taxation

uk income tax

UK Income Tax is charged on earned income, such as business profits for a sole trader or partnership and employment income, and also on investment income such as building society interest, dividends etc. Income Tax is charged at different rates, depending on the amounts of income, i.e. 10%(for savings income below a certain level), 20% and 40%.

Before any tax is charged, individuals are entitled to receive income of a certain amount and this is known as the Personal Allowance. This is currently £5,435 for most individuals and it increases once you reach the age of 65 (depending on total income). Quite often, individuals can overpay Income Tax in a year, perhaps because their income did not exceed the Personal Allowance or because they have paid tax at a higher rate than they should have. If you believe that you may have overpaid Income Tax, our tax department can perform a calculation to check your position and, if necessary, submit a claim for repayment to the Inland Revenue.

With regard to Tax Planning, it is important that you maximise all Income Tax Reliefs and ensure that you are utilising the lower rates of tax and here at Stiles and Co, we can help to ensure that this is done.