In the UK, the tax year runs from 6 April through to 5 April. During this time the Government requires everyone to pay an appropriate level of income tax on their earned income, which helps to pay for things like education and healthcare. As well as income tax, you could also be liable for capital gains tax on profits you make from any chargeable assets you have sold, or for tax on gifts you have made during your lifetime. If your estate is over a certain value when you die, it will also be subject to tax, known as Inheritance Tax. Tax planning is best done with the help of a financial adviser or an accountant. They will be able to help you plan your taxes in advance, and come up with effective strategies that will use the lawful reliefs and allowances to minimise the amount you have to pay. They will usually assess your financial situation, and look at your financial goals to help come up with a suitable strategy for you. You can find a local financial adviser or accountant here. If you are registered for VAT, you must keep certain business records and VAT records of your sales and purchases. You must also keep a separate summary of your VAT, called a ‘VAT account’.
