Keeping up to date with the tax compliance legislation can at times be challenging and time consuming. There is a lot of information available online, through various websites including HM Revenue & Customs however, its not always easy knowing what applies to your specific circumstance as well as when or how.
'Let us take on the burden of your personal taxes'
UNDERSTANDING THE UK PERSONAL TAX SYSTEM
Taxation is an essential part of how the government funds public services like healthcare, education, and infrastructure. For individuals in the UK, understanding how and when taxes apply can seem confusing.
We will break down the key aspects of how UK taxation works for individuals.
What is Tax?
In simple terms, tax is money that individuals and businesses must pay to the government. The government uses this money to fund services like the NHS, schools, roads, and more. In the UK, there are different types of taxes, and individuals are taxed on various aspects of their income and wealth.
Income Tax
Income tax is the most common form of tax that individuals pay. It applies to money you earn, such as:
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Wages from your job
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Profits from a business
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Rental income
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Savings interest
How it works:
The amount of income tax you pay depends on how much you earn. The UK has a "progressive" tax system, meaning the more you earn, the higher your tax rate.
Here’s a basic breakdown of the tax bands for the 2025/2026 tax year:
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Personal Allowance: You can earn up to £12,570 a year without paying any income tax.
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Basic rate: 20% on income between £12,571 and £50,270.
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Higher rate: 40% on income between £50,271 and £150,000.
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Additional rate: 45% on income over £150,000.
For people earning more than £100,000, the Personal Allowance (£12,570) gradually reduces as income exceeds this threshold.
How Do You Pay Tax?
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Through PAYE: If you work for an employer, they will automatically deduct your income tax and National Insurance contributions from your wages before you receive them.
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Self-Assessment: If you're self-employed or have other income that isn't taxed through PAYE, you'll need to complete a tax return each year (Self-Assessment).
How Can We Help?
At MW Tax, we offer a comprehensive service designed to help you prepare, submit, and manage your tax affairs in a straightforward, understandable, and cost-effective way.
Whether you're a director, high earner, investor, landlord, or sole trader, we can help you navigate your tax affairs with ease.
Our goal is to oversee the entire compliance process, handling all the mundane and complex tasks while keeping you informed every step of the way, giving you complete peace of mind.
Your time is precious! Let us take on the burden of your personal taxes, so that you can spend your valuable time concentrating on the things in life that you love to do.
Our Services Include:
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Arranging a flexible consultation meeting, either face to face or virtually, using trusted technology, to discuss your personal tax affairs.
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Providing a pro-active step by step plan, on how to move forward, based on your current and future circumstances.
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Liaising with HM Revenue & Customs on your behalf regarding all tax related matters.
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Collating information from third parties (where relevant) on your behalf.
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Preparing and submitting your annual self-assessment tax return to HM Revenue & Customs by the relevant deadline.
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Calculating and advising on your current tax position including balancing payments, tax repayments and, where applicable, payments on account due by the deadlines.
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Advising on how to make payment correctly and safely.
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Responding to and dealing with queries that HM Revenue and Customs may raise.
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Providing advice on how to mitigate your tax liabilities, using efficient and effective tax planning techniques.
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Keeping you updated on the progress of your tax return.
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Providing appropriate updates to tax changes that may affect you.