Search news archive

 

 

t: 023 80 254 900

f: 023 80 254 906 

e: info@dtlimited.co.uk--------------91 Lakewood Road, Chandlers Ford, Eastleigh, SO53 5AD

When do you pay Income Tax?

Source: HM Revenue & Customs | | 02/10/2018

Income Tax, unsurprisingly, is a tax on income. To be more specific, it is a tax on the income of individuals and non-incorporated businesses. However, there are some types of income where no Income Tax is payable. We have summarised below some of the main income type that are and are not liable to Income Tax.

In most circumstances, taxpayers will not be required to pay tax on all their income, even if it is all taxable because they receive a tax free Personal Allowance (2018-19: £11,850). There are a number of variables that can affect the amount of the Personal Allowance such as claiming the Marriage Allowance, which can increase the amount of the allowance. Taxpayers earning over £100,000 may see their Personal Allowance gradually reduced or wiped out.

The following lists show the main income types that are and are not taxable.

Taxable income includes:

  • Earnings from employment
  • Earnings from self-employment
  • Pensions income
  • Dividend income
  • Rental income (unless using the rent-a-room scheme)
  • Trust income
  • Interest on savings over your savings allowance
  • Certain state benefits (including the State Pension).

Non-taxable income includes:

  • The first £1,000 of income from self-employment
  • The first £1,000 of income from property you rent (not applicable if using the rent-a-room scheme)
  • Income from tax exempt accounts such as Individual Savings Accounts (ISAs) and National Savings Certificates
  • Dividends from company shares within the dividends allowance (£2,000 for 2018-19)
  • Some state benefits
  • Premium Bond or National Lottery wins


 

Latest News

VAT on property service charges
11/12/2018 - More...
A new Revenue and Customs Brief (6-2018) entitled VAT exemption for all domestic service charges has recently been published by HMRC. The brief explains changes to the Extra

Are you ready for VAT filing changes April 2019?
11/12/2018 - More...
The introduction of Making Tax Digital (MTD) for VAT is fast approaching. From April 2019, some 1 million businesses with a turnover above the VAT threshold (currently £85,000)

Is your income approaching £100,000?
11/12/2018 - More...
For high earning taxpayers, the personal allowance is gradually reduced by £1 for every £2 of adjusted net income that exceeds £100,000 irrespective of age. Adjusted net income is

Qualifying for VAT special schemes
11/12/2018 - More...
There are three main special VAT schemes available to small businesses. These are the flat rate scheme, the annual accounting scheme, and the cash accounting scheme. The turnover

Newsletter

With our newsletter, you automatically receive our latest news per e-mail and get access to the archive including advanced search options!

» Sign up for the Newsletter
» Login

Copyright © 2018 - David Tilsley Limited
Cookie Policy |  Privacy Notice
Home     About us   Contact us