There are many types of tax you might have to pay. This article will help you understand what they are and how the best tax accountant Cobham offers can assist! Let’s dive in!
Income Tax
You’ll find three income tax bands:
- Basic Rate – 20 per cent
- Higher Rate – 40 per cent
- Additional Rate – 45 per cent
Everyone pays the basic income tax rate on their income over their personal allowance. This is £12,570 for the 2023 and 2024 tax years. Anything over £50,270 is at the higher rate. However, you will only be an additional rate taxpayer if your annual income is over £125,140.
National Insurance (NI)
NI (National Insurance) is a special tax that helps with paying state benefits, including the state pension. You will pay it if you’re employed and between 16 years old and the state’s pension age.
Though there are four kinds of NI contributions, employed people only pay the Class 1 contributions unless they choose to make any Class 3 contributions.
Capital Gains Tax
Those who sell or dispose of any assets that rise in value might be required to pay capital gains tax. This includes stocks and shares, business assets, and more. Likewise, CGT is due if you sell a property (though most main homes are exempt).
Why You Need the Best Tax Accountant Cobham Offers
It’s often difficult to know how to file your income taxes, pay NI tax, and deal with capital gains tax yourself. Therefore, it’s wise to hire the best tax accountant Cobham offers. David Beckman & Co Ltd can assist you. Please call 01737 844 322 today for help!
