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​SELF ASSESSMENT

 

​SELF ASSESSMENT

Self-declaration

UK residents per tax yearIf 1) self-employed earning more than £1,000; or 2) a partner in a business partnership; or 3) as an employee(wage earners)have an income of £100,000 or more,It is necessary to go to the HMRC of the British Revenue and Customs within the specified time for self assessment (Self Assessment) and tax payment. In addition to salary, the declaration content also includes dividends, commissions, property rental income, etc. Taxpayers can calculate the taxes they need to pay through self-declaration.

 
 

Self Assessment method

Generally speaking, UK residents can complete their own tax returns online or by mailing tax forms:

Online declaration by HMRC

You need to register a government Gateway account on the UK government website first, and then open a personal tax account at HMRC to complete tax declaration procedures.

Declare by mail

You can go to the UK government website to download the SA100 tax return form, fill it out and mail it to the designated address. It should be noted that the postal declaration needs to be completed 3 months earlier than the online declaration deadline.

 

Information required for Self Assessment

Before filling out the voluntary tax return, you need to prepare the following information or documents:

  1. Personal information: name, address, National Insurance Number (NI number)

  2. Income details: company name, salary income within the tax year, commissions and tips, stock or bank time deposit interest, rent, company profits, etc.

  3. Tax deduction information: charitable donations, pensions, professional fees, raw material expenses, work-related expenses deduction (applicable to self-employed persons)

UK Income tax

British income tax is calculated in a progressive manner. Income generally refers to all salaries, remuneration, benefits, pensions, investments, etc. obtained through work. Note that all income is calculated globally, that is, for example, if you have a job or rent in Hong Kong You must declare your income in pounds sterling:

Total income from April 6 2022 to April 5 2023

tax rate

First £12,570

0%

£12,571 to £50,270

20%

£50,271 to £150,000

40%

Over £150,000

45%

UK Capital Gain tax

​Unlike Hong Kong, UK residents need to pay tax on the proceeds when they sell their assets. As for how much tax to pay, it depends on the taxpayer's income tax band.

income tax band

property tax rate

20%

10%

Basic tax band: 18%

40%

20%

28%

Investment tax rates (stocks, business assets, etc.)

National Insurance (NI)

British National Insurance (NI) is one of the government's taxes. It is an extremely important insurance system. Anyone can be protected when they are retired, unemployed, or sick. It is divided into 5 categories, and the tax objects or requirements are different. , and different from general income tax, NI is levied on each job or every situation. For example, if you have two jobs, you need to pay NI tax for each job, and they will not be calculated together. , the following are the types of NI and tax objects:

NI type

tax object

Class 1

general employee

Class 1A/1B

employer

Class 2

Self-employed (annual income£6725 or above)

Class 3

voluntary

Class

Self-employed (annual income more than £11,909)

  • How does WONG&YIP Accountants handle tax issues for customers?
    Our professional accountant team is composed of licensed accountants in Hong Kong and the United Kingdom, and serves individuals, companies, and real estate investment in three categories. ‧Personal aspects: We can provide clients with professional assessment and analysis, answer tax-related questions, and handle tax declaration procedures for clients to ensure that all procedures are compliant. ‧Company aspects: We can help customers establish companies from scratch in the UK, handle daily bookkeeping and accounting work, set up payroll systems, contract company accounting services, prepare financial statements, and handle UK and EU value-added tax, etc. ‧Real estate investment: We can handle stamp duty assessment and tax refund for customers, and tax issues for overseas owners.
  • How much is the fee of WONG&YIP Acountants?
    Since the tax issues or handling methods faced by different people are very different, our service charges will be flexible, depending on the needs and circumstances of customers, and we will give customers fair and reasonable quotations.
  • What documents do I need to prepare?
    Since everyone's tax problems are different and the required information is also different, we recommend that customers contact us with WhatsApp first and explain your situation initially. We will discuss the relevant inquiries with customers and then prepare relevant documents for us to improve services. quality and efficiency.
  • How do accountants protect clients' privacy and confidential information?
    All of our accountants are licensed professional accountants. In all cases, the principle of confidentiality will be observed. Unless legal or professional obligations require disclosure, all information will be kept confidential. We will require customers to sign a confidentiality agreement, encrypt the data provided by customers, keep customer information in a safe place, and protect network security through firewalls and anti-virus software. Management customers no longer need to use the data.
  • What are the benefits of finding a professional accountant to handle taxation?
    Our accounting and taxation services can help clients manage their personal or corporate tax situations more efficiently, and at the same time provide clients with professional tax advice, such as providing advice on reducing tax expenses and improving their personal or corporate financial status.
  • What is the use of outsourcing company accounting services? What are the benefits?
    For start-ups, due to limited resources, most of the accounting work will be undertaken by the founders alone. By outsourcing the accounting work to our company, the boss can focus more on business development, and at the same time avoid being unfamiliar with accounting operations or tax systems. resulting in losses. In the UK, the cost of hiring a professional accountant is high. By outsourcing the accounting work to a professional accountant, you can enjoy professional accounting services at a lower price and avoid the problem of hiring the wrong person. Therefore, outsourcing accounting services is often used in many cases. It's all safe practice.
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