Income tax is paid on all income earned by employees and the self-employed. However, some Social Security benefits are also taxable, as are some savings and pensions. For some individuals, calculating their tax can be a minefield, and confusing to say the least. In addition, every year the tax allowances change, and individuals have to use a new mechanism to work out the tax that they owe. The following paragraphs offer tax advice in UK.
Some married couples and individuals that may have a disability, have different allowances. Most savings accounts are taxable, however, this will also depend on the individual circumstances. There is an account known as an ISA, which is exempt from taxation. Moreover, such accounts will impose limits to the amount of money which can be deposited within them.
A personal allowance is the amount of money which is deducted from an individual's total income before taxation has been calculated. Furthermore, there are various allowances which are dependent an on individual's income, marital status and physical health. Age, is another factor.
A Married couples allowance is available to those where one, or both of the partners, was born before 6 April 1935. Any individual that married before 5 December 2005, will often have the personal allowance given to the husband. There are however, some exceptions, and the income and age of the oldest partner within the couple, may determine who the allowances is given to. Any civil partnership or marriage that took place after 5 December 2005, will benefit by a personal allowance which is given to the partner with the greatest income. Furthermore, the level of income of the partner with the highest earnings, and the age of the older partner, may also determine who it is awarded to.
As already detailed, personal allowances alter every year often during April. All those who are eligible to pay tax may be affected. Certain considerations such as physical disabilities, marital status and age, may all have a bearing on the amount of tax that is paid. To obtain tax advice in UK, contact the Inland Revenue, or seek independent advice.
Some married couples and individuals that may have a disability, have different allowances. Most savings accounts are taxable, however, this will also depend on the individual circumstances. There is an account known as an ISA, which is exempt from taxation. Moreover, such accounts will impose limits to the amount of money which can be deposited within them.
A personal allowance is the amount of money which is deducted from an individual's total income before taxation has been calculated. Furthermore, there are various allowances which are dependent an on individual's income, marital status and physical health. Age, is another factor.
A Married couples allowance is available to those where one, or both of the partners, was born before 6 April 1935. Any individual that married before 5 December 2005, will often have the personal allowance given to the husband. There are however, some exceptions, and the income and age of the oldest partner within the couple, may determine who the allowances is given to. Any civil partnership or marriage that took place after 5 December 2005, will benefit by a personal allowance which is given to the partner with the greatest income. Furthermore, the level of income of the partner with the highest earnings, and the age of the older partner, may also determine who it is awarded to.
As already detailed, personal allowances alter every year often during April. All those who are eligible to pay tax may be affected. Certain considerations such as physical disabilities, marital status and age, may all have a bearing on the amount of tax that is paid. To obtain tax advice in UK, contact the Inland Revenue, or seek independent advice.
About the Author:
Eacotts are an accountant in Windsor who offer a wide range of accounting services for businesses and individuals.