Will I have to pay taxes on my State Pension?
Will I have to pay taxes on my State Pension What is a State Pension? State Pension is a weekly income which most people get from the UK government when they reach a state pension age provided that they have at least 10 qualifying years on their National Insurance record. How much State Pension will I get? The amount of state pension you get from the government depends on how many qualifying years you have on your national insurance record. You need at least 10 qualifying years to get the minimum or the basic state pension which is £141.85 per week. The full new state pension in 2022/2023 is £185.15 per week which is (9627.80) How much tax will I pay on my state pension? State pension is treated as normal income and therefore it will be taxed in the same way as any other personal income. There is a personal allowance of £12 570 for the tax year 2022/2023 ,if your income falls within this limit you don’t pay any taxes. Please note that if you have dividends as your other source of income they are taxed a bit differently. If state pension is your only income, usually you will not have to pay any taxes on it as it will fall within the annual personal allowance. However, if you have income from other sources for tax purposes you will add all the income including the state pension and pay income tax on it depending on which income threshold your income falls in. For example, Mr K receives a full new state pension which is £ 9627.80 he also receives income from renting an apartment which is £ 10 000. His total income will be £19,627.80. The tax free allowance is £ 12, 570 .The total taxable income would be £7,057.8 as this amount falls in the basic rate band Mr K will be taxed at 20% £ State Income 9627.80 Property Income 10 000 Total Income 19, 627.80 Personal Allowance (12, 570) Taxable income 7057.8 Tax rate 20% Tax payable 1411.56 You do not pay national insurance when you reach state pension age unless you are self employed and paying class 4 national insurance. How will deferring my state pension affect the taxes I pay ? If you defer your state pension you might end up getting an increased amount of state pension and this could mean that you might have to pay taxes if it exceeds the annual allowance. You might want to defer your state pension if you are still working and you don’t want to lose pension money in your taxes. How will I be taxed if I am getting a private pension as well? If you have a defined contribution pension pot you can take, usually the first quarter will be tax free but you will pay tax on the rest of it as normal earnings which will add to your state pension for tax purposes. So take special care when you have state pension and private pension and calculate the taxes accordingly. If you have any queries, please don’t hesitate to call Taxaccolega to talk to our accountants and financial advisers who are experts in advising on your taxes. CTA Box See How Much You Can Save CALL NOW Take the stress out of UK taxes and accounting today — speak with a top-rated Taxaccolega chartered accountant for personalised advice tailored to your business or personal needs. Book a free Consultancy Related Posts ID Verification × ID Verification Form For Companies House From 18 November 2025, UK law will require all company Directors and Persons with Significant Control (PSCs) to verify their identity with Companies House. Companies House will issue a personal code to PSCs. Taxaccolega (ACSP) can help collect data and assist. Please answer the questions and upload documents. Personal Details Fornames * Last Name * Date of Birth *
Can Locum Doctors Work Through a Limited Company?
I am a Locum Doctor Can I work through a limited Company? If you are a locum doctor and you are looking for some ways to save on the taxes that you pay to HMRC, you will have to look for your employment status. You pay taxes through PAYE when you are employed by an agency or by the NHS under a fixed term contract. The employer will pay tax and NI on your behalf however, in this way you cannot claim any expenses that you made to carry out the job, for example travel expenses etc. Even Though this kind of an arrangement is a little hassle free and as a locum doctor you don’t have to worry about calculating taxes and submitting your taxes on time this is not a vey tax efficient way to carry out your work as a locum doctor. Another option that you have is to set up a limited company and work through that limited company. When you set up a limited company you can be the director of that company as well as an employee of the company. Setting up a limited company can be demanding as you will have to manage and take care of the deadlines and do all the administration work such as keeping the receipts of your expenses that are related to your work organised which will help you make your accounts accurately, deciding on the time and amount of the dividends, transferring salary on time, claiming expenses, making accurate accounts and submitting them on time, calculating taxes accurately and paying them in a timely manner. You might need to hire an accountant for all the work but don’t worry the accountant fee can also be claimed as an expense against the profits that you make. How is Limited Company Tax Efficient? The limited company can be tax efficient when you pay the right combination of taxes. This means if you pay the dividend and salary to yourself in a way that you have to pay the minimum tax. You get a tax free dividend allowance of £2000 per year and if you are a basic-rate tax payer you will pay dividend tax at 7.5% and if you are an additional rate taxpayer you will pay tax at 32.5% these rates are lower than the income tax rates. You can calculate the dividend tax by using our dividend tax calculator Is my contract under IR35? If you are working through your company you should be very clear in what your contract is really like with your client. HMRC wants to make sure that you are not a ‘disguised employee’ and therefore getting the employee benefits and paying taxes at lower rates. In order to avoid any extra charges and make sure that you are paying the right taxes, it is important that you know if you are falling within IR 35 or not. Being Inside IR 35 means that for tax purposes you will be treated as an employee of your client and your taxes will be deducted at source. Make sure that you are not getting any employee benefits such as maternity pay etc, you are able to provide a substitute if you are not able to work the client will then pay you for the substitute and you will pay the person who substituted, you should not be working for one client. Make sure that you have different clients or atleast change them regularly. If you are a locum doctor or a dentist and you want to form a company contact Taxaccolega and our team of experienced accountants will be there to help you. Taxaccolega accountants in Croydon and Southall will give you all the information that you need. CTA Box See How Much You Can Save CALL NOW Take the stress out of UK taxes and accounting today — speak with a top-rated Taxaccolega chartered accountant for personalised advice tailored to your business or personal needs. Book a free Consultancy Related Posts ID Verification × ID Verification Form For Companies House From 18 November 2025, UK law will require all company Directors and Persons with Significant Control (PSCs) to verify their identity with Companies House. Companies House will issue a personal code to PSCs. Taxaccolega (ACSP) can help collect data and assist. Please answer the questions and upload documents. Personal Details Fornames * Last Name * Date of Birth *
eBay Sellers Import One Stop Shop | Who Needs to Register?
I sell goods on Ebay Do I need to register for Ioss (import one stop shop)? If you are selling your goods online this means that you are attracting customers from EU and Northern Ireland. If your business is registered in Great Britain and you have your consignments going to the customers in the EU and the value of the goods do not exceed £135 have been given the option to opt for IOSS. If you supply consignments to the Northern Island and the sale value of the goods do not exceed £135 and you are also VAT registered in the UK will be able to pay any VAT due to the HMRC through their IOSS return. They are required to tell HMRC about their IOSS registration number before they can move goods to the Northern Island. If I am not registered for VAT? If you are a Business registered in Great Britain and you are not VAT registered because you might be below the VAT registration threshold but you are registered for IOSS, in that case you will be able to tell HMRC about the IOSS registration number before you can move your goods to the Northern Island but no VAT will be charged on the goods supplied to the Northern Island. What exactly is IOSS? IOSS is created for the benefit of the buyer and seller of the goods being transported to the EU and Northern Island. If as a seller you are registered for IOSS your customer will know that the price they are paying includes all the VAT charges and it saves them from the hassle of paying any other hidden charges. What are the benefits of registering for IOSS Although registering for IOSS is optional there are advantages of IOSS. The main advantage of IOSS is that there won’t be delays at the customs, in contrast if you are not registered for IOSS the products might get stuck at the customs where they ask for the VAT and the handling fees. Registering for IOSS means that the VAT is charged at the point of sales and your customers will not have to go through the delays. Happy customers mean a successful business. If You Sell Through Ebay ? If you sell on an online marketplace they must have registered for IOSS. Ebay, amazon and the other marketplaces are responsible for charging, collecting and paying VAT on behalf of the seller. if you are sending your products through the Royal mail they will ask for the market place where their products are sold. The correct IOSS number will be allocated to the item by the Royal Mail, when the parcel arrives at the destination country they would know that VAT has been paid by the information on the package. Who can help me with IOSS registration? IOSS registration can be time consuming, we at Taxaccolega can make it easy for you. You will just have to give us your business details and we will take care of the rest. We are accountants based in Croydon and South hall, call us at 020 8127 0728 or drop us a message here and our team will be happy to help you. CTA Box See How Much You Can Save CALL NOW Take the stress out of UK taxes and accounting today — speak with a top-rated Taxaccolega chartered accountant for personalised advice tailored to your business or personal needs. Book a free Consultancy Related Posts ID Verification × ID Verification Form For Companies House From 18 November 2025, UK law will require all company Directors and Persons with Significant Control (PSCs) to verify their identity with Companies House. Companies House will issue a personal code to PSCs. Taxaccolega (ACSP) can help collect data and assist. Please answer the questions and upload documents. Personal Details Fornames * Last Name * Date of Birth *
How to Close a UK Limited Company – Step‑by‑Step Guide
What Do I Need to Do If i Want to Close my Limited Company If you are thinking of closing your company you have to make sure that you are well aware of all the necessary steps that are required to close the company. This blog contains information that you will need if you want to close your limited company. You might be closing your business for the following reasons: Once you have decided to close your company, you have to consider whether your company is solvent or insolvent. If your company is solvent there are two option available to you: Informal strike off You have to make sure that you let everyone who have stake in the business know of your intentions. Pay all your outstanding bills. You should also make sure that you are on the same page with HMRC. To strike off the company, the director of the company needs to inform the Company’s house by filling in DS01 form. In this form the director will need to give information such as Company`s registration number, the details of the company`s directors and also provide a cheque of £10. After all the formalities by the company`s house You will have to wait for 3 months for your company to be struck off from the register. Due to coronavirus the removal from the register is paused till 10 Sep 2020. De Register from VAT If your business is VAT registered, make sure that you inform HMRC that you no longer want to continue your business and fill in the form to de register the VAT. A de registration date will be given to you by HMRC and till that date you will account for all the VAT. Fill in the Final VAT return up to this date and submit it to HMRC. Corporation Tax You must make sure that all your corporation tax bills are paid. Get you final accounts made and fill in the corporation tax return and submit it to HMRC and companies house. If you want help in preparing your final accounts contact Taxaccolega at 020 8127 0728. PAYE SCHEME If you are using PAYE scheme for your employees you must inform HMRC that you are not using this scheme any more. Make sure that you have paid all the wages to your employees. Distribution of the Profit All the profits are distributed to the shareholders as dividends. Members Voluntary Liquidation This process is carried by an insolvency practitioner. In this process of liquidation the assets are sold and distributed to the shareholders as capital and not as divided. These distributions are taxed as capital gains and not dividends. The tax implications that arise in each case will be discussed in the next blog. Other options available to you are making the company dormant if you think you would want to continue your business in the future. In the mean time you have to fill in tax returns as nil. If you working as a sole trader in the meantime don’t forget to fill in self-assessment tax return. If always better seeking professional advice as there is no one solution which fits everyone. We at Taxaccolega analyse each situation and advise accordingly. So you can close your limited company in most tax efficient way. Please do not hesitate to contact us at 020 8127 0728 or drop us a message by visiting https://www.taxaccolega.co.uk/contact-us we will be very happy to help you. We provide accounting services at very reasonable rates. You can have a look at our packages https://www.taxaccolega.co.uk/about-us/fees. CTA Box See How Much You Can Save CALL NOW Take the stress out of UK taxes and accounting today — speak with a top-rated Taxaccolega chartered accountant for personalised advice tailored to your business or personal needs. Book a free Consultancy Related Posts ID Verification × ID Verification Form For Companies House From 18 November 2025, UK law will require all company Directors and Persons with Significant Control (PSCs) to verify their identity with Companies House. Companies House will issue a personal code to PSCs. Taxaccolega (ACSP) can help collect data and assist. Please answer the questions and upload documents. Personal Details Fornames * Last Name * Date of Birth *