How an Accounting System Can Save You Money on Income Tax

April 5, 2016

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The world of income tax and accounts is a complex and changing one. This is why the majority of taxpayers prefer to rely on an accounting system that not only takes care of their tax needs efficiently but also helps to save money on their income tax return. The Government is forever trying to close the loopholes that allow one to avoid paying taxes, and this is morally wrong. In general, one must pay tax on savings. Basic taxpayers pay about 20% of the interest while higher taxpayers pay about 40%. However, with the help of the right accounting system, there are ways to protect savings from the taxman.

How much income tax you pay will depend on the kind of income you make. As a UK citizen, one might be earning Non-savings income, Savings Income and Dividend income. A competent and experienced accounting system can help you deduct your tax-free allowance and calculate the right tax you need to pay. Most people are not aware of the special rules that apply to very low levels of savings income. Surveys show that Britain’s taxes are the highest in the world, and the wealthier Britons are taxed at a higher rate, according to a new analysis. This shows that there is all the more good reason to hire a competent tax accountants firm to save money on tax.

Gain financial confidence once you have a good accountant by your side. Take advantage of his expertise and experience and let him take care of your income tax returns and help prepare annual accounts as well as claim expenses. Now you can be confident of doing things correctly and staying on the right side of the law while saving money where you need to. A good accountant will offer you the trusted advice you are looking for and will do a lot more than simply crunching numbers. Develop your business and remain free of all those hassles related to tax because of a valuable and unbiased advice.

The governments have a complex way in which it layers the tax burden, and things can get complicated. The UK’s personal tax system has become quite complex. The tax burden gets heavier on the highest earners in the UK, as compared to other countries in the world. The lowest earners can keep 84 percent of their income.