Income Tax

Understanding UK Income Tax

Understanding the minefield that is UK income tax rules and regulations is something that is best left to the professionals. Phil Owen & Co Liverpool Accountants are just the type of professional Liverpool Accountancy firm that you should be looking for to look after all your income tax requirements.

Income TaxIf you are a business owner whether it is a new start up business of a well-established business, there are great benefits from having Phil Owen & Co payroll services Liverpool look after all that is involved in the paying of your employees and the collection of any income tax that must be passed on to HMRC. Also when dealing with income tax and the payment and collection of it you need to remember that there is also an attached element that is known as national insurance, the two are inexorably linked.

The amounts that are due from each employee may vary because of many different circumstances. The normal or basic rate of income tax is currently 20% of income after the personal allowances have been taken into account. The team of highly skilled and knowledgeable payroll accountants at Phil Owen & Co accountants Liverpool will do all of the necessary calculations for each of the members of staff under your employ and deduct what is due for you to pass on the HMRC.

If you have any employees that are in the higher earning income bracket then there are a number of calculations that have to be made and part of their income tax liability will be at the rate of 40%. Other income tax differences may occur if you have an employee that has in the past made an underpayment to HMRC which means they owe monies that have to be collected. This is normally done through that person’s income tax code being lowered meaning their allowances are different than other staff members.

You may now understand a little more why you should turn to professionals like Phil Owen And Co Liverpool Accountants to sort out your income tax.

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