People in different parts of the world pay a certain amount of their earnings to the government in the form of taxes.
London, United Kingdom, May 18, 2017 (Newswire.com) - Tax money is the amount that you pay back to your government for making use of certain facilities in your region of stay. In this regards, you are liable to pay some amount as tax money for services or products that your buy. For instance, the tax is levied on the vehicle that you purchase and the new house that you buy for you and your family. Apart from this, it is common practice to pay a percentage of the earnings as income tax to the government.
As such, there are certain rules that pertain to the payment of taxes. For instance, when you have to pay the vehicle tax, you are required to satisfy the eligibility criteria, and in the case of income tax, people who come within the taxable income range must pay the taxes without fail. Non-payment of taxes every financial year is considered to be a federal crime. But that apart, you need to get to know about the vehicle and the marriage tax allowance before moving any further.
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Vehicle tax - What is it?
The tax for the vehicles is a form of excise duty levied by the government on the vehicles that you wish to drive or park on the road. Just like how it is mandatory to get a driver’s license before you drive the vehicle on the road, it is necessary for you to register for the taxing of your vehicles with the government. It is a common practice in the United Kingdom to register the purchased vehicles with the Driver and Vehicle Licensing Agency (DVLA). The tax money that you pay for your vehicle would also be collected by them.
The vehicle tax must be paid as long as you plan on driving the vehicle on the road. If you wish to keep the vehicle away in a garage or plan on selling it, all information must be conveyed to the DVLA without any fail. Applying for the tax is simply, but you need to make sure that the due is paid within the deadline.
How to get the vehicle taxed?
Registering the vehicle with DVLA will directly lead to the registration of the same for the taxes. Needless to say, you are required to give the make of the vehicle along with the number on the license plate during registration. A notice will be sent to you every time the due date for paying the taxes come up. This will help you to keep track of your payments.
By making use of the official website of the HMRC, you can now calculate the amount that you need to pay as vehicle tax to the DVLA. You can either directly visit the DVLA to register for the tax or pay the dues using the online payment gateway. As such, there are certain exemptions to the tax norms, which states the types of vehicles exempted from being taxed. These include:
- Disabled passenger vehicles, apart from the ambulances, are exempted from the tax
- Exemption for the vehicles used by disabled people, which can be removed once they stop using the vehicle
- Mowing machines used for cutting grasses are exempted
- Steam-powered vehicles and any vehicle used for agriculture, forestry, and horticulture are exempted
Getting refund on vehicle tax
You need to understand that you are liable for a refund only if you cancel your vehicle tax. For your vehicle tax to get canceled for a refund, any one of the following situations must happen.
- The vehicle registered with DVLA must be sold or transferred to another person
- The vehicle must be taken off the road and kept in a garage in some cases
- Stolen vehicles must be reported for refund separately
- The vehicle must have been scrapped off at the scrapyard or must be written off by the insurance company
Now that you are familiar with taxing your vehicles, it is time to learn about the marriage tax allowance provided to the married couples every year.
Marriage tax allowance- What does it mean?
Marriages can be rewarding and being true to the word; married couples are provided with a certain amount of money as allowance in the UK every year. This concept was started in a move to reward the idea of marriage. Started in the year 2015 in April, many people have benefited out of the marriage tax allowance concept.
Though it is a little-known concept, the concept of the tax allowance for the married couples has helped in reducing the tax money that they have to pay every financial year. Under this, one person is required to transfer a part of their earnings as an allowance to the other person’s account. As such, there are few eligibility criteria that you must adhere to, for getting the benefit of the marriage tax allowance. These include:
- The two people must be married or be in a civil partnership
- One person must be a non-taxpayer, and the other person must be a basic 20% rate taxpayer
- One person must be born before April 6, 1935
There have several new additions to the tax allowance norms right from its initiation. If both the people are born before or after April 6, 1935, they can avail the marriage allowance.
After the marriage, both the people must register with the HMRC to avail the marriage tax allowance benefits. One thing that you need to understand is that the non-taxpayer in the couple, the one who has an earning below the taxable income slot, would have to pay £1,150 as an allowance to the other person’s account. You can use the online payment method in the official HMRC website to transfer the funds to your spouse’s account.
How can DNS accounting firms help?
Now that you know about the two different types of taxes, you might come up with the question of how to manage the situation if you are not experienced enough for the task. This is where the accounting and finance firms come to your rescue. DNS Accountants can help in getting the work done for you in a short period. People employed in the accounting firms are highly experienced in every area of finance and accounting and can even help you in reducing the tax amount that you have to pay every year without compromising on the tax liabilities.
Source: DNS Accountants