Anyone can tell you how unpopular the tax man is. However, for some of us the inevitability of a visit off the tax man is something we simply have to deal with. Due to the state of the economy and the economic crisis over the past few years, tax has risen in recent times. This might not mean much to you without some context. To put it in realistic terms, out of £100 you earn, you will only get to spend £62 of that and the rest will go towards national insurance, income tax, vehicle tax and council tax.
We live in one of the best economies in the world. We have free healthcare, all our emergency services are free and we have a welfare state in place so realistically all our taxes go towards this. However, in some cases this is false as we have been exposed to the realities of what goes on in the treasury.
But that is a story for another time. Instead, we must all strive to be good hardworking people and look to stay on the right side of the law and pay our taxes if we wish to live such privileged lifestyles.
For starters, always make sure you check if you are due a tax rebate in the near future. Tax rebates can mount up over the years, so keeping on your toes and checking updates will give you an idea of how much tax you should be paying each year. Also, if you have a business then paying your corporation tax and self assessment on time will save you a lot of money and you can also see if you are owed any repayments.
By paying your corporation tax on time and filing the documents before the deadline this will keep you on the right side of the tax man. If you cannot pay your corporation tax fully then you can set up payment plans.
Placing your money into cash ISAs is a good way of saving money and gaining interest which cannot be taxed. This, over a period of time, will have earned you a lot of money on top of your savings which really is what everybody wants.
Above all, however, ensure that you pay the correct amount of tax each year. Tax evasion is a criminal offence and just because you haven’t heard from the tax man yet, doesn’t mean that you won’t be investigated in full at some point in the future.
Sadie Greene writes on behalf of http://www.pro-tax.co.uk/
How To Keep On The Right Side Of The Tax Man
