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Accounting and managing taxes
If you are a low earner chances are you might not have to pay any tax as the current rate in the UK personal allowance is £12,570. Tax free April to April.
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Understand Tax Brackets (UK)
These are your allowances for most of you will pay zero tax to a potential maximum of 20% tax. (CHECK HERE)
With taxes this may be confusing some people believe that if you earn 20,000 per year for example you are taxed on all of your income this is not the case income tax brackets are marginal meaning you have a £12,570 allowance anything over this is taxed at 20% up to 50,000 then anything over that is taxed at 40% so the entire amount is taxed at different amounts this is why its a good idea to use the tax calculator with the
HMRC App and get an accountant to make this process simple and easy. accountants are also tax deductible meaning you can take it off the taxable income as an expense.
For example if you earn £20,000 your taxable income would be £20,000 minus your personal allowance so £7,430 is taxed at 20% meaning the total tax you owe on £20,000 is £1,486.
If you are from Europe you will be taxed similarly with different allowances and brackets on incomes and pay to the home countries tax government authorities.
to get a rough estimate of taxes without potential expenses included or tax deductions. see the HMRC App to work out your taxable income.
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Quickbooks & other accounting software
Doing your taxes on your own or with an accountant can be stressful without a good seamless accounting software to put all your expenses in correct places to manage and organise them seamlessly
We also recommend models get paid weekly instead of daily to create less money management sorting out 52 payments a year vs 365 days a year is much more efficient. then this gives you less work to calculate your taxable income with expenses.
We recommend accountants that specialise in reducing taxes and work with content creators.
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