Get tax confident with HMRC

HMRC has launched a ‘Tax Confident’ campaign to support people with everyday tax activities. It’s designed to help them improve their basic tax knowledge. We take a look at what’s on offer.

The Tax Confident website offers a range of resources (including simple explanations, videos and tools) to help users get ‘tax confident’ by filling the gaps in their tax knowledge. As a starter there’s a section on tax basics which explains what tax is, how it works and why it matters. Key features of ‘everyday’ tax are covered, including Income Tax, National Insurance and the Personal Allowance.

After that it’s divided into the following sections, each designed for different audiences (linked to different stages in life, when tax matters most).

Working life

This is divided into sections covering:

• Starting work: How tax works in your first job, understanding tax codes and why tax codes change.
• Changing work or income: What happens when you change jobs, have multiple jobs, earn extra income from a side-hustle or become self-employed.
• Tax and big life changes: Information on the marriage allowance, tax when you have children and tax when buying a home.

Tax in retirement

This starts with issues to consider when approaching retirement, followed by sections covering different aspects of tax in retirement:

• Working while receiving a pension: How tax applies if you are doing both.
• How the state pension works: What this means for tax.
• Tax on savings and investments in retirement: What’s taxed, what isn’t taxed and how allowances work.
• Tax when you sell things in retirement: Selling a second home, investments or other items.
• Understanding Inheritance Tax: How it works and what to do to prepare.
• How losing a partner affects your tax: Gives some indication of potential tax issues when a partner dies. 
• Self Assessment in retirement: Explains when you might need to complete a tax return.
• How simple assessment works in retirement: Explains when HMRC will work out your tax.

Small businesses and tax

Guides for the self employed covering:

• Common types of small business tax: Explains that the taxes payable will depend on the business structure.
• Starting out: Information for anyone thinking of becoming self employed or setting up a company. Covers choosing a business structure, setting up in business and registering with HMRC.
• Managing a business: How to deal with tax once the business is up and running, including record keeping, becoming an employer and letting HMRC about any changes.
• How business taxes are collected by HMRC: Making Tax Digital, Self Assessment, company tax returns and VAT returns:
• Industry specific information: Construction and hair and beauty.

Let us know what you think

We respond to tax consultations and calls for evidence and attend meetings with HMRC at which service levels, delays and other issues you raise with us are discussed. We welcome input from members to inform our work; email us to share your insights and feedback.

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