Every individual is liable to pay tax on the income he earns in a year through various sources. Not all income is taxable and you’re only taxed on taxable income above a certain level. There are various reliefs and allowances that can reduce your Income Tax. Various sources of an income can be;
Non-taxable income There are certain sorts of income that you never pay tax on. These include certain benefits, income from tax-exempt accounts, Working Tax Credit (WTC) and premium bond wins. These income sources are ignored altogether when working out how much Income Tax you may need to pay. A careful & efficient tax planning for small businesses ensure that you do not pay a single penny extra to what you actually owe to the state, please feel free to contact us to explore the ways in which we can help you. Taxable Benefits that you might have to pay tax on include:
Company cars or vans
fuel provided for your vehicle
loans at low-interest rates
For further details please contact us. [table id=1 /] *The 10 per cent starting rate applies to savings income only. If, after deducting your Personal Allowance from your total income liable to Income Tax, your non-savings income is above this limit then the 10 per cent starting rate for savings will not apply. non-savings income includes income from employment, profits from self-employment, pensions, income from the property and taxable benefits. [table id=2 /] *The Personal Allowance reduces where the income is above £100,000 – by £1 for every £2 of income above the £100,000 limit. This reduction applies irrespective of age or date of birth. [table id=3 /] * Tax relief for the married couple allowance is given @ 10%. ** These Allowances reduce where the income exceeds the income limit by £1 for every £2 of the income above the limit. This applies until the Allowance is matched with those people aged under 65 years. For a married couple, it applies until it reaches the minimum limit. At BNW Accountants Ltd we provide full tax planning for you, we are only a call away from you so please follow the link to CONTACT US .