Monthly Archives: February 2017

Property taxes highest in the world

Property Tax in the UK


Property tax in the UK is highest in the world. Whether you have an own property where you are currently staying or got it is as a gift, or even passed on due to inheritance, you have to pay some or other kind of tax for keeping it in your possession. The value is so much that it contributes almost 37 percent of the total GDP of the United Kingdom. While most of the people express their discomfort at parting with such a high amount, the system continues. There are quite a few contributing factors for the exorbitant amount of tax rate. Let us look into some of the taxes that the landlords, real estate agents, and the owners have to pay to keep the property in their name.

There are basically three types of tax head that require being paid, namely Central Government tax, Developed National Government tax and the Local Government tax. These are then sub-divided into various categories. Some are direct taxes and others are an indirect tax. These can be paid on a monthly or on a yearly basis. The total property tax contributes more than 10 percent of the total tax collected as per Organization for Economic Co-operation and Development.

uk property taxes

The property tax is levied on the property owner, landlord and the real estate. Anybody with a recurring income from any of his properties as a rental is liable to pay the taxes. The tax liable to be paid is calculated according to the property type. If someone rents more than one property, every property will be treated as individual property and the amount will be calculated accordingly. The tax is applicable to the government treat the rental as an income source and levies income tax on them. It is calculated on the basis of total profit incurred by the individual after paying off the yearly maintenance. For anyone who is a non-resident of UK but owns a property and provides it for rental, the rules are different.

Another type of tax named as Capital Gain Tax is then levied and is calculated differently. This can be up to 18, or 28 per cent according to the income bracket. This tax is paid annually. The non-residents are generally not liable to pay this tax but are liable if the property is used for professional rentals.

One of the most complex taxes that have to be paid for any real estate owner or landlord is Inheritance Tax, which makes the next successor according to the official will as its owner. Not paying could lead to a tax burden on the subsequent owner. The other types of taxes that need to be paid are in the form of stamp duty. There are various slabs which tabulate the general tax rates and the liability of any individual against buying, selling or inherit different properties in the different region.

GM professional accountants are local London based Accountants

How to choose the best Tax Advisor in London

Best Tax advisor in London

When getting your tax done, you want to make sure you get it done right. It’s often a hard and confusing process, but don’t worry, we’re going to take your hand and take you through step by step. If you’re looking for one of the best Tax Advisors in London, you’re at the right place!

What To Look For In A Good Tax Advisor

When it comes to looking for a good tax advisor at GM PROFESSIONAL ACCOUNTANTS, it can be very hard. Not to mention, very expensive. When it comes to looking for a good tax advisor, you need to take a few variables into consideration.

Experience

When you’re hiring a tax advisor, you need to know his or her experience. You want to know that this person has the years of experience needed to be able to help you save money on your taxes. You’d want someone that has the ability to set up bookkeeping services, personal or corporate taxation, audit and report services, setting up and managing accounts, landlord support, tax investigation support, payroll services, and VAT submissions. You also want someone who is constantly updated to the constant changes in the world of taxes. best tax advisor in london

Trust

When ever you’re giving all of your bank account details and information over to someone, what you have to have is tax. Make sure this person is trust-worthy with all of your bank details and other information. You always want someone you feel completely comfortable with. If you feel like that the firm you are working with is not qualified enough to do the jobs they are required, it’s best to find business else where as soon as possible.

Qualifications

When you’re looking for a good tax advisor, it’s probably not a good idea to look up the yellow pages, flip to a page and hope for the best. Since the internet has developed our ability to research companies, it’s best you research what qualifications the Tax Advisor has. If he’s recent, he probably won’t have the experience to stop you from paying as much tax as as possible. That’s what you want to stay away from.

Transparency And Integrity

When you’re looking for someone that you can trust to do your taxes, what you’re looking for is someone that will give you the satisfaction of knowing that all costs and fees have been discussed and agreed to in a professional manner. One thing you need to do as a trusted company is to make sure that all agreements and prices are transparent. This makes it better for you as a client and others to build a healthy relationship. Make sure that you find a firm which has fixed fees so they cannot add or change fees to their advantage when you continue to do business with them.

Why I Should Hire GM PROFESSIONAL ACCOUNTANTS To Do My Taxes

In this section we’re going to give you some advice on why you should get GM PROFESSIONAL ACCOUNTANTS to do your taxes. GM PROFESSIONAL ACCOUNTANTS Provides a service for individuals who are just looking to get their taxes done, as well as sole traders and business owners. The great thing about GM PROFESSIONAL ACCOUNTANTS  is that they offer great bookkeeping services that will stop you having to worry about doing the work yourself. They are a respectable and honest company which is built on a foundation of integrity and trust to provide you with their best service possible.

To Finish Up

If you want a good Tax Advisor, there are many ways to go about it. You can cut some corners and end up getting it done by Uncle Harry, but the chances are he’s probably not going to know how to save you from taxes. If you’re willing to invest a bit more in having a quality agent look at your taxes, and sometimes other areas to help you, then that’s the best solution. Just research who you’re going to go with first completely before you hire someone.

 

 

 

 

 

LATE TAX RETURN PENALTIES   

 PENALTIES FOR LATE TAX RETURNS

The tax year always holds up from 6 April until the 5 April following year. At the end of the tax year (after 5 April) the employees should receive a P60 form from their employer. This form contains the current year income statement, the amount of tax withheld and social security. This must be sent to the HMRC (tax office) by the employer.

If a person leaves his job during the year, the employer must issue a P45 form, which also contains the income, the withheld tax and the social insurance. This form has three copies and the next workplace should transmit copy 2 and 3, that the new workplace may deduct the tax appropriately and return it to the tax authorities.

Smallbusinessaccountants

It is essential that the new workplace receives the data of income from the previous working places, otherwise it will not deduct properly the tax advances, and the person will possibly have tax backlog at the end of the year that he will be required to pay to the tax authority.

 

But who is obliged to submit it?

 

• If you are self-employed

• If you had at least £ 2,500 of untaxed income in the current tax year 

• If your saving or investing was over £ 10,000 before taxation

• If profit was derived from shares, second homes and the sale of other taxable assets

• You are a director at a company (except if it is a non-profit organization and you weren’t paid for it)

• If your or your partner’s salary exceeded £ 50,000 and you required child support

• You have incomes from abroad, after which you must tax 

• You live abroad, but you also gained money from Britain 

• Your salary exceeded £ 100,000

 

If you work as an employee, your employer will arrange this, so you can ease the belly, because you do not have to do anything in this matter. However, the information may be useful for everyone. 

 

According to the British tax authorities (HMRC), tens of thousands of small taxpayers could avoid the lump-sum, simply by an earlier administration of the declaration. Those who administrate before 30 December have the opportunity to pay in installments if their payment obligation is less than 3,000 pounds. Those who owe less than £ 3,000 and want to pay in installments have to return their tax online until the midnight of 30 December and have to request a PAYE (Pay As You Earn) code.

 

 

The late return fine

 

Late return is a quite costly passion. Tax declarations arriving after 31 January are penalized by a late fee of 100 pounds, even if you have no tax liability or you pay your tax on time, and that’s not all.

 

If the tax return is delayed for three months, you need to count another 10 pounds per day late fee, so the 90-day pro-rata late fee and the original 100 pounds fee may climb up to 1,000 pounds. 

 

If the return is delayed for six months, then you have to pay 300 pounds or the 5% of the debt besides the original punishment, depending on which is higher. In case of a 12-month delay another penalty will be added and in severe cases the duty may be even reduplicated. 

 Contact GM professional Accountants and choose a Local accountant to assist in your tax affairs.

GM professional Accountants are Accountants based in London, our Tax advisors are specialists in small businesses and self employed individuals. we offer the whole package from registering you as self employed to bookkeeping services as well as the final accounts and tax returns. Manor park office address, 47 Gladstone Avenue, Manor park, London, E12 6NR, Ilford office address, Unit 14 Clements Court, Clements lane,Ilford,Essex,IG1 2QY Tel: 0208 396 6128,