Financial advisor services in Dundee (and wider Scotland) have never been more sought-after and important than they are today. This is due to the way in which the tax system has changed under the devolved Scottish Parliament. The Chartered Institute of Taxation (CIOT), the UK’s leading body for taxation professionals, has been making ongoing recommendations regarding Scotland’s newly devolved tax powers. With tax legislation changing, it is increasingly valuable to have professional accountants in place, with the expertise and experience to ensure that you don’t lose out.
So what is it about these changes that really matter for sole traders and small businesses paying taxes?
Understanding The Changes To Legislation
When the Scottish Parliament announced in February 2017 that it was setting its own tax rates (different to those across the rest of the UK) it brought up a number of pressing issues that could affect taxpayers.
Sole traders who have been handling their own taxes and accounts in Scotland must, therefore, be wary of these changes. While the only change from the rest of the UK initially related to charging a higher rate of tax in Scotland, the CIOT has claimed that this could have knock-on effects for the whole of the UK’s taxation system.
The CIOT is a non-governmental body and it’s not aligned with any political party. As an educational charity, it is focused on promoting the education and study of taxation practices. So its viewpoints on this matter are very important – especially since it has been crucial in submitting recommendations to the current Scottish Parliament regarding these changes.
It is thought that these changes will have an effect on taxpayers who receive personal savings income; taxpayers with dividends; and taxpayers who benefit from some marriage allowances. But there are certain aspects of taxation that have not been devolved from Westminster – thus making the situation more complex in Scotland than the rest of the UK.
Now is the best time for Dundee-based sole traders to look for local accountants and financial advisors across Angus and Tayside. A qualified tax advisor in Dundee can help sole traders and those who are self-employed understand what the changes mean for their business and for other local industries.
How A Dundee-Based Financial Advisor Can Help
So with that in mind, how exactly can a financial advisor help sole traders during this transition to the Scottish rate of income tax (SRIT)?
Well, one example of a potential problem is that the changes could affect any employees or contractors that you may have working with you but who are based elsewhere in the UK. Not only that, but if you personally hold dual residences both in Scotland and in the rest of the UK, this could affect how your taxes are paid. In such an instance, the tax you pay is dependent on your ‘main residence’. If this isn’t clearly identifiable, then you will have to work out your rate of tax based on the number of days you spent in Scotland versus the time you have lived elsewhere in the UK.
As you can imagine, this is potentially incredibly complicated – and that’s exactly why a financial advisor or accountant can help. This could be as simple as retaining records and documentation that will aid in determining your taxpayer status. This might include documentation such as household bills, GP registrations, bank statements and so on. But, as aforementioned, more changes will come. With those in charge at Holyrood seeking to devolve still more powers from the Westminster government, it is important for business owners to keep track of any and all changes.
Alternatively, of course, you could hire professional and experienced Dundee financial advisors such as MMG Chartered Accountants to keep you right and do the heavy lifting for you!
Why Choose MMG Chartered Accountants
Irrespective of whether you are a sole trader, running a smaller business or running a larger business that has employees across Scotland, these new rules have the potential to affect every business operation in Scotland.
Our experienced chartered tax advisors can save you time and money, as well as offering expert accounting and financial strategies to help your business grow – no matter how big or small. For more, please visit https://mmgca.co.uk, email us via email@example.com or give us a call on 01382 322004 to get started.