Tax Issues

Which Tax Office deals with my Income Tax affairs?

If you are self employed you will be dealt with by a Tax Office locally.
Employed persons and persons receiving pensions from former employers are dealt with by the Tax Office dealing with the employer's Head Office. Your local Tax Office will be able to tell you which Tax Office deals with your affairs, or, if you are employed, your employer will also know.

What are the rates of tax for this tax year?

Click Here to view the Tax rate for this year

What is Self Assessment?

Under Self Assessment it is clearer what you have to do to get your tax right first time, when you have to do it, and what happens if you don't meet the deadlines.

It applies to everyone who gets a tax return. However most people do not get a tax return and pay through PAYE or other deduction at source arrangements.

The first Self Assessment tax return was issued in April 1997.

The Self Assessment tax return is made up of a basic core return together with separate supplementary pages - which ones you get will depend on your circumstances and the type of income you receive.

One of the biggest changes is that your tax bill will be based on the figures that you provide on your tax return without us first checking them in detail and agreeing them. We will check them later, within a year of the final deadline for sending the return back to us (31 January).

You need to fill in your return giving full details of all taxable income and gains you received in the year, and claim any allowances as well. This means that you are responsible for ensuring that you pay the right amount of tax, even if you do not actually work out the tax yourself.

We will work out your tax bill for you, (in fact, we'd prefer to do this) but you can work it out yourself if you wish.

We will send you a statement showing what you owe and what you've paid.

There will be one tax bill and one set of payment dates.

What are the important dates under Self Assessment?

Click Here for important dates that you need to know for Self Assessment

I am taking someone on - what do I have to do?

Click Here to view the Inland Revenue guide for taking on employees

What is Construction Industry Scheme (CIS)?

Businesses operating in the construction industry are known as contractors and subcontractors and they may be companies, partnerships or self-employed individuals.

Contractors pay subcontractors for construction operations and subcontractors are those businesses that carry out building work for contractors.

The Construction Industry Scheme sets out the rules for how payments to subcontractors for construction work must be handled by contractors in the construction industry and certain other businesses.

Under the Scheme, all payments made from contractors to subcontractors must take account of the subcontractor’s tax status as determined by HM Revenue & Customs. This may require the contractor to make a deduction, which they then pay to HM Revenue & Customs, from that part of the payment that does not represent the cost of materials incurred by the subcontractor.

As of 6 April 2007 a New Construction Industry Scheme started. Its aims are:

to reduce the regulatory burden of the Scheme on construction businesses
to improve the level of compliance by construction businesses with their tax obligations
to help construction businesses to get the employment status of their workers right.

Click Here for more information.