Are You Paying The Right Tax? Don’t Let It Cost You

Tax code wrong? It could be doing more damage than you realise

Studies show that around nine million (yes 9,000,000) people are currently paying either too much or too little tax. This equates to around £4bn a year because of two reasons – the incorrect tax codes are being issued by HM Revenue and Customs (HMRC) and because of a poor lack of tax planning. Did you know that one in every three UK taxpayers is entitled to a tax rebate? When was the last time you checked the tax code on your pay or pension slip?

 

We all have a personal allowance, which is the amount that we can earn before paying any income tax. This is currently set at the first £12,500 – valid until April 5th 2020 but could possibly change. There are exceptions to this amount, for example if you are claiming for expenses such as wearing a uniform or have a company car, then this amount could be considerably lower. If you are the one of the people underpaying and owe tax, you need not worry. It doesn’t all have to be paid back at once. HMRC will agree a payment plan with you or let you pay off smaller amounts through your salary.

 

HMRC says that one of the reasons this is happening, is due to not being provided the correct information. So, who’s shoulders do this fall on? The employer or employee? You could speak to your employer as they could be missing important information on you, such as your P45 form from a previous employer. Remember that you also need to update HMRC if your circumstances change, such as changing jobs, going self employed or getting a salary increase. If you’re unsure on how these affect your tax code, press the green button for a free consultation with one of our experts.

 

Always keep records and receipts! It can be tedious task but without hard evidence of your expenses, you are essentially giving your money back to HMRC. How can we make this easier for you? By using our platinum partner companies such as Receipt Bank and Xero, you can photograph your receipts and upload them straight onto the system. The incredible software is able to extract the data from financial paperwork quickly so that you can sit back and relax.

 

For businesses, there is also a tax-free allowance. This means that you only have to pay tax when your capital gain is above the set annual amount. For citizens, this currently sits at £11,700, and £5,850 for trusts. Similarly, there are other certain circumstances which may make assets exempt – such as residency, for example. Once this has all been determined, you will need to report this information either through a real-time tax service, or in your annual self-assessment tax return. If this all sounds a bit overwhelming, you can trust Nordens to handle both the reporting and payment of capital gains tax, helping you avoid any risk of inaccuracy or accidental over/underpayment- we’re by your side from start to finish! Read about our Capital Gains Tax Services here. Tip –  If it makes financial sense to sell some of your investments, then doing so just before the tax year and just after the tax year will reduce your tax bill. Why? Because you get to use two allowances and defer the tax on the second sale until January 2021.

 

Many people have expressed that they feel a bit lost when checking their pay-slips and don’t know what their next step should be. If you’re concerned that your tax code isn’t correct, get in touch with our team. Click the green button to book a free consultation. Alternatively contact us on enquiries@nordens.co.uk or call on 02085300720

 
Beyond Accountancy

At Nordens, we're more than just accountants - we're business experts who can help you achieve your biggest goals.

Nordens Strategic

Our specialist strategic division at Nordens boasts some of the leading entrepreneurial business minds in the country. We cater towards delivering consistent success stories, whilst helping businesses achieve above and beyond their initial goals.

Through highly-tailored guidance, coaching and advice, Nordens Strategic are able to define exactly how your business can reach new levels of success.

Regardless of how you define ‘success’ for your business, our strategic service is guaranteed to bring about real and lasting change. By partnering with some of the UK’s top business coaches, we’ll steer you along the path to a greater future.

Accounting 2 You

Every business, no matter how big or small, needs to make the right decisions, and how to best manage your accounts can put huge question marks over your business. Accounting2You is here to take that pressure off and provide you with all the answers you need.

Our bookkeeping branch offers a fully inclusive, comprehensive service that you can trust. Since 2005, our specialist bookkeepers have been successfully managing the accounting of both individuals and small businesses.

With experts in payroll analysis, credit control and financial recording, Accounting2You will lead your business efficiently, and with real purpose, towards a prosperous future.

Voted as EXCELLENT - 9.9 out of 10 based on 167 reviews

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Chris Dyer

Director - Metro Bank

Nordens are always very easy to deal with and extremely professional and efficient. I would have no hesitation in recommending them to my clients for their accountancy needs, no matter how complex they may be.

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Jamie Brown

Co-Founder - Chicmi Limited

Very good to work with - the team go above and beyond to make the accounts easy and efficient. They're all super friendly and a joy to work with.

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Simon Rose

Director - Rose Opticians

I have been using Nordens Chartered Accountants for 5 years and very happy with the service provided. All members of the team are very knowledgeable and have a wealth of experience which has proved very beneficial to my organisation

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Rebecca Bossick

Founder & Director - Physio LDN

Very easy to contact and put me in touch with the right person whenever I need to ask any questions. Extremely knowledgeable and can help me manage my various businesses whenever I need.

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James Aconley

Principal - Pauline Quirke Academy

Great accountants, always available to offer advice. The team have transformed my business.

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Christopher Wilce

Founder - Dataphone

Having worked with Nordens over the last 5 years, not only to look after my annual accounts but they have also provided outstanding professional advice. They have guided me through a Company share buyback with clear and objective advice. We have also been using Nordens strategic services for a couple of years, which has helped bring about significant improvements that exceeded my expectations. With experience of working with several local accountants over my 29 years in business, I’m very pleased with the service I have received from Nordens.

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Dave Hodges

Director - Linekers

Trusted our business with Nordens for over 10 years now and watched the company grow into the successful innovative business it has become today. Deservedly so. Every aspect of financial advice we need is always given promptly and with a smile. We have total confidence in all aspects of advice Nordens give. If you are looking for accountants, its a no brainer!

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Tony Charles

Founder - Foundation Sports Limited

A fantastic, modern, vibrant firm that care about the clients and their staff in abundance. It is rare to find an Accountancy firm with such vibrance and focus and relationships. It is no wonder they win award after award in their field.

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Peter Horlock

Managing Director - Prime Time Boilers

I have been with Nordens for many years now and they are a great accountants.

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Simon Cushing

Founder - Vivid Finishes

We have used Nordens for the last 5 years and have had a great service throughout. The guys are very passionate about what they do and have played a part in the growth of our company, highly recommended.

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Andrew Martin

Managing Director - AMD Interior Architecture

Great Service at Nordens from a friendly very approachable team Particularly Kirsty Willis and Joe Sword who have been helping us since we started the business in 2016.

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James Robinson

Director - Forma London

Nordens provide a first class service. We moved to Nordens last year and have been impressed with the level of service provided. Keep up the good work!

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  Why I Founded Nordens
Accounting 2 You

In November 2002, having sold our other business interests off earlier in the year, I decided to set up Nordens Chartered Accountants. The easy part was knowing how to do it, as I had established and built a smaller practice a few years earlier. The difficult part, for me, was not following the traditional accountancy path. Having run businesses, both successfully and unsuccessfully, I wanted to help business owners resolve their short term problems and work with them to achieve their longer term goals. Business has always been my interest and I love that I can help business owners achieve what seems like the impossible every single working day.

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Mark Norden
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Our limited company accountants have a range of qualifications from The Institute Of Chartered Accountants (ICAEW) to the Association of Chartered Certified Accountants (ACCA). We worry about the bye-laws, regulations and ethical guidelines of the ACCA so you don’t have to! That makes us an ACCA-accredited employer as well as a Professional Passport-accredited one!