JWD Accounting and Tax Services
JWD Accounting and Tax Services

FAQs

What is my Personal Allowance for Income Tax and what are the Income Tax rates?

Allowance

Tax Year

2019/20

Tax Year

2018/19

Personal allowance £12,500 £11,850
Income limit for personal allowance £100,000 £100,000
     
Rate

Tax Year

2019/20

Tax Year

2018/19
Scotland    
Starter rate - 19% £12,500 - £14,549 £11,850 - £13,850
Basic rate - 20% £14,550 - £24,944 £13,851 - £24,000
Intermediate rate - 21% £24,945 - £43,430 £24,001 - £43,430
Higher rate - 41% £43,431 - £150,000 £43,431 - £150,000
Top rate - 46% Over £150,000 Over £150,000
England    
Basic rate - 20% £12,500 - £50,000 £11850 - £46,350
Higher rate - 40% £50,001 - £150,000 £46,351 - £150,000
Additional rate - 45% Over £150,000 Over £150,000

What are the dividend tax rates for 2019/20?

 

The dividend tax rates for 2019/20 are:

 

  • The tax-free dividend allowance is £2,000
  • Basic-rate taxpayers pay 7.5% on dividends
  • Higher-rate taxpayers pay 32.5% on dividends
  • Additional-rate taxpayers pay 38.1% on dividends.

 

What are the National Insurance Contribution rates for 2019/20?

Monthly earnings

Employee

Class 1

Employer

Class 1

£0 - £719.33 0% 0%
£719.33 - £4,166.67 12%  
£719.33 - £4,166.67   13.8%
Over £4,166.67 2% 13.8%

 

When is the dealine for submitting my Self Assessment Tax Return and paying any tax due?

 

If you are submitting your tax return by paper, it must reach HMRC by 31st October. If you are submitting your tax return online, it must reach HMRC by 31st January.

 

For the 2018/19 tax year (6th April 2018 - 5th April 2019), your tax return must reach HMRC by 31st October 2019 (paper) or 31st January 2020 (online).

 

You have to pay the balance of any tax that you owe by 31st January following the end of the tax year. This is 31st January 2020 for the 2018/19 tax year. This payment deadline is the same for paper and online returns.

 

If the tax you are due for the previous year is more than £1,000 you will have to make 2 payments on account during the year towards your next tax return. These will be made on 31st January and 31st July and will be half of the tax due for the previous year.

 

Are there any penalties for missing the Self Assessment Tax Return deadline?

 

Yes, the penalties for late submission are as follows:

Length past deadline Penalty
1 day A £100 penalty will be due.
3 months late A £10 penalty for each following day up to a maximum of £900. Plus the £100 penalty above.
6 months late The higher of £300 or 5% of the tax due. Plus the penalties above.
12 months late The higher of £300 or 5% of the tax due. Plus the penalties above. In certain circumstances, HMRC may ask for 100% of the tax due instead or impose higher penalties.

 

When are my Limited Company Accounts due to be filed?

 

Your limited company accounts are usually due to be filed with Companies House within 9 months of your accounting reference date.

 

If you are filing the first set of accounts for your company and they cover a period of more than 12 months, they must be filed within 21 months of the date of incorporation or 3 months from your accounting reference date, whichever is longer.

 

When is my company's Corporation Tax Return due to be filed and when does the Corporation Tax have to be paid?

 

Your company's Corporation Tax Return is due to be filed within 12 months of the end of your company's Corporation Tax accounting period. A company's Corporation Tax accounting period is usually 12 months long and will normally match a company's financial year.

 

Your company's Corporation Tax is due to be paid before the deadline for filing the Corporation Tax Return. It must be paid 9 months and 1 day after the end of the Corporation Tax accounting period. If your company's profits are greater than £1.5 million, you will usually pay Corporation Tax in installments.

 

What are the Corporation Tax rates?

Rate

From

1 April 2019

From

1 April 2018

Main rate (all profits except ring fence profits) 19% 19%

 

What is the VAT registration threshold?

 

If your VAT taxable turnover is more than the £85,000 registration threshold over the last 12 months, you have to register for VAT. Furthermore, you have to register for VAT if you expect your VAT taxable turnover to go above the threshold in the next 30 days alone. You are also required to register for VAT if you take over a VAT registered business as a going concern.

 

What are the payment deadlines for PAYE and Class 1 NICs?

 

Electronic payments of PAYE and Class 1 NICs must be made by the 22nd of the month following the month to which they relate. For example, any PAYE or Class 1 NICs due for May 2019 must be paid by 22nd June 2019. Postal payments must be made by the 19th of the month. If your PAYE and Class 1 NICs payment is going to be less than £1,500 per month, you can choose to pay quarterly.

Contact us

If you would like to discuss any of our services or to arrange a free initial consultation, please contact us:

 

Telephone:

0131 346 7214

 

Mobile:

07738 929083

 

Email:

info@jwdaccounting

.co.uk

 

Address:

14/2 Hermand Terrace

Edinburgh

EH11 1QZ

 

Alternatively, please use our contact form.

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