Personal Tax

240_F_44872394_kWgqQtvV3Mib5Ncah7o7rWoRQl5Uw4PX

The Background

Personal Income Tax is a tax you pay on your income. You don’t have to pay tax on all types of income.

You pay tax on things like:

  • money you earn from employment
  • profits you make if you’re self-employed
  • some state benefits
  • most pensions, including state pensions, company and personal pensions and retirement annuities
  • interest on savings and pensioner bonds
  • rental income (unless you’re a live-in landlord and get £4,250 or less)
  • benefits you get from your job
  • income from a trust
  • dividends from company shares

You don’t pay tax on things like:

  • income from tax-exempt accounts, like Individual Savings Accounts (ISAs) and National Savings Certificates
  • some state benefits
  • premium bond or National Lottery wins
  • the first £4,250 of rent you get from a lodger in your home

Income Tax allowances and reliefs

Most people in the UK get a Personal Allowance of tax-free income. This is the amount of income you can have before you pay tax.

The amount of tax you pay can also be reduced by tax reliefs if you qualify for them.

IAIS can assist you through all aspects of your reportable income and allowances and help you optimise your annual personal tax and ensure you pay the correct amount of tax.

 

IAIS is a network of professional firms and individuals providing Tax and Advisory services. We deliver all mainstream Accountancy and Taxation Services as well as Value Added services to clients throughout the United Kingdom and Internationally.