then increases after 3 months so it’s better to be organised and not get a fine.