YOUR VIEW; This week Joe Michna, manager of Hartlepool Citizens Advice, talks about Income Tax rates.
Q. What is taxable income? A. Your taxable income is not the same as your total income. This is because most taxpayers are allowed a certain amount of tax-free income (called a personal allowance). Some people may also get other allowances and tax reliefs. You may also have some income that is not taxable. To work out your taxable income, add up your incomes from all sources, then take away your personal allowance, any non-taxable income and any other allowances and reliefs. A tax year runs from 6th April one year to 5th April the following year. Q. What is the personal allowance? A. For the tax year 2016 to 2017, the basic personal tax allowance is PS11,000. People with incomes over PS100,000 get a reduced rate personal tax allowance or none at all, regardless of date of birth.
Q. What is the zero rate of income tax? A. If your taxable income is no more than PS11,000, then the rate of income tax is zero Q. What is the basic rate of income tax? A. Tax is payable at the basic rate of 20% on taxable income up to PS43,000.
Q. What is the higher rate of income tax? A. If you have taxable income of more than PS43,001, you will have to pay the higher rate of 40% tax on the amount above PS43,001 up to PS150,000 Q. What is the additional rate of income tax? A. If you have taxable income of more than PS150,001, you will have to pay the additional rate of 45% tax on the amount above this level. Q. What is the Personal Savings Allowance? A. From the April 6, 2016, most people can earn some income from savings without paying income tax. If you are a basic rate taxpayer, you can earn up to PS1,000 in savings tax free. Higher rate taxpayers will be able to earn PS500. This is called the Personal Savings Allowance. If your total taxable income is PS17,000 or less, you won't pay any tax on your savings. Q. Where can I find out more? A. The GOV.UK website has more information on tax allowances and tax rates.
|You can also contact a Citizens Advice office in Darlington, Hartlepool, Middlesbrough, Stockton and Redcar and Cleveland.
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|Publication:||Evening Gazette (Middlesbrough, England)|
|Date:||Nov 7, 2016|
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