Daily Archives: January 4, 2015

What is Income Tax and What exactly do you need to pay it on? 2

What is Income Tax? Income tax, as its name suggests, is a tax on income. It is charged on the: Income of UK resident individuals arising anywhere in the world. ( So if you are a UK resident and earn some money in France, you need to pay income tax in the UK) Income from non-UK resident individuals arising from a source in the UK. (So if you come from abroad, you need to pay tax on any income you earn whilst in the UK) Income of trustees who are UK resident. For the above, you can see that residential status is integral to knowing whether or not you pay […]

Are You Claiming All The Tax Exemptions You Are Entitled To ? Earn £45, 990 Tax Free! 1

The autumn statement which was announced last month has brought about changes to the tax system. Some taxes have gone up whilst others have fallen down. Most of these tax changes will begin to take effect from next April (beginning of tax year). The question on most peoples minds is how to save the most money possible. This article will aim to show steps you can take in order have a tax ‘free’ income of £45, 990; in theory at least! 1)  Personal Allowance = £10, 500. The personal allowance threshold has increased from £10, 000 to £10, 500 meaning that you are able to earn up to £10, 500 […]