why tax legalisation is important

Tax legalisation changes frequently and it is important that every company gets it right. This is so that every employee pays the right amount of tax. Companies will need to legalise certain documents before they can use be used for business transactions. In this blog, we will be discussing the importance of tax legalisation.

What is tax legalisation?

Taxation is a compulsory system that governments use to collect taxes from people and businesses, based on their income, assets, or transaction values. The main purpose of taxation is to raise revenue for the government.

All governments’ needs revenue. Tax is one of the ways that government can make revenue and use it to pay for public goods and services. Without the help of tax, our goods and services would not run smoothly. Tax must be kept at a reasonable level not too high, if too high it could lead to employee dissatisfaction.

There are different types of taxes such as income tax, sales tax, national insurance tax, corporation tax value-added tax and much more. Although the government does use taxes to promote beneficial activities, such as starting a business or getting an education or to limit undesirable behaviour, such as smoking and drinking alcoholic beverages. The amount of tax that businesses have to pay depends on the business and how well it’s doing.

Importance of tax legalisation

HMRC is the main department in the UK that processes, collects and accepts tax returns from UK companies and employees. There are certain documents that need to be legalised before they can be used for business transactions or employment applications abroad. For example, non-UK residents will need their P60 to be legalised before they can start working in the UK to show proof of employment to avoid double taxation. Likewise, UK residents would need to legalise HMRC tax documents such as P45 to show proof if they work abroad.

tax obligations

Without professional help, you could get taxes wrong which can be harmful to your business. This includes things like; Tax Law, Tax Planning, Tax Returns, Tax compliance. We are always up to date with the tax law, we can provide you with advice when it comes to tax liability, tax planning and compliance.

Process of legalising tax document

The most common documents that need to be legalised are standard personal documents, cooperate business documents and educational documents. There are 5 steps for legalising tax documents:

  1. Send the original documents
  2. Documents need to be checked
  3. Verified by a solicitor and apostilled 24 hours
  4. If needed the document is taken to the embassy for legalisation
  5. Documents are returned to you domestically or internationally

It would take around 3 days for this process and cost between £105-£135 including VAT.

How we can help

At Carrington Blake, we constantly keep an eye on tax laws and we will provide you with the relevant advice that you need about tax. We will help you take care of all the work so you can relax.

Want to know more? Contact us today on 0207 537 6628 or leave us an email at sales@carringtonblakeaccountancy.com.

Related Posts

No Comments Yet.

Leave a Comment

Sign up for our Newsletter

Sign up and get the latest information

Your Name

Your Email