Home › Personal › Introduction to the tax system

Introduction to the tax system

An overview of the tax system including self assessment and the taxation of earnings from self employment.

…

This content is only available to our registered users.

Please log in or create a free account, to gain access to our extensive business, personal and tax guides.

Key dates and deadlines
This is a summary of the key filing and payment dates.
The tax system for the self employed
If you start working for yourself, you must register with HM Revenue & Customs within the first three full months of self employment.
Tax and the company car
Details of how the tax system works with company cars.
Child Tax Credit and Working Tax Credit
These tax credits replaced Working Families' Tax Credit, Disabled Person's Tax Credit and Children's Tax Credit and the child-related elements of Income Support and Jobseeker's Allowance.
The tax system for partnerships
If you form a partnership to carry on a business, you must register it separately with HM Revenue & Customs even if the partners have previously been self employed. If the partners are new to business, they must also register individually. Partnerships are registered with a special HM Revenue & Customs partnership team, based at Longbenton near Newcastle.
An introduction to VAT
What is VAT?
Non domicile and residence
New rules relating to residence and domicile came into effect on 6 April 2008. The changes were originally announced in October 2007 as part of the Pre Budget report, and in January 2008 draft legislation to implement the main aspects of the changes was released.
Stamp taxes
Details of the rates and types of stamp taxes.
An introduction to IR35
For many years, people leaving jobs to become self-employed were advised to instead set up one man companies to provide their services. One reason for this might be the security offered by limited liability, but in many cases the use of a 'personal service company' was to create the opportunity for some quite substantial savings, particularly of national insurance contributions (NIC's).
The tax system for companies
Details of corporation tax and company tax returns.
PAYE and NI
Why pay more tax and NI contributions than you need to? We can help you to minimise your liabilities, while ensuring that you comply with your obligations. Just view our PAYE and NI guides to find out more.
Going into the construction industry
There are special tax rules affecting the construction industry, which are designed to ensure that tax is paid by workers in the sector whether they are employed or self employed.
Use of vehicle mileage rates for the self employed
The use of mileage rates is an optional alternative to keeping detailed records of actual expenditure. For either method, journeys must be made wholly and exclusively for business purposes.
An introduction to tax planning
Tax planning is the legal process of arranging your affairs to minimise a tax liability. There are more than 200 such provisions specifically written into tax law. You may invest in shares through an ISA, for example. Here the government encourages taxpayers to avoid tax.
Claiming tax deductible expenses when employed
Very few expenses are tax-deductible from earnings from employment, though two cases in 2010 could mean that the scope is a little wider than previously thought.
An introduction to self assessment
It is a fundamental part of the self assessment system that responsibility lies with you, the taxpayer, to file Tax Returns and pay the right amount of tax, at the right time - you must not wait for the HM Revenue & Customs to ask.
Inheritance tax planning
Planning to minimise the liability to IHT is a team effort involving you and your professional adviser. To enable long-term objectives to be set, it is necessary to make decisions about your finances and your family.