Tax Payments

Tax payments are something that we all have to pay and for most of us that will mean that there is a stoppage from our pay which goes towards our annual tax bill. This regular stoppage is based on our tax bill for the previous year and so although not accurate, means there should be very little difference from this year’s and so therefore very little for us to arrange to pay at the end of the tax year. In some instances, perhaps if we have been sick and not earned as much this year, the stoppages will account for more than the total bill comes to and so we will be due a refund, known as a tax rebate. There are other times when we may be due a rebate, such as if we have children in school and the government have made provisions for parents of school children to pay less tax. There are many reasons why someone may pay less tax than usual and so that is one of the reasons why a tax return is needed each year. However, although there are many reasons why people should get so called tax exemptions, many workers are not aware of these exemptions and so do not place them on their returns and therefore lose them. As more and more people are hearing of exemptions that are being lost, there is a growing number of people that turn to professionals for Tax return solutions, ensuring that no tax exemption is lost by them. The tax professionals are aware of all the exemptions that are current and will know exactly how they can apply to your situation. If you do qualify for an exemption, it will often cover the fee of the professional and still perhaps allow you a saving. Although the government has of course agreed to these exemptions, they will only apply them where they have been requested and so if they are not made note of on a tax return, no tax refund will be given. These none claimed exemptions help to allow a government to make up some of the losses from business taxes. Although a government may have calculated roughly how much they should receive in business taxes, often a business, especially the larger ones which should pay the most, will find it more cost effective to employ teams of tax professionals to find loop holes in the laws to avoid paying some or any taxes. Although sometimes a government might try and force these big multi-nationals to pay, it will usually end up in a court where it may take many years to settle. A multi-national can afford to pay for these long legal battles, especially if they are not paying taxes but a government, will have to find extra revenue to pay for them and of course, they are already short of what they had anticipated. Although this may seem unfair and it is, it is a strategy that an increasing number of larger businesses are utilizing.