Whether you have complex personal tax affairs or simply need to report income from a Buy to Let property then we can assist you to comply with self-assessment personal tax returns and to ensure deadlines are met.
In addition, we can work with you to ensure that your personal tax affairs are structured in a way that mean you pay no more tax than is necessary and we can liaise with HMRC on any matters that may arise from time to time.
With HMRC introducing new digital reporting requirements now is a good time to ensure you are fully compliant by letting us manage your tax affairs for you.
Below are listed some frequently asked questions. If you can’t find the answer here, or you need more help, please get in contact with us.
What are the current tax bands up to April 2026?
The Government has announced that there will be no increase to the current personal tax thresholds or bands until 5 April 2026. This means that the value of these bands will be eroded by inflation over the next 4 years, and you could find your income shifting up into the next band to maintain the same standard of living.
The current bands and tax rates are as follows:
Personal allowance £12,570 0%
Basic rate band £12,571 – £50,270 20%
Higher rate band £50,271 – £100,000 40%
Personal allowance withdrawn £100,001 – £125,140 effective tax rate up to 60%
Additional rate band £150,001 + 45%
Child benefit £50,000
If I am a Director of a company should I pay myself a salary? If so, is there an optimum amount?
The minimum tax efficient salary is £9100/annum, or £758.33 per month, which is the level up to which no national insurance is payable.
My business has made a profit, should I increase my salary or pay myself a dividend?
Once you have paid yourself the minimum salary it is generally more tax efficient to pay yourself dividends because there is no national insurance payable on dividends.
In 2022/23, the first £2,000 of dividend income is taxable at 0%. We recommend you take advantage of this allowance, provided you have sufficient distributable reserves available. Please remember that this £2,000 limit includes dividends you receive from any shares and investments you hold, including dividends which are reinvested in new shares, and not just the dividends from your personal service company.
As a director can I claim small expenses, like a haircut for an important business meeting?
In short, yes! This is a small allowance but nevertheless having the company pay for some wine, clothes or maybe a haircut for you, and this being treated as a tax-deductible expense is a good option. Plus, for higher rate taxpayers it could save you tax and NI of £175 per year.
You must make sure you stay within the rules though! For a close company these are:
• Maximum of all such benefits per tax year is £300 per director/employee.
• Each benefit must cost no more than £50 (including VAT)
• The benefit must not be cash or exchangeable for cash
• Must not be a reward for services or in any way obligatory.