Tag Archives : Tax Tips


Determine your Tax Residency using Statuary Residency Test 1

Residency is an important concept in tax. This is because you pay tax depending on where you are resident (and domiciled) as seen by the post “ Should you pay Tax in the UK on your income?”. In short, If you are resident and domiciled in the UK, you pay tax on the arising basis . This means you will have to pay tax in the UK on any income earned throughout the world. If you are resident but not domiciled in the UK, you pay tax on the remittance basis. This means you will need to pay tax in the UK on any income earned in the UK and […]


Should you pay tax in the UK on your income? 1

As an individual, your tax liability in the UK depends on your residency and domicile status. Your residency is where you live permanently or on a long-term basis. For tax purposes, your residency is determined by the Statutory Residency Test. You can read all about the Residency test in an article I wrote here so that you can determine if you are resident for Tax purposes or not. Your domicile is normally your country of origin or where you were born. If you are resident and domiciled in the UK, you pay tax on the arising basis . This means you will have to pay tax in the UK on […]


ISA Allowance Used Up? No problem, Here Are Other Ways To Help Save Tax Free! 4

As the last date (5 April) to put money into this current years ISA fast approaches, many people are scrambling to top-up their ISAs. Most advice that is available is for those people who still haven’t used up all their £15,000 ISA allowance. But what if you have used up all your allowance but still want to invest tax free. In that case, this article is for you. There are 3 other ways, apart from an ISA, that you are able to invest and shelter your money from tax: 1) Capital Gains Allowance – Many people don’t know about the capital gains allowance. With this, you can make gains of up […]


Tax Year End Checklist

With the 2014/2015 tax year end fast approaching on 5 April, now would be a good time to check all your finances are in order and also to assess whether you have used all the allowances available to you. Here is a list of 8 items I feel you should check before the end of the tax year.   1) Make use of your ISA allowance – You can shelter up to £15,000 from tax this year ( 6 April 2014 – 5 April 2015) and every subsequent tax year. You ISA can be split between cash and stocks and shares depending on your preferences. Investments in an ISA are […]


Who needs to pay Capital Gains Tax? And on what assets you need to pay Capital Gains Tax 5

In the simplest sense, you need to pa Capital gains tax if you sell an asset for more than it cost you to acquire it. In the most straightforward of terms, Capital Gains is What you receive for an item Less What you paid for it Less Allowable disposable expenses Less The cost of certain improvements.   The Legislation In its truest sense, capital gains arise when a chargeable person, disposes of a chargeable asset, on a chargeable occasion. These terms are not found in legislation so tax law would be used to define them. I will explain them in a straightforward and simple manner in order not to make it too […]


How To Reduce Your Tax Bill! (An easy to read guide for different situations)

  Many people are now rushing to complete their Self Assessment and pay their tax liability by 31 January. Whilst paying tax may seem like a burden to most, it has to be done to ensure public services get the funding it needs. But to help you pay the correct amount of tax and not pay any more than you should do (unlike many), here is a list of ways to legally reduce your tax bill. Whilst some of the ways listed below can be implemented quickly and help you save tax immediately, others are more longer term and you can think about doing them for the next tax year […]


5 Ways Landlords Can Reduce Their Tax Bill! 2

Being a landlord isn’t easy. It leads to a lot of complications, awful tenants and the need for a real estate lawyer which can all be costly. And now it is that time of year again where people start to think about ways to reduce their tax bill. With the deadline of 31 January for filing online returns fast approaching, it could be difficult to make any significant changes to your accounting practices at the last minute. With this in mind, here are 5 simple and legal steps land-lords can take to reduce their tax liability and save more money.   1) Take advantage of the rent a room scheme […]


What is Income Tax and What exactly do you need to pay it on? 2

What is Income Tax? Income tax, as its name suggests, is a tax on income. It is charged on the: Income of UK resident individuals arising anywhere in the world. ( So if you are a UK resident and earn some money in France, you need to pay income tax in the UK) Income from non-UK resident individuals arising from a source in the UK. (So if you come from abroad, you need to pay tax on any income you earn whilst in the UK) Income of trustees who are UK resident. For the above, you can see that residential status is integral to knowing whether or not you pay […]


Are You Claiming All The Tax Exemptions You Are Entitled To ? Earn £45, 990 Tax Free! 1

The autumn statement which was announced last month has brought about changes to the tax system. Some taxes have gone up whilst others have fallen down. Most of these tax changes will begin to take effect from next April (beginning of tax year). The question on most peoples minds is how to save the most money possible. This article will aim to show steps you can take in order have a tax ‘free’ income of £45, 990; in theory at least! 1)  Personal Allowance = £10, 500. The personal allowance threshold has increased from £10, 000 to £10, 500 meaning that you are able to earn up to £10, 500 […]


Tax on Dividends in Different Countries and Why This Affects You!

You may think that the tax rate in other countries doesn’t affect you, but you couldn’t be more wrong. In this modern globalized world, corporation tax rates and systems of various countries will have differing effects on your investment portfolios. Nearly all people, both living in the U.K and abroad, have their investments and pensions spread across a number of different countries and thus it is important to get a basic understanding of the differing tax systems. Tax systems have a very important role to play in a company deciding on whether to pay-out dividends or not. As you will see, certain tax systems encourage dividend pay-outs whilst other discourage […]